(a) (1) (A) Any member of the Arkansas Public Employees' Retirement System who became, or becomes, a member after the date that his or her employer became, or becomes, a public employer in the system shall receive current service for employment with a public employer in the system or with a municipality in the State of Arkansas if the employee was not eligible for coverage or does not participate in or is not eligible to receive a benefit from a retirement plan authorized by a municipality in the State of Arkansas and by the laws of the State of Arkansas during employment.

(B) He or she shall receive credit only if he or she has at least five (5) years of current service credit since becoming a member of the system and he or she pays, or causes to be paid, all employee contributions at the rate and on the compensation that would have been paid had he or she been a member during that time, all employer contributions based on the employer normal cost from the most recently completed regular annual actuarial valuation and the compensation that would have been paid had he or she been a member during that time, and regular interest on the employee and employer contributions computed from the date the service was rendered to the date the payment is received by the system.

(2) As used in this subsection, employment by a municipality in the State of Arkansas shall include the mayor, city attorney, city treasurer, city clerk, clerk-treasurer, municipal judge, municipal court clerk, and any other city employee.

(b) The compensation to be used in computing the payments shall be the compensation on which contributions would have been made had the person been a member of the system during the time for which current service credit is purchased.

(c) The payment shall be made in a lump sum.

(d) The member may pay for all his or her prior and interim current service or a portion thereof consisting of multiples of one (1) year.