(1) Permissible designations. The designation of a member's beneficiaries must be in writing and on file with the Board during the member's employment. A member may designate as beneficiaries only individuals within the following categories:

(a) The spouse who either lives with the member at the time of the member's death or is entitled to financial support by the member;

(b) natural or adopted child or children of the member;

(c) parents or parent of the member;

(d) individuals who are specifically named by the member and who are within any of the following categories:

(.1) stepchild or foster child of the member; or

(.2) child for whom the member stood in loco parentis; or

(.3) individual whom the member is legally obligated to support; or

(.4) a relative by blood or marriage; or

(.5) any other person as designated by the employee.

(2) Invalid designation; death of beneficiary. If, at the time benefits become payable, the designation of beneficiaries on file with the Board is invalid, or if the designated beneficiaries predecease the member, or if the member has failed to designate any valid beneficiary, any benefits payable will be paid to the surviving relatives ranked in the highest category among those listed in § 22-701(1)(a), (b), (c) and (d), except that no benefit shall be paid to any person listed in § 22-701(1)(d) unless such person is specifically designated and survives the member. If no individual qualifies as a beneficiary as set forth herein, no benefit shall be payable except that the benefits payable pursuant to § 22-502 (Ordinary Death Benefits) shall be paid to the deceased member's estate. Categories (a) through (d), set forth in § 22-701(1), shall be deemed to have been listed in rank order of priority for purposes of this subsection. If two or more such beneficiaries are of equal rank, the benefits payable will be paid to them in equal shares unless the member has provided otherwise.

(3) Beneficiary receiving other payments not affected. Except as may be otherwise specifically provided in this Title or the Code, the rights and benefits of a beneficiary shall not be affected by the fact that the beneficiary may receive other payments from the City in a different capacity.