(1)
Subject to paragraph (5), a death gratuity payable upon the death of a person covered by subsection (a) shall be paid to or for the living survivor highest on the following list:
(A)
The employee’s surviving spouse.
(B)
The employee’s children, as prescribed by paragraph (2), in equal shares.
(C)
If designated by the employee, any one or more of the following persons:
(i)
The employee’s parents or persons in loco parentis, as prescribed by paragraph (3).
(ii)
The employee’s brothers.
(iii)
The employee’s sisters.
(D)
The employee’s parents or persons in loco parentis, as prescribed by paragraph (3), in equal shares.
(E)
The employee’s brothers and sisters in equal shares.
Subparagraphs (C) and (E) of this paragraph include brothers and sisters of the half blood and those through adoption.