(1) A covered public employee may designate a beneficiary on a form provided by his or her employer.
(2) The form to designate a beneficiary shall be completed by the covered public employee, witnessed, and submitted to his or her employer to be kept in the covered public employee's personnel file.
(3) Upon a change of beneficiary, the employer shall notify the previous beneficiary within thirty (30) days after the change of beneficiary occurred.
(4) If the covered public employee does not designate a beneficiary, the benefits shall be paid to the surviving spouse or surviving children under twenty-two (22) years of age or, if there is no surviving spouse or surviving children under twenty-two (22) years of age, then to the surviving children twenty-two (22) years of age or older or to the surviving parents.