(A) Provision shall be made for the creation of a pension savings fund, pension accumulation fund, and pension reserve fund.
(B) The pension savings fund shall be the fund in which shall be accumulated the contributions of members to the retirement system and from which shall be paid refunds of member's accumulated contributions. Upon the retirement of a member, his accumulated contributions shall be transferred to the pension reserve fund. Each member shall contribute, by salary deductions, 5% of each member's annual compensations. Said contributions shall be credited to the individual account of the member from whose compensations said contributions were deducted and shall be accumulated at such rate of interest, compounded annually, as the Board shall from time to time determine. All members accepting compensation for services rendered the city shall be deemed to consent and agree to have the contributions provided herein deducted from their compensations.
(C) The pension accumulation fund shall be the fund in which shall be accumulated contributions by the city to the retirement system. Upon the retirement of a member the pension reserve for his pension, less his accumulated contributions, shall be transferred to the pension reserve fund. Contributions by the city to the retirement system shall be determined upon the basis of an annual actuarial valuation employing such mortality and other tables of experience, and an assumed rate of interest earning, as the Board shall from time to time adopt; said contributions shall be as follows:
(1) An amount which, if paid annually by the city during the future service of members, will be sufficient, together with the expected net future contributions of members, to provide reserves at the time of their retirements for pensions based upon future service likely to be rendered by members; and
(2) An amount which if paid annually by the city over a period of years, to be determined by the Council, but not to exceed 40 years, will be sufficient together with applicable fund balances, to provide reserves at the time of member's retirements for pensions based upon their accrued service; and
(3) An amount which if paid annually by the city over the future natural lifetime of restraints and beneficiaries will be sufficient, together with applicable fund balances, to provide reserves for pensions payable to said restraints and beneficiaries.
(4) The Council shall appropriate each year such amounts of contributions as determined in paragraphs (1), (2), and (3) above, and the city shall pay such amounts into the pension accumulation fund during the ensuing fiscal year.
(D) The pension reserve fund shall be the fund from which shall be paid all pensions payable as provided in the operating ordinance.