San Jose Municipal Code Part 16 Reciprocity

The purpose of this Part 16 is to extend to the members of other public agency retirement systems which adopt similar reciprocal provisions into their retirement ordinances or plans pursuant to Sections 20042, 20043, 31840.2, or 45310.5 of the California Government Code or pursuant to the charter of a city or a city and county or pursuant to the authority vested in any other public agency of the state of California (hereafter "reciprocal systems"), and which have entered into an agreement to establish a reciprocal retirement system with the California Public Employees' Retirement System, the rights in this retirement plan set forth in this Part 16.

(Ord. 24681.)

A. Subject to Section 3.36.3060, the provisions of this Part 16 shall only apply to a person who satisfies the requirements of paragraph 1. or paragraph 2. of this subsection A.:

1. The person is a member of this retirement plan, terminates his or her employment with the city, and:

a. In the case where such termination of employment occurs prior to January 1, 1976, becomes a member of a reciprocal system within ninety days of such termination of employment; or

b. In the case where such termination of employment occurs on or after January 1, 1976, becomes a member of a reciprocal system within six months of such termination of employment.

2. The person is a member of a reciprocal system, terminates his or her employment pursuant to which he or she was a member of such reciprocal system, and:

a. In the case where such termination of employment occurs prior to January 1, 1976, becomes a member of this retirement plan within ninety days of such termination of employment; or

b. In the case where such termination of employment occurs on or after January 1, 1976, becomes a member of this retirement plan within six months of such termination of employment.

B. Except as provided in subsection C. below, the provisions of this Part 16 shall apply only to a member whose termination and entry into employment resulting in a change in membership from this retirement plan to a reciprocal system, or from a reciprocal system to this retirement plan, as provided in subsection A. above, occurred after the effective date of September 30, 1994, specified in the agreement for reciprocal benefits between the board of administration of the public employees retirement system and the city council of the City of San José.

C. The provisions of this Part 16 relating to computation of final compensation shall apply to a member if such provisions would have applied had the member's termination and entry into employment occurred after the effective date of the agreement for reciprocal benefits.

(Ord. 24681.)

The following provisions shall apply to a member who meets the requirements of Section 3.36.3010:

A. Notwithstanding Sections 3.36.1630 and 3.36.1640, the member shall have the right to elect to leave his or her accumulated contributions on deposit in the police and fire department retirement fund irrespective of the amount of such contributions or the length of service credited to the member under this retirement plan. Such election shall be irrevocable while membership in the reciprocal system continues.

B. For the purpose of the calculation of contribution rates of the city and the members, the age of entry for a person entering this retirement plan from a reciprocal system shall be such person's age at entry into the reciprocal system.

C. The average monthly salary during any period of service as a member of a reciprocal system shall be considered compensation to a member of this retirement plan for the purpose of computing final compensation for such member if all of the following conditions are satisfied:

1. The member has attained the age of fifty years; and

2. The member retires concurrently under both this retirement plan and the reciprocal system; and

3. At the time of retirement, the member is credited with such period of service under the reciprocal system.

D. Solely for the purpose of meeting the minimum service requirements for qualification for benefits and retirement allowances under this retirement plan, service shall also include service as an officer or employee of a reciprocal system, if all of the following conditions are satisfied:

1. The member has attained the age of fifty years; and

2. The member retires concurrently under both this retirement plan and the reciprocal system; and

3. The salary for service in the reciprocal system constitutes compensation of a member of this retirement plan for purposes of calculating final compensation.

However, under no circumstances shall such service in a reciprocal system be included in the determination of service credit for qualification for medical benefits provided under Part 14 of this chapter or for qualification for dental benefits provided under Part 15 of this chapter.

E. A member shall be retired for disability and receive a retirement allowance based on the service credited to the member at the time of retirement during any period in which the member receives a disability retirement allowance under a reciprocal system, subject to the following limitations:

1. Such allowance shall not exceed an amount which when added to the allowance paid under the reciprocal system equals the allowance which would be paid for a nonservice-connected (nonindustrial) disability if all the member's service had been credited under the reciprocal system; and

2. Such allowance shall in no event be less than an annuity which is the actuarial equivalent of the member's contributions plus interest accumulated thereon at the rate of two percent per annum calculated as of the retirement date, whether or not the disability is for service-connected (industrial) reasons.

