OPTIONAL SETTLEMENTS

SJ-MC tit. 3, div. II, ch. 3.28, pt. 13

in effect

San José Municipal Code § 3.28.1650 Election to change retirement allowance.

3.28.1650 - Election to change retirement allowance. Subject to the provisions of this chapter, and subject particularly to the provisions of Section 3.28.1700 of this part, a person who is a member of this system or who has retired under this system may elect, in the manner and within the time specified in Section 3.28.1660, to have the actuarial equivalent of any retirement allowance to which such person may become or has become entitled under this system applied in accordance with any one of the optional settlements specified in this part as follows: A. To a lesser retirement allowance for himself or herself during such person's life; and B. To an allowance to a beneficiary, named by such person, to be paid after such person's death. For tier 2 members, this person has to be a spouse, domestic partner or child(ren). (Prior code § 2904.1600; Ords. 23736, 29120.)

San José Municipal Code § 3.28.1660 Manner and time of election.

3.28.1660 - Manner and time of election. A. No election made or attempted to be made by any person pursuant to the provisions of this part shall be deemed valid unless the election is in writing and is filed with the retirement board or its secretary on or before, but no later than, the thirtieth day from and after the effective date of such person's retirement. B. Any election made pursuant to the provisions of this part may be amended or revoked by the person who made it, provided such amendment or revocation is in writing and is filed with the retirement board or its secretary on or before, but no later than, the thirtieth day from and after the effective date of such person's retirement. If an election has been revoked, a new one may be made in the manner and time specified in subsection A. of this section. C. Any election made pursuant to the provisions of this part that is not amended or revoked on or before the thirtieth day from and after the effective date of such person's retirement shall be irrevocable and benefits shall be paid in accordance with such election subject only to the provisions of this chapter. (Prior code § 2904.1601; Ord. 23736.)

San José Municipal Code § 3.28.1670 Optional settlement one.

3.28.1670 - Optional settlement one. Optional settlement one consists of the right to have a lesser retirement allowance paid to the retiree until the retiree's death, and thereafter, subject to the provisions of Section 3.28.1700, to have one hundred percent of the retiree's modified retirement allowance paid to the retiree's designated beneficiary for the life of the beneficiary. (Prior code § 2904.1602; Ord. 23736.)

San José Municipal Code § 3.28.1680 Optional settlement two.

3.28.1680 - Optional settlement two. Optional settlement two consists of the right to have a lesser retirement allowance paid to the retiree until the retiree's death, and thereafter, subject to the provisions of Section 3.28.1700, to have one-half of the retiree's modified retirement allowance paid to the retiree's designated beneficiary for the life of the beneficiary. (Prior code § 2904.1603; Ord. 23736.)

San José Municipal Code § 3.28.1690 Optional settlement three.

3.28.1690 - Optional settlement three. A. Optional settlement three consists of the right to have a lesser retirement allowance paid to the retiree until the retiree's death, and thereafter, subject to the provisions of Section 3.28.1700 and Subsection B. of this section, to have such percentage of the modified retirement allowance as the retiree may select, subject to approval of the retirement board, paid to the retiree's designated beneficiary for the life of the beneficiary. For tier 2 members, optional settlement three is the right to have a lesser retirement allowance paid to the retiree until the retiree's death, and thereafter, subject of the provisions of Section 3.28.1700, to have seventy-five percent of the retiree's modified retirement allowance paid to the retiree's designated beneficiary for the life of the beneficiary. B. In no case shall the actuarial equivalent of benefits payable to a beneficiary under this optional settlement three exceed the actuarial equivalent of the benefits payable to the same beneficiary if optional settlement one had been selected. C. If, at the time an election for an optional settlement may be made pursuant to Section 3.28.1660, there exists a spouse, domestic partner registered under Division 2.5 of the California Family Code, or child of the person making the election who would be entitled to benefits under Part 11 or 12 of this chapter upon the death of said person, then this optional settlement three shall not be available to said person and no election of this optional settlement three shall become effective. (Prior code § 2904.1604; Ords. 23736, 27521, 29120.)

San José Municipal Code § 3.28.1700 Existence of surviving spouse, surviving domestic partner, or surviving child or children at time of member's or retiree's death.

