Sec. 3. Any amounts transferred under this subsection to the system that represent balances in any fund or account of the public employees' retirement fund or the teachers' retirement fund for the administration of the public pension and retirement funds administered by the public employees' retirement fund or the teachers' retirement fund before July 1, 2011, including any related services, shall be:
(1) deposited in a fund or account designed by the board; and
(2) used by the system for the administration of the public pension and retirement funds of the system and related services.