(1) Notwithstanding section 401, an individual described in this subsection is not a member of the Tier 1 retirement plan:

    (a) An individual who first becomes a judge or state official on or after March 31, 1997.

    (b) An individual who elects to terminate membership under section 701 or 701a and who, but for that election, would otherwise be eligible for membership in Tier 1 pursuant to section 401.

    (2) An individual who first becomes a judge or state official on or after March 31, 1997 is eligible to be a qualified participant in Tier 2 subject to article VII.