Chapter 3.32

POLICE AND FIRE DEPARTMENT RETIREMENT PLAN

Sections:

• 3.32.010 Established - Name - Membership. 3.32.015 Benefit limitations.

• 3.32.020 Board - Creation.

• 3.32.030 Board - Record of proceedings - Compensation.

• 3.32.040 Board - Duties of officers.

• 3.32.050 Board - Additional powers.

• 3.32.060 Board - Payments and control of fund.

• 3.32.070 Board - Use of funds prohibited when.

• 3.32.080 Board - Annual report requirements.

• 3.32.085 Direct transfers of eligible rollover distributions.

• 3.32.090 Service retirement - Upon member's request - Conditions.

• 3.32.100 Service retirement - Upon vote of board - Conditions.

• 3.32.110 Disability retirement - Conditions.

• 3.32.120 Disability retirement - Investigation of application.

• 3.32.130 Evidence of disability.

• 3.32.140 Compulsory retirement.

• 3.32.150 Estimates of age and service.

• 3.32.160 Period of service - Determination.

• 3.32.170 Period of service - Contributions on leave of absence.

• 3.32.180 Retirement allowance - Payments.

• 3.32.190 Benefits exempt from execution.

• 3.32.200 Service and nonservice-connected disability retirement - Conditions.

• 3.32.210 Disability retirement - Basis of allowance.

• 3.32.220 Disability retirement - Ordered when - Basis of allowance.

• 3.32.230 Restoration to duty - Termination of allowance.

• 3.32.240 Restoration to duty - Hearing required.

• 3.32.250 Safeguards on disability retirement.

• 3.32.260 Retirement petition.

• 3.32.270 Retirement allowance - Reports required.

• 3.32.280 Retirement rights.

• 3.32.290 Monthly salary defined.

• 3.32.300 Contributions.

• 3.32.310 Gifts and donations.

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§ 3.32.010

• 3.32.320 Investment of funds - Conditions and limitations.

• 3.32.325 Investment of funds - Delegation of authority.

• 3.32.330 Workmen's compensation.

• 3.32.340 Separation from service - Contributions.

• 3.32.350 Death of beneficiary.

• 3.32.360 Death under circumstances not covered.

• 3.32.370 Separation from service - Following resignation or discharge.

• 3.32.380 Separation from service - Transfer to position in department other than police or fire departments.

• 3.32.390 Increase of service-connected disability retirement allowance for persons retired prior to December 1, 1957 - Retroactivity.

• 3.32.400 Investment counseling - Restrictions.

• A. There is hereby continued, maintained and administered, as provided in this Chapter 3.32, a retirement plan for officers and employees receiving a monthly compensation for service as members of the police or fire department of the city, to be known as the "police and fire department retirement plan." All officers and employees shall be required to be members of said retirement plan.

• B. Under the city council's authority pursuant to Article XV, Section 1500 of the City Charter, the provisions of Article XV-A of the City Charter are hereby implemented into the San José Municipal Code. To the extent there is any conflict between Article XV-A of the City of San José's Charter and the provisions of the police and fire department retirement plan, Article XV-A will supersede any conflicting

provision in the police and fire department retirement plan, except as provided in Section 3.32.300A.2. and 3.32.320B.

(Prior code § 2903; Ords. 29198, 29266, 29879.)

• A. Notwithstanding any other law, except as provided in subsection D. below, the benefits payable to any person who becomes a member of this plan on or after January 1, 1990, shall be subject to the limitations set forth in Section 415 of the Internal Revenue Code as applied (other than paragraph (2)(G)) without regard to paragraph (2)(F) of said Section 415.

• B. Notwithstanding any other law, except as provided in subsection D. below, the benefits payable to any person who became a member of this plan prior to January 1, 1990, shall be subject to the greater of the following limitations as provided in Section 415(b)(10) of the Internal Revenue Code:

  1. The limitations set forth in Section 415 of the Internal Revenue Code; or

  2. The accrued benefit of the member without regard to any benefit increases pursuant to any amendment of this plan adopted after October 14, 1987.