F. The survivorship benefits or death benefits for a member who dies from nonservice-connected (nonindustrial) causes as a member of a reciprocal system shall not exceed an amount which when added to the survivorship and death benefits paid for such member under the reciprocal system equals the maximum death benefit payable under that system, subject to the following limitations:

1. Such survivorship and death benefits shall be at least the amount of the member's accumulated contributions plus the interest accrued thereon at the rate of two percent per annum calculated as of the date of death; and

2. If death is caused by service-connected (industrial) injury or disease in the reciprocal system, the survivorship and death benefits shall be the amount of the member's accumulated contributions plus interest accrued thereon at the rate of two percent per annum calculated as of the date of death.

G. Tier 2 members shall be eligible for benefits under the reciprocal agreement with CalPERS; provided, however, that in no event shall service with a reciprocal agency be used to qualify for an unreduced retirement benefit under the police and fire retirement plan.

(Ords. 24681, 29266.)

A. A former member of this retirement plan who terminated city employment, other than for retirement or death, and who withdrew his or her accumulated contributions and the accrued interest may redeposit such withdrawn contributions and accrued interest and become eligible for the benefits under this Part 16 if the following requirements are satisfied:

1. The former member meets the requirements of Section 3.36.3010.

2. The former member redeposits all contributions and accrued interest previously withdrawn plus the interest that would have been earned by such contributions and interest, at the retirement fund's actual earnings rate, had they remained on deposit in the retirement fund.

3. Such redeposit is made within the time and in the manner prescribed by the board, such time not to extend beyond the date of such former member's retirement from this retirement plan or from a reciprocal system, whichever first occurs.

B. In the event the former member begins redeposit under this section but before all the amounts specified in paragraph 2. of Subsection A. above have been redeposited, the former member dies or retires from this retirement plan or a reciprocal system:

1. Such amounts as have been redeposited shall be paid to the former member's estate in the event of the member's death; or

2. Such amounts as have been redeposited shall be paid to the former member in the event of the member's retirement.

(Ords. 24681, 29266, 29879.)

On the request of a reciprocal system, the board shall supply information and data necessary for administration of the reciprocal system as it is affected by membership in and service credited under this retirement plan.

(Ord. 24681.)

Interpretations of the provisions of this Part 16 shall be made with reference to interpretations that have been made relative to the California Public Employees' Retirement System - 1937 Act County Employees' Retirement reciprocal provisions upon which these provisions are based.

(Ord. 24681.)

All rights under this Part 16 are subject to modification as may be necessary to conform to amendments to the Public Employees' Retirement Law or the County Employees' Retirement Law of 1937 as provided in California Government Code Section 20042.

(Ord. 24681.)

A. For other than tier 2 members, the city shall contribute to the retirement fund such amounts as are actuarially determined to be necessary to provide funding for all additional costs incurred by this retirement plan because of the payment of benefits provided by this Part 16 to any members which would not have been provided absent the adoption of this part. For tier 2 members, such costs shall be shared equally between the city and tier 2 members.

B. The contributions required of the city, if any, and of tier 2 members (as applicable) shall be determined beginning with the actuarial valuation performed as of July 1, 1997, or, if no valuation is performed as of that date, the first valuation performed thereafter, except that an earlier actuarial valuation date may be used if the retirement board determines that earlier contributions are required to maintain the actuarial soundness of this retirement plan.

C. Except as provided in Section 3.36.410, in determining the contributions required under this Section 3.36.3070, there shall be no offset to normal cost contribution rates in the event plan funding exceeds one hundred percent. Both the city and employees shall always make the full annual required plan contributions as calculated by the retirement board actuaries which will be in compliance with applicable laws and will ensure the qualified status under the Internal Revenue Code.

(Ords. 24681, 29266, 29879.)