The amount so paid to a relief association by the state and each city under the provisions of sections 69.25 to 69.53, and by it set aside and deposited as a special fund, shall be appropriated and disbursed by the association for the following purposes:

1. (1) For the relief of sick, injured and disabled members of the relief association, their surviving spouses and orphans; and
2. (2) For the payment of disability and service pensions to members of the relief association; and
3. (3) For the payment of the administrative expenses of the association as authorized pursuant to section 69.80.