San Jose Municipal Code Part 5 Service

Unless the context otherwise requires, the definitions set forth in this Part 5 govern the construction of Chapter 3.36.

(Prior code § 2903.150.)

Except as may be otherwise expressly provided elsewhere in this chapter, "service" means and includes the following service of a member of this retirement system and none other:

A. Service as officer or employee of police or fire department, rendered by member after becoming and while a member of this system. Service rendered by a member of this retirement system, where such service was rendered as an officer or employee of the police department or fire department of the city, for monthly compensation, and only while such officer or employee is receiving such compensation for such service from the city.

B. Service as officer or employee of police or fire department, rendered prior to effective date of this system by a person who becomes a member pursuant to provisions of Sections 3.36.180, 3.36.210 or 3.36.260. Service rendered prior to the effective date of this retirement system by any person who becomes a member of this retirement system pursuant to the provisions of Sections 3.36.180, 3.36.210 or 3.36.260 where such service was rendered as an officer or employee of the police department or fire department of the city for monthly compensation, if and to the extent such person received credit for such service pursuant to the provisions of the police and fire department retirement plan established by Chapter 3.32 of this Code.

C. Service as officer or employee of police or fire department rendered prior to the effective date of membership in this system by a person who becomes a member pursuant to the provisions of Sections 3.36.240 or 3.36.250. Service rendered prior to the effective date of his or her membership in this retirement system by any person who becomes a member of this retirement system pursuant to the provisions of Sections 3.36.240 or 3.36.250, where such service was rendered as an officer or employee of the police department or fire department of the city, for monthly compensation, if and to the extent that such person received credit for such service pursuant to the provisions of the police and fire department retirement plan established by Chapter 3.32, if the following condition is satisfied:

1. On or before the ninetieth day immediately following the day he or she becomes a member of this retirement system, the member has filed with the retirement board a written election to have such service so credited to him or her and to pay into the retirement fund, at times and in the manner fixed by the board, the amount necessary to make the accumulated contributions standing to the credit of the member's individual account equal to the amount they would be had he or she been a member of or on active duty with the police department or fire department in the position or class of position in the police department or fire department to which he or she shall have been appointed, during the time between the effective date of this chapter and the date he or she became a member of this system.

D. Certain service for which certain persons were previously entitled to credit under certain other city retirement plans.

1. Service rendered prior to the effective date of membership in this retirement system, by a person who becomes a member of this retirement system pursuant to the provisions of Sections 3.36.170 or 3.36.200, if all of the following conditions are satisfied:

a. Such service consisted of service rendered by said person to the city as an officer or employee of the city, in a position or positions not included in this system, without any break, gap or cessation in the rendering of such service from the time such service was rendered to the time the person rendering such service became a member of this system pursuant to Sections 3.36.170 or 3.36.200; and

b. Such service was rendered for monthly compensation and only while the person was receiving such monthly compensation for such service; and

c. The person was entitled to credit for such service, immediately prior to the time he or she became a member of this system, under and pursuant to the provisions of the San José Federated City Employees' Retirement System established by the provisions of Chapter 3.24 or Chapter 3.28 of this Code or the provisions of the police and fire department retirement plan established by Chapter 3.32 of this Code; and

d. Except as provided in paragraph 2., paragraph 3., or paragraph 4. below, the member files with the retirement board, on or before the ninetieth day immediately following the day he or she becomes a member of this system, a written notice of election re: federated city service to have such service credited to him or her; and

e. The member pays into the retirement fund, at the time or times and in the manner specified by the retirement board, an amount of money sufficient to make the accumulated contributions standing to the credit of the member's individual account in this system equal to the amount such contributions would be if he or she had been a member of or on active duty with the police department or fire department in the position or class of position in the police department or fire department to which he or she was appointed and because of which appointment he or she became a member of this system pursuant to Sections 3.36.170 or 3.36.200, during the time he or she was rendering the previous service for which he or she seeks to get credit, and if the contributions payable by him or her to this system under such circumstances had been deducted from his or her compensation and paid into the retirement fund during all of such time; and

f. The member ceases to be a member of, or have any membership rights under, any other retirement plan or system of the city, other than Social Security or the city's deferred compensation plan.

2. A person who became a member of this retirement system pursuant to Sections 3.36.170 or 3.36.200 prior to September 1, 1995, and who failed to elect to have the previous service in the federated city employees retirement system credited under this retirement system within the time specified in D.1.d. above, may elect to have the previous service credited under this retirement system if:

a. The person satisfies the requirements of D.1.a., b., c., e., and f. above; and

b. The person files with the retirement board a written election for such service credit on or before August 15, 1996.