• C. For purposes of the application of Section 415(b) of the Internal Revenue Code, actuarial equivalences shall be based on a five percent interest rate and the 1983 Group Annuity Table for Males, with margin, with a two-year setback.

• D. Notwithstanding subsections A. and B. above, in the event Section 415 of the Internal Revenue Code is repealed, amended or qualified, by statute or otherwise, to permit all or any members of this plan or such members' beneficiaries to receive benefits that are not subject to the limitations set forth in Section 415, then immediately thereupon, such benefits shall be paid to such members or their beneficiaries.

• (Ords. 23284, 23316.)

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§ 3.32.080

For the creation of the board of administration of police and fire department retirement plan, see Part 3 of Chapter 3.36. (Prior code § 2903.1.)

penses of the plan. The director of finance shall make payments from the retirement fund only when so authorized by the board. (Prior code § 2903.4; Ord. 25084.)

The director of retirement services shall be ex officio clerk of the board and shall keep record of the proceedings of the board in the manner provided for keeping a record of the proceedings of the city council by the city clerk.

(Prior code § 2903.2; Ords. 21485, 26034.)

The treasurer, auditor, city attorney and director of retirement services shall perform such duties in reference to the retirement plan as the board of administration may from time to time direct. (Prior code § 2903.3; Ords. 21485, 26034.)

Except as provided in this chapter, no member or employee of the board of administration shall have any interest, direct or indirect, in the making of any investment, or in the gains or profits accruing therefrom. No member of the retirement plan and no member or employee of the said board, directly or indirectly, for himself or as an agent or partner of others, shall borrow any of its funds or in any manner use the same except to make such current and necessary payments as are authorized by the board; nor shall any member or employee of the board become an endorser or surety or become in any manner an obligor for moneys invested by the board.

(Prior code § 2903.6.)

The board of administration shall, in addition to other powers granted in this chapter, have power:

• A. To compel witnesses to attend and testify before it upon all matters connected with its duties under this chapter in the same manner as is or may be provided by law for the taking of testimony before notaries public, and the president, or any member of said board, may administer oaths to such witnesses;

• B. To make all needed rules and regulations for its guidance in accordance herewith.

• (Prior code § 2903.26.)

The board of administration shall have exclusive control of the administration and investment of retirement fund, and shall authorize all payments to be made from said fund for retirement benefits currently payable and other reasonable ex-

• A. Within ninety days after the end of each fiscal year, or if later, within thirty days after the submission to the city council of an audited annual fiscal report of the retirement system's funds required by the city Charter or ordinance, the board shall render to the city council and city manager an annual report for such preceding fiscal year. The report shall contain a statement of the board's work for such period, and shall show all receipts and disbursements, the names of all persons receiving benefits under the retirement system, the nature of such benefits and the amounts paid to each therefor, and the balance remaining in the retirement fund after such payments. The report may contain recommendations for or against changes in the retirement system.

• B. A copy of such annual report shall also be posted on a bulletin board in the headquarters of the police department and also in each city firehouse within the city.

• (Prior code § 2903.5; Ord. 18767 R1.)

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• A. If, under the provisions of this chapter, a person becomes entitled to an eligible rollover distribution, the person may elect to have the distribution or any portion thereof paid directly to an eligible retirement plan specified by the person.

• B. The election made pursuant to this section shall be in accordance with terms and conditions established by the board.

• C. Upon the exercise of the election by a person pursuant to this section, the distribution from the retirement fund of the amount designated by the person, once distributable under the provisions of this chapter, shall be made in the form of a direct transfer to the eligible retirement plan so specified.

• D. For the purposes of this section, "eligible rollover distribution" means a distribution from the retirement fund which constitutes an eligible rollover distribution within the meaning of Section 401(a)(31)(C) of the Internal Revenue Code.

• E. For purposes of this section, "eligible retirement plan" means a plan which constitutes an eligible retirement plan within the meaning of Section 401(a)(31)(D) of the Internal Revenue Code.

• (Ord. 24814.)

