Amendment or termination of plan.

San José Municipal Code § 3.50.180

in effect

3.50.180 - Amendment or termination of plan. A. The City may, at any time, terminate this Plan for all participants. Upon such termination, each participant in the Plan will be deemed to have terminated his or her service as of the date of such termination, and the value of each participant's account, less any taxes required to be withheld, shall be distributed to the participants or their beneficiaries no later than sixty (60) days after the termination of the Plan. B. The City may also amend the provisions of this Plan at any time; provided, however, that no amendment shall affect the rights of the participants or their beneficiaries to the receipt of payment of benefits, to the extent of any compensation deferred at the time of the amendment as adjusted for income attributable to such deferred compensation prior to and subsequent to the amendment. No amendment shall divest any participant of any rights to deferrals prior to the date of any amendment or amend the Plan so that it is no longer in compliance with the requirements of Internal Revenue Code Section 457. C. This Plan is intended to qualify as an eligible deferred compensation plan maintained by a governmental employer under Section 457 of the Internal Revenue Code and shall be interpreted and administered in a manner consistent with such qualification. D. The City reserves the right to amend the Plan to the extent that may be necessary to conform the Plan to the requirements of Internal Revenue Code Section 457 and any other applicable law, regulation or ruling, including amendments that are retroactive to the effective date of the Plan. E. In the event that the Plan is deemed by the Internal Revenue Service to be administered in a manner inconsistent with Internal Revenue Code Section 457, the City shall correct such administration within the period provided in Section 457(b). The City reserves the right to take such action and do such things as are required to make the Plan, as administered, consistent with Section 457. (Ords. 24061, 26541, 30536.)

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_CH3.50PTPL_3.50.180AMTEPLFetched: 11/1/2026