Sacramento Municipal Code Art. X Social Security Coverage

It is the intent of this chapter to implement the provisions of former (1989) Charter Section 394 and to continue the provisions of former (1970) Charter Section 175.12.5, with such modifications as are necessary to make the provisions of said former Charter section applicable to the miscellaneous members of both the Equal Shares Plan (as provided for in Article V of this chapter) and Section 399 plan. (Prior code § 34.10.1000)

"Social security provisions," as used in this chapter, shall mean old age, survivors and disability insurance provisions of the Federal Social Security Act. Any miscellaneous member of the retirement system who becomes covered under the Social Security provisions, on account of service rendered by him or her to the city, shall have the allowance payable by the system to him or her upon retirement for disability after attaining age fifty-five (55), or for service reduced while payable to him or her and effective (1) when he or she attains the retirement age as defined from time to time in the Social Security provisions, such age to be analogous to the retirement age of sixty-five (65) years for men and sixty-two (62) years for women in such provisions on the date of June 10, 1959, or (2) on the effective date of his or her retirement under the system, whichever is later, by an amount which shall bear the same ratio to one-half of the old-age primary insurance amount paid to him or her or payable upon being applied for, or that would be payable if he or she had not disqualified himself to receive it, under such provisions as are in effect on June 10, 1959, or as such provisions may hereafter be amended or supplemented before the effective date of such reduction, as the compensation paid to him or her on account of service credited to him or her under the system and which was basis for contributions paid under the Federal Social Security Act, but regardless of whether such compensation was included in the calculation of such member's primary amount, bears to the total of his or her compensation from whatever source, entering into such determination; provided, however, that the amount of the reduction under this section shall not exceed the portion of the retirement allowance, prior to modification under an option provided by ordinance, which is not derived from contributions of such member.

For the purposes of this article the compensation paid to him or her in any calendar year on account of service, credited to him or her under the system, and entering into the determination of such primary amount, shall be taken as the total compensation paid to him or her in such year on account of such service, which is not in excess of his or her total compensation in such year, from whatever source, entering into such determination.

Such reduction shall be applied first to the portion of his or her retirement allowance which is based on his or her service while a member of the system, but which is not provided by his or her accumulated contributions, and if such reduction exceeds such portion, the excess shall be applied to reduce the portion of his or her retirement allowance which is based on his or her service while not a member of the system and which is not provided by his or her accumulated contributions, and if, because of his or her election of an option provided by this chapter, such excess exceeds such portion of his or her retirement allowance which is based on his or her service while not a member of the system and which is not provided by his or her accumulated contributions, or if there is no such portion, then such excess or the balance of it shall be applied to reduce the portion of his or her allowance which is provided by his or her accumulated contributions. (Ord. 2000-017 § 4(a)(7); prior code § 34.10.1001)

Any such member shall have the right to reduce his or her normal contributions under the system on account of his or her compensation in any position, at his or her option to be exercised by an election in writing on a form furnished by the system, such election to be effective on the first day of the pay period next following the date of which it is filed in the office of the system. Such reduction of normal contributions shall apply only to time during which such member is covered under the Social Security provisions, on and after the effective date of such election, and the amount of such reduction, which may be changed from time to time by such member in accordance with rules and regulations of the retirement system manager, shall not be more in any month than the amount of contributions deducted from his or her compensation for such month on account of his or her coverage under such provisions. (Prior code § 34.10.1002)

Any allowance payable by the system to or on account of a member shall be reduced on the effective date of such allowance by the actuarial equivalent on such date, of the contributions, including interest to such date, with which the member would have been but was not credited under the system because of the reduction in his or her normal contributions pursuant to Section 2.124.1820 of this chapter and because of amounts paid from such member's accumulated contributions pursuant to Section 2.124.1840 of this chapter, and any continuation of such allowance shall be based on such reduced allowance but such allowance shall not be affected otherwise by such reduction of his or her normal contributions, or by such amounts paid from his or her accumulated contributions. Such reduction shall be applied to the portion of his or her retirement allowance which would have been provided if his or her accumulated contributions had not been reduced pursuant to such sections. Such member shall have the right to contribute, in accordance with rules and regulations of the retirement system manager, amounts which shall be administered as additional contributions to replace all or part of such reduction in his or her retirement allowance. (Prior code § 34.10.1003)

The effective date of coverage of members under the Social Security provisions, by a modification of the federal-state old-age and survivors disability insurance agreement shall be made retroactive to the earliest date permissible under such provisions. Contributions required of each member under such provisions for time prior to the federal execution date of such modification, shall be paid from such member's accumulated contributions held by the system on account of his or her compensation not in excess of the maximum compensation taxable under such provisions for such retroactive time. If the required contributions under such provisions exceed the member's accumulated contributions held by the system so determined, contributions under such provisions equal to the excess shall be paid by the member. Contributions required under such provisions of the employer on account of time prior to such execution date shall be paid from funds held by the system on account of active members and derived from contributions of the city. (Prior code § 34.10.1004)

Any member upon his or her retirement for service before attainment of the minimum age of qualification for his or her primary benefit under the Social Security provisions may elect to adjust his or her retirement allowance under the system, effective on the effective date of such allowance, by an increase from time prior to his or her attainment of such age and a decrease from time on and after his or her attainment of such age, provided that: (a) the amount of the increase and decrease shall be actuarially equivalent; (b) the adjustment shall be based on an estimated reduction in his or her retirement allowance pursuant to the provisions of Section 2.124.1810 of this chapter, if determined in accordance with such provisions as in effect on the effective date of his or her retirement under the system, and by taking into account only his or her coverage under such provisions, prior to such effective date; (c) the increase shall not be modified under an option provided by this chapter; (d) such election shall be irrevocable; (e) such election may not be executed earlier than ninety (90) days before the effective date of his or her retirement allowance and shall be effective only if executed on a form provided by the retirement system manager and filed with the manager prior to the date on which the first payment on account of his or her retirement allowance is made. (Ord. 2000-017 § 4(a)(8); prior code § 34.10.1005)

The sum of:

A. The member's allowance under the system:

1. Prior to modification under an option provided by former (1989) Charter Section 443 of the Sacramento City Charter, Section 2.124.910 of this chapter, or Article XV of this chapter, or

2. As provided for in Section 2.124.1850 of this chapter; and

B. The member's primary benefit under the Social Security provisions, payable after the minimum age of qualification for such primary benefit, shall not be less than the allowance which the member would have received under the system, assuming that the member had not been covered by the Social Security provisions. (Prior code § 34.10.1006)