(a) Creation of Funds. Two entirely separate and distinct funds hereby are created and established for the payment of pension benefits pursuant to this Tier 2, certain other benefits as may be authorized from time to time pursuant to the enabling provisions of Section 1428 of this Tier 2 and for the payment of the administrative expenses of the Fire and Police Pension Plan – Tier 1 and Tier 2, one of which shall be known as the “Fire and Police Tier 2 Service Pension Fund” and the other of which shall be known as the “Fire and Police Tier 2 General Pension Fund.”
The Fire and Police Tier 2 Service Pension Fund shall consist of:
(1) deductions made, pursuant to Section 1420, from the salaries of System Members;
(2) all contributions and donations to the Fire Department or to the Police Department for services by any System Members, except amounts of money donated to provide for any medal or permanent competitive award;
(3) all fines imposed upon System Members for violations of rules and regulations of the respective department in which they are Department Members;
(4) all proceeds from the sale of unclaimed property; and
(5) all interest, earnings and profits resulting from investments of such moneys.
The Fire and Police Tier 2 General Pension Fund shall consist of:
(1) all moneys appropriated to the fund by the Council; and
(2) all interest, earnings and profits resulting from investments of such moneys.
(b) Use of Funds. The moneys in the Fire and Police Tier 2 Service Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of service pensions granted pursuant to Section 1408. The money in the Fire and Police Tier 2 General Pension Fund shall be used, other than for the investment thereof and except as hereinafter in this immediate paragraph specifically provided, exclusively for the payment of all pensions other than service pensions, such benefits as may be provided by ordinance adopted pursuant to the provisions of Section 1428 of this Tier 2 and of all administrative expenses of the Fire and Police Pension Plan Tier 1 and Tier 2 of the Charter.
(c) Transfer of Funds. In the event that the moneys in the Fire and Police Tier 2 Service Pension Fund should be insufficient, at any time, to pay all service pensions, then the Board shall have the power and authority to cause the Controller of the City to transfer to the fund sufficient money from the Fire and Police Tier 2 General Pension Fund. In no other event shall any of the money in either of the funds be commingled with any of the money in the other funds.
(d) General Obligations of City. In the event that the moneys in the Fire and Police Tier 1 Service Pension Fund or in the Fire and Police Tier 1 General Pension Fund should be insufficient, at any time, to pay all pensions or other benefits which are payable therefrom, respectively, then the Board shall have the power and authority to cause the Controller of the City to transfer to either of the funds sufficient moneys from the Fire and Police Tier 2 General Pension Fund. The obligations to pay benefits pursuant to this Tier 2 shall be general obligations of the City.