3. On or after July 1, 2006, a person who became a member of this retirement system pursuant to Section 3.36.170, and who does not meet the requirements of D.1. above, may elect to have the previous service credited under this retirement system if:

a. The person satisfies the requirements of D.1.a., b., c., and f. above; and

b. Prior to the person's retirement the person files with the retirement board a written election for such service credit; and

c. Prior to the person's retirement, the person pays into the retirement fund at such times and in such manner as specified by the retirement board:

i. An amount of money sufficient to make the accumulated contributions standing to the credit of the member's individual account in this system equal to the amount the accumulated contributions would be if he or she had been a member of this plan employed in the police department during the time he or she was rendering the prior city service for which he or she seeks service credit and if the contributions payable to this retirement system had been deducted from his or her compensation and paid into the retirement fund during all of such time; plus

ii. An amount equal to the interest that would have been earned on the accumulated contributions, at the actual rate earned by the retirement plan, as of the date the member files the election for service credit had the contributions been deducted and paid into the retirement fund; plus

iii. Interest on the unpaid balance of all such moneys, at the actuarially assumed interest rate in effect on the date the member files the election, from the date the member files the election to redeposit to the date all such moneys are fully paid into the retirement fund.

4. On or after March 31, 2017, a person who became a member of this retirement system pursuant to Section 3.36.200 as applicable, and who does not meet the requirements of D.1. above, may elect to have the previous service credited under this retirement system if:

a. The person satisfies the requirements of D.1.a., b., c., and f. above; and

b. Prior to the person's retirement the person files with the retirement board a written election for such service credit; and

c. Prior to the person's retirement, the person pays into the retirement fund at such times and in such manner as specified by the retirement board:

i. An amount of money sufficient to make the accumulated contributions standing to the credit of the member's individual account in this system equal to the amount the accumulated contributions would be if he or she had been a member of this plan employed in the fire department during the time he or she was rendering the prior city service for which he or she seeks service credit and if the contributions payable to this retirement system had been deducted from his or her compensation and paid into the retirement fund during all of such time; plus

ii. An amount equal to the interest that would have been earned on the accumulated contributions, at the actual rate earned by the retirement plan, as of the date the member files the election for service credit had the contributions been deducted and paid into the retirement fund; plus

iii. Interest on the unpaid balance of all such moneys, at the actuarially assumed interest rate in effect on the date the member files the election, from the date the member files the election to redeposit to the date all such moneys are fully paid into the retirement fund.

E. Service in department of communications. Service rendered prior to or during membership in this retirement system by a person who becomes a member of this system pursuant to the provisions of Section 3.36.260, where such service was or is rendered as an officer or employee of the department of communications, for monthly compensation and only while the holder of such position is receiving such compensation for such service from the city.

F. Military leave of absence. Subject to the provisions of Sections 3.36.620 and 3.36.625, time on leave of absence from city employment, while engaged in the performance of military or naval duty for the United States of America in time of war that constitutes qualified military service as defined under Internal Revenue Code Section 414(u)(5).

Anything herein to the contrary notwithstanding, no person shall be entitled to or be given credit for any such time served prior to the effective date of this chapter if he or she shall have heretofore been given reasonable time to claim credit for such service and pay contributions therefor and has failed within such reasonable time to claim the same or pay contributions therefor.

G. Leave of absence from position in police or fire department to perform other city services. Should a member, during membership in this retirement system and while holding any position in the police department or fire department for active service in which monthly compensation is paid, receive, after the effective date of this chapter, a temporary leave of absence from active duty in such position in order to perform any other service for the city as an officer or employee of the city, for monthly compensation, time served with the city in such other service during said temporary leave of absence shall be considered as time served in the position from which he or she is on temporary leave of absence; provided that the member contributes while on such leave of absence, to the retirement fund for such time the same as if he or she were on active duty in his or her position in the police department or fire department.

H. Leave of absence of member from position in communications department to perform other city service. Should any member, during membership in this retirement system and while holding a position in the department of communications for active service in which monthly compensation is paid, receive, after the effective date of this chapter, a temporary leave of absence from active duty in such position in order to perform any other service for the city as an officer or employee of the city, for monthly compensation, time served with the city in such other service during said temporary leave of absence shall be considered as time served in the position from which he or she is on temporary leave of absence; provided that the member contributes, while on such leave of absence, to the retirement fund for such time the same as if he or she were on active duty in his or her position in the department of communications.

I. City service, after disability retirement, other than in position in police or fire department included within membership of this plan. A member who is retired for disability after the effective date of this chapter, pursuant to the provisions of this chapter, and who after receiving such disability retirement is appointed to a full-time position in the city service, appointment to which would not otherwise entitle him or her to membership in this retirement system, in which a monthly compensation is paid, shall receive credit for such service which is so rendered during such disability, and shall make contributions into the retirement fund at the same rates established for other members.

