San Jose Municipal Code Part 9 Retirement for Service

No person shall be retired for service under or pursuant to the provisions of this Chapter 3.28 unless he is eligible therefor under and pursuant to the provisions of this chapter.

(Prior code § 2904.1400.)

A. Subject to other provisions of this Chapter 3.28, a member of this System, other than Tier 2 members, shall be retired for service pursuant to this Section, upon his or her written application therefor to the Board of Administration for the Federated City Employees Retirement System, if:

1. Such member has attained fifty-five (55) or more years of age and is entitled under this System to credit for five (5) or more years of Federated City Service rendered after he or she became and while he or she was a member of this System; or

2. If such member has not attained fifty-five (55) or more years of age but is entitled under this System to credit for thirty (30) or more years of Federated City Service of which not less than five (5) years were rendered after he or she became and while he or she was a member of this System; or

3. If such member has attained fifty-five (55) or more years of age and has rendered not less than two (2) years of Federated City Service under this System and became a member of this System before April 15, 1991, pursuant to a transfer of a communications function from Santa Clara County to the City of San José and without a break in service from county communications to a City communications classification and does not qualify under any other provisions of this Chapter or Chapters 3.20 and 3.24.

B. Subject to other provisions of this Chapter 3.28, a Tier 2 member of this System shall be retired for service pursuant to this Section, upon his or her written application therefor to the Board of Administration for the Federated City Employees Retirement System, if:

1. Such member has attained sixty-two (62) or more years of age and is entitled under this System to credit for five (5) or more years of Federated City Service rendered after he or she became and while he or she was a member of this System; or

2. Such member attained fifty-five (55) or more years of age and is entitled under this System to credit for five (5) or more years of Federated City Service rendered after he or she became and while he or she was a member of this System. However, member's benefit shall be actuarially reduced by a factor of five percent (5%) for each year the Tier 2 member retires before age sixty-two (62), prorated to the closest month. The early retirement reduction factors used are shown below:

C. Subject to other provisions of this Chapter, a member, other than a Tier 2 member, who is retired for service pursuant to the provisions of this Section shall be entitled to receive, and shall be paid, from the retirement fund from and after the effective date of such member's retirement and during the remainder of his or her lifetime, an annual service retirement allowance equal to two and one-half percent (2.5%) of such member's final compensation times the number of years of Federated City Service for which such member is entitled to credit under the provisions of this System; provided and excepting, however, that said annual allowance shall never exceed a maximum of seventy-five percent (75%) of such member's final compensation.

D. Subject to the provisions of this Chapter, a Tier 2 member who is retired for service pursuant to the provisions of this Section shall be entitled to receive, and shall be paid, from the retirement fund from and after the effective date of such member's retirement and during the remainder of his or her lifetime, an annual service retirement allowance equal to two percent (2%) of such Tier 2 member's final compensation times the number of years of Federated City Service for which such Tier 2 member is entitled to credit under the provisions of this System; provided and excepting, however, that said annual allowance shall never exceed a maximum of seventy percent (70%) of such Tier 2 member's final compensation. This benefit will be actuarially adjusted for members who retire prior to attainment of age sixty-two (62). If the Tier 2 member has attained age fifty-five (55) but has not yet reached age sixty-two (62), the Tier 2 member's benefit shall be actuarially reduced by a factor five percent (5%) for each year the Tier 2 member retires before age sixty-two (62), prorated to the closest month. The reduced benefit is as stated in 3.28.1110.B.2.

(Prior code § 2904.1401; Ords. 21265, 21371, 22314, 23485, 29120, 29904.)

A. Subject to other provisions of this Chapter 3.28, a member of this system who is not eligible for service retirement under and pursuant to the provisions of Section 3.28.1110 shall be retired for service pursuant to this section, upon his written application therefor to the retirement board, if he is a former member of the Chapter 3.24 retirement system who became a member of this system pursuant to the provisions of Section 3.28.400 and either:

1. He has attained fifty-five or more years of age and has accumulated contributions in the retirement fund amounting to five hundred dollars or more; or

2. He has not attained fifty-five or more years of age but is entitled under this system to credit for thirty or more years of federated city service and his accumulated contributions in the retirement fund amount to five hundred dollars or more.

B. Subject to other provisions of this chapter, a member who is retired for service pursuant to this section shall be entitled to receive, and shall be paid from the retirement fund, from and after the effective date of his retirement and during the remainder of his lifetime, an annual service retirement allowance equal to two and one-half percent of his final compensation times the number of years of federated city service for which he is entitled to credit under the provisions of this system; provided and excepting, however, that said annual allowance shall never exceed a maximum of seventy-five percent of his final compensation.

(Prior code § 2904.1402; Ord. 21265.)

