| 1. Retroactive application of option. A benefit recipient |
| who exercises the retroactive option provided under this section |
| is restored to membership effective on January 1, 2002. The |
| restored member is responsible for repaying the retirement system |
| for any retirement benefits received from the system after that |
| date and for paying an amount that, together with regular |
| interest on that amount, is the actuarial equivalent, at the |
| effective date of the retirement benefit, of the portion of the |
| retirement benefit based on the additional creditable service for |
| the period between January 1, 2002 and the date the employer |
| again begins to report that person as an active member of the |
| retirement system. The restored member is also responsible for |
| repaying the retirement system for any over earnings under Title |
| 5, former section 17855 based on earnings between September 21, |
| 2001 and January 1, 2002. Payment of the full actuarial cost of |
| the additional creditable service must be made by a single direct |
| payment or by annual direct payments as provided in Title 5, |
| section 17701, subsection 4. Repayment of benefits received |
| after January 1, 2002 and repayment of over earnings received |
| between September 21, 2001 and January 1, 2002 must be by a |
| single direct payment made within 60 days of the exercise of the |
| option under this subsection. Repayment not completed by that |
| date is subject to interest at the rate of regular interest as |
| defined in Title 5, section 17001, subsection 31. |
