(1) A retiring member whose final average salary calculation is adversely affected because of a temporary work reduction as defined in statute may file a written application for full salary credit with the board. Such application shall include:

(a) certification from the member's employing agency that the reduction in hours was a temporary measure in response to a budget deficit, and

(b) the employer's accounting of the number of hours, pay periods and hourly salary involved in the work reduction.

(2) The division will calculate the employee and employer contributions due, plus regular interest accruing one month from the end of any pay period of foregone salary, based upon the amount of salary foregone and the employer and employee contribution rates in effect at that time.

(3) The employee will be billed for the employee portion and may make payment in one lump sum or on an installment basis.

(4) Upon payment by the employee, the division will bill the employing agency for the employer share, plus interest. The employer may elect not to pay any interest due, in which case the employee will be billed for this amount.

(5) Upon payment of the total amount due, the division shall add the foregone salary to the monthly payroll reports in the member's file and shall use these new salary totals in the calculation of final average salary for purposes of calculating monthly retirement benefits.

(6) No benefits will be paid until all required payments are made into the employee's account; however, the annuity starting date will be the first day of the month after the employee's last day of membership service.