(a) There is established a special fund to be known as the "contribution fund." Such fund shall consist of and there shall be deposited in such fund: (1) all contributions, interest, and penalties collected under Code Section 47-18-41; (2) all moneys appropriated to this fund under this chapter; (3) any property or securities and earnings of the fund acquired through the use of moneys belonging to the fund; (4) interest earned upon any moneys in the fund; and (5) all sums recovered upon the bond of the custodian or otherwise for losses sustained by the fund and all other moneys received for the fund from any other source. All moneys in the fund shall be mingled and undivided. Subject to this chapter, the state agency is vested with full power, authority, and jurisdiction over the fund, including all moneys and property or securities belonging to the fund, and may perform any and all acts whether or not specifically designated, which are necessary to the administration of the fund and are consistent with this chapter.

(b) The contribution fund shall be established and held separate and apart from any other funds or moneys of the state and shall be used and administered exclusively for the purpose of this chapter. Withdrawals from such fund shall be made solely for: (1) payment of amounts required to be paid to the secretary of the treasury pursuant to an agreement entered into under Code Section 47-18-40; (2) refunds of overpayments, not otherwise adjustable, made by a political subdivision or instrumentality; and (3) expenses incurred in the administration of this chapter. Notwithstanding any other provision of this chapter, the balance of the contribution fund, less a reasonable reserve to cover potential liabilities in an amount not to exceed $50,000.00, shall be transferred to the general fund annually on or before the last day of the month following the close of the fiscal year.

(c) From the contribution fund the custodian of the fund shall pay to the secretary of the treasury such amounts and at such time or times as may be directed by the state agency in accordance with any agreement entered into under Code Section 47-18-40 and the Social Security Act.

(d) The treasurer of the state agency shall be treasurer and custodian of the contribution fund and shall administer such fund in accordance with this chapter and the directions of the state agency. He shall pay all warrants drawn upon it in accordance with this Code section and with such regulations as the state agency may prescribe pursuant to this Code section. He shall be compensated for these services in an amount established by the board of trustees of the state agency, commensurate to his duties and responsibilities.

(e) There are authorized to be appropriated annually to the contribution fund such sums as are found to be necessary for the purpose of making the payments to the secretary of the treasury required under subsections (b) and (c) of this Code section, pursuant to the agreement entered into under Code Section 47-18-40. Such sums shall be in addition to contributions collected and paid into the contribution fund under Code Section 47-18-41.