(1) All employee and employer contributions shall be deposited in the Kansas public employees retirement fund created by Kan. Stat. Ann. §§ 74-4921 and shall be accounted for and invested as a part of that fund.

(2) Portions of such contributions shall be credited to the reserve funds provided for by Kan. Stat. Ann. §§ 74-4922 and amendments thereto or to such comparable funds as the board may establish and payments shall be made from such reserves in the same manner as provided in that section.