(a) Upon withdrawal from service, any member who does not have ten years of credited service and is not then eligible for a service retirement annuity shall be entitled to receive a refund of the accumulated contributions, plus regular interest, including contributions made by the member to any superseded retirement System. Any member withdrawing from service who does not receive a refund and later returns to service shall receive credit for the amount of credited service in force at the time of his withdrawal from service. Any member receiving a refund shall thereby waive and relinquish all accrued rights in the System including all accrued credited service. The System may, in its discretion, withhold payment of a refund for a period not to exceed one year after receipt of an application from a member. If no specific request to the contrary is made by a member within 30 days from the date of his separation from the service, the System may, in its discretion, refund the accumulated contributions of any member who has less than 3 years of credited service; notwithstanding that such member may not have applied for a refund.
(b) Any member who has received a refund shall be considered a new member upon subsequent reemployment if such person qualifies for membership under the provisions hereof. Additionally, the member shall pay to the System the withdrawn contributions, the interest paid on those contributions prior to withdrawal, the income the System would have earned had those contributions remained in the System, and the interest on the unpaid balance, if the member elects to redeposit on an installment basis, provided the payments do not exceed a period of five consecutive years.
(c)
(1) Whenever the System receives from the employer a member’s contributions, due to partial payment of the “salary right” of a member, as defined by section 702(z) of this chapter, and the contributions are not adequate to permit the System to adjust the member’s service retirement annuity for paid membership service, or no Notice of Personnel Action (NOPA) is received to permit the System to adjust the member’s service retirement annuity, the System shall refund the member’s contributions.
(2) Payment of the member’s contributions to the member is final and in lieu of the member’s receipt of membership service credit, and the member is not entitled to any membership service credit that the member would have received, or to which the member would have been entitled, if contributions were paid on compensation created by the “salary right”.