a. (1) Should a beneficiary receiving or entitled to receive a retirement allowance under the provisions of section 13-150 of this chapter, or under sections 13-166, 13-151, 13-154, 13-159, 13-160, 13-161, 13-162, 13-164 and 13-178 of this chapter, or a beneficiary whose retirement allowance under section 13-173 of this chapter has become payable pursuant to subdivision b of such section, re-enter city-service, the payment of his or her pension, his or her additional or further pension and his or her pension-providing-for-increased-take-home-pay, if any, only shall be suspended and forfeited during the period of such city-service except as herein otherwise provided. If he or she is under his or her minimum service retirement age, he or she shall again become a member of the retirement system.
(2) If:
(a) he or she has attained his or her minimum service retirement age but has not attained the age of seventy years and his or her mandatory retirement age, if he or she became a member, would be prescribed by subdivision one of section 13-166 of this chapter; or
(b) his or her re-entry into service occurred on or after July first, nineteen hundred sixty-eight and he or she has attained his or her minimum service retirement age but has not attained the mandatory retirement age of sixty-five or seventy years, as the case may be, which would be applicable to him or her under subdivision three of such section 13-166 of this chapter if he or she became a member; or
(c) if he or she be, or become, an official referee after attaining the age of seventy years; he may file a duly executed and acknowledged application therefor within ninety days after his or her return to service or in the case of an official referee, at any time after his or her return to service, and thereupon again become a member of such system.
(3) (a) Upon the re-entry into membership of any beneficiary, the payment of his or her annuity, if any, shall also be suspended and forfeited and the annuity reserve, if any, of such member shall be transferred to his or her credit in the annuity savings fund. Any such beneficiary shall contribute to such fund as if he or she were a new entrant; provided however, that if, upon such re-entry, he or she became a transit twenty-year plan member (as defined in subdivision sixty-one of section 13-101 of this chapter) who, pursuant to subdivision 1 of section 13-161 of this chapter is relieved of making contributions, he or she shall be a new-entrant but shall be relieved of making contributions so long as he or she is entitled to be so relieved pursuant to such subdivision l. Any discontinued member who has attained the age of fifty-five years and who re-enters into membership at a time when his or her retirement allowance under section 13-173 of this chapter has not become payable, shall also contribute to such fund as if he or she were a new entrant.
(b) Upon the subsequent retirement of any such member who was such a beneficiary or discontinued member, 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 13-177 of this chapter.
(4) In addition, upon the subsequent retirement of any such beneficiary mentioned in paragraph three of this subdivision a, he or she shall receive the pension, the additional or further 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.
(5) If any such discontinued member mentioned in paragraph three of this subdivision a, whose retirement allowance under section 13-173 of this chapter was not payable at the time of his or her re-entry into membership, shall, after such re-entry, file an application for payment of such retirement allowance pursuant to such section 13-173 of this chapter, he or she shall, upon his or her subsequent retirement, be entitled to receive such retirement allowance, in addition to any retirement allowance to which he or she may be entitled under the provisions of paragraph three of this subdivision a.
(6) (i) Subject to the provisions of subparagraph (ii) of this paragraph six, where any beneficiary mentioned in paragraph one of this subdivision a shall have earned at least three years of member service credit after restoration to active service, 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.
(ii) 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 subparagraph one of this paragraph six only in the event that he or she returns to the retirement system 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.
b. Under this section or section eleven hundred seventeen of the charter, during restoration to city-service or service under the state of New York or any municipal corporation or political subdivision of the state, 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 his or her pension-for-increased-take-home-pay, if any, shall be suspended unless the beneficiary shall pay to the fund or funds from which his or her ordinary pension and his or her pension-for-increased-take-home-pay, if any, were payable, the amount by which his or her ordinary pension and his or her pension-for-increased-take-home-pay, if any, exceeded the optional pension and his or her pension-for-increased-take-home-pay, if any, theretofore granted to him or her. In the event of his or her death during any period covered by such contribution, such optional benefit shall be payable. The provisions of this subdivision b shall not apply to any such beneficiary to whom the provisions of subdivision four of section 13-151 of this chapter are applicable.