(a) An active member of a firemen's relief and pension fund may purchase credited service in the pension fund equivalent to a period not to exceed five (5) years for service rendered by the member while on active duty in the United States Armed Forces before the member's employment covered by the pension fund, if the member:
(1) Received an honorable discharge from the armed forces;
(2) Has at least twenty (20) years of actual service in the pension fund; and
(3)
(A) Contributes to the pension fund an amount that is the actuarial equivalent of the value of the credited service to be purchased.
(B) The actuarial equivalent is of the time of the purchase of the credited service and shall be determined by the actuary for the Arkansas Fire and Police Pension Review Board or by the actuary for the Arkansas Local Police and Fire Retirement System for a pension fund under administration by the system.
(b) The board of trustees of the firemen's relief and pension fund shall make the final determination as to the:
(1) Length of purchased service credit;
(2) Amount of regular interest to be charged; and
(3) Manner in which payment is made to the pension fund.
(c) Service credit purchased under this section shall be used to determine the member's total credited service under the pension fund but shall not be used to determine his or her final average pay under the pension fund.