(1) If a vested member dies before reaching normal retirement age, the member's designated beneficiary may choose either a lump-sum refund of the member's accumulated contributions or the actuarial equivalent of the service retirement benefit provided for in 19-8-603.
(2) If a nonvested member dies before reaching normal retirement age, the member's designated beneficiary is entitled to a lump-sum refund of the accumulated contributions standing to the member's credit at the time of the member's death.