Sec. 2. (a) Each referendum shall be conducted in compliance with section 218(d) of the Social Security Act.
(b) The governor may designate the board or governing body administering the affairs of each retirement system, or the board of trustees in the case of state educational institutions, as the agency to conduct the referendum for the system.
(c) Each board or governing body shall pay the expenses of the referendum for the system it administers, except that:
(1) the expenses of the referendum for a political subdivision participating in the public employees' retirement fund shall be paid by the political subdivision; and
(2) the expenses of the referendum for a state educational institution shall be paid by the institution.