(a) Where a contributor terminates service before qualifying for a retirement allowance or where a contributor has died before completing ten years of total service, the amount standing to the credit of the contributor in the members' annuity reserve account shall be paid to him or his estate or to the person or persons named in any beneficiary certificate filed by the contributor with the board. When a contributor or a beneficiary has died and there shall be due to the estate of such contributor or beneficiary a sum less than one hundred dollars ($100), and letters testamentary or of administration have not been taken out on the estate of such contributor or beneficiary within six months of death, the board may pay the amount due on the claim of the undertaker or to any person or persons or political subdivision who or which shall have paid the claim of the undertaker.

(b) Where a contributor terminates service after completing eight years of service, he may elect to have the board pay to him the amount standing to his credit in the members' annuity reserve account or, elect vesting and keep his accumulated deductions in the members' annuity reserve account and apply for retirement benefits upon reaching superannuation retirement age.