14-10a02.   Pension funds for police and firedepartments;establishment, maintenance and funding; tax levy, use of proceeds;employee benefits contribution fund.The governing bodies of all cities of the second class, with apopulation in excess of 6,000 located in countieshavinga population of 10,000 or more, maintaining anorganizedpolice and fire department, may establish and maintain a separatepension fund for each department, which shall be set aside and usedexclusively for the payment of pensions and disability benefits asauthorized in K.S.A. 14-10a01 et seq. and amendmentsthereto. 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 andfunded in accordance with the minimum funding standards prescribed inK.S.A. 12-5002 and amendments thereto. For the purpose of creating,maintaining andfunding such pension funds, the governing body of each such city of thesecond class is hereby authorized and shall:

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

      (b)   levy an assessment against each officer and member of eachdepartment equal to 7% ofsuchofficer's or member's monthly salary orcompensation, such assessment amount to be deducted from theregular payroll and to betransferred into such pension fund;

      (c)   place into such funds the proceeds of all lost or stolensecurities, money or personal property which shall remain unclaimed inpossession of any department of the city for six months, together withthe proceeds of all unclaimed or confiscated property of any naturewhich shall have been in custody of the police department for a periodof six months. The city is authorized to sell atpublicauction such property and place the proceeds into such pensionfunds inequal shares;

      (d)   transfer into such pension funds the unencumbered balance,including investments, in any existing pension fund or funds, exceptthat if there is more than one pension fund existing in such citytheneach of such existing funds, other than thefiremen's and policemen's relieffunds, shall be transferred into the new pension fund of a likeclassification. Upon the termination of any pension fund or funds, therights of members to benefits accrued at the date of termination to the extentfunded or to the amount in members' accounts at the date of termination arenonforfeitable;

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

      (f)   transfer into said fund any proceeds from any municipally ownedutility at the discretion of the governing body;

      (g)   levy annually at the time for the levying of taxes for citypurposes, a tax upon all of the taxable tangible property insuchcityfor each pension fund to make annual contributions to each pension fundas required under K.S.A. 12-5002 and amendments thereto and to maintain andfundeach pension fund on an actuarial reserve basis in accordance with theprovisions of K.S.A. 14-10a05 and amendments thereto and to pay a portionoftheprincipal and interest on bonds issued by such city under the authorityof K.S.A. 12-1774, and amendments thereto. In lieu oflevying the tax authorized in this section, the annual contributionrequired of the city may be paid from any employee benefits contributionfund established pursuant to K.S.A. 12-16,102 and amendmentsthereto;and

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

      History:   L. 1945, ch. 144, § 2;L. 1970, ch. 81, § 15;L. 1975, ch. 494, § 27;L. 1976, ch. 89, § 5;L. 1978, ch. 67, § 5;L. 1979, ch. 52, § 76;L. 1998, ch. 64, § 10;L. 2008, ch. 113, § 5; July 1.