(1) Whenever, within five years after the employee is separated from all service entitling the employee to membership in the Public Employees Retirement System, an employee who has withdrawn the amount credited to the member account of the member reenters the service of an employer participating in the system, the employee’s rights in the system that were forfeited by the withdrawal shall be restored upon repaying to the Public Employees Retirement Board within one year after reentering the service of the employer, the full amount so withdrawn, including the amount withdrawn from the member’s account established under ORS 238A.353, together with the interest that would have been accumulated on the sum had the amount not been withdrawn.
(2) Restoration of rights under this section does not affect any forfeiture of rights of a person by reason of withdrawal of an account established under ORS 238.440.