Deductions - Recipient's earnings