Funding of increases in allowances - Police and fire plans.
San José Municipal Code § 3.44.090
in effect3.44.090 - Funding of increases in allowances - Police and fire plans.
Such increases in retirement allowances and in survivorship allowances as shall become payable under and pursuant to the provisions of this Chapter 3.44 to city retirees who are members or former members of the 1961 police and fire department retirement plan established by Chapter 3.36 of the San José Municipal Code; city retirees who are members or former members of the police and fire department retirement plan established by Chapter 3.32 of this Code; and survivors of members or former members of the above specified police and fire department retirement plans, together with all other payments required to be made to said city retirees and survivors under the provisions of this Chapter 3.44, shall be funded as follows:
A. Special fund. The special fund heretofore created and now existing in the city treasury as the "police and fire cost-of-living fund" shall continue in existence. All moneys in said fund, and all moneys hereafter transferred, paid into, earned by and credited to said fund shall be used to pay such increases in the above-mentioned allowances as shall become payable under and pursuant to the provisions of this chapter.
B. Members' contributions.
1. For each calendar month or two-week period from and after the first day of April, 1970, each person who is required by the provisions of either of the two above-mentioned police and fire department retirement plans to make contributions to the above-mentioned police and fire cost-of-living fund. Until changed by the board of administration for police and fire department retirement plan referred to in Section 3.36.300 of this Code, hereinafter referred to in this Chapter 3.44 as the police and fire retirement board, the cost-of-living contribution required to be made each month or biweekly by each contributor, other than the city, shall be an amount equal to that percentage of the contribution required to be made by such person to either or both of the police and fire department retirement plans or systems established by Chapters 3.32 and 3.36 of this Code, which was in effect on June 30, 1975, under the provisions of this Chapter 3.44 as they read on said date; provided, however, that cost-of-living contributions shall be made by tier 2 members equal to that amount of such tier 2 member's earned monthly (or biweekly if contributions are made biweekly) compensation as shall be required to provide for the equal sharing of the cost of any cost-of-living increases for tier 2 members between the city and the tier 2 members.
2. From time to time and as often as may be reasonably necessary to keep the plan established by this Chapter 3.44 actuarially sound, but not less frequently than once each five years, the above specified police and fire retirement board shall review the percentage rate of monthly or biweekly cost-of-living contribution required of contributors other than the city to determine whether it should be reestablished or changed and, subject to the requirements set forth in this section, shall reestablish such rate or make such change therein as may be reasonably necessary to comply with the provisions of this section. The percentage rate of the cost-of-living contributions so established from time to time by said retirement board for contributors other than the city shall be such as will be sufficient, on the average with moneys, if any, already then in the above-mentioned special fund and with cost-of-living contributions required of the city and with anticipated earnings of said fund:
a. To make up any deficits then existing in the above-mentioned special fund;
b. To pay all increases in retirement allowances and in survivorship allowances which, on the basis of actuarial and other relevant information can reasonably be expected to become payable under and pursuant to the provisions of this chapter; and
c. To make such other payments as may be required by the provisions of this chapter and to provide a reasonable reserve for contingencies.
3. The rate of monthly cost-of-living contribution required of each contributor other than the city shall always be a percentage of the monthly contribution which such contributor is required by the provisions of Chapter 3.32 or 3.36 of this Code to make to either or both of the said police and fire department retirement plans established by said Chapters 3.32 and 3.36; and said percentage rate shall always be the same for all such contributors other than tier 2 members. With respect to tier 2 members, the rate of monthly or biweekly cost-of-living contributions required of each tier 2 contributor shall always be an amount of each tier 2 member's earned monthly (or biweekly, if contributions are made biweekly) compensation that shall be required to produce an equal sharing of the cost of any cost-of-living increases between the city and the tier 2 members, and the rate of such contributions shall always be the same for all such tier 2 contributors.
C. City contributions. For each month, respectively, from and after the first day of April, 1970, the city shall contribute to the above-mentioned police and fire cost-of-living fund the sum of eight dollars for each three dollars contributed to said fund for each such month, respectively, by persons other than the city who are not tier 2 members pursuant to the provisions of the immediately preceding Subsection B. of this section. With respect to the police and fire cost-of-living for tier 2 members, for each month (or for each two-week period if biweekly contributions are required of members), respectively, the city shall contribute an amount intended to provide equal sharing of the costs of any cost-of-living increases with tier 2 members.
D. Except as provided in Section 3.36.1520.E. of Chapter 3.36, in determining any cost-of-living contributions that may be due under this Chapter 3.44, there shall be no offset to cost-of-living 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.
(Prior code § 2904.510; Ords. 20276, 29266, 29879.)
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_CH3.44CO-LAD_3.44.090FUINALOLFIPLFetched: 11/1/2026