(a) On and after the first day of January, one thousand nine hundred and forty-nine and annually thereafter, there shall be paid by the State Treasurer to the treasurers of the several municipalities and counties within the Commonwealth, and to the State Employes' Retirement Fund for State police pension and retirement purposes, the entire amount received from the two per centum tax paid upon premiums by foreign casualty insurance companies: Provided, That there shall be deducted from the entire amount now received and to be received the sum of eighty thousand dollars ($80,000) to be allocated to the Department of the Auditor General to defray costs and expenses of auditing the funds and accounts receiving disbursement from said entire amount, and the department of the Auditor General shall make such audits of the funds and accounts receiving disbursements from said entire amount. Any and all sums of said allocation not utilized in making said audits shall be returned to the General Fund for distribution in accordance with the terms of Formula 3 of the act herein amended.

(b) The amounts to be distributed shall be allocated in accordance with the following formulae:

(c) The following formulae illustrate the application of the foregoing methods of calculation wherein:

“a” shall mean the total amount of tax for allocation;

“b” shall mean the population of the Commonwealth;

“c” shall mean the population of any municipality;

“d” shall mean an amount payable to any municipal treasurer under Formula 1;

“d1” shall mean total of amounts payable to all municipal treasurers under Formula 1;

“e” shall mean number of policemen in all participating municipalities;

“f” shall mean number of State police;

“g” shall mean an amount payable to the State Retirement Fund under Formula 2;

“h” shall mean number of policemen in any participating municipality;

“i” shall mean an amount payable to any municipal treasurer under Formula 3;

“i1” shall mean total of amounts payable to all municipal treasurers under Formula 3;

“k” shall mean an amount payable to the State Retirement Fund under Formula 3;

“ci” shall mean the population of all participating municipalities within any participating county;

“hi” shall mean the number of policemen of all participating municipalities within the participating county;

“n” shall mean the number of policemen of any participating county;

“n1” shall mean the number of policemen of all participating counties;

“p” shall mean the amount payable to participating county under Formula 1a;

“p1” shall mean total of amounts payable to all county treasurers under Formula 1a;

“m” shall mean the amount payable to any county treasurer under Formula 3;

“m1” shall mean total of amounts payable to all county treasurers under Formula 3;

(d) All moneys paid to the treasurer of any municipality or county shall be forthwith paid, or credited, to the pension or retirement fund, or the premium on the pension annuity contract, as the case may be, to provide pension retirement or disability benefits for the policemen of such municipality or county, or the dependents of such policemen. All moneys paid into the State Employes' Retirement Fund shall be credited, in equal proportions, to the State annuity accounts of the members of the State Police who are contributing members to such fund.

(e) Warrants for the above purposes shall be drawn by the Auditor General, payable to the treasurers of the several participating municipalities, participating counties, and to the State Employes' Retirement Fund, in accordance with this act.