(1) If a majority of the entities that entered into a consolidated emergency service district were participating employers in the County Employees Retirement System, then the district shall apply to become a participating member in the County Employees Retirement System in accordance with KRS 78.530.
(2) If the district is not required to apply to participate in the County Employees Retirement System as provided for by subsection (1) of this section or does not voluntarily apply to participate in the County Employees Retirement System as provided by KRS 78.530, the following shall apply:
(a) Any employee who was participating in the County Employees Retirement System through an entity that is entering into or petitioning to join in a consolidated emergency services district, shall, provided the employee participating in the system through the entity immediately prior to the entity joining the district, remain a participating employee in the County Employees Retirement System in the existing classification of retirement tier and hazardous duty classification for the remainder of his or her employment with the district as provided by KRS 78.510 to 78.852; and (b) For the purposes of this subsection, the district shall be considered a participating employer of the County Employees Retirement System, but only for those employees described by paragraph (a) of this subsection.