J. Eligible prior military service. Eligible prior military service purchased by a member in accordance with Part 18 of this chapter.

K. Service for time on unpaid leave. Time on unpaid leave of absence purchased by a member in accordance with Section 3.36.717 of this chapter.

Notwithstanding the foregoing, members who make service credit purchases under this Section 3.36.610, except service credit purchases related to military leaves of absence in accordance with Section 3.36.620, shall be responsible for paying the entire cost of such service credit purchases. In this case, the entire cost is an actuarially determined amount that includes any amounts that would otherwise result in an actuarial loss to the city.

(Prior code § 2903.151; Ords. 23491, 25061, 26005, 26464, 28030, 29266, 29332, 29879.)

A. Subject to the limitations set forth in this section, a person may purchase service credit in this plan for service described in Subsection D. of Section 3.36.610, that was previously credited under the federated city employees' retirement system.

B. In the event there is any dispute regarding a member's eligibility to purchase such service credit, the amount of eligible service credit, the contributions and interest to be paid for the purchase of service credit, or the amount of service to be credited to a member, the board shall determine the issue based on the relevant information presented to the board.

C. In order to purchase such service credit, the member must file a written notice of election re: federated city service in accordance with Subsection D.1.d. of Section 3.36.610.

D. Subject to any limits on annual contributions imposed by Section 415 of the Internal Revenue Code of 1986, as amended, a member who elects to purchase credit for prior federated city service may pay the contributions:

1. In one lump sum within sixty days from and after the date the member files the written notice of election re: federated city service to purchase such service credit; or

2. For elections made on or before January 31, 2011, in monthly or biweekly installments by pre- or post-tax payroll deductions, paid over a period of time not to exceed eight years; or

3. For elections made on after February 1, 2011, in monthly or biweekly installments by post-tax payroll deductions, paid over a period of time not to exceed eight years; or

4. In a combination of a lump sum and installments.

E. Any member electing to pay contributions in installments or to make the lump sum payment by pre-tax payroll deduction, on or before January 31, 2011, shall execute a binding irrevocable payroll authorization form authorizing the payment of the required contributions by payroll deduction. The payroll authorization form shall be filed with the director of finance. Such election executed on or before January 31, 2011 for payroll deductions shall be irrevocable. During the time the irrevocable election is in effect, no direct payments from the member to the retirement fund for the purchase of such service credit shall be made by the member or accepted by this plan.

F. Any member electing to pay contributions in installments or to make the lump sum payment by payroll deduction on or after February 1, 2011 shall execute a payroll authorization form authorizing the payment of the required contributions by post-tax payroll deduction. The payroll authorization form shall be filed with the director of finance. Such election executed on or after February 1, 2011 shall be revocable. During the time the revocable election is in effect, the member may make additional direct payments to the retirement fund for the purchase of such service credit.

G. All contributions under Subsections D.2. and E. shall be treated as pre-tax salary reductions pursuant to Internal Revenue Code Section 414(h)(2).

H. If a member elects to purchase credit for prior federated city service and make the contributions specified in Subsection D. of Section 3.36.610, and subsequently does pay all such moneys as provided in this section, such member shall be credited under this plan for the prior federated city service.

I. If a member elects to purchase credit for prior federated city service and make the contributions specified in Subsection D. of Section 3.36.610, but fails to complete the redeposit, then:

1. If the failure to complete the redeposit is because of death of the member, while a member of this plan but prior to retirement, the member shall be credited with the amount of service which is determined by the board to be attributable to the amount of accumulated contributions paid as of the date of the member's death.

2. If the failure to complete the redeposit is for any reason other than the death of the member prior to retirement, any contributions made pursuant to the election shall be credited to the member's accumulated normal contributions account but the member shall receive no credit for any prior federated city service.

(Ords. 26005, 28886, 29266, 29879.)

A. Anything elsewhere in this Part 5 to the contrary notwithstanding, and subject to the provisions of Section 3.36.625, if in time of war or national emergency as proclaimed by the President or Congress, or when any of the armed forces of the United States are serving outside of the United States or their territories, pursuant to order or request of the United Nations, or while any national conscription act is in effect, a member of this retirement system leaves or has left his or her city office or position prior to the end of the war or the termination of the national emergency, or during the effective period of such order or request of the United Nations, or prior to the expiration of the national conscription act, to join the armed forces of the United States and does or did without unreasonable and unnecessary delay join the armed forces or, being a member of any reserve force or corps of any of the armed forces of the United States or of the militia of the State of California, is or was ordered to duty therewith by competent military authority and served or serves in compliance with such orders, then in that event, subject to the conditions and limitations hereinafter set forth, the term "service," as used in this Chapter 3.36, means and includes the period of time from the date he or she leaves or has left his or her city office or position for said purpose to the date he or she returns to and reenters upon the office or position theretofore left by him or her or any other city office or position, the holding of which entitles a city employee to become a member of this retirement system; provided and upon conditions set forth herein.