A. Subject to other provisions of this Chapter 3.28, a member of this System who is not eligible for service retirement under and pursuant to the provisions of Section 3.28.1110 or 3.28.1120 shall be retired for service pursuant to this Section, upon his or her written application therefor to the Retirement Board if he or she is a former member of the Chapter 3.24 Retirement System who became a member of this System pursuant to the provisions of Section 3.28.410, 3.28.420 or 3.28.430 and he or she either:

1. Has attained fifty-five (55) or more years of age and his or her accumulated contributions in the retirement fund amount to five hundred dollars ($500.00) or more; or

2. He has not attained fifty-five (55) or more years of age but is entitled under this System to credit for thirty (30) or more years of Federated City Service and his or her accumulated contributions in the retirement fund amount to five hundred dollars ($500.00) or more.

B. Subject to other provisions of this Chapter, a member who is retired for service pursuant to this Section shall be entitled to, and shall be paid, from the retirement fund, from and after the effective date of his or her retirement and during the remainder of his or her lifetime, an annual service retirement allowance which shall be equal to the sum of the following two (2) annual allowances, as follows:

1. For non-Tier 2 members, an annual allowance equal to two and one-half percent (2.5%) of his or her final compensation times the number of years of Federated City Service rendered by him or her after he or she became and while he or she was a member of this System for which he or she is entitled to credit under this System. For Tier 2 members. an annual allowance based equal to two percent (2%) of his or her final compensation times the number of years of Federated City Service rendered by him or her after he or she became and while he or she was a member of this System for which he or she is entitled to credit under this System; provided, however, that in no event shall the annual allowance exceed a maximum of seventy percent (70%) of the Tier 2 member's final compensation. If the Tier 2 member has attained age fifty-five (55) but not reached age sixty-two (62), the Tier 2 member's benefit shall be actuarially reduced by a factor of five percent (5%) for each year the Tier 2 member retires before age sixty-two (62), prorated to the closest month. The early retirement factors used are shown below,

2. An annual allowance equal to the unmodified annual service retirement allowance which he or she would be entitled to under the provisions of the Chapter 3.24 Retirement System, if he or she had remained a member thereof and retired thereunder at the same age as that at which he or she is retiring pursuant to this Section, with credit for the number of years of Federated City Service, other than those years of service which he or she rendered after he or she became a member of this System, for which he or she is entitled to credit under this System, and with his or her accumulated contributions equal to those credited to him or her in this Retirement System because of Federated City Service rendered by him or her while he or she was a member of the Chapter 3.24 Retirement System.

(Prior code § 2904.1403; Ords. 21265, 29120, 29904.)

A. Subject to other provisions of this Chapter 3.28, a member of this System who is not eligible for service retirement under and pursuant to the provisions of Section 3.28.1110, 3.28.1120 or 3.28.1130 shall be retired for service pursuant to this Section, upon his or her written application therefor to the Retirement Board, if he or she is a former member of the Chapter 3.24 Retirement System who became a member of this System pursuant to Section 3.28.400, 3.28.410, 3.28.420 or 3.28.430, has attained fifty (50) or more years of age, is entitled to credit under this System for fifteen (15) or more years of Federated City Service, and, after having attained the age of fifty (50) years, has been separated from Federated City Service because of a curtailment of or change in the manner of performing such service and not because of resignation, discharge or retirement and the Retirement Board has determined that his or her separation is of extended and uncertain duration and not the separation normally experienced by members in positions known at the time of employment to be of limited duration or on a seasonal or interim basis.

B. Subject to other provisions of this Chapter 3.28, a member who retires for service pursuant to the provisions of this Section shall be entitled to and shall be paid, from the retirement fund, from and after the effective date of his or her retirement and during the remainder of his or her lifetime, an annual service retirement allowance determined at the written election of such member made upon the filing of an application for service retirement allowance. Such annual service retirement allowance shall, at such member's election, be either:

1. For non-Tier 2 members, an annual allowance equal to two and one-half percent (2.5%) of his or her final compensation times the number of years of Federated City Service for which he or she is entitled to credit under the provisions of this System. For Tier 2 members, an annual allowance equal to two percent (2.0%) of his or her final compensation times the number of years of Federated City Service for which he or she is entitled to credit under the provisions of this System; provided, however, that in no event shall the annual allowance exceed a maximum of seventy percent (70%) of the Tier 2 member's final compensation. If the Tier 2 member has attained age fifty-five (55) but not reached age sixty-two (62), the Tier 2 member's annual allowance shall be actuarially reduced by a factor of five percent (5%) for each year the Tier 2 member retires before age sixty-two (62), prorated to the closest month. The early retirement factors used are shown below,

