The board may establish a retirement system for the officers and employees of the VTA and provide for the payment of annuities, pensions, retirement allowances, disability payments, and death benefits or any of them. The adoption, terms, and conditions of any retirement system covering employees of the VTA in a bargaining unit represented by a labor organization shall be pursuant to a collective bargaining agreement between the labor organization and the VTA. For purposes of this section, “officers” does not include members of the board of directors.

The board may contract with the board of administration of the Public Employees’ Retirement System and enter all or any portion of its employees under that system if no employees of the VTA in a bargaining unit that is represented by a labor organization are included in the contract except as authorized by a collective bargaining agreement.

All persons receiving pension benefits from an acquired public utility and all persons entitled to pension benefits under any pension plan of the acquired public utility may become members or receive pensions under a pension plan established by the VTA by mutual agreement of the persons and the VTA. The agreement may provide for the waiver of all rights, privileges, benefits, and status with respect to the pension plan of the acquired public utility.