(1) A member's entire benefit must be distributed:
(a) over the member's life or the lives of the member and a designated beneficiary; or
(b) over a period not extending beyond the life expectancy of the member or of the member and a designated beneficiary.
(2) If a member dies after the required distribution of benefits has begun, the remaining portion of the member's benefit must be distributed at least as rapidly as under the method of distribution before the member's death.
(3) If a member dies before the required distribution of the member's benefits has begun, the member's entire benefit must be:
(a) distributed (in accordance with federal regulations) over the life or life expectancy of the designated beneficiary, with the distributions beginning no later than December 31 of the calendar year following the calendar year of the member's death; or
(b) distributed within five years of the member's death.