The state board of education may establish a procedure whereby any person employed by the Kansas state school for the deaf or the Kansas state school for the blind may request in writing, subject to rules and regulations of the state board of education, a reduction in compensation and the contribution thereof for tax sheltered annuities as permitted under the provisions of the internal revenue code of 1954, as amended. For the purposes of the Kansas public employees’ retirement system, “compensation” as used in this act shall have the meaning ascribed thereto in Kan. Stat. Ann. § 74-4932, and amendments thereto.