(1) There is hereby created the “Kansas police and firemen’s retirement system” which is a division of the Kansas public employees retirement system created by Kan. Stat. Ann. §§ 74-4903 and amendments thereto, and which is subject to the provisions of Kan. Stat. Ann. § 74-4901 et seq. and amendments thereto.

(2) The Kansas police and fireman’s retirement system shall be administered by the board in the manner required to satisfy the applicable qualification requirements for governmental plans as specified in the federal internal revenue code, and as appropriate for a governmental plan. The provisions of Kan. Stat. Ann. § 74-49,123 and amendments thereto shall apply to the administration of the system.