1. Upon his return to and reentry upon the abovementioned city office or position, or within ninety days from and after the effective date of this section, if said person returned and reentered prior to the effective date of this section, the city shall contribute to the retirement fund through December 21, 2013 an amount of money equal to the amount of all contributions which city and said person would have had to pay into said fund if said person had not been so absent. For the sole purpose of calculating said amount of money, the amount of monthly compensation which said person would have received from the city during said period of absence if he had not been absent as aforesaid shall be deemed to be the monthly compensation which said person was earning immediately prior to the commencement of his absence plus any increase in compensation which said person was earning immediately prior to the commencement of his absence plus any increase in compensation which he would have received during said time for such work under any applicable ordinances or resolutions. The city's contribution requirement for the amount of all contributions which city and said person would have had to pay into said fund if said person had not been so absent pursuant to this Subsection A. shall end on December 21, 2013.

2. No moneys contributed or paid by city pursuant to this Subsection A. shall be deemed to be contributions or accumulated contributions of said person, and in no event shall said employee ever be entitled to all or any part of them upon withdrawing his accumulated contributions.

3. A person who leaves or has left, in the abovementioned times and circumstances as provided in Subsection A., his city office or position for the above-mentioned purpose shall be deemed, for the purpose of this retirement system, to be on military leave of absence without compensation during the above-specified period of time, during which he is absent, which is to be included, as above prescribed, in the definition of such person's "service"; and such person's membership in this system, during such period of time, shall be deemed suspended as provided in Part 11 of this chapter, it being the intention that, anything hereinabove to the contrary notwithstanding, the suspension and other provisions of Part 11 shall still apply in the above situation.

4. Any abovementioned person in this Subsection A. who shall have made any contributions to the retirement system for any abovementioned periods of absence occurring in or after December 8, 1941 through December 21, 2013, shall be reimbursed from the retirement fund the amount of contributions so made by him for such periods of absence.

B. Military service because of which member must make member contributions.

1. Subject to the provisions of Section 3.36.625, effective December 22, 2013, a member on leave of absence with compensation to engage in qualified military service as defined under Internal Revenue Code section 414(u)(5) shall contribute to the system before retirement, at times and in the manner prescribed by the retirement board, amounts equal to the contributions which would have been payable by said member to the system on the basis of his or her compensation earnable at the commencement of the leave of absence if he or she had remained in city service. Because said member is required to contribute, "service" as used in this Chapter 3.36 shall be deemed to include such qualified military service and the member shall receive credit for the qualified military service in the same manner as if he or she had not been absent but were still in city service.

2. Because the member is required to contribute as aforesaid, the city shall also contribute during the period the member is a member of this system and on leave of absence with compensation to engage in qualified military service.

3. For the purposes of this Subsection B., "leave of absence with compensation to engage in qualified military service" shall include any leave of absence to engage in qualified military service, during which the member receives compensation from the city pursuant to an action of the city council approving special or supplemental pay or benefits for persons on leave for military duty. A "leave of absence with compensation to engage in qualified military service" shall only include compensation paid from the city and shall not include compensation paid to member by the state or federal government.

C. Military service because of which member may make member contributions.

1. Subject to the provisions of Section 3.36.625, effective December 22, 2013, a member on leave of absence without compensation to engage in qualified military service as defined under Internal Revenue Code section 414(u)(5) may receive credit for all or any part of such service if the member contributes to the system, either during his or her absence on qualified military service or upon his or her return to city service, at times and in the manner prescribed by the retirement board, amounts equal to the contributions which would have been payable by said member to the system on the basis of his or her compensation earnable at the commencement of the leave of absence if he or she had remained in city service, provided, however, that payment of such member contributions is completed before retirement and during a period beginning with the date of the member's reemployment and whose duration is three times the period of such member's qualified military service, but not greater than five years, or such period as may be permitted under Internal Revenue Code Section 414(u). To the extent said member does so contribute, "service" as used in this Chapter 3.36 shall be deemed to include such qualified military service and the member shall receive credit for the qualified military service in the same manner as if he or she had not been absent but were still in city service. To the extent said member does not contribute as aforesaid, such qualified military service shall be credited to said member as "service" only for the purpose of determining said member's eligibility for benefits under this system and such qualified military service shall not be credited for the purpose of determining the amount of such benefits.

