(a) A member who has 10 years of credited service shall have a vested right to a service pension.
(b) If a member who has less than 10 years of credited service ceases to be an employee, the member's service credits to the date of termination shall be cancelled unless:
(1) The member again becomes an employee within 4 months after such cessation of employment; or
(2) The member subsequently acquires 5 years of credited service; or
(3) The member has joined the state employees' pension system; and provided that if the member has withdrawn contributions the member repays with interest at a rate determined by the Board.
(c) For purposes of this section, credited service shall include any period during which a member is receiving a disability pension as provided by this subchapter.
(d) A former employee's vested right shall be forfeited upon application for a refund of accumulated contributions.