(A) For two or more beneficiaries last established in the public employees retirement system pursuant to division (B) of section 3307.562 of the Revised Code, the state teachers retirement system shall pay the lump-sum divided equally among the beneficiaries regardless of the percentage of lump-sum specified for each beneficiary by the member.
(B) When a written designation on a form provided by the state teachers retirement system is received by the state teachers retirement system, the designation shall not be deemed filed with the state teachers retirement board in accordance with division (B) of section 3307.562 of the Revised Code unless the form is completed in a manner satisfactory to the retirement system in its sole discretion.
(C) If any accumulated contributions were not distributed through monthly survivor benefits as payable pursuant to section 3307.66 of the Revised Code, the remaining contributions shall be paid to such beneficiaries as the member has nominated pursuant to division (B) of section 3307.562 of the Revised Code. If such designated beneficiaries die before payment of such contributions, payment shall be made in the following order of precedence, with all attendant rights and privileges to the member's:
(1) Surviving spouse
(2) Children, share and share alike
(3) Parents, share and share alike
Payment of such contributions shall be a full disclosure and release to the board from any future claim.