3.28.1700 - Existence of surviving spouse, surviving domestic partner, or surviving child or children at time of member's or retiree's death. A. If a member or retiree has elected an optional settlement as set forth in Section 3.28.1670, 3.28.1680 or 3.28.1690 and has named a person other than the member's or retiree's surviving spouse or surviving domestic partner, and at the time of the member's or retiree's death there exists a surviving spouse, a surviving domestic partner or surviving child or children, then: 1. No benefits shall be paid to the designated beneficiary under the elected optional settlement; and 2. The benefits provided under Part 11, 12 or 14 of this Chapter, whichever is applicable, shall be paid to such surviving spouse, surviving domestic partner or surviving child or children. B. If at the time of the member's or retiree's death a beneficiary other than the member's or retiree's surviving spouse or surviving domestic partner should become entitled to any benefit under any optional settlement specified in Section 3.28.1670, 3.28.1680 or 3.28.1690, such benefit shall cease and terminate if and when a child or children of the member or retiree, born after the member's or retiree's death, becomes entitled to any benefits under the provisions of Part 11 or 12 of this Chapter. C. Special Provisions for Optional Settlements. If a member or retiree has elected an optional settlement as set forth in Section 3.28.1670 or Section 3.28.1680, and has named the member's or retiree's surviving spouse or surviving domestic partner as the designated beneficiary, then upon the member's or retiree's death: 1. The benefits payable to the designated beneficiary under such optional settlement shall be paid to such surviving spouse or surviving domestic partner for the life of the surviving spouse or surviving domestic partner. Upon the death of such surviving spouse or surviving domestic partner, the benefits payable under such optional settlement shall cease. If any surviving child or children exist at the time of the surviving spouse's or surviving domestic partner's death, such child or children shall be paid a surviving child's or surviving children's allowance under the provisions of Part 11, 12 or 14 of this Chapter, whichever is applicable, as though no optional settlement had been elected. 2. If at the retiree's death there is no surviving spouse and no surviving domestic partner but there is or are a surviving child or children, then the benefit that would have been paid to the surviving spouse or surviving domestic partner under subsection C.1. above shall not be paid and a surviving child's or surviving children's allowance shall be paid under the provisions of Part 11, 12 or 14 of this Chapter, whichever is applicable, as though no optional settlement had been elected. D. For the purposes of this Part: 1. "Surviving spouse" means the person defined as a surviving spouse in Section 3.28.1460 or Section 3.28.1560, whichever section is applicable under the circumstances. 2. "Surviving domestic partner" means the person defined as a surviving domestic partner in Section 3.28.1460 or Section 3.28.1560, whichever section is applicable under the circumstances. 3. "Surviving child" and "surviving children" mean the person or persons defined as a surviving child or surviving children in Section 3.28.1460, Section 3.28.1560 or Section 3.28.1750, whichever section is applicable under the circumstances. 4. A posthumously born child shall be deemed to be a surviving child in existence at the time of the member's or retiree's death, and shall be entitled to benefits under this Part as provided for other surviving children. (Prior code § 2904.1605; Ords. 23736, 27521, 29120, 29904.)

San José Municipal Code § 3.28.1710 Designation of beneficiaries.

3.28.1710 - Designation of beneficiaries. A. The person electing any of the optional settlements specified in Section 3.28.1670, 3.28.1680 and 3.28.1690 shall designate in writing the beneficiary who shall be entitled to receive benefits under such optional settlement. The beneficiary so designated must be a natural person; it cannot be a corporation, nor can it be a class of natural or other persons. B. If the person electing any of the optional settlements specified in Section 3.28.1670 and 3.28.1680 is married at the time of such election, is a domestic partner in a domestic partnership registered pursuant to Division 2.5 of the California Family Code or in a legal union other than a marriage that is recognized as a domestic partnership pursuant to California Family Code Section 299.2, is retired at the time of such election and is married to the spouse to whom the person was married at the time of such person's retirement or is retired at the time of such election and is a partner in a domestic partnership that was registered pursuant to Division 2.5 of the California Family Code or in a legal union other than a marriage that is recognized as a domestic partnership pursuant to California Family Code Section 299.2 at the time of such person's retirement, then the person must designate his or her spouse as the beneficiary entitled to receive benefits under the optional settlement. Under these circumstances, no person other than said spouse or domestic partner shall be eligible to be a designated beneficiary and no election naming any other person as a designated beneficiary shall become effective. C. No person shall be entitled to any benefit as a named beneficiary in any of said optional settlements unless he or she first satisfies the retirement board, and the board determines, that he or she is in fact the beneficiary designated to receive the benefit and is otherwise entitled to receive the benefit. Any such benefit being paid to any such beneficiary, or claimed beneficiary, is subject to termination or modification at any time by the retirement board if the board should subsequently find that such person was not entitled to or is no longer entitled to such benefit or any part thereof. Any payment of any benefit made in good faith from this system in reliance upon any abovementioned determination of the board shall constitute a complete discharge of this system's obligation respecting such benefit, to the extent of such payment, notwithstanding that it may not have discovered a beneficiary otherwise entitled to such benefit. D. For tier 2 members, the beneficiary must be a spouse, domestic partner or child(ren). (Prior code § 2904.1616; Ords. 23736, 27521, 29120.)

San José Municipal Code § 3.28.1720 Actuarial equivalences.

3.28.1720 - Actuarial equivalences. For the purposes of this Part, actuarial equivalences shall mean a benefit of equal value when computed on the basis of the interest rate, inflation rate and annuity tables and other relevant assumptions on the most recent actuarial valuation and adopted by resolution of the Board upon the advice of the Board's actuary, provided that such interest rate, inflation rate, and annuity tables and other relevant assumptions comport with reasonable standards applicable to government plans. For purposes of this Section, the most recent actuarial valuation shall be the valuation performed as of June 30th in the calendar year prior to the effective date of the actuarial equivalence calculation. (Ords. 23736, 27838, 29904.)

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_PT13OPSEFetched: 11/1/2026