(a) To implement this subchapter, the board of trustees shall:
(1) adopt rules for the conversion of other than annual rates of salary; and
(2) specify the types of pay included in annual salary and any other matter necessary to implement this subchapter.
(b) For the purpose of determining the amount of an employee's optional term life insurance coverage, an employee's annual salary includes benefit replacement pay under Subchapter H, Chapter 659, Government Code, as added by Chapter 417, Acts of the 74th Legislature, Regular Session, 1995.