13-14a02.   Pension fund for each police and firedepartment required;creation, maintenance and funding standards; payment from tax levy or employeebenefits contribution fund.The governing body of all cities of the first class, maintaining an organizedpolice department and a fire department, shall establish, maintain and funda separate pension fund for each department, which shall be set aside andused exclusively for the payment of pensions and disability benefits asauthorized in K.S.A. 13-14a01 et seq. andamendmentsthereto. Whenever the amount of any benefit is to bedetermined on the basis of actuarial assumptions, the assumptions shall bespecified in a way that precludes employer discretion. Each such pensionfund shall be maintained and fundedin accordance with the minimum funding standards prescribed in K.S.A. 12-5002and amendments thereto. For the purpose of creating, maintaining andfunding such pension funds,the governing body of each city of first class is hereby authorized and shall:

      (a)   Accept gifts, grants, bequests, gratuities or any other money andcredit the same to the pension fund designated by the donor;

      (b)   levy an assessment against each officer and member of each departmentequal to 7% of suchofficer's ormember's monthly salary or compensation,such assessment amount to be deducted from the regularpayroll andto be transferred intosuch pension fund;

      (c)   place into such funds the proceeds of all lost orstolensecurities,money or personal property which remains unclaimed inpossession ofany department of the city for six months, together with the proceedsof all unclaimed or confiscated property of any nature whichhasbeen in custody of the police department for a period of six months. Thecity is authorized to sell at public auction suchpropertyand place the proceeds into such pension funds in equal shares;

      (d)   transfer into such pension funds the unencumbered balance,includinginvestments, in any existing pension fund or funds, except that if thereis more than one pension fund existing in such city, then each ofsuch existingfunds, other than the firemen's and policemen's relief funds,shall be transferredinto the new pension fund of a like classification. Upon the termination ofany pension fund or funds, the rights of members to benefits accrued at thedate of termination to the extent funded or to the amount in members' accountsat the date of termination are nonforfeitable;

      (e)   carry forward the balance in such funds at the closeofeach budgetyear as revenue for the next ensuing year;

      (f)   levy annually at the time for the levying of taxes for city purposes,a tax upon all of the taxable tangible property in such cityforeach pensionfund to make annual contributions to each pension fundas required under K.S.A. 12-5002 and amendments thereto and to maintainandfund each pension fundon an actuarial reserve basis in accordance with the provisions of K.S.A.13-14a05 and amendments thereto. In lieu of levying the tax authorizedinthis section, the annualcontribution required of the city may be paid from any employee benefitscontribution fund established pursuant to K.S.A. 12-16,102 andamendments thereto; and

      (g)   administer such funds in the manner required to satisfy the applicablequalification requirements for governmental plans as specified in the federalinternal revenue code of 1954 or 1986, as in effect on July 1, 2008, and asapplicable for a governmental plan in accordance with theprovisions of K.S.A. 74-49,123 andamendments thereto.

      History:   L. 1945, ch. 111, § 2;L. 1953, ch. 94, § 1;L. 1970, ch. 77, § 5;L. 1975, ch. 494, § 17;L. 1976, ch. 89, § 1;L. 1978 ch. 67, § 4;L. 1998, ch. 64, § 4;L. 2008, ch. 113, § 2; July 1.