Section 40

The terms and conditions of service of persons transferred to the service of the Board under section 39 must take into account the salaries and terms and conditions of service, including any accrued rights to leave, enjoyed by such persons while in the employment of the Government and any such term or condition relating to the length of service with the Board must provide for the recognition of service under the Government by persons so transferred to be service by them under the Board.

Nothing in the terms and conditions of service to be drawn up by the Board adversely affects the conditions that would have been applicable to persons transferred to the service of the Board as regards any pension, gratuity or allowance payable under the Pensions Act 1956.

In every case where a person has been transferred to the service of the Board under section 39, the Government is liable to pay the Board such portion of any gratuity, pension or allowance payable to that person on his or her retirement as the same bears to the proportion which the aggregate amount of his or her pensionable emoluments during his or her service with the Government bears to the aggregate amount of his or her pensionable emoluments during his or her service under both the Government and the Board.[29