The question of retiring a member under Section 2.124.290 of this chapter may be brought before the retirement system manager on such manager's own initiative, by recommendation of the city manager or by such member or his or her guardian. The initiation of the application for retirement, however, only shall be made not later than the last day for which the member receives compensation or within four months after the last day for which compensation is paid or while he or she is physically or mentally incapacitated to perform his or her duties from such last day to the time of the initiation or application. If his or her disability shall cease, his or her retirement allowance shall cease and he or she shall be restored to service in the position or classification at the time of his or her retirement. (Prior code § 34.03.304)