Subject to subsection (c) of this section, and except as provided in subsection (d) of this section, an individual who is receiving a service retirement allowance or a vested allowance may accept employment with a participating employer on a permanent, contractual, or temporary basis if the individual immediately notifies the Board of Trustees: of the individual’s intention to accept the employment; and of the compensation that the individual will receive. An individual who accepts employment on a permanent or contractual basis is not subject to a reduction to the individual’s allowance. For purposes of this section, employment is not on a temporary basis if, in any 12–month period, an individual works: full time for more than 6 months; or part time for the equivalent of more than 6 months of full–time work. An individual may accept employment under this section on a temporary basis only if the employment is not in a regularly allocated position. The allowance of an individual who accepts employment on a temporary basis is subject to a reduction as provided in paragraph (3) of this subsection. The Board of Trustees shall reduce the allowance of an individual who accepts employment on a temporary basis by the amount by which the sum of the individual’s initial annual basic allowance and the individual’s annual compensation exceeds the average final compensation used to compute the basic allowance. Any reduction taken to an allowance under paragraph (3) of this subsection may not reduce the allowance to an amount less than the required deduction for the individual’s monthly State–approved medical insurance premiums. The Board of Trustees shall recover from the individual any difference between the reduction required under paragraph (3) of this subsection and the reduction taken under subparagraph (i) of this paragraph. Paragraph (2) of this subsection does not apply to: an individual who has been retired for 5 years, beginning on January 1, after the date the individual retires; or an individual who participates in the Deferred Retirement Option Program established under § 24–401.1 of this subtitle. A retiree who is receiving a service retirement allowance under this title may not be employed by the State or other participating employer on a permanent, temporary, or contractual basis within 45 days of the date the retiree retired.