Contributions may not be accumulated under this excess benefit plan to pay future
retirement benefits. Instead, each payment of contributions by the employer that would
otherwise be made to the pension plan or the police guarantee trust shall be reduced
by the amount determined by the board as necessary to meet the requirements for retirement
benefits under this excess benefit plan until the next payment of contributions is
expected to be made to the pension plan or the police guarantee trust by the employer.
The employer shall then pay to this excess benefit plan, out of the contributions
that would otherwise have been made to the pension plan or the police guarantee trust,
no later than the fourteenth day before the date of each distribution of monthly retirement
benefits is required to be made from this excess benefit plan, the amount necessary
to satisfy the obligation to pay monthly retirement benefits under this excess benefit
plan. The board shall satisfy the obligation of this excess benefit plan to pay retirement
benefits out of the employer contributions so transferred. The employer contributions
otherwise required pursuant to section 1:253.O or section 1:282.D and any other qualified
plan shall be divided into those contributions required to pay retirement benefits
pursuant to this subpart and those contributions paid into and accumulated to pay
the maximum benefits required under the qualified plans. Employer contributions made
to provide retirement benefits pursuant to this part may not be commingled with the
monies of the pension plan or any other qualified plan, nor may this plan ever receive
any transfer of assets from the pension plan.
