Satisfaction of liability for reclassification as tier 1.
San José Municipal Code § 3.28.820
in effect3.28.820 - Satisfaction of liability for reclassification as tier 1.
A. A Reclassified Tier 1 Member (described under Section 3.28.200.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 3.28.200.A.1, is liable for and shall be required to pay any remaining balance within 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 3.28.820.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 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 3.28.200.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 the later of sixty (60) calendar days following the 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 in Subsection 3.28.820.E.
E. If a Reclassified Tier 1 Member fails to satisfy 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.
(Ords. 30145, 30183.)
Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT3PE_IIREPL_CH3.281975FEEMREPL_PT6MECO_3.28.820SALIRETI1Fetched: 11/1/2026