Any member of the fire or police department who has served an aggregate of twenty years in either or both departments, or in any other department of the city, and who has fulfilled all conditions as provided in this chapter, and is fifty-five or more years of age, shall, upon his own request, be retired by the board from further service in such department, and such member shall thereafter, during his lifetime, be paid in equal monthly installments from the pension fund a pension equal to fifty percent of

the average monthly pay received by said member during the three years immediately preceding the request for retirement.

(Prior code § 2903.7; Ords. 29266, 29879.)

Any member of the fire or police department who has served an aggregate of twenty years in either or both departments, or in any other department of the city, and who has fulfilled all conditions as provided in this chapter, and of fifty-five or more years of age, may be retired by a four-fifths' vote of the board of administration from further service in such department, and such member shall thereafter be paid the same monthly pension as provided in Section 3.32.090.

(Prior code § 2903.8; Ords. 29266, 29879.)

Any member of the fire or police department who has served an aggregate of twenty years in either or both departments, or in any other department of the city, and who has fulfilled all conditions as provided in this chapter, but has not reached the age of fifty-five years, and who is disabled from any cause, may apply to said board of administration for retirement, or the board may, on its own motion, retire said member. Any member so retired under the provisions of Sections 3.32.110, 3.32.120 or 3.32.140 shall thereafter be paid the same monthly pension as provided in the immediately preceding sections. No member of the police or fire department may be retired by order of the board of administration, as provided in this chapter, unless said order is voted by a majority vote of the members of the board of administration after thirty days' notice to the employee of such meeting, said notice to recite the time and place of meeting of the board of administration for consideration of the disability retirement.

(Prior code § 2903.9; Ords. 29266, 29879.)

Upon the receipt of such application for disability retirement, as in Sections 3.32.110, 3.32.120

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and 3.32.140, provided the board of administration shall investigate the same, and, in its discretion, grant or deny such application; provided, that any denial of such application shall be without prejudice to the filing of a new application after the lapse of three months from the date of the decision of the board of administration. (Prior code § 2903.10.)

No person shall be retired for disability hereunder, or receive any allowance therefor, unless there shall be filed with the board of administration certificates of disability subscribed and sworn to by three regularly licensed practicing physicians in the state, one to be selected by the petitioner, (whose certificate of disability shall be attached to the petition), one of whom shall be the health officer and one of whom shall be selected by the board of administration. The board may require other and additional evidence of disability before ordering such retirements, but only on satisfactory evidence of disability and of the right to be retired, as provided herein, shall said board of administration retire such person. The decisions of said board with reference to the nature and extent of the disability shall be final and conclusive. (Prior code § 2903.23.)

The board of administration shall, on its own motion, order any member of the police or fire department to be retired upon the arrival of any said member at the age of seventy years. The provisions of this section are mandatory upon the board. The board shall not have discretionary power to extend the time of service of any member beyond the age of seventy years, regardless of the number of years of aggregate service credited to said member.

(Prior code § 2903.11; Ord. 21732.)

If it shall be impracticable for the board of administration to determine from the records the

length of service, the compensation or the age of any member, the said board may estimate, for the purposes hereof, such length of service, compensation or age.

(Prior code § 2903.27.)

In determining the period of service necessary to render any such member of the police department or fire department eligible for retirement allowance under the provisions considered, dating from the date when such employee was placed upon the payroll in the police department or fire department as shown by city records. Such service need not be continuous and may be in any capacity and in either the police department or fire department, and any rights acquired by service shall not be lost by reason of resignation or withdrawal from the service except as otherwise expressly provided. Aggregate service, for the purposes of this chapter, shall likewise include time served the city as an officer or employee in any other department, or time on leave of absence while engaged in the performance of military or naval duty for the United States of America in time of war.

(Prior code § 2903.12; Ords. 25084, 29266, 29879.)

Any members requesting that time served in any other department, or time on leave of absence while engaged in the performance of military or naval duty for the United States of America in time of war, count as part of the member's aggregate service in the police or fire department, shall pay into the retirement fund such contributions as said member should have been required to pay had said person been a member of or on active duty with the police or fire department for the period of years served in another department, or for the period of leave of absence while engaged in the performance of military or naval duty for the United States of America in time of war. Any contributions paid into the retirement fund by a member of the police

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or fire department as provided in this section shall be matched by the city in the proportion set forth in Section 3.32.300 of this chapter. (Prior code § 2903.13; Ords. 29266, 29879.)

