A contractual employee who transfers to a budgeted position under this subtitle or who is selected to fill a budgeted position in the State Personnel Management System, without a break in service, in the same principal unit that employs the contractual employee, shall be given credit for service in the contractual position for the purpose of establishing: steps in the pay grade applicable to the budgeted position; annual leave; and seniority rights. A contractual employee who transfers to a budgeted position under this subtitle or who is selected to fill a budgeted position shall become a member of the Employees’ Pension System of the State of Maryland.