Chapter 3.57 — POLICE AND FIRE DEPARTMENTS VOLUNTARY EMPLOYEES' BENEFICIARY

Unless the context otherwise requires, the definitions and general provisions set forth in this Part 1 govern the construction of Chapter 3.57.

(Ord. 29879.)

"Dependent" means a surviving spouse, surviving domestic partner, or surviving child of a member or a tier 2 member eligible for benefits under the terms of the VEBA established pursuant to this Chapter 3.57.

(Ord. 29879.)

"Governmental accounting standards board" or "GASB" means the organization funded and monitored by the financial accounting foundation (FAF), or successor organization, whose main purpose is to improve and create accounting reporting standards or generally accepted accounting principles (GAAP), which makes it easier for users to understand and use the financial records of both state and local governments.

(Ord. 29879.)

"Health and Welfare Benefit" means a medical, prescription drug, or dental benefit, including a premium subsidy for the same for retirees and dependents, which is considered a post-retirement benefit other than pension under the applicable GASB requirements or statements. Such a benefit is limited to medical care expenses, including premium subsidies as defined in Section 213(d), which may be provided under the VEBA for eligible retirees and dependents. To the extent a VEBA member is eligible to purchase a City provided retiree healthcare plan, the following restrictions apply:

A.

VEBA Member with less than five (5) years of service with the City of San José will not be eligible to purchase into the City's retiree healthcare insurance plans; and

B.

The rate at which retiree healthcare insurance plans will be made available to VEBA Members shall at a retiree only rate, and shall not be based on a blended rate with active employees.

(Ords. 29879, 30007.)

"IRC" means the Internal Revenue Code of 1986, as amended.

(Ord. 29879.)

"Member" means a new employee as defined under Section 3.57.020.08 or a tier 2 member as defined under Section 3.57.020.10. "Member" also means a member defined under Section 3.36.020.6 of Title 3 of the San José Municipal Code who is not a tier 2 member but has made an irrevocable election pursuant to the procedures established under this Chapter 3.57 to be covered under the terms of this VEBA and is no longer eligible for insurance coverage under Parts 14 and 15 of Chapter 3.36 of Title 3 of the San José Municipal Code.

(Ord. 29879.)

"New employee" means any employee initially hired to the police department on or after August 4, 2013, or initially hired to the fire department on or after January 2, 2015.

(Ord. 29879.)

"Retiree" means a former employee of the city who was employed in the police department or the fire department of the City of San José and who is retired and is entitled to health and welfare benefits under the terms of the VEBA established under this Chapter 3.57.

(Ord. 29879.)

"Tier 2 member" means a tier 2 member as defined under Section 3.36.020.15 of Title 3 of the San José Municipal Code who is eligible for benefits to be provided under this Chapter 3.57 through the VEBA.

(Ord. 29879.)

"VEBA" means a voluntary employees' beneficiary association meeting the requirements of Internal Revenue Code Section 501(c)(9), as approved by the Internal Revenue Service, which shall be established by the city, the San José Police Officers' Association and the San José Fire Fighters, IAFF Local 230, to provide post-retirement healthcare benefits to tier 2 members and, upon approval of the Internal Revenue Service, to those members of the plan other than tier 2 members who make a one-time irrevocable election to be covered under this Chapter 3.57 rather than continuing to be covered under Parts 14 and 15 of Chapter 3.36 of Title 3 of the San José Municipal Code.

(Ord. 29879.)

"Retired" means any VEBA members who retire from the city under the provisions of Chapter 3.36 of Title 3 of San José Municipal Code and VEBA Members who have a separation from service with the City and are retirement eligible under the provisions of Chapter 3.36 of Title 3 of San José Municipal Code.

(Ord. 30007.)

Words used herein in the masculine gender shall be construed to include the feminine gender where appropriate, and words used herein in the singular or plural shall be construed as being in the plural or singular where appropriate. Accounting terms and principles used herein or applicable hereto shall be as defined and described from time to time by pronouncements and other guidance of the governmental accounting standards board ("GASB"), or any successor organization.

(Ord. 29879.)