14-10a05.   Pension funds; tax levy, use of proceeds;investment.(a) The amount of money derived from taxes levied, except for anamount to pay a portion of the principal and interest on bonds issued bysuch city under the authority of K.S.A. 12-1774 andamendments thereto, and all money received from assessments, dues anddonations for the benefit of such funds shall constitute pension trustfundsto be known and designated, respectively, as the policemen's pensionfund and the firemen's pension fund. Such pension fundsshallbedevoted exclusively to and for the purposes enumerated inthis section. Allmoneys derived from the taxes levied and money received from othersources as enumerated in this section shall be paid intothepolicemen's pensionfund or the firemen's pension fund, as the case may be, until the amountin such pension fund equals the total of the actuarially determinedliabilities which are attributable to all members in active service andto all persons who are receiving, or who are entitled to receive in thefuture, pensions and other benefits from such fund. Further tax leviesshall be made only for the purpose of maintaining each pension fund atsuch level.

      (b)   All moneys accumulated under the provisions of this act shall bedeposited by the treasurer in the same manner as other city funds,except that the board of trustees, at their option, may invest anyofsuch reserve funds in: (1)   Investments authorized by K.S.A.12-1675 and amendments thereto, in the manner prescribed therein;

      (2)   direct obligation bonds of the United States of America maturing, orredeemable at par and accrued interest, within three years from date ofpurchase; or

      (3)   bonds of any municipality in the state of Kansas, thetotal bonded indebtedness of which is less than15% ofthe total assessed tangible valuation of such municipality.Such bondsshall mature within five years from the date of purchase.

      History:   L. 1945, ch. 144, § 5; L. 1976, ch. 89, § 6; L.1977, ch. 54, § 19; L. 1979, ch. 52, § 77;L. 1998, ch. 64, § 11; July 1.