Notwithstanding § 22-406 of this subtitle and Chapter 703 of the Acts of 1994, if a retiree of the Employees’ Retirement System who had an average final compensation of less than $10,000, retired from an elected position as an official of a participating governmental unit, retired with a service retirement allowance before July 1, 1994, has been reemployed in a permanent position as a State employee and would otherwise have been entitled to be restored to membership in the Employees’ Retirement System except for the enactment of Chapter 703, the Board of Trustees shall, at the option of the retiree: restore the membership of the reemployed retiree; stop retirement allowance payments after the last day of the month that membership is restored; restore previous creditable service and eligibility service to the account of the member; and on payment of the amounts required under subsection (b) of this section, credit the member with creditable service and eligibility service performed beginning the date of reemployment. On restoration of membership, the member shall reimburse the employees’ retirement system for the retirement allowance payments made from the date of reemployment and shall pay the amount of member contributions the member would have made from the date of reemployment plus regular interest to the date of payment. If the member later retires or dies while employed by a participating employer, the Board of Trustees shall reduce the member’s annuity reserve and pension reserve by the amount of payments made to the member during the member’s earlier retirement less any amount that the member reimbursed the Employees’ Retirement System for those payments.