(1) A member whose service is involuntarily terminated and is later reinstated as the result of a suit, court order, appeal or out-of-court settlement, to which the board is a party, may petition the board for service years and credits to be granted for the period of time lost provided the member is awarded retroactive compensation in settlement of his claim. Lump-sum awards not considered compensation under state and federal tax laws will not be considered compensation for the purposes of this rule.

(2) The board will review among all relevant considerations, documentation provided by the member and will determine the appropriateness of granting service credits and membership service, and the amount of employee and employer contributions which must be paid to the retirement fund based upon the compensation awarded under (1) above and will credit proportional service time to the member after all required contributions, including interest, have been paid.