(b) A member shall receive credit for service in the National Guard or armed forces reserve if the member:

1. (1) Applies to the Board of Trustees of the Arkansas Teacher Retirement System to purchase National Guard or armed forces reserve service credit by submitting a completed application form approved by the Arkansas Teacher Retirement System;
2. (2) Provides the system with satisfactory proof of his or her service in the National Guard or armed forces reserve;
3. (3) Pays the system, in full, the actuarial equivalent of the member’s benefits for each year of National Guard or armed forces reserve service credit being purchased; and
4. (4) Has established at least five (5) years of actual service with the system, excluding National Guard or armed forces reserve service.

(e) At the member’s request, a member’s payment for National Guard or armed forces reserve service credit shall be refunded by the system if the:

1. (1) Member ceased to be an active member before the National Guard or armed forces reserve service credit is established as credited service in the system; or
2. (2) National Guard or armed forces reserve service credit is not otherwise used to establish the member’s eligibility for retirement under the system.