Chapter 3.24 — RETIREMENT SYSTEM SUBSEQUENT TO JULY 1, 1951

This Chapter 3.24 may be cited as the "San José retirement code."

(Prior code § 2904.1.)

The San José federated employees' retirement system created by Ordinance 2774, as amended, presently codified as Chapter 3.20 of the San José Municipal Code, is continued in existence under this chapter.

(Prior code § 2904.3.)

On and after July 1, 1951, and subject to the provisions of Section 3.24.450 and Section 3.24.1210 of this chapter, this Chapter 3.24 shall supersede the provisions of Chapter 3.20 as to the employees who become members of the retirement system which is the subject of this chapter.

(Prior code § 2904.)

The purpose of this chapter is to effect economy and efficiency in the public service by providing a means whereby employees who become superannuated or otherwise incapacitated, without hardship or prejudice, may be replaced by more capable employees, and to that end provide a retirement system consisting of

retirement allowances and death benefits. It is the intent of the city council that the retirement provisions in this chapter be amended from time to time to include provisions that will improve the system. To this end it is intended that the reports of the board will be considered, along with other available data, as to the desirability of changes in the retirement system.

(Prior code § 2904.2.)

Unless the context otherwise requires, the definitions set forth in Part 4 of Chapter 2.08 and this part of the code govern the construction of this chapter.

"Accumulated additional contributions" means the sum of all additional contributions standing to the credit of a member's individual account, and interest thereon.

"Accumulated normal contributions" means the sum of all normal contributions standing to the credit of a members individual account, and interest thereon.

"Accumulated prior service contributions" means the sum of all prior service contributions standing to the credit of a members individual account and interest thereon.

"Accumulated contributions" means accumulated normal contributions plus any accumulated additional contributions and plus accumulated prior service contributions standing to the credit of a member's account.

"Actuarial equivalent" means a benefit of equal value when computed upon the basis of the mortality tables adopted and the interest rate fixed by the board.

"Actuary" means the actuary retained on a consulting basis by the board.

"Additional contributions" means contributions made by members in addition to their normal contributions.

"Annuity" means payments for life derived from contributions made by a member.

"Beneficiary" means any person, including a corporation, designated by a member to receive, or who qualifies for receipt of, a benefit payable under this chapter.

"Benefit" means the retirement allowance, death benefit, or refund of accumulated contributions.

"Board" means the retirement board created in Part 10 of Chapter 2.08 of this Code.

"City" means the City of San José.

"Compensation" means the remuneration paid in cash out of funds controlled by the city, plus the monetary value, as determined by the board, of living quarters, board, lodging, fuel, laundry and other advantages of any nature furnished a member by the city in payment for his services. Overtime excluded in computing compensation. When the compensation of a member is a factor in any computation to be made under this chapter, there shall be excluded from such computations any compensation based on overtime put in by a member.

"Compensation earnable" by a member means the average monthly compensation, as determined by the board, upon the basis of the average time put in by members in the same group or class of employment and at the same rate of pay. The computation for any absence of a member shall be based on the compensation earnable by him at the beginning of the absence and that for time prior to entering city service shall be based on the compensation earnable by him in the position first held by him in such service.

"Employee" means any person in the employ of the city whose compensation, or at least that portion of his compensation which is provided by the city, is paid out of funds directly controlled by the city. "Funds directly controlled by the city" includes funds deposited in and disbursed from the city treasury in payment of compensation, regardless of their source.

"Final compensation" means the highest average annual compensation earnable by a member during any period of three consecutive years during his membership in the system. For the purposes of this chapter, periods of service separated by breaks in service may be aggregated to constitute a period of three consecutive years, if the periods of service are consecutive except for such breaks. If a break in service did not exceed six months in duration, time included in the break, and compensation earnable during such time shall be included in computation of final compensation. If a break in service exceeded six months in duration, the first six months thereof and the compensation earnable during those six months shall be

included in computation of final compensation, but time included in the break which is in excess of six months and the compensation earnable during such excess time shall be excluded in computation of final compensation.

On and after September 1, 1953, to August 31, 1956, the "fiscal year," for the purpose of this chapter, is any year commencing on September 1st and ending on August 31st next following; provided, that the fiscal year commencing July 1, 1952 shall end on August 31, 1953. On and after July 1, 1957, the "fiscal year," for the purpose of this chapter, is any year commencing on July 1st and ending on June 30th next following; provided, however, that the fiscal year commencing September 1, 1956, shall be a ten-month fiscal year ending on June 30, 1957.

"Member" means any person included in the membership of this system.

"Normal contributions" means contributions made by a member at the normal rates of contribution fixed by the board, but does not include additional contributions by members.

"Pension" means payments for life derived from contributions made from employer controlled funds.

"Prior service contributions" means contributions made by members on account of service rendered prior to July 1, 1951.

"Regular interest" means interest at the annual rate fixed by the board, compounded annually, plus such additional interest as the board may credit from year to year.

"Retirement" means withdrawal from active service with a retirement allowance granted under this chapter.

"Retirement allowance" means the service retirement allowance or the disability allowance.

"Retirement fund" means the San José federated employees retirement fund created by Ordinance 2774, as amended, presently codified in Chapter 3.20 of the San José Municipal Code, and continued in existency by this chapter.

"Retirement system" or "this system" means the federated city employees retirement system.

(Prior code §§ 2904.4 - 2904.31.)

Anything elsewhere in this Chapter 3.24 to the contrary notwithstanding, no person shall become, on or after July 1, 1975, a member of the retirement plan established by the provisions of this chapter, and, except as may be otherwise provided by the provisions of Chapter 3.28 of this Code, no member or former member of the retirement plan established by the provisions of this Chapter 3.24, and no survivor, beneficiary or estate of any such member or former member shall have any rights or be entitled to any benefits under the provisions of this Chapter 3.24 if and after said member or former member becomes a member of the 1975 federated employees retirement plan established by the provisions of Chapter 3.28 of this Code.

(Prior code § 2904.31a.)