(1) Where:
(a) a member of the scheme who is a contributing member retires;
(b) on his retirement, he receives, or is entitled to receive, a refund of contributions under section 56; and
(c) he again becomes an eligible member of the Defence Force but does not so become an eligible member within a period of 90 days after his retirement;
he may, by notice in writing given to CSC within a period of 90 days after he again becomes an eligible member, or within such further period as CSC, in special circumstances, allows, elect to have the whole or a specified part of any period which, before he again became an eligible member of the Defence Force, was a period of effective service taken into account as a period of qualifying service under this Act.
(2) Where a member of the scheme makes an election under subsection (1):
(a) he shall pay an additional contribution to the Commonwealth under this section of an amount equal to 5.5% of the amount of pay that would have been payable to him in respect of the period to which the election relates if the annual rate of pay applicable to him in respect of that period had been the annual rate of pay applicable to him at the time when he again became an eligible member of the Defence Force;
(b) he shall, if he was paid a payment of a prescribed kind (being a payment of, or in the nature of, a gratuity or bounty) under legislation relating to the conditions of service of members of the Defence Force, in respect of the period to which the election relates, pay to the Commonwealth an amount equal to the amount of that payment; and
(c) upon his death or retirement, the period to which the election relates shall, for the purposes of this Act, be deemed to be a period of effective service in relation to him.
(3) This section does not apply in relation to a person who is taken to have retired under section 5B.