(a) The state agency, with the approval of the governor, is hereby authorized to enter on behalf of the state into an agreement with the commissioner of social security, consistent with the terms and provisions of this chapter, for the purpose of extending the benefits of the federal old-age and survivors insurance system to employees of the state or any political subdivision thereof with respect to services specified in such act which constitute “employment” as defined in § 8-38-101.

(b) Such agreement may contain such provisions relating to coverage, benefits, contributions, effective date, and modification of the agreement, administration, and other appropriate provisions as the state agency and commissioner of social security shall agree upon, but, except as may be otherwise required by or under the Social Security Act (42 U.S.C. § 301 et seq.), as to the services to be covered, such agreement shall provide in effect that:

(1) Benefits will be provided for employees whose services are covered by the agreement, and their dependents and survivors, on the same basis as though such services constituted employment within the meaning of Title II of the Social Security Act (42 U.S.C. § 401 et seq.);

(2) The employer will pay to the internal revenue service, at such time or times as may be prescribed under the Social Security Act contributions with respect to wages, as defined in § 8-38-101, equal to the sum of the taxes which would be imposed by §§ 3101 and 3111 of the Federal Insurance Contributions Act (26 U.S.C. §§ 3101 and 3111), if the services covered by the agreement constituted employment within the meaning of that act;

(3) Such agreement or modification of an agreement shall be effective, with respect to services in the employment covered by the agreement or modification thereof, as of the beginning date within the limits provided by paragraph 218(e)(1) of the Social Security Act (42 U.S.C. § 418(e)(1));

(4) All services which constitute employment as defined in § 8-38-101 and are performed in the employ of the state by employees of the state shall be covered by the agreement; and

(5) All services which:

(A) Constitute employment as defined in § 8-38-101;

(B) Are performed in the employ of a political subdivision of the state; and

(C) Are covered by a plan which is in conformity with the terms of the agreement and which has been approved by the state agency under §§ 8-38-101 — 8-38-110;