Law Enforcement Foundation Program funds made available to units of government shall be received, held, and expended in accordance with the provisions of KRS 15.410 to 15.510, including the administrative regulations promulgated by the cabinet and the following specific restrictions:
(1) Funds provided shall be used only as a cash salary supplement to police officers, for payments to the retirement plan to which the officer belongs to cover employer retirement costs on the cash salary supplement, and for administrative costs as provided in KRS 15.450;
(2) Funds provided shall be used only to compensate police officers who have complied with KRS 15.440(1)(c), (d), and (e);
(3) Each police officer shall be entitled to receive the state supplement that the officer's qualifications brought to the unit of government;
(4) Funds provided shall not be used to supplant existing salaries or as a substitute for normal salary increases periodically due to police officers;
(5) Each police officer receiving the state supplement who is also a member of the Kentucky National Guard or any reserve component of the United States Armed Forces shall continue to receive the state supplement during any period of military activation, as provided in KRS 15.460(2); and (6) Funds distributed or received pursuant to subsection (5) of this section shall be excluded from all aspects of the Kentucky Retirement Systems or any other retirement system.