2. To the extent the member elects to contribute as aforesaid and does so contribute, the city shall also contribute because of such qualified military service to the same extent as it would have contributed if the member had not been on a leave of absence without compensation to engage in qualified military service.

3. For the purposes of Subsection C., "leave of absence without compensation to engage in qualified military service" means any leave of absence to engage in qualified military service where the member receives no compensation from the city.

D. The provisions of this section shall apply to tier 2 members.

(Prior code § 2903.151a; Ords. 29266, 29332.)

A. Effective December 12, 1994, notwithstanding any other provision of the retirement system law, contributions, benefits and service credit with respect to qualified military service are governed by Section 414(u) of the Internal Revenue Code and the Uniformed Services Employment and Reemployment Rights Act of 1994.

B. Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in 38 U.S.C. 43), to the extent required by Section 401(a)(37) of the Internal Revenue Code, survivors of a member in the retirement plan, are entitled to any additional benefits that the retirement plan would provide if the member had resumed employment and then died (as a non-service connected death) that are contingent on the member's death while employed. In any event, a deceased member's period of qualified military service must be counted for vesting purposes, but such period of service shall not be counted for benefit accrual purposes.

C. Beginning January 1, 2009, to the extent required Section 414(u)(12) of the Internal Revenue Code, an individual receiving a differential wage payment (as defined under Section 3401(h)(2) of the Internal Revenue Code) from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under Section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

(Ord. 28886.)

Except as otherwise provided in this chapter, in computing the service with which a member is entitled to be credited under this chapter, time during which the member is excused from working because of holidays, sick leave or disability leave during which be receives compensation under Section 3.12.010, vacation or leave of absence during which he continues to receive full monthly compensation, shall be included; provided, however, that the time during which a person is retired for service or disability shall not constitute service as said term is used in this chapter, and no person shall be entitled to credit with service for or during such time.

(Prior code § 2903.152.)

Time, occurring after the effective date of this chapter, during which a member is temporarily suspended from city service for misconduct, incompetency or failure to perform his duties under or observe the rules and regulations of the department or office in which he is employed, shall be credited to such member as service, provided and upon condition that such member, or his surviving spouse. child or children or estate, shall contribute and pay into the retirement fund, for such time, on or before the sixtieth day from and after the date he returns to duty, or the date he resigns or is discharged or dies if he does not return to duty, any and all contributions which he would have been required to pay into or contribute to the said fund during such time if he were not suspended but was still actively employed for full compensation in the position from which he was temporarily suspended, together with an additional amount equal to what the city would have contributed for and during such time, because of his service during such time, if he had not been suspended. If such member shall return to duty, the abovementioned contributions shall be deducted, with or without his consent, from his salary. In no event shall a member be credited with more than thirty days' service for any one suspension, nor more than forty-five days' service for all suspensions in any one year. Tier 2 members shall not be eligible to make the service credit purchases described in this section.

(Prior code § 2903.156; Ord. 29266.)

The word "service," as used in the chapter, does not and shall not be deemed to include any service rendered on a part-time basis. An employee is serving on a part-time basis when he engages in his duties for less time than is required of employees serving on a full-time basis, even though he is subject to call at any or all times.

(Prior code § 2903.153.)

The word "service," as used in this chapter, does not and shall not he deemed to include any service rendered or paid for on a per diem, per hour or any other basis other than a monthly basis, even though the person rendering such service may be subject to call at any or all times.

(Prior code § 2903.154.)

Except as otherwise provided in Section 3.36.640, and except for disability leave of absences for which compensation is paid under Section 3.12.010, time during which a member is absent from city service without full monthly compensation, including, but not by way of limitation, leaves of absence without full monthly compensation and layoffs, shall not be allowed or credited to a member in computing service.

(Prior code § 2903.155.)

Except as may be otherwise expressly provided elsewhere in this chapter, time during which a person is on retirement for service or for disability shall not be allowed or credited to a member in computing service.

(Prior code § 2903.157.)

The word "service," as used in this chapter shall not include any service for which a member receives any credit under any other retirement system or plan supported wholly or in part by any funds of the City of San José.

(Prior code § 2903.158.)

Credit for more than twelve months of service shall not be allowed for service rendered in any calendar or fiscal year.

(Prior code § 2903.159.)

