(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 3, for the payment of certain other benefits as may be authorized by ordinance pursuant to the enabling provisions of this Tier 3 and for the payment of the administrative expenses of the Fire and Police Pension Plan – Tier 3, one of which shall be known as the “Fire and Police Tier 3 Service Pension Fund” and the other of which shall be known as the “Fire and Police Tier 3 General Pension Fund.”
(b) Fire and Police Tier 3 Service Pension Fund. The Fire and Police Tier 3 Service Pension Fund shall consist of:
(1) deductions made pursuant to Section 1514, from the salaries of Plan Members;
(2) all contributions and donations to the Fire Department or to the Police Department for services by any Plan Members, except amounts of money donated to provide for any medal or permanent competitive award;
(3) all fines imposed upon Plan Members for violations of rules and regulations of the respective department in which they are Department Members;
(4) proceeds from the sale of unclaimed property as determined by the Board; and
(5) all interest, earnings and profits resulting from investments of such monies.
(c) Fire and Police Tier 3 General Pension Fund. The Fire and Police Tier 3 General Pension Fund shall consist of:
(1) all money appropriated to the fund by the Council;
(2) all interest, earnings and profits resulting from investment of such monies.
(d) Use of Funds. The monies in the Fire and Police Tier 3 Service Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of service pensions granted pursuant to Section 1504 and for the refund of contributions as provided in this Tier 3. The monies in the Fire and Police Tier 3 General Pension Fund shall be used, other than for the investment thereof, exclusively for the payment of all pensions other than service pensions, such benefits as may be provided by ordinance adopted pursuant to the enabling provisions contained in this Tier 3 and of all administrative expenses of the Fire and Police Tier 3 Pension Plan.
(e) Authorized Transfer Between Funds. In the event that the monies in the Fire and Police Tier 3 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 monies therefor from the Fire and Police Tier 3 General Pension Fund. In no other event shall any of the money in either of the funds be commingled with any money in the other fund.
(f) Benefits Shall be General Obligation of the City. The obligation to pay benefits pursuant to this Tier 3 shall be a general obligation of the City.