Chapter 3.42

INCREASE IN CERTAIN MONTHLY ALLOWANCES PAYABLE FROM THE POLICE AND FIRE DEPARTMENT RETIREMENT PLAN

Parts:

• 1 Increase Based on Benefit Years

• 2 Increase Based on Initial Allowance

Part 1

INCREASE BASED ON BENEFIT YEARS

Sections:

• 3.42.010 Definitions.

• 3.42.020 Increase in allowance payable for any month after September 1, 1986.

• 3.42.030 Cost of increase.

• 3.42.040 Cost of living increases or decreases.

• 3.42.050 Reserved power of council to amend, modify or repeal provisions of this part.

For the purposes of this Part 1, certain words and phrases are defined in this section and shall be construed as set forth herein unless it is apparent from the context that a different meaning is intended.

• A. "Monthly allowance" means the monthly retirement allowance or the monthly survivorship allowance payable pursuant to the provisions of Chapter 3.32 or Chapter 3.36 of this Code, including any increase in any monthly allowance payable pursuant to Chapter 3.40, Chapter 3.41 or Chapter 3.44 of this Code.

• B. "Benefit years" means the years a former member or the survivor of a former member has received a monthly allowance, calculated as follows:

  1. In the case of a retirement allowance paid to a former member, the benefit years are those complete years calculated from the date of retirement to and including July 1, 1985.

  2. In the case of a survivorship allowance paid to the survivor of a former member who died prior to retirement, the benefit years are those

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complete years calculated from the date of the death of the former member to and including July 1, 1985.

3. In the case of a survivorship allowance paid to the survivor of a former member who died after retirement, the benefit years are those complete years calculated from the date of the former member's retirement to and including July 1, 1985.

• C. "Former member" means a person who was a member of the police and fire department retirement plan set forth in Chapter 3.32 or Chapter 3.36 of this Code and who, on or before July 1, 1984, retired from city employment for service or disability pursuant to the provisions of said plan or who, on or before July 1, 1984, died during his or her employment with the city.

(Ords. 22279, 24095.)

The costs of the increases in monthly allowances provided by Section 3.42.020 shall be borne by and paid from the police and fire department retirement plan.

(Ords. 22279, 24095.)

• A. Except as otherwise provided in this section, the allowance payable pursuant to Section 3.42.020 shall be increased or decreased in the same way that allowances subject to the provisions of Chapter 3.44 of Title 3 of this Code are increased or decreased pursuant to said Chapter 3.44.

• B. In no event shall the allowance payable pursuant to Section 3.42.020 be decreased below the amount which the recipient is to receive under Section 3.42.020 as of July 1986.

• C. To the extent any provisions of said Chapter 3.44 are inconsistent with the provisions of this Part 1, the provisions of this Part 1 shall govern and control.

(Ords. 22279, 24095.)

Subject to the provisions of Section 3.42.050, each monthly retirement allowance and each monthly survivorship allowance which becomes payable on or after July 1, 1986, to any person pursuant to the provisions of Chapter 3.32 or Chapter 3.36 by reason of the retirement or death of a former member of the police and fire department retirement plan on or before July 1, 1984, shall be increased in accordance with the following formula:

Amount of increase = Monthly allowance in monthly allowance 0.01 x

The city council of the City of San José may amend, modify or repeal any or all of the provisions of this Part 1 at any time or from time to time in order to increase, reduce or extinguish the monthly allowance herein provided for, and the enactment of this Part 1 shall not in any way be deemed to give any person any irrevocable or vested right to the monthly allowances herein provided, such allowances expressly being granted subject to the reservations of this section.

(Ords. 22279, 24095.)

Part 2

x Number of benefit years as defined in Section 3.42.010.B.

(Ords. 22279, 24095.)

INCREASE BASED ON INITIAL ALLOWANCE

Sections:

For the purposes of this Part 2, certain words and phrases are defined in this section and shall be construed as set forth herein unless it is apparent from the context that a different meaning is intended.