The retirement allowance provided for in this chapter shall be payable in equal monthly installments from the date of retirement during the life of the retired member of the police or fire department, unless such allowance shall be terminated by the board of administration as provided in Section 3.32.270.

(Prior code § 2903.14.)

The right of a person to a pension, an annuity or a retirement allowance, to the return of contributions, the pension, annuity or retirement allowance itself, any optional benefit, any other right or benefit accrued or accruing to any person under the provisions of this chapter, and the moneys in the fund created herein shall not be subject to execution, garnishment, attachment, or any other process whatsoever, and shall be unassignable except as herein specifically provided. (Prior code § 2903.15.)

Should any such member of the police or fire department, by reason of bodily injury received in or sickness resulting from the discharge of his duties, become so physically or mentally disabled as to render necessary his retirement from active service, the board of administration shall order and direct such person be paid during the period of such disability, from the date of the disability to date of retirement, compensation equal to that provided for under the provisions of the Workmen's Compensation Act of the state. Upon the board of administration making its order for retirement, as hereinafter provided, the disability payment shall

cease, and there shall be substituted in its place a limited annual allowance based upon the number of years actually served. (Prior code § 2903.16.)

The annual allowance provided for in this chapter shall be determined upon the following basis: For an injury occurring after twenty years of service, the injured party is entitled to compensation equal to fifty percent of the average monthly pay received by the member during the three years immediately preceding the request for retirement; therefore, for an injury occurring prior to twenty years of service, an allowance shall be made based on the proportion that the number of years of actual service bears to twenty years. For example: If said service has been for five years, said allowance shall be 5/20ths of said fifty percent of the average monthly pay received by him during the three years immediately preceding the request for retirement. (Prior code § 2903.17; Ords. 29266, 29879.)

Should any member of the police or fire department who has been a member of the retirement plan at least ten years suffer any bodily injury or sickness which is not service-connected, and as a result thereof become so physically or mentally disabled as to render necessary his retirement from active service, the board of administration shall order and direct that said person be paid during the period of such disability a limited annual allowance not to exceed fifty percent of the amount provided in this chapter for a limited annual allowance for members retired on service-connected disability. The amount of the allowance herein provided for shall be determined by the board of administration within thirty days from the hearing of the petition for retirement. In determining said amount the board shall take into consideration the circumstances of the injury, the nature of the disability, whether total or partial, and make its order accordingly. (Prior code § 2903.18; Ords. 29266, 29879.)

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§ 3.32.270

Any allowance granted to any such member of the police or fire department for disability shall cease when the disability ceases, and such person shall, subject to then existing rules and the provisions of the chapter governing the employment of members of the police and fire department, be restored to active service in the position in which he was serving at the time of his disability, and while receiving a retirement allowance under this chapter shall be computed in calculating his aggregate service for all purposes under the provisions hereof. (Prior code § 2903.19; Ords. 29266, 29879.)

No member shall, without his consent, be ordered restored to active service until a hearing is held by the board of administration for said purpose, with ten days' notice of time and place of said hearing being given to the member in advance thereof; and provided further, that the board of administration shall not have the power to order any member restored to active service who has been absent from his duties by reason of disabilities for a continuous period of two years. (Prior code § 2903.20.)

Any person retired for either a service-connected or nonservice-connected disability may be required at any time, after ten days' notice, to submit himself for examination as to fitness for duty. The examining board shall consist of the city health officer, a physician selected by the board of administration, and a physician selected by the person retired. All of said physicians shall be licensed and practicing physicians in the state. The decisions of the examining board as to fitness for duty shall be binding upon the person retired. (Prior code § 2903.21.)

istration a verified petition, which shall contain the name and age of the petitioner, the position held by him on the date of filing the petition, the salary of said position, the position held and the salary received by said petitioner during the three years prior to the entry into the service, and the aggregate service of said petitioner. If said petition is based upon a disability, it shall also set forth the nature and extent thereof, whether service-connected or nonservice-connected, and when and how received. Such petition may be filed by the legally appointed guardian of any person entitled to a retirement allowance hereunder. Upon filing of such petition, the board of administration shall fix a date within thirty days from the date of filing for the hearing thereof, and shall notify the petitioner of the date of such hearing.

