(1) A police officer who is eligible for the retired list under 19-19-401 (1) or (2) may transfer, as of the time the officer becomes eligible, to the retired list or may elect to serve an additional 1 to 10 years as an active police officer.
(2) A police officer whose eligibility depends on 19-19-401 (2) and who completes 20 years of service before reaching 50 years of age is considered to have elected to serve an additional year for each year between the completion of the officer's 20th year of service and 50th birthday, and the officer must be paid the additional 1% for each of those years.