3. Notwithstanding other provisions of any rules or regulations adopted by the pension board, or any provisions of law to the contrary, a member eligible for retirement by reason of service may file with such pension board a written application for retirement in the form required for such application, electing an option or options where such options are provided under existing pension laws, but requesting that such retirement under said option or options shall become effective on the day immediately preceding his death. The application shall be held by such pension board until the member shall file a later application for retirement, or until his death, whichever of such events shall first occur; and in the event of such member's death while such application shall continue to be so held by such pension board, his said retirement shall become effective with the same benefits to the designated beneficiary as if such member had retired and had become entitled to retirement allowance on the day immediately preceding his death. In the event that a member, who would be eligible for retirement by reason of service, dies while in service before filing with such pension board an application for retirement in the form required for such application, or who, having filed an application for retirement in the form required, dies on or after the effective date of his retirement but before becoming entitled to retirement allowance, he shall nevertheless be deemed to have been retired and to have become entitled to a retirement allowance effective on the day immediately preceding his death; and if he had not indicated his election of an option under which he desired to be retired, he shall be considered as having elected to retire under the option designated as Option 1 if such option is provided for in the present pension law.