(Prior code § 2903.22.)

Whenever any person who shall receive any retirement allowance under this chapter shall fail to report himself as herein required, or shall wilfully disobey the requirements and orders of the board of administration, or shall be convicted of a felony, or become a nonresident of this state except by permission of the board, then the board may, after notice to the person receiving retirement allowance, order that the retirement payments to him shall immediately Lease and terminate, and the board, in its discretion, may order the retirement allowance terminated, except that the provision with respect to becoming a nonresident of the state shall apply to disability retirements and not to earned retirement after full service. The mailing of said notice by registered mail to the last known address of such person, as shown on the books of the board, shall constitute service of the notice herein required to be given.

(Prior code § 2903.24.)

Any such employee who desires to be retired from his position shall file with the board of admin-

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§ 3.32.280

No member who has completed twenty years of service shall be deprived of retirement rights for any cause whatsoever, except treason or conviction of a felony.

(Prior code § 2903.25; Ords. 29266, 29879.)

The monthly salary subject to contribution by the members of the police and fire department retirement plan and the city is that monthly salary or base pay established by the city salary ordinance for the class to which the member's position is allocated, or to which he was appointed if such member is in the unclassified service of the city. Any additional compensation paid on account of work performed on holidays or in excess of the official work week is hereby excluded from monthly salary, as above defined, and is not subject to retirement contributions by the member or the city. (Prior code § 2903.28(a); Ords. 29266, 29879.)

• A. For the purpose of establishing and maintaining the retirement fund on a reserve basis, the city council shall make provision in the budget each fiscal year, beginning with the fiscal year December 1, 1946 to November 30, 1947, for the payment by the director of finance monthly into said fund of an amount equal to eight percent of the monthly payroll of all such members of the police department and fire department as the city's contribution, and the director of finance shall deduct three percent of the monthly pay from the salary of each member of the plan from and after the first day of October, 1946, as the contribution of the individual members thereof. Within six months after the effective date of Ordinance 3254, adopted October 21, 1946, and at least every five years thereafter, the board of administration shall cause to be made an actuarial investigation into the mortality, service and compensation experiences of the members and beneficiaries, and shall further cause an actu-

arial valuation of the assets and liabilities of the retirement plan, and upon the basis of such investigation and valuation shall:

1. Adopt for the retirement plan such mortality, annuity, service and other tables as may be deemed necessary;

2. In order to make said retirement plan actuarially sound in a manner consistent with Article XVI, Section 17 of the California Constitution (the "1992 California Pension Protection Act"), revise or change the rates of contributions by members on the basis of such actuarial investigation and such mortality, annuity, service and other tables, but at all times maintaining the eight percent and three percent ratio of contributions on behalf of the city and the members of the plan as set forth in this section.

• B. Every member of the police department or fire department shall be deemed to consent and agree to the deductions from salary or compensation as provided herein, and payments less such deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for all services rendered by such employees during the period covered by such payment except the right to the benefits to which they shall be entitled under the provisions hereof.

• C. The said deductions from salary or compensation shall continue until membership ceases or until the member retires on a retirement allowance.

(Prior code § 2903.28; Ords. 25084, 29198, 29266, 29879.)

There shall also be paid into said fund all gifts or donations to said fund from any source. (Prior code § 2903.29.)

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§ 3.32.325

The board shall invest and reinvest the moneys in the retirement fund in accordance with the following standards:

• A. The assets of the retirement fund are trust funds and shall be held for the exclusive purposes of providing benefits to members of the plan and their beneficiaries and defraying reasonable expenses of administering the plan.

