(1) Members of the teachers' retirement system called to active duty for a period not to exceed five years and reinstated, in accordance with the provisions of Vietnam Era Veterans' Readjustment Act of 1974, as amended, to a position eligible for membership under the teachers' retirement system shall be considered continuously employed during their military leave when determining vested interest and eligibility for retirement benefits.

(2) Reinstated veterans may elect to purchase creditable service for their military leave to be used in the calculation of retirement benefits. The cost to purchase this service shall be equal to the employee contributions that would have been made had they not been called to active duty. Interest accruing on the balance due to purchase active duty service will not be levied during the first year following the date of discharge. If payment is not within one year following discharge, interest will be assessed as provided under ARM 2.44.405.