A. Except as provided in this Section 3.36.710 and in Sections 3.36.715 and 3.36.3030, no person who, for any reason whatsoever, has withdrawn or has been paid, or withdraws or is paid, his or her accumulated contributions in the retirement fund pursuant to the provisions of this chapter or of Chapter 3.32 of this Code, and who subsequently is reemployed in the police department or fire department of the city and becomes a member of this plan, shall be entitled to or be given credit for any service rendered by him or her prior to such reemployment, to which credit he or she might otherwise be entitled under the provisions of this chapter.

B. Upon any person becoming a member of this plan because of reemployment in the police department or fire department of the city, the retirement board shall cause written notice to be personally delivered or mailed to such member, informing such member of his or her rights under this section. If such notice is personally delivered, the person delivering such notice shall forthwith file with the secretary of the retirement board a declaration attesting to the time and place of such delivery. If mailed, such notice shall be sent by certified mail, return receipt requested, to such member at the latest address as shown in the records of the human resources department of the city.

C. Except as provided in Subsection I. below, if the member wishes to have such prior service credited to him or her, the member shall file a written notice of election to redeposit with the secretary to the retirement board within ninety days from and after the date that written notice of rights under this section is personally delivered or deposited in the mail to the member, and no later. If the member does not file the notice of election to redeposit within such time, the member shall be deemed to have elected not to have such prior service credited to him or her.

D. The member shall not be entitled to prior service credit unless the member redeposits and pays into the retirement fund:

1. All of the accumulated contributions previously withdrawn by or returned to said member; plus

2. Interest on the accumulated contributions at the rate of two percent per year from the date said contributions were withdrawn by or paid to said member to the date the member repays such contributions to the retirement fund.

E. Subject to any limits on annual contributions imposed by Section 415 of the Internal Revenue Code, any member who elects to have prior service credited to him or her shall redeposit and pay into the retirement fund the moneys specified in Subsection D. or Subsection I.:

1. In one lump sum within sixty days from and after the date the member files with the secretary of the retirement board the notice of election to redeposit; or

2. For elections made on or before January 31, 2011, in monthly or biweekly installments, paid pre-tax over a period of time not to exceed eight years; or

3. For elections made on or after February 1, 2011, in monthly or biweekly installments, paid post-tax over a period of time not to exceed eight years; or

4. A combination of a lump sum and installments.

F. Any member electing to pay the contributions in installments or to make the lump sum payment by pre-tax payroll deduction on or before January 31, 2011 shall execute a binding irrevocable payroll authorization form authorizing the payment of the required contributions by payroll deduction. The payroll authorization form shall be filed with the director of finance.

The election to redeposit accumulated contributions in the retirement fund and the authorization to redeposit by payroll deductions shall be irrevocable. During the time the irrevocable election is in effect, no direct payments from the member to the retirement fund shall be made by the member or accepted by this plan.

G. Any member electing to pay contributions in installments or to make the lump sum payment by payroll deduction on or after February 1, 2011 shall execute a payroll authorization form authorizing the payment of the required contributions by post-tax payroll deduction. The payroll authorization form shall be filed with the director of finance. Such election executed on or after February 1, 2011 shall be revocable. During the time the revocable election is in effect, the member may make additional direct payments to the retirement fund for the purchase of such service credit.

H. All contributions under Subsections E.2. and F. shall be treated as pre-tax salary reductions pursuant to Internal Revenue Code Section 414(h)(2).

I. On or after July 1, 2006, for a member who is employed in the police department, and on or after March 31, 2017 for a member who is employed in the fire department, wishes to have such prior service credited to him or her, and the member does not otherwise qualify under this Section 3.36.710, the member shall file a written notice of election to redeposit with the secretary to the retirement board and, prior to his or her retirement, shall redeposit and pay into the retirement fund:

1. All of the accumulated contributions previously withdrawn by or returned to said member; plus

2. An amount equal to the interest that would have been earned on the accumulated contributions, at the actual rate earned by the retirement plan, as of the date the member files the election to redeposit if the contributions had not been withdrawn by or returned to the member; plus

3. Interest on the unpaid balance of all such moneys, at the actuarially assumed interest rate in effect on the date the member files the election, from the date the member files the election to redeposit to the date all such moneys are fully paid into the retirement fund.

J. If a member elects to redeposit and pay the moneys specified in Subsection D. or Subsection I. above, and subsequently does redeposit all such moneys as provided in this section, such member shall be credited under this plan for all the service for which he or she lost credit upon the withdrawal or return of the accumulated contributions.

K. If a member elects to redeposit and pay the moneys specified in Subsection D. or Subsection I. above, but fails to complete the redeposit, then:

1. If the failure to complete the redeposit is because of death of the member, while a member of this plan but prior to retirement, the member shall be credited with the amount of service which is determined by the board to be attributable to the amount of accumulated contributions redeposited as of the date of the member's death.

