This section applies only to a local plan that is a qualified plan under § 401(a) of the Internal Revenue Code and provides a defined benefit to its participants. Except as provided in subsection (c) of this section, the operation of the local plan of an eligible governmental unit terminates on the effective date. An eligible governmental unit may elect to continue to operate a local plan after the effective date of participation in the Employees’ Pension System to provide benefits to an individual who: is receiving benefits from the local plan; is eligible to receive benefits from the local plan on account of the individual’s previous employment by the eligible governmental unit; or did not elect to join the Employees’ Pension System under § 23–204(a) of this article. An individual may not be enrolled in the local plan of a participating governmental unit electing to continue to operate its local plan under paragraph (1) of this subsection if the individual becomes employed or is rehired by the participating governmental unit on or after the effective date of participation of the participating governmental unit in the Employees’ Pension System. The liability for the continuation of benefits under subsection (c) of this section shall be included in the computation of the special accrued liability as provided by § 21–305.3 of this article. On the effective date: the assets to the credit of the local plan of the participating governmental unit that are attributable to the employees of the participating governmental unit who elect to become members of the Employees’ Pension System under § 23–204(a) of this article shall be transferred to the Employees’ Pension System; and the trustee or other administrative head of the local plan shall certify the proportion of the funds of the local plan that represents the accumulated contributions of the members as of that date. The accumulated contributions shall be credited to the respective annuity savings accounts of the members in the Employees’ Pension System. Any balance of the funds transferred to the Employees’ Pension System shall be offset against the special accrued liability to be funded by the participating governmental unit as provided by § 21–305.3 of this article.