Except for a retiree who elects an optional form of an allowance under §§ 21-401 and 21-402 of this article, payment of an allowance ends and further rights may not arise from service as a member if:

(1) a member, former member, or retiree dies; and

(2) (i) the member, former member, or retiree leaves no surviving spouse or children who are under the age of 26 years or are disabled;

(ii) the surviving spouse dies and there are no children of the member, former member, or retiree, who are under the age of 26 years or are disabled; or

(iii) the last of any children under the age of 26 years and are not disabled becomes 26 years old or dies before becoming 26 years old.