For any retirement allowance of a member under the Class V School Employees Retirement Act:

(1) Monthly payments become effective on the first day of a calendar month and shall be paid to the member on the last business day of such month;

(2) The first such payment shall include all amounts of money that accrued since the effective date of the award of the annuity; and

(3) The last such payment shall be paid:

(a) On the last business day of the calendar month in which the member dies; or

(b) In accordance with the payment option chosen by the member.