(1) The liability of the Union in respect of the provident fund account of a Government servant employed in connection with the administration of the existing Union territory and in service on the appointed day shall, on and from that day, be the liability of the State of Goa if that Government servant is permanently allotted to that State.
     (2) The liability of the Union in respect of the provident fund account of a Government servant employed in connection with the administration of the existing Union territory who has retired from service before the appointed day shall be the liability of the State of Goa in the first instance and shall be adjusted between the State of Goa and the Union according to the population ratio.