(a) Nothing in this chapter shall apply to the judges' retirement system or the attorneys general retirement system, §§ 17-301 — 17-325 [superseded] inclusive and §§ 8-618 — 8-622 [superseded] inclusive respectively, nor shall it impair existing retirement contracts under title 49, chapter 15 [superseded] or chapters 34-36 of this title as amended, they being the teachers' retirement system and the state retirement system. The state agency is expressly deprived of power to make any agreements voiding or changing any of the terms and conditions of the acts creating and setting up either the teachers' retirement system or the state retirement system, but it may make agreements in conformity with § 218 of the Social Security Act (42 U.S.C. § 418), with reference to the teachers' retirement system and the state retirement system.

(b) Pursuant to § 218(d)(6) of the Social Security Act (42 U.S.C. § 418(d)(6)), the Tennessee teachers' retirement system and the state employees' retirement system, or such components thereof as may be established by the governor or the governor's agent pursuant to sentence one (1) of such § 218(d)(6), shall, for the purpose of this chapter, each be deemed to constitute two (2) retirement systems, one (1) of which is composed of the members of each such system who have expressed their desire to be covered under the Social Security Act (42 U.S.C. § 301 et seq.), and all individuals becoming members of each such system after the date such coverage under the Social Security Act is extended, and the other composed of the members who have not expressed a desire for such coverage. Upon request of the governing body of any political subdivision operating a retirement system, the membership of its retirement system may likewise be divided.

(c) Other public civilian employees, such as those civilians employed by the Tennessee national guard, who are paid out of federal funds or to the extent they are so paid, may be regarded as state employees for the purpose of social security coverage under this section. Regional boards, such as regional libraries of the state of Tennessee and the University of Tennessee, may be classified as political subdivisions for the purpose of social security coverage under this section.

(d) With respect to any retirement system of the state to which this chapter applies or to any retirement system of a political subdivision, including the University of Tennessee whose governing body so requests, the governor is empowered to authorize a referendum, and shall designate an agency or individual to supervise its conduct, in accordance with the requirements of § 218(d)(3) of the Social Security Act (42 U.S.C. § 418(d)(3)), on the question of whether service in positions covered by a retirement system established by the state or by a political subdivision thereof should be excluded from or included under an agreement under this chapter. The notice of referendum required by § 218(d)(3)(C) of the Social Security Act (42 U.S.C. § 418(d)(3)(C)), to be given to employees shall contain or shall be accompanied by a statement, in such form and such detail as the agency or the individual designated to supervise the referendum shall deem necessary and sufficient to inform the employees of the rights which will accrue to them and their dependents and survivors, and the liabilities to which they will be subject, if their services are included under an agreement under this chapter. Upon receiving evidence satisfactory to the governor that, with respect to any such referendum, the conditions specified in § 218(d)(3) of the Social Security Act have been met, the governor or an individual designated by the governor shall so certify to the commissioner of social security.

(e) The governor shall delegate signature authority to the state treasurer, who is the administrator for the state. The governor shall also delegate the authority to designate an agency or individual to supervise the state old age and survivors insurance agency, and shall delegate the authority to supervise referenda to the state treasurer. The state treasurer may designate an individual to administer the state old age and survivors insurance agency and to supervise referenda as needed.