Part 6 — RETIREMENT FOR SERVICE

A.

Prior to August 1, 1968, a member shall be retired for service, upon his written application to the retirement board, if he has attained fifty-five years of age and is entitled to be credited with twenty or more years of service.

B.

On or after August 1, 1968, subject to the provisions of this chapter, a member, other than a tier 2 member, shall be retired for service, upon his written application to the retirement board, if he has attained fifty years of age and is entitled to be credited with twenty or more years of service, or if he is entitled to be credited with thirty or more years of service regardless of whether he has attained fifty years of age.

C.

On or after August 4, 2013, subject to the provisions of this chapter, a tier 2 member shall be retired for service, upon his written application to the retirement board, if:

Such tier 2 member has attained fifty-seven years of age and is entitled to be credited with five or more years of service; or

Such tier 2 member has attained fifty years of age and is entitled to be credited with five or more years of service. However, the tier 2 member's benefit shall be reduced by a factor of seven percent for each year the tier 2 member retires before age fifty-seven, prorated to the closest month. The reduced benefit shall be determined by the actuary for the police and fire retirement plan. The early retirement reduction factors used are shown below:

Retirement Age Early Retirement Factor

57 1.00

56 0.93

55 0.86

54 0.79

53 0.72

52 0.65

51 0.58

50 0.51

(Prior code § 2903.175; Ords. 21686, 29266, 29879.)

pursuant to Section 3.28.757.

A person retired for service pursuant to any of the provisions of this Part 6 shall not be retained by the City to render any City service unless the person is first reinstated from service retirement pursuant to the provisions of this Part, except:

A.

Where the person renders service as an independent contractor; or

B.

Where the person is reemployed pursuant to Section 3.36.757.

(Ord. 29907.)

A.

A person who has been retired for service pursuant to the provisions of this Part 6 may apply to the retirement board, in writing, for reinstatement from such retirement for the purpose of reentering city service. The board may reinstate the person from retirement if it finds that his or her age at the date of his application is at least six months less than seventy years of age. Upon such reinstatement, said person may be reemployed by the city, in the same manner as it employs persons who have not been retired hereunder, to render city service.

B.

Upon reinstatement from service retirement as aforesaid, the service retirement allowance of the reinstated person shall be canceled forthwith, and the person shall again become a member of this plan as of the date of the reinstatement. If reinstatement occurs on or after August 4, 2013 and the individual meets the definition of tier 2 member under Section 3.36.020.15, the person will re-enter the plan as a tier 2 member with respect to benefits that will be accrued as of his/her reinstatement date. Upon reinstatement, if the person has attained age fifty and has at least ten years of service credit, the person shall regain credit for those years of service for which the person was entitled to credit as of the time he or she retired for service in the manner described in Subsection C. below.

C.

If a person with city service prior to August 4, 2013, who has been retired is reinstated to city service on or after August 4, 2013 and meets the definition of tier 2 member in Section 3.36.020.15, upon subsequent retirement the amount of that tier 2 member's retirement allowance shall be calculated by applying the accrual rate or rates for the number of years of city service earned prior to becoming a tier 2 member and applying the accrual rates described in Section 3.36.808 or 3.36.809, as applicable, corresponding with the number of years as a tier 2 member using the tier 2 member's final compensation as a tier 2 member and applying all other provisions applicable to tier 2 members in determining the benefit.

(Ords. 29266, 29879.)

department retirement plan services.

A.

If a person who has been retired for service pursuant to the provisions of this Part 6 is retained or reemployed by the City, other than as an independent contractor or pursuant to Section 3.36.757, to render any service which is not City service under this Part 6, said person's service retirement allowance shall be suspended as of the effective date of such reemployment and shall remain suspended while the person is retained or reemployed to perform such service. Upon cessation of such reemployment, the person's service retirement allowance shall be reinstated.

B.

The provisions of this Section shall not apply to the election or appointment of any retired person to the City Council or to any board or commission of the City.

(Ord. 29907.)

A.

A person who has been retired under this system, for service or disability, may be employed by the City to perform City service on a temporary basis without reinstatement from retirement where the employment does not exceed one hundred twenty working days or nine hundred sixty hours, whichever is greater, in any payroll calendar year. For the purposes of this provision, "payroll calendar year" means the twelve-month period commencing on the first day of the first pay period for active City employees.

