(a) Establishment.--By ordinance, a city shall establish a police pension fund.

(b) Requirements.--The following shall apply to a police pension fund established under this section:

(1) The fund shall be maintained by an equal and proportionate monthly charge against each member of the police force that may not exceed annually 4% of the pay of the member and an additional amount not to exceed 1% of the pay of the member.

(2) The charges under paragraph (1) shall be paid by the member or the municipal corporation to provide sufficient funds for payments required by section 14303(f) (relating to allowances and service increments).

(3) The payments under paragraph (2) shall be made to a surviving spouse even if the spouse remarries or, if no spouse survives or if the individual survives and subsequently dies, to the children under 18 years of age of:

(i) a member of the police force;

(ii) a member retired on pension; or

(iii) a member who died in service.

(4) The fund shall be under the direction and control of council but may be committed to the custody and management of an officer of the city or to another person, as may be designated by council by ordinance.

(5) Under regulations as council may prescribe by ordinance, the fund shall be applied for the benefit of:

(i) members of the police force that have received honorable discharge from the police force by reason of age or disability;

(ii) surviving spouses even if they remarry; or

(iii) if no spouse survives or if the individual survives and subsequently dies, the child or children under 18 years of age of:

(A) members of the police force; or

(B) members retired on pension.

(6) An allowance made to an individual who retired by reason of a disability or age shall be in conformity with a uniform scale, together with a service increment as provided under this chapter.

(7) Compensation paid to a corporate custodian of the police pension fund shall be paid from the city general fund.

Cross References. Section 14301 is referred to in section 14306 of this title.