(a) The retirement system and the governing body of a political subdivision that is eligible under the Social Security Act may enter into an agreement to obtain social security coverage for the employees of the political subdivision.
(b) An agreement between the retirement system and the governing body:
(1) must include a provision that an action of the federal government may not impair or impede a retirement program of this state or a political subdivision; and
(2) may include any other appropriate provision, including a provision relating to coverage benefits, contributions, effective date, modification of the agreement, and administration.
(c) The retirement system shall prescribe the terms of agreements necessary to:
(1) carry out this subchapter; and
(2) insure the financial responsibility of the participating political subdivisions.