B.

The procedures for the employment of a retired person under this Section shall be in accordance with the procedures set forth in the City administrative policy manual.

C.

The employment of a person pursuant to this Section shall not operate to reinstate the person as a member of this system. The person shall not earn service credit in this system for any period of such reemployment, nor shall either the person or the City make any contributions to this system on account of such employment.

D.

The employment of a person pursuant to this Section shall not operate to terminate or suspend the retirement allowance otherwise payable to such person.

E.

A person employed pursuant to this Section shall not be entitled to a disability retirement from the position in which the person is reemployed.

F.

If the Internal Revenue Service determines that a reemployment program such as that described in this Section cannot be implemented without placing a retirement system out of conformity with the qualified plan requirements of the Internal Revenue Code (Title 26 of the United States Code), this Section shall become inoperative and any employment of a person pursuant to this Section shall be terminated immediately.

(Ord. 29907, 30225.)

Editor's note— Ord. No. 30225, adopted March 12, 2019, amended § 3.36.757, and in so doing changed the title of said section from "Limited Reemployment of Retired Person From the Police Department" to "Limited Reemployment of Retired Person," as set out herein.

Protection District.

Notwithstanding any other provisions of this chapter and Chapters 3.20 through 3.32, 3.40 and 3.44, any person who does not qualify for service retirement under any other provisions of this chapter and Chapters 3.20 through 3.32, 3.40 and 3.44 and becomes a member of this system pursuant to an "Agreement Between the City of San José and the Santa Clara County Central Fire Protection District Providing for the Furnishing by City of Certain Fire Services Within a Portion of the Service Area of said District," dated August 16, 1977, shall be retired for service, upon his written application to the retirement board, if he has attained fifty-five years of age, and shall be paid from the retirement fund a monthly allowance equal to 2.5 percent of his final compensation for each full year of service; provided, however, that in no event shall his monthly allowance exceed a maximum of seventy-five percent of his final compensation. In computing the amount of allowance payable, pro rata credit shall be given for a portion of a full year. If the said person qualifies for service retirement or is eligible for retirement benefits under any other provision of this chapter and Chapters 3.20 through 3.32, 3.40 and 3.44, he or his beneficiaries may avail themselves of such other provisions at their option in place of the benefits herein provided by this section and Sections 3.36.1260, 3.36.1350, 3.36.1360 and 3.44.140; provided, that if said person is credited with less than twenty years of service at the time he wishes to retire for service or at the time his beneficiaries are eligible for benefits, said person must retire under this section and receive benefits pursuant to Sections 3.36.1260, 3.36.1350, 3.36.1360 and 3.44.140.

(Prior code § 2903.175(a); Ord. 19123.)

Subject to the provisions of this chapter, the retirement board, on its own motion, by a vote of not less than four-fifths of the total authorized membership of the board, may retire a member (other than a tier 2 member) for service, notwithstanding the fact that such member may not have requested or consented to or is opposed to such retirement, if such member has attained fifty-five years of age and is entitled to be credited with twenty or more years of service, or if such member is entitled to be credited with thirty or more years of service, regardless of whether he has attained fifty-five years of age.

Subject to the provisions of this chapter, the retirement board, on its own motion, by a vote of not less than four-fifths of the total authorized membership of the board, may retire a tier 2 member for service, notwithstanding the fact that such member may not have requested or consented to or is opposed to such retirement, if such tier 2 member has satisfied the requirements of Section 3.36.750C.1.

(Prior code § 2903.176; Ords. 21686, 29266.)

A.

Subject to the provisions of this Chapter 3.36, a member shall and must be retired for service upon attaining the age of seventy years regardless of the number of years of service for which such member is entitled to credit. Each such retirement shall be effective as of the date such member attains the age of seventy years.

B.