• B. The board shall discharge its duties with respect to the plan solely in the interest of, and for the exclusive purposes of providing benefits to, members of the plan and their beneficiaries, maintaining the actuarial soundness of the plan in a manner consistent with Article XVI, Section 17 of the California Constitution (the "1992 California Pension Protection Act"), and defraying reasonable expenses of administering the plan. The board's duty to the members and their beneficiaries shall take precedence over any other duty.

• C. The board shall discharge its duties with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of like character and with like aims.

• D. The board shall diversify the investments of the plan so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so.

(Prior code § 2903.30; Ords. 19989, 21607, 22509, 23560, 25084, 29198.)

• the board may adopt an investment resolution or resolutions containing detailed guidelines, consistent with Section 3.32.320. While the resolution or resolutions are in effect, investments consistent with such guidelines may be made by an officer of the board, an officer or employee of the city, or a qualified investment advisor who has entered into a contractual arrangement pursuant to Section 3:32.400, provided that such officer, employee or advisor has been delegated such authority by the board and such officer, employee or advisor has been designated by name in the investment resolution or resolutions. Any transactions made pursuant to the foregoing provisions of this section shall be reported to the board on a monthly basis.

• B. Without limiting the authority of the board itself to invest and reinvest the moneys in the retirement fund as provided in Section 3.32.320 or to delegate authority for investment and reinvestment as provided in Subsection A. of this section, the board may, by resolution, designate a person by name to make shortterm investments and reinvestments of moneys in the retirement fund and to purchase, sell, or exchange such short-term investments. For purposes of this subsection, "short-term investments" shall consist of the following:

  1. Repurchase agreements and reverse repurchase agreements;

  2. Short-term investment fund;

  3. Investments which are in commercial paper, United States Treasury bills, bankers' acceptances, negotiable certificates of deposit, or similar evidences of, indebtedness; and

     • a. Which are of no more than one year in duration; and

     • b. Which are liquid in nature; and

• A. Without limiting the authority of the board itself to invest and reinvest the moneys of the retirement fund as provided in Section 3.32.320,

• c. Which are not investments in bonds or preferred or common stock.

The person to be so designated by the board shall be either a member of the board, a qualified investment advisor who has entered into

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a contractual arrangement pursuant to Section 3.32.400, or an officer or employee of the city. The person so designated shall serve in said capacity at the pleasure of the board and shall report monthly to the board on such short-term investments.

Moneys to be invested pursuant to this Subsection B. shall be only those moneys not then required for investments made pursuant to Section 3.32.320 and Subsection A. of this section.

(Ords. 23560, 25084.)

• A. Every person who is granted a retirement allowance hereunder for causes included within the purview of the Workmen's Compensation Insurance and Safety Act of 1917 of the state, and amendments thereto heretofore and hereafter adopted, and who shall receive compensation under and pursuant to the provisions of said act, shall be entitled to only such monthly amount hereunder as will, when added to the amount allowed and received and to be received monthly under said act, equal the total monthly retirement allowance herein provided for.

• B. In all cases where disability compensation is paid as herein provided, a credit shall be made in favor of the retirement fund, it being the intention of this plan that money paid as compensation pursuant to the act should be paid from sources other than said fund.

• (Prior code § 2903.31)

If any such member of the police or fire department shall become separated from the service, either voluntarily or involuntarily, then and in that event all moneys paid into said fund by such member shall be returned to him, together with interest earned by said fund, not exceeding two percent per year. In the event that he shall thereafter reenter the

service as such member of the police or fire department in any capacity, he shall repay into such fund, upon such reentry, an amount equal to the sum returned to him at the time of his separation from the service, and he shall not be entitled to any benefits under this chapter until said amount has been repaid into the fund.

(Prior code § 2903.32; Ords. 29266, 29879.)

The widow or the estate of any member who dies at any time prior to receiving retirement pay shall receive from the retirement fund the contributions of the deceased member to said fund plus interest on said contributions the same as provided for a member who resigns or is discharged with less than twenty years of aggregate service. (Prior code § 2903.33.)

If any such member shall die under circumstances not covered by this chapter, then and in that event all moneys, including interest earned, not exceeding two percent, paid into said fund by such member, shall be returned to his estate. (Prior code § 2903.34.)

