Employees of the airport division of the state aeronautics commission employed at the state-owned airport on the date the authority is established may transfer to the employment of the authority. The authority shall accept the transfers without a break in employment. Employees transferring shall be retained in positions at least comparable to positions held by employees on the date of transfer and without a reduction in compensation or loss in fringe benefits or accumulation thereof. The authority shall by a 3/5 vote of the board elect to come under the provisions of Act No. 135 of the Public Acts of 1945, as amended, being section 38.601 to 38.668b of the Compiled Laws of 1948 and shall adopt the provision of Act No. 88 of the Public Acts of 1961, as amended, being section 38.1101 to 38.1105 of the Compiled Laws of 1948. Employees of the airport division of the state aeronautics commission, who transfer to the employment of the authority on the effective date the authority is established pursuant to this section, and become members of the municipal employees retirement system, shall be entitled to all accrued credits and benefits provided by Act No. 88 of the Public Acts of 1961, as amended.