If a coordinated member or former coordinated member applies for and is issued a refund pursuant to section 354A.37, all allowable service which was credited to the member or former member shall be terminated.
A coordinated member with at least two years of allowable service credited subsequent to the member's last application for and payment of a refund pursuant to section 354A.37 shall be entitled to repay the refund. The amount of the refund repayment shall be calculated pursuant to subdivision 3. If the member has taken more than one refund, all refunds must be repaid pro rata.
If the coordinated member elects to repay a refund under subdivision 2, the repayment to the fund must be in an amount equal to refunds the member has been issued plus interest at the applicable annual rate or rates specified in section 356.59, subdivision 5, compounded annually, from the date that the refund was issued to the date that the refund is repaid.