(2) If amounts transferred under this section are not sufficient to pay the full amount necessary to obtain restoration of the forfeited creditable service or to purchase the retirement credit, the member must pay the remaining amount that is needed to obtain restoration of the forfeited creditable service or to purchase the retirement credit.
(3) The following are eligible retirement plans for the purposes of this section:
(a) A governmental deferred compensation plan described in section 457 of the Internal Revenue Code; and
(b) A tax sheltered annuity described in section 403(b) of the Internal Revenue Code.
(4) The board shall adopt rules and establish procedures for determining whether a member is allowed to obtain restoration of the forfeited creditable service or to purchase the retirement credit by means of a trustee-to-trustee transfer under this section. The rules and procedures must ensure that transfers under this section do not adversely affect the status of the system and the Public Employees Retirement Fund as a qualified governmental plan and trust under federal income tax law. [2009 c.894 §2; 2011 c.722 §7]