Nothing hereinabove contained in this section shall be deemed to deprive a member of such right, if any, as he may have to retire at age seventy for disability under and pursuant to the provisions of the following Part 7 of this chapter if he qualifies and is eligible for disability retirement under the provisions of said Part 7; provided, however, that if he retires pursuant to the provisions of Part 7, he shall be entitled only to such retirement benefits as are provided by the provisions of said Part 7, and shall not be entitled to any benefits whatsoever under the provisions of this section of this Part 6.

(Prior code § 2903.177; Ord. 21732.)

Subject to the provisions of this Chapter 3.36, if a member retired for service prior to August 1, 1968, pursuant to the provisions of Sections 3.36.750, 3.36.770 or 3.36.780, he shall be paid from and after the date of his retirement and during the remainder of his lifetime, from the retirement fund, a monthly service retirement allowance equal to fifty percent of his final compensation.

(Prior code § 2903.178.)

1970, at age fifty-five or more, but prior to February 4, 1996.

A.

Subject to the provisions of this Chapter 3.36, if a member retired for service on or after August 1, 1968, but before January 1, 1970, pursuant to the provisions of Section 3.36.750, 3.36.770 or 3.36.780, and if in addition such member had attained the age of fifty-five years as of the date of commencement of retirement, then he or she shall be paid from the retirement fund, from and after the date of retirement and during the remainder of his or her lifetime, a monthly service retirement allowance equal to fifty percent of his or her final compensation plus one and two-thirds percent of his or her final compensation for each full year of service in excess of the first twenty years of service for which the member is entitled to credit; provided, however, that in no event shall the monthly service retirement allowance exceed a maximum of sixty-six and two-thirds percent of the member's final compensation. In computing the amount of allowance payable for service in excess of the first twenty years, pro rata credit shall be given for a fraction of a full year.

B.

Subject to the provisions of this Chapter 3.36, if a member retired or retires for service on or after January 1, 1970, but before February 4, 1996, pursuant to the provisions of Section 3.36.750, 3.36.770 or 3.36.780, and if, in addition, the member attained or shall have attained the age of fifty-five years as of the date of commencement of retirement, or if the member had been entitled to thirty years of service regardless of

whether the member had attained the age of fifty-five years, then he or she shall be paid from the retirement fund the following monthly service retirement allowance:

From and after the date of retirement to September 1, 1970, the monthly service retirement allowance shall be equal to fifty percent of his or her final compensation plus one and two-thirds percent of his or her final compensation for each full year of service in excess of the first twenty years of service for which the member is entitled to credit; provided, however, that in no event shall the monthly service retirement allowance during such period exceed a maximum of sixty-six and two-thirds percent of the member's final compensation; and

During the remainder of his or her lifetime from and after September 1, 1970, the monthly service retirement allowance shall equal fifty percent of his or her final compensation plus two and one-half percent of his or her final compensation for each full year of service in excess of the first twenty years of service for which the member is entitled to credit; provided, however, that in no event shall the monthly service retirement allowance during said period exceed a maximum of seventy-five percent of the member's final compensation.

C.

For the purposes of this Section 3.36.800, "service" means service performed for the city and for which the member is entitled to credit under the provisions of this chapter. "Service" shall not include service as an officer or employee of a reciprocal agency which is used to qualify for benefits pursuant to Section 3.36.3030.

D.

In computing the amount of allowance payable for service in excess of the first twenty years, pro rata credit shall be given for a fraction of a full year.

(Prior code § 2903.179; Ords. 21686, 25614.)

A.

Subject to the provisions of this Chapter 3.36, if a member retired or retires for service on or after February 4, 1996, but prior to February 4, 2000, pursuant to the provisions of Section 3.36.750, 3.36.770 or 3.36.780, then he or she shall be paid from the retirement fund a monthly service retirement allowance equal to two and one-half percent of his or her final compensation for each of the first twenty years of service plus three percent of his or her final compensation for each full year of service in excess of the first twenty years of service; provided, however, that in no event shall the monthly service retirement allowance exceed a maximum of eighty percent of the member's final compensation.

B.

For the purposes of this Section 3.36.805, "service" means service performed for the city and for which the member is entitled to credit under the provisions of this chapter. "Service" shall not include service as an officer or employee of a reciprocal agency which is used to qualify for benefits pursuant to Section 3.36.3020.

C.