2. If the failure to complete the redeposit is for any reason other than the death of the member prior to retirement, any amounts redeposited pursuant to the election provided by this section shall be credited to the member's accumulated normal contributions account but the member shall receive no credit for any service lost because of the previous withdrawal or return of contributions.

L. Members who make a redeposit under this Section 3.36.710 shall be responsible for paying the entire cost of such service credit purchase. In this case, the entire cost is an actuarially determined amount that includes any amounts that would otherwise result in actuarial loss to the city.

(Prior code § 2903.160; Ords. 22017, 26005, 28030, 28886, 29266, 29879.)

A. Notwithstanding the provisions of Subsections B. and C. of Section 3.36.710, any member who withdrew or was paid his or her accumulated contributions and was subsequently reemployed in the police department or fire department of this city and who failed to elect to have prior service credited to him or her, may make such election by filing with the secretary of the retirement board on or before August 30, 1985, and no later, a written statement declaring such election and by redepositing and repaying all accumulated contributions previously withdrawn by or paid to said member, together with interest thereon as provided in Subsection D. of Section 3.36.710, within the time and in the manner provided by the retirement board.

B. If such member does not file such statement on or before August 30, 1985, or does not redeposit and repay said moneys within the time and in the manner provided by the retirement board, said member shall be deemed to have elected not to have prior service credited to him or her.

C. To be eligible for the election provided in this Section 3.36.715, such member must be a member of this retirement plan on the date he or she files said written statement with the secretary of the retirement board. No prior service shall be credited to any person who, on the date said written statement is filed with the secretary, is not or was not a member of this retirement plan because of retirement or because of termination or suspension of membership under the provisions of this Code.

(Ords. 26005, 29266, 29879.)

A. Subject to the conditions, limitations and requirements of this Section 3.36.717, on or after July 1, 2006, a member of this plan who is employed in the police department may purchase service credit in this plan for eligible time on unpaid leave of absence as provided in this Section 3.36.717.

B. Subject to the conditions, limitations and requirements of this Section 3.36.717, on and after March 31, 2017, a member of this plan who is employed in the fire department may purchase service credit in this plan for eligible time on unpaid leave of absence as provided in this Section 3.36.717.

C. For the purpose of this section, "eligible time on unpaid leave of absence" means time for which the member was on leave of absence from his or her employment in the police department, or, on or after March 31, 2017, the fire department, and for which the member received no compensation from the city, but does not include:

1. Any time prior to the date the person first became a member of this plan;

2. Time in military service that would otherwise be eligible for service credit under any other provision of this plan;

3. Time for which the member receives any service credit in a reciprocal system (as described in Part 16 of this chapter); or

4. Any time for which the person was absent from service because of suspension or other disciplinary action.

D. In the event there is any dispute regarding a member's eligibility to purchase service credit for eligible time on unpaid leave of absence, the contributions required, or the amount of service to be credited to a member, the board shall determine the issue based on the relevant information presented to the board.

E. If a member wishes to purchase service credit for time on unpaid leave of absence, the member shall file a written notice of election to purchase such service credit with the secretary to the retirement board and shall submit to the secretary an amount of money determined by the secretary to be the cost of the actuarial services necessary to determine the cost of the additional benefits to be purchased. In addition, prior to his or her retirement, the member shall pay into the retirement fund the full cost of any and all additional benefits that accrue to the member and the member's survivors as a result of the purchase of service credit for time on unpaid leave of absence, as follows:

1. The cost of the additional benefits shall be actuarially determined as the difference between (a) the value of the benefits calculated including service credit for the time on unpaid leave of absence and (b) the value of the benefits calculated without service credit for the time on unpaid leave of absence.

2. The cost of the additional benefits shall be determined using the most current interest rate and life expectancy tables used to value benefits in the most recent actuarial valuation.

3. The cost of the additional benefits shall include any cost-of-living-adjustments provided under Chapter 3.44.

4. If the member elects the installment payment option described below, member shall also pay interest on the outstanding balance at the actuarially assumed interest earnings rate.

