1. A firefighters relief association organized under the laws of this state must be an internal revenue service approved plan.
2. A firefighters relief association organized under the laws of this state may pay out of any funds received from the state, city, municipality, or any other source a service pension in an amount as may be provided by the association's bylaws to each of its members who has retired and who:
a. Has reached the age of fifty years; and b. Meets all the requirements of the firefighters relief association bylaws.
3. A pension may not be paid to any individual while that individual remains a member of the fire department, rural fire department, or rural fire protection district department, and an individual who is receiving a service pension is entitled to no other relief from the association.