2.—(1) Subject to sub-paragraph (2)—
(a)these regulations have effect, in relation to a transferred employee, as if his new employment and his former employment had been one continuous employment, and
(b)notwithstanding anything in these regulations, a transferred employee who is transferred after 28th February 1986 and was a member immediately before the date on which he is transferred continues to be a member in his new employment.
(2) Sub-paragraph (1) does not affect the operation of paragraph 3 or of regulations K20 to K22.