Section 13-262. Benefits upon re-entry into membership; after retirement

a.(1) Should a beneficiary receiving or entitled to receive a retirement
  allowance under the provisions of section 13-246, 13-247  or  13-248  of
  this  subchapter, re-enter city service, his or her retirement allowance
  and his or her  pension-providing-for-increased-take-home-pay,  if  any,
  shall cease.
    (2)  If  he or she had not served the period of service elected by him
  or her or is under the minimum service retirement age elected by him  or
  her, he or she shall again become a member of the pension system. Except
  as otherwise provided in paragraph three of this subdivision a, if he or
  she  has  served  the minimum period of service elected by him or her or
  has attained the minimum service retirement age elected by him or her he
  or she may file a duly executed and  acknowledged  application  therefor
  within  ninety  days  after  his  or her return to service and thereupon
  again become a member of such fund.
    (3) In the case of  any  such  beneficiary  who  is  appointed  police
  commissioner  or  a  deputy  police  commissioner, he or she shall again
  become a member of the pension system and shall  remain  such  a  member
  while serving as police commissioner or deputy police commissioner.
    (4)  The  annuity  reserve  of  any  such  member  whose membership is
  restored as above provided in this section shall be transferred  to  his
  or  her  credit  in  the  annuity  savings  fund,  and  he  or she shall
  contribute to such fund as if he or she were a new entrant.
    (5) Upon the subsequent retirement of any such member whose membership
  is so restored, he or she shall be credited with all his or her  service
  as a member subsequent to his or her last restoration to membership, and
  shall receive a retirement allowance therefor as if he or she were a new
  entrant,  payable  in  such form as he or she shall select under section
  13-261 of this subchapter.
    (6) In lieu of suspension during restoration to  city-service  of  any
  benefits  payable  in  the  event  of  his or her death by reason of any
  optional  selection  in  respect  to  his  or  her   pension   and   the
  pension-providing-for-increased-take-home-pay, if any, a beneficiary may
  pay  to the fund or funds from which his or her ordinary pension and his
  or  her  pension-providing-for-increased-take-home-pay,  if  any,   were
  payable,  the  amount  by  which  his  or  her  ordinary pension and the
  pension-providing-for-increased-take-home-pay,  if  any,  exceeded   the
  optional  pension and the pension-providing-for-increased-take-home-pay,
  if any, heretofore granted to him or her, in which event  such  optional
  benefit  shall  continue and be payable in the event of his or her death
  as though no payment were suspended.
    (7) In addition, upon his or her  subsequent  retirement,  he  or  she
  shall         receive         the         pension         and        the
  pension-providing-for-increased-take-home-pay, if any, which he  or  she
  was  receiving  or  entitled  to receive immediately prior to his or her
  last restoration.
    b. (1) Subject to the provisions of paragraph two of this subdivision,
  where any beneficiary mentioned in subdivision a of this section,  other
  than  a  beneficiary  serving  as  police  commissioner or deputy police
  commissioner, shall have earned at least five years of member credit for
  service in the police force after restoration  to  active  service,  and
  where  any  beneficiary  serving as police commissioner or deputy police
  commissioner shall have earned at least three years of member credit for
  service during restoration to membership pursuant to this  section,  the
  total  service credit to which he or she was entitled at the time of his
  or her earlier retirement may, at his or her election, again be credited
  to him or her and upon his or her subsequent retirement he or she  shall

  be  credited  in  addition  with all member service earned by him or her
  subsequent to his or her last restoration to membership.
    (2)  Such  total service credit to which he or she was entitled at the
  time of his or her earlier retirement shall be credited as  provided  in
  paragraph  one  of  this  subdivision b only in the event that he or she
  returns  to  the  pension  fund  with  regular  interest  the  actuarial
  equivalent of the amount of the retirement allowance he or she received;
  provided,  however, that in the event that such amount is not so repaid,
  the actuarial equivalent thereof shall  be  deducted  from  his  or  her
  subsequent retirement allowance.