Any member of the police or fire department with more than twenty years aggregate service, and who is not fifty-five years of age, who resigns or is discharged, may elect either to receive from the retirement fund the amount of his contributions to the fund plus interest in excess of two percent per year on his contributions; or said member may elect to contribute monthly to said retirement fund, until eligible for retirement, the sum total of the monthly contributions of both the city and the member that would have been contributed to said retirement fund by both the city and the member had the member so elected to pay both contributions continued as a member of the police or fire department until eligible for retirement.

(Prior code § 2903.35; Ords. 29266, 29879.)

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• A. A member of this retirement plan shall be deemed separated from the service upon his ceasing to hold any office or position in the police or fire department of the city.

• B. If an office or position held by a member in the police or fire department is abolished or discontinued and such member, for such reason, ceases to hold any office or position in the police or fire department, he thereby becomes entitled to such rights, if any, as are given to him by other sections of this chapter because of his separation from service. However, if at the time his position in the police or fire department is so abolished or discontinued, the functions and duties of his office or position, or substantially the same functions and duties, are transferred to a department other than the police or fire department, and if in addition he is transferred, without a break in service and without examination, to a position in such other department to perform substantially the same functions and duties as he theretofore performed in the police or fire department, and if in addition upon such transfer he becomes a member of the retirement plan established by Chapter 3.24 of this Code and elects to receive, and becomes entitled to receive, credit under such plan for services to which he is entitled to credit under this plan, then in such event he may elect, in lieu of receiving or being entitled to any other rights, benefits or moneys under this plan, to have all of his accumulated contributions in this plan, with interest thereon, transferred and paid to the retirement fund established pursuant to Chapter 3.24 of this Code. Such election shall be made in the manner and time specified in Section 3.24.1080 of this Code. Upon such election being made said accumulated contributions and interest earned thereon, plus all contributions made by the city to this plan because of such person's membership herein,

shall be transferred and paid to the retirement fund established pursuant to Chapter 3.24, and, thereafter, neither the person making such election or any survivor or estate of such person shall be entitled to any rights, benefits, allowance or moneys under this plan. (Prior code § 2903.36.)

• A. The disability retirement allowance of any person retired for service-connected disability prior to December 1, 1957, pursuant to the provisions of this chapter shall, from and after September 1, 1966, be increased by such amount as will provide such person a monthly allowance equal to fifty percent of the average monthly pay received by such person during the three years immediately preceding his request for retirement.

• B. Notwithstanding any other provision of this chapter, no retirement allowance heretofore or hereafter granted pursuant to the provisions of this chapter, except the retirement allowance specifically increased by this section shall be increased by reason of this section, and such other retirement allowances shall be computed without reference to this section.

• C. Also, any person hereinabove specified in the first paragraph of this section who retired prior to December 1, 1957, for service-connected disability pursuant to the provisions of this chapter shall be paid, if he received a serviceconnected disability allowance continuously from the date of his retirement to September 1, 1966, for each month between February 1, 1962, to August 31, 1966, inclusive, during which he received a service-connected disability allowance, the difference between the monthly allowance heretofore paid to such person for each such month, respectively, and

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the monthly allowance provided for by the provisions of the first paragraph of this section.

(Prior code § 2903.37.)

• A. The board may enter into contractual arrangements with any person or persons or association or associations, who meet the requirements of subsection B. or C., to provide counsel to the board with respect to the board's policies of investing and reinvesting of moneys in the retirement fund. Such contracts shall be entered into in the name of the board of administration for the police and fire department retirement plan.

• B. Any person or association who provides services to the board with regard to financial securities:

  1. Shall be a person or association whose principal business consists of investment counseling services; and

  2. Shall be registered as an investment adviser under such laws as may require such registration.

• C. With respect to real estate advisors, the board shall enter into contractual arrangements only with persons or associations whose principal officers are engaged in the business of advising and evaluating commercial, industrial or residential real estate investments, mortgage banking, or property management, and which are licensed as real estate brokers by the State of California.

(Ords. 21607, 25084, 25553.)