In computing the amount of allowance payable for service in excess of the first twenty years, pro rata credit shall be given for a fraction of a full year.

(Ords. 25614, 26229.)

for members employed with the fire department and before July 1, 2006 for members employed with the police department.

A.

Subject to the provisions of this Chapter 3.36, if a member retired or retires for service on or after February 4, 2000 but before July 1, 2008 for members employed with the fire department and before July 1, 2006 for members employed with the police department, pursuant to the provisions of Section 3.36.750, 3.36.770 or 3.36.780, then he or she shall be paid from the retirement fund a monthly service retirement allowance equal to two and one-half percent of his or her final compensation for each of the first twenty years of service, plus three percent of his or her final compensation for each of the next five full years of service, plus four percent of his or her final compensation for each full year of service in excess of the first twenty- five years of service; provided, however, that in no event shall the monthly service retirement allowance exceed a maximum of eighty-five percent of the member's final compensation.

B.

For the purposes of this Section 3.36.807, "service" means service performed for the city and for which the member is entitled to credit under the provisions of this chapter. "Service" shall not include service as an officer or employee of a reciprocal agency which is used to qualify for benefits pursuant to Section 3.36.3020.

C.

In computing the amount of allowance payable for service in excess of the first twenty years, pro rata credit shall be given for a fraction of a full year.

(Ords. 26229, 29266, 29879.)

February 4, 2000.

A.

Subject to the provisions of this Chapter 3.36, if a member employed in the fire department retired or retires for service on or after February 4, 2000, but prior to July 1, 2008, pursuant to the provisions of Section

3.36.750, 3.36.770 or 3.36.780, then he or she shall be paid from the retirement fund a monthly service retirement allowance calculated in accordance with Section 3.36.807.

B.

Subject to the provisions of this Chapter 3.36, if a member employed in the fire department retired or retires for service on or after July 1, 2008, pursuant to the provisions of Section 3.36.750, 3.36.770 or 3.36.780, then:

If the person was credited with less than twenty years of service credit at the time of retirement, he or she shall be paid from the retirement fund a monthly service retirement allowance equal to two and one-half percent of his or her final compensation for each year of service credit.

If the person was credited with twenty or more years of service credit at the time of retirement, he or she shall be paid from the retirement fund a monthly service retirement allowance equal to three percent of his or her final compensation for each year of service credit; provided, however, that in no event shall the monthly service retirement allowance exceed a maximum of ninety percent of the member's final compensation.

A tier 2 member who retires for service on or after August 4, 2013, shall be paid from the retirement fund a monthly service retirement allowance determined based on an annual benefit equal to two and two-fifths percent of final compensation for each of the first twenty full years of city service, plus three percent of his or her final compensation for each full year of service between twenty-one and twenty-five years of city service, plus three and two-fifths percent of his or her final compensation for each full year of service in excess of twenty-five years of city service; provided, however that in no event shall the annual service retirement allowance exceed a maximum of eighty percent of such tier 2 member's final compensation. If the tier 2 member has attained age fifty but not reached age fifty-seven, the tier 2 member's benefit shall be reduced by a factor of seven percent for each year the tier 2 member retires before age fifty-seven, prorated to the closest month. The reduced benefit shall be determined by the actuary for the police and fire plan. The early retirement reduction factors used are shown below:

Retirement Age Early Retirement Factor

57 1.00

56 0.93

55 0.86

54 0.79

53 0.72

52 0.65

51 0.58

50 0.51

C.

For the purposes of this Section 3.36.808, "service" means service performed for the city and for which the member is entitled to credit under the provisions of this chapter. "Service" shall not include service as an officer or employee of a reciprocal agency which is used to qualify for benefits pursuant to Section 3.36.3020.

D.

In computing the amount of the allowance payable for service in excess of the first twenty years, pro rata credit shall be given for a fraction of a full year.

E.

Tier 2 members shall be credited with one year of service for two thousand eighty or more hours of service rendered by the tier 2 member in any calendar year. The maximum service credit for a tier 2 member in a calendar year shall not exceed one year. If a tier 2 member renders less than two thousand eighty hours in a calendar year, the tier 2 member shall be given credit for that portion of one year which the hours of service rendered by the member in such year bear to two thousand eighty hours of regular time worked (including paid leave and military leave, but not overtime).

