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I will try to answer this as best as I can, being part of an organization that was involved in the largest fraternity merger in history. In 1985, Phi Sigma Kappa merged with Phi Sigma Epsilon. Compared to how it could have been, the merger was relatively straightforward. The ideals of the two GLOs were pretty close to each other, and part of the ritual of PSE was incorporated into Phi Sigma Kappa. Also, our crest was slightly redesigned to include Phi Sigma Epsilon's contribution.
As far as members switching over, they would be Phi Sigma Kappas, but we still recognize the handshake and badge from the Phi Sigma Epsilon days for those who were initiated into PSE. And I think only one school, (maybe Penn State?) had both chapters at their school, so that confusion was minimized as much as possible.
Hope this clears up things and answers your question!
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