In the event that as of January 1, 1977, a hearing on an application for disability retirement benefits is in progress and the retirement of the member for disability has not been ordered by the retirement board as it existed prior to January 1, 1977, the application for disability benefits shall be deemed to have been filed with the retirement system manager, rejected by the manager and appealed to the retirement hearing commission. The commission shall refer the matter to an independent hearing officer who may, in his or her discretion, hear the entire matter or review the record and continue the hearing. (Prior code § 34.14.1415)