(a) As used in this section:
(1) “Educational leave” means a leave of absence from employment in a position covered by the Arkansas Public Employees' Retirement System to pursue a degree from an institution of higher education; and
(2) “System” means the Arkansas Public Employees' Retirement System.
(b) On or after July 1, 1987, any person who is a member of the system and who is not receiving benefits under the system on July 1, 1987, shall be entitled to purchase credited service in the system for a period not to exceed twelve (12) months for actual time spent on educational leave, provided that the person:
(1) Has ten (10) or more years of actual service with the system;
(2) Was paid a stipend during the period of educational leave;
(3) Had creditable service before and for at least two (2) years after the period of educational leave; and
(4) Pays or causes to be paid the sum of all employee contributions at the rate and on the compensation that would have been paid had he or she been a member of the system during that period of time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date of the educational leave to the date the payment is received by the system.