Section 394. Survivor's benefits

In the case of the death of any electing
  employee,  after  the  effective  date  of  this  election  and   before
  retirement,  the value of the death benefits provided by the contract or
  contracts purchased under  the  optional  retirement  program  which  is
  attributable  to  the  state's  contribution as determined by the board,
  shall be deemed to be an ordinary death benefit provided under a  public
  pension plan within the meaning of section one hundred fifty-four of the
  civil  service  law.   Notwithstanding the provisions of such section of
  the civil service law, a survivors benefit payable thereunder on account
  of the death of any electing employee  while  in  the  employ  of  state
  university,  after  the  effective  date  of  such  election  and before
  retirement,  including  an  employee  subject  to  the   provisions   of
  subdivision three of section three hundred ninety-three of this article,
  shall  be  paid  to  such  person or persons as such employee shall have
  nominated to receive the death benefits  provided  by  the  contract  or
  contracts purchased under the optional retirement program.  In the event
  such   designated  beneficiary  or  beneficiaries  do  not  survive  the
  employee, or if a beneficiary  was  not  so  designated,  the  survivors
  benefit  shall  be paid to the deceased employee's estate or as provided
  in section one hundred three-a of the decedent estate law.