(Ords. 28300, 29511, 29879.)

after February 4, 2000.

A.

Subject to the provisions of this Chapter 3.36, if a member employed in the police department retired or retires for service on or after February 4, 2000, but prior to July 1, 2006, pursuant to the provisions of Section 3.36.750, 3.36.770 or 3.36.780, then he or she shall be paid from the retirement fund a monthly service retirement allowance calculated in accordance with Section 3.36.807.

B.

Subject to the provisions of this Chapter 3.36, if a member employed in the police department, other than a tier 2 member, retired or retires for service on or after July 1, 2006, pursuant to the provisions of Section 3.36.750, 3.36.770 or 3.36.780, then he or she shall be paid from the retirement fund a monthly service retirement allowance equal to two and one-half percent of his or her final compensation for each of the first twenty years of service plus four percent of his or her final compensation for each full year of service in excess of the first twenty years of service; provided, however, that in no event shall the monthly service retirement allowance exceed a maximum of ninety percent of the member's final compensation. A tier 2 member who retires for service on or after August 4, 2013, shall be paid from the retirement fund a monthly

service retirement allowance determined based on an annual benefit equal to two and two-fifths percent of final compensation for each of the first twenty full years of city service, plus three percent of his or her final compensation for each full year of service between twenty-one and twenty-five years of city service, plus three and two-fifths percent of his or her final compensation for each full year of service in excess of twenty-five years of city service; provided, however that in no event shall the annual service retirement allowance exceed a maximum of eighty percent of such tier 2 member's final compensation. If the tier 2 member has attained age fifty but not reached age fifty-seven, the tier 2 member's benefit shall be reduced by a factor of seven percent for each year the tier 2 member retires before age fifty-seven, prorated to the closest month. The reduced benefit shall be determined by the actuary for the police and fire plan. The early retirement reduction factors used are shown below:

Retirement Age Early Retirement Factor

57 1.00

56 0.93

55 0.86

54 0.79

53 0.72

52 0.65

51 0.58

50 0.51

C.

For the purposes of this Section 3.36.809, "service" means service performed for the city and for which the member is entitled to credit under the provisions of this chapter. "Service" shall not include service as an officer or employee of a reciprocal agency which is used to qualify for benefits pursuant to Section 3.36.3020.

D.

In computing the amount of allowance payable for service in excess of the first twenty years for other than tier 2 members, pro rata credit shall be given for a fraction of a full year.

E.

Tier 2 members shall be credited with one year of service for two thousand eighty or more hours of service rendered by the tier 2 member in any calendar year. The maximum service credit for a tier 2 member in a calendar year shall not exceed one year. If a tier 2 member renders less than two thousand eighty hours in a calendar year, the tier 2 member shall be given credit for that portion of one year which the hours of service rendered by the member in such year bear to two thousand eighty hours of regular time worked (including paid leave and military leave, but not overtime).

(Ords. 27721, 29266, 29879.)

A.

If a member, other than a tier 2 member, retires or is retired for service on or after August 1, 1968, and such member has attained fifty years of age but has not attained fifty-five years of age as of the date of commencement of his or her retirement, then he or she shall be paid as a monthly service retirement allowance from the retirement fund, from and after the date of his or her retirement and during the remainder of his or her lifetime, a reduced monthly allowance, as calculated pursuant to Subsection B. of this section, whenever such member meets either of the following conditions:

The member retired on or after August 1, 1968, but prior to July 5, 1992, and as of the date of commencement of his or her retirement such member is entitled to be credited with twenty or more years of service but less than thirty years of service; or

The member retired on or after July 5, 1992, and as of the date of commencement of his or her retirement, such member is entitled to be credited with twenty or more years of service but less than twenty-five years of service.

B.

The reduced monthly service retirement allowance for a member described in Subsection A. of this section shall be calculated using the interest rate and life expectancy tables used to value benefits in determining the actuarial equivalents of the optional settlements provided under Part 9.5 of this chapter and determined as follows:

First, there shall be determined the monthly retirement allowance to which the member would be entitled if he or she were to continue his or her employment and defer retirement until he or she attained the age of fifty-five years, assuming for such purpose that such member's final compensation upon retirement at age fifty-five were the same as his or her compensation at the time of his or her actual early retirement. The result is hereinafter referred to as the member's "unreduced allowance."

