(1) The position of hearing referee under this act is abolished as of March 31, 1987.

    (2) Only worker’s compensation magistrates shall hear cases for which an application for a hearing under section 847 has been filed after March 31, 1986 and shall have the powers and perform the duties prescribed in this act.

    (3) Any case for which an application for a hearing under section 847 has been filed before April 1, 1986 and which has not been heard by a hearing referee by March 31, 1987 shall be heard by a worker’s compensation magistrate according to the law and procedures applicable to cases heard by hearing referees.