2. An annual allowance which shall be equal to the sum of the following two (2) annual allowances, to wit:

a. An annual allowance equal to two and one-half percent (2.5%) (two percent (2%) for any period of reinstatement as a Tier 2 member) of his or her final compensation times the number of years of Federated City Service rendered by him or her after he or she became and while he or she was a member of this System; provided, however, that in no event shall the annual allowance of a Tier 2 member exceed a maximum of seventy percent (70%) of his or her final compensation. If the Tier 2 member has attained age fifty-five (55) but not reached age sixty-two (62), the Tier 2 member's benefit shall be actuarially reduced by a factor of five percent (5%) for each year the Tier 2 member retires before age sixty-two (62), prorated to the closest month. The early retirement factors used are shown below,

b. An annual allowance equal to the unmodified annual service retirement allowance which he or she would be entitled to under the provisions of the Part 4 Retirement System if he or she were still a member thereof and retired thereunder at the same age as that at which he or she is retiring pursuant to this Section with credit for the number of years of Federated City Service, other than those years of service which he or she rendered after becoming a member of this System, for which he or she is entitled to credit under this System, and with accumulated contributions equal to those credited to him or her in this Retirement System because of Federated City Service rendered by him or her while he or she was a member of the Chapter 3.24 Retirement System.

(Prior code § 2904.1404; Ords. 19464, 21265, 29120, 29904.)

A. A member of this system who is eligible to retire for service under the preceding sections of this Part 9 may elect, if he was a former member of the Chapter 3.24 retirement system who became a member of this system pursuant to the provisions of Section 3.28.400, 3.28.410, 3.28.420 or 3.28.430 to receive until he dies, in lieu of any and all benefits to which he or his survivors or estate might otherwise be or become entitled to under other sections of this chapter because of such service retirement, or because of his death after retirement while on such service retirement, such service retirement allowance as he would be entitled to if he were still a member of the Chapter 3.24 system, as it existed on July 30, 1975, and retired thereunder for service, at the same age as that at which he is retiring pursuant to this section, with credit for the number of years of federated city service for which he is entitled to credit under this system and with accumulated contributions equal to those credited to him in this system. A person making such election shall also be entitled to any right which he would have had, if he had retired under the Chapter 3.24 system, under the optional settlements provisions of the Chapter 3.24 system, and, if he exercises any rights under such optional settlement provisions, his named beneficiary shall receive, on his death occurring while on such retirement, such benefits, if any, as such beneficiary should become entitled to under such optional settlement provisions because of his exercise of such rights.

B. Upon exercising said election, said person loses all right to any and all other benefits which he might have or be or become entitled to under other sections of this Chapter 3.28 because of his retirement, and none of his survivors nor his estate shall have any right to any benefits under other sections of this chapter because of his death occurring while on such retirement, provided and excepting, however, that the special death benefit provided by Section 3.28.1620 shall still be payable on his death to his estate or named beneficiary.

(Prior code § 2904.1406; 3.28.1160; Ord. 21265.)

A person retired for service pursuant to any of the provisions of this Part 9 shall not be retained by the city to render any federated 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 3.28.1190.

(Prior code § 2904.1407; 3.28.1170; Ords. 21265, 26355.)

A. A person who has been retired for service pursuant to the provisions of this Part 9 may apply to the Retirement Board, in writing, for reinstatement from such retirement for the purpose of reentering Federated City Service. The Board may reinstate the person from retirement if it finds that his or her age at the date of his or her application is at least six (6) months less than seventy (70) 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 Federated 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 September 30, 2012, any individual re-entering the Plan that meets the definition of Tier 2 member under Section 3.28.030.28 shall do so as a Tier 2 member. Upon reinstatement 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.

(Prior code § 2904.1408; 3.28.1180; Ords. 21265, 27838, 29120, 29904.)

A. If a person who has been retired for service pursuant to the provisions of this Part 9 is retained or reemployed by the city, other than as an independent contractor or pursuant to Section 3.28.1190, to render any service which is not federated city service, 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.

(Prior code § 2904.1409; 3.28.1190; Ords. 21265, 26355.)

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 (120) working days or nine hundred sixty (960) 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. A person who retired for disability shall be eligible for employment under this Section only if employment is not available under Part 10A of this Chapter.

D. 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.

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

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

G. 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.

(Ords. 26355, 29904.)

Beginning January 1, 2018, the annual retirement benefit of each member who is not a Tier 2 member shall be evaluated to determine if such member's retirement allowance (including any cost of living adjustments) is equal to at least seventy-five percent (75%) of the purchasing power of the member's retirement allowance at retirement. Each member's purchasing power shall be measured by reference to the most current consumer price index for all urban consumers (CPI-U), San Francisco-Oakland-San José metropolitan area. If the member's retirement allowance falls below seventy-five percent (75%) of purchasing power, the member shall receive a lump sum payment of the difference between the member's current retirement allowance required to achieve seventy-five percent (75%) purchasing power. Purchasing power payments shall be received by as a separate line item on the pension check each February, as needed, to achieve seventy-five percent (75%) of the purchasing power the member had at the time of retirement.

(Ords. 29904, 30017.)