Second, there shall be determined, as of the date of the member's early retirement, the amount of such member's unreduced allowance, assuming that notwithstanding his or her early retirement such member does not become entitled to commence drawing his or her allowance until he or she attains the age of fifty- five years. Such amount shall be deemed to be equal to that proportion of the member's unreduced allowance which the amount of service for which he or she is entitled to credit at the time of his or her early retirement bears to the amount of service for which he or she would be entitled to credit if he or she were to

continue his or her employment and defer retirement until he or she attained the age of fifty-five years. The result is hereinafter referred to as the member's "partially reduced allowance."

Finally, said member's partially reduced allowance shall be further reduced by that amount which the value of such partially reduced allowance as deferred to age fifty-five will purchase at the actual age of retirement. The result is the reduced monthly service retirement allowance which the member is entitled to receive from and after the date of his or her early retirement.

C.

Also, if a member retires or is retired for service before attaining the age of fifty-five years, any and all death, survivorship and other allowances, benefits or payments to which a person, persons or estate may become entitled, after such member's death, under the provisions of Part 8 of this chapter, shall be reduced as provided in Section 3.36.1340 of Part 8.

D.

Notwithstanding the foregoing provisions regarding reduced monthly service allowances, any member who is not a tier 2 member, and retires or is retired for service on or after August 1, 1968, and who is entitled to be credited with thirty years or more of service, shall not be subject to the provisions regarding reduced monthly service allowances regardless of age.

E.

Notwithstanding the foregoing provisions regarding reduced monthly service allowances, any member who is not a tier 2 member and retires or is retired for service on or after July 5, 1992, and at the time of retirement has attained fifty years of age but has not attained fifty-five years and is entitled to be credited for twenty-five or more years of service but less than thirty years of service, shall not be subject to the provisions regarding reduced monthly service allowances.

F.

If a tier 2 member retires or is retired for service on or after August 4, 2013, and such tier 2 member has attained fifty years of age but has not attained fifty-seven years of age as of the commencement of his or her retirement, then he or she shall be paid a monthly service retirement allowance that is reduced by a factor of seven percent for each year between age fifty-seven and the tier 2 member's age at retirement, prorated to the closest month. The reduced benefit shall be determined by the actuary for the police and fire retirement plan. The early retirement reduction factors used are shown below:

Retirement Age Early Retirement Factor

57 1.00

56 0.93

55 0.86

54 0.79

53 0.72

52 0.65

51 0.58

50 0.51

G.

If a tier 2 member retires or is retired for service before attaining age fifty-seven, any and all death survivorship and other allowances, benefits or payments to which a person, persons or estate may become entitled, after such tier 2 member's death, under this chapter shall be reduced as provided in Section 3.36.1340.

(Prior code § 2903.180; Ords. 21686, 24092, 29266, 29879.)

No person shall be retired for service unless he is eligible therefor under and pursuant to the above sections of this Part 6.

(Prior code § 2903.181.)

Any and all service retirement allowances otherwise payable to a person may be cancelled and terminated by the retirement board, in its sole discretion, if the recipient thereof should commit treason or be convicted of a felony. Such cancellation and termination shall not affect survivors' benefits and death benefits set forth in Part 8 of this chapter if such benefits would otherwise be payable. At any time after cancellation and termination of retirement allowances pursuant to this section, the board may in its sole discretion pay to the spouse and/or minor children under the age of eighteen of the convicted person all or any portion of the retirement allowance which would have been payable to the convicted person, for such periods and subject to such conditions as the board in its sole discretion imposes and subject to the further right and power of the board to cancel such payments to the spouse and/or minor children at any time, in its sole discretion, with or without notice. Such payment to the spouse or minor children shall not be made until and unless application therefor shall have been made and the board shall have determined that the allowance or a portion thereof is required to provide the spouse or minor children with necessaries of life.

(Prior code § 2903.182; Ord. 23807.)