• A. "Initial allowance" means:

  1. With respect to a former member, the monthly retirement allowance payable at the time the former member retired.

  2. With respect to the surviving spouse of a former member who dies after receiving retirement pay:

     • a. The monthly survivorship allowance that would have been payable to such spouse if the former member had died the day immediately following the first payment of the retirement pay; or

     • b. In the case where surviving spouses' allowances were not available at the time the member retired, a monthly allowance equal to fifty-six and twenty-five-hundredths percent of the initial allowance of the former member.

  3. With respect to the surviving spouse of a former member who dies prior to receiving any retirement pay, the monthly survivorship allowance payable to such spouse at the time the former member dies.

• B. "Adjusted initial allowance" means the initial allowance adjusted using the Consumer Price Index for All Urban Consumers (CPI-U), San Francisco-Oakland-

San José metropolitan area, all items (1967 = 100), as published by the United States Department of Labor, Bureau of Labor Statistics, showing the December-to-December change from the December of the commencement year to December 1991. By way of formula:

• = CPI for December 1992 × Initial ________________________ Allowance CPI for December of Commencement Year

Adjusted Initial Allowance

• C. "Commencement year" means:

  1. With respect to a former member or the former surviving spouse of a former member who died after receiving retirement pay, the calendar year in which the former member retired.

  2. With respect to the surviving spouse of a former member who died prior to receiving any retirement pay, the calendar year in which the former member died.

• D. "Total monthly allowance" means the monthly retirement allowance payable to a former member as of July 5, 1992, or the monthly survivorship allowance payable to a surviving spouse as of July 5, 1992, including all benefit adjustments payable from the retirement fund or the cost-of-living fund and all supplemental benefits payable from the city's general fund but excluding the costs of any medical or dental insurance premiums paid by the plan or the city.

• E. "Former member" means a person who was a member of the plan and who, prior to July 5, 1992:

  1. Retired from city employment for service or disability pursuant to the provisions of the plan; or

  2. Began receiving payments from the plan pursuant to Section 3.36.1630 or Section 3.36.1640; or

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  3. Died during his or her employment with the city while a member of the plan. 

• F. "Surviving spouse" means the spouse of a deceased former member who receives a surviving spouse's allowance pursuant to the provisions of Chapter 3.32 or Chapter 3.36 of this Code.

• G. "Plan" means the police and fire department retirement plan set forth in Chapter 3.32 or Chapter 3.36 of this Code.

• (Ord. 24095.)

• A. If the total monthly retirement allowance payable to a former member for the month of July 1992 is less than seventy-five percent of such former member's adjusted initial allowance, then the monthly retirement allowance shall be increased, effective August 1, 1992, by the amount necessary to make the monthly retirement allowance equal to seventy-five percent of the former member's adjusted initial allowance.

• B. If the total monthly surviving spouse's allowance payable to the surviving spouse of a former member for the month of July 1992 is less than seventy-five percent of such surviving spouse's adjusted initial allowance, then the monthly surviving spouse's allowance shall be increased, effective August 1, 1992, by the amount necessary to make the monthly surviving spouse's allowance equal to seventyfive percent of the surviving spouse's adjusted initial allowance.

• C. In the case where a former member dies on or after July 5, 1992, if the monthly surviving spouse's allowance that becomes payable to the surviving spouse of such former member is less than seventy-five percent of the surviving spouse's adjusted initial allowance, then the monthly surviving spouse's allowance shall be increased, effective the first month such allowance becomes payable, by the amount neces-

sary to make the monthly surviving spouse's allowance equal to seventy-five percent of the surviving spouse's adjusted initial allowance.

(Ord. 24095.)

The costs of the increases in monthly allowances provided by Section 3.42.110 shall be borne by and paid from the police and fire department retirement plan.

(Ord. 24095.)

• A. Except as otherwise provided in this section, the increases in monthly allowances provided by Section 3.42.110 shall be increased or decreased in the same way that allowances subject to the provisions of Chapter 3.44 of this Code are increased or decreased pursuant to said Chapter 3.44.

• B. In no event shall the monthly allowance payable pursuant to Section 3.42.110 be decreased below the amount which the recipient first became entitled to receive under Section 3.42.110.

• C. To the extent any provisions of Chapter 3.44 of this Code are inconsistent with the provisions of this Part 2, the provisions of this Part 2 shall govern and control.

• (Ord. 24095.)