(a) Each state fiscal year, each active employee shall, as a condition of employment, contribute to the fund an amount equal to 0.65 percent of the employee's salary.
(b) The employer of an active employee shall monthly:
(1) deduct the employee's contribution from the employee's salary and remit the contribution to the trustee in the manner required by the trustee; or
(2) assume and pay the total contributions due from its active employees.
(c) Contributions to the fund deducted from the salary of an active employee are included in annual compensation for purposes of the Teacher Retirement System of Texas.