Notwithstanding this article or Article 5 (commencing with Section 20570), when all or a portion of one agency’s contract is merged into that of another, the retirement allowances may be computed separately for service under the former contract and service under the succeeding contract. In these cases, a transferred member shall be subject to the terms and conditions of the succeeding agency’s contract as the member was a new employee of the succeeding agency at the time of transfer.

Furthermore, when all or a portion of one agency’s contract is merged into that of another, and when eligibility for membership is different between the two contracts, the differences shall not create prior service liabilities as against either agency, and transferred members shall not be entitled under either contract to credit for service rendered when they were not eligible for membership.