F. Subject to any limits on annual contributions imposed by Section 415 of the Internal Revenue Code, any member who elects to purchase service credit for unpaid leave of absence shall pay into the retirement fund the moneys specified in Subsection E:

1. In one lump sum within sixty days from and after the date the member files with the secretary of the retirement board the election to purchase service credit; or

2. On or before January 31, 2011, in monthly or biweekly installments, paid pre-tax over a period of time not to exceed eight years; or

3. On or after February 1, 2011, in monthly or biweekly installments, paid post-tax over a period of time not to exceed eight years; or

4. A combination of a lump sum and installments.

G. Any member electing to pay the contributions required by this Section 3.36.717 in installments or to make the lump sum payment by pre-tax payroll deduction on or before January 31, 2011 shall execute a binding irrevocable payroll authorization form authorizing the payment of the required contributions by payroll deduction. The payroll authorization form shall be filed with the director of finance. The election to purchase service credit for time on unpaid leave of absence and the authorization to redeposit by payroll deductions shall be irrevocable. During the time the irrevocable election is in effect, no direct payments from the member to the retirement fund shall be made by the member or accepted by this plan.

H. Any member electing to pay contributions in installments or to make the lump sum payment by payroll deduction on or after February 1, 2011 shall execute a payroll authorization form authorizing the payment of the required contributions by post-tax payroll deduction. The payroll authorization form shall be filed with the director of finance. Such election executed on or after February 1, 2011 shall be revocable. During the time the revocable election is in effect, the member may make additional direct payments to the retirement fund for the purchase of such service credit.

I. All contributions under Subsections F.2. and G. shall be treated as pre-tax salary reductions pursuant to Internal Revenue Code Section 414(h)(2).

J. If a member elects to purchase service credit for unpaid leave of absence and pay the moneys specified in Subsection E. above, and subsequently does pay all such moneys as provided in this section, such member shall receive service credit under this plan for the time on unpaid leave of absence.

K. If a member elects to purchase service credit for time on unpaid leave of absence and pay the moneys specified in Subsection E., but fails to complete the payment because of a separation from city service whether by reason of retirement or death or otherwise, then the member shall be credited with the amount of service that is determined by the board to be attributable to the amount of money paid as of the date of the member's separation from city service.

L. Under no circumstances shall the service credit for time on unpaid leave of absence be included in the determination of service credit for qualification for medical benefits provided under Part 14 of this chapter or for the qualification for dental benefits provided under Part 15 of this chapter.

(Ords. 28030, 28886, 29266, 29879.)

A. A Reclassified Tier 1 Member under Section 3.36.410.A.1 who separates from City service prior to paying the full amount of his or her Reclassified Tier 1 Member Obligation, as described in Section 3.36.410.A.1, is liable for and shall be required to pay any remaining balance within sixty (60) calendar days following the later of the date of his or her separation from City service or receipt of the final remaining balance calculation of such member's Reclassified Tier 1 Member Obligation from the Board. Notwithstanding the preceding sentence, any Reclassified Tier 1 Member who does not satisfy his or her Reclassified Tier 1 Member Obligation shall only be entitled to the reduced plan benefit described in Subsection 3.36.720.E.

B. The outstanding balance owing and payable by the Reclassified Tier 1 Member shall be determined by the Board's actuary. In the event there is any dispute regarding the payment obligation of such Reclassified Tier 1 Member or any other issue related to the liability associated with the reclassification of his or her Tier 2 service to Tier 1 service, the Board shall determine the issue based on the relevant information presented to the Board. Any decision made by the Board shall be final and binding.

C. Subject to any limits on annual contributions imposed by Section 415 of the Internal Revenue Code of 1986, as amended, the Reclassified Tier 1 Member must satisfy the outstanding balance of his or her Reclassified Tier 1 Member Obligation under Section 3.36.410.A.1, as determined by the Board's actuary, through either a transfer or rollover from the employee's Internal Revenue Code Section 457(b) deferred compensation plan account or through a lump-sum after-tax payment.

D. In order for a Reclassified Tier 1 Member to satisfy his or her outstanding Reclassified Tier 1 Member Obligation, the member must make the payment in the time and manner established by the Board; provided however, the entire outstanding liability must be paid on or before sixty (60) calendar days following the later of his or her date of separation from City service or receipt of the final remaining balance calculation of such member's Reclassified Tier 1 Member Obligation from the Board. Notwithstanding the preceding sentence, any Reclassified Tier 1 Member who does not satisfy his or her Reclassified Tier 1 Member Obligation shall only be entitled to the reduced plan benefit described in Subsection 3.36.720.E

E. If a Reclassified Tier 1 Member fails to satisfy his or her Reclassified Tier 1 Member Obligation within sixty (60) calendar days from the later of his or her date of separation from City service or receipt of the final remaining balance calculation of such member's Reclassified Tier 1 Member Obligation from the Board, the Reclassified Tier 1 Member shall only receive a portion of the Tier 1 benefit provided under this Plan that is the actuarial equivalent (as determined in the sole discretion of the Boards in consultation with their actuaries) of the amount such Reclassified Tier 1 Member paid for under the applicable provisions of this Plan.

(Ord. 30145, 30183.)