(a) 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:
(1) steps in the pay grade applicable to the budgeted position;
(2) annual leave; and
(3) seniority rights.
(b) 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.