Chapter 3.58 — FEDERATED EMPLOYEES VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION

Unless the context otherwise requires, the definitions and general provisions set forth in this Part 1 govern the construction of Chapter 3.58.

(Ord. 29904.)

"Dependent" means a surviving spouse, surviving domestic partner, or surviving child of a member eligible for benefits under the terms of the VEBA established pursuant to this Chapter 3.58.

(Ords. 29904, 30017.)

"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. 29904.)

"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 applicable GASB standards and reports. 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's health and welfare benefit includes eligible to purchase coverage under a City provided retiree healthcare plan, the following restrictions apply:

A.

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

B.

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.

(Ords. 29904, 30017.)

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

(Ord. 29904.)

"Member" means any person who meets the definition of member under Section 3.28.030.15 of Title 3 of the San José Municipal Code who is not entitled to retiree healthcare benefits under Part 16 and 17 of Chapter 3.28 of Title 3 of the San José Municipal Code. "Member" also means a person who meets the definition of member under Section 3.28.030.15 of Title 3 of the San José Municipal Code and is entitled to benefits under Part 16 and 17 but made is eligible to make and makes an irrevocable election pursuant to the procedures established under this Chapter 3.58 to be covered under the terms of the VEBA established under this Chapter 3.58 and to no longer be eligible for or entitled to benefits provided under Parts 16 and 17 of Chapter 3.28 of Title 3 of the San José Municipal Code.

(Ords. 29904, 30017.)

"New Employee" means any employee hired or rehired by the City on or after September 27, 2013.

(Ords. 29904, 30017.)

"Retiree" means a former employee of the City who was employed in 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 3.58.

(Ord. 29904.)

"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 and employees to provide post-retirement healthcare benefits members and, upon approval of the Internal Revenue Service, to those members of the Plan who would be required to make a one-time irrevocable election to be covered under this Chapter 3.57 rather than continuing to be covered under Parts 16 and 17 of Chapter 3.28 of Title 3 of the San José Municipal Code.

(Ord. 29904.)

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. 29904.)