Section 318. Guaranty

a.  The  latest employers of the different members
  shall be obligated for:
    1. Regular interest charges payable, and special interest, if any, and
    2.  The  creation  and  maintenance  of  reserves   in   the   pension
  accumulation fund, and
    3. The maintenance of annuity reserves and pensions reserves, and
    4.  The  payment  of  all  pensions, annuities, retirement allowances,
  refunds and any other benefits, and
    5. The expenses of the policemen's and firemen's retirement system,
  as provided for or granted under the provisions of this article. In  the
  case  of  employer  contributions  required to be made for prior service
  allowed pursuant to paragraph three of subdivision b  of  section  three
  hundred  forty-one  of  this  article,  the provisions of such paragraph
  three shall govern.
    b. Except as otherwise provided pursuant to this article, all  income,
  interest  and dividends derived from deposits and investments authorized
  by this article shall be used for the payment of such obligations.