In this section, “approved employer” means a participating employer who adopts a resolution and follows procedures as prescribed by the Board of Trustees for an employer pickup program in accordance with § 414(h)(2) of the Internal Revenue Code. The State or other approved employer of a member shall pick up, within the meaning of § 414(h)(2) of the Internal Revenue Code, the member contributions required by this Division II. The member contributions under subsection (b) of this section: are designated as employee contributions to be picked up by the employing unit within the meaning of § 414(h)(2) of the Internal Revenue Code and shall be treated as employer contributions in determining tax treatment under that section; shall reduce the compensation of the member in an amount that equals the member contribution picked up by the employer; may not be included as gross income of the member until the pickup amounts are distributed or made available to the member; shall be paid by the State or other approved employer from the same source of funds that is used to pay compensation to the member; and for purposes of this Division II, shall be treated in the same manner and to the same extent as member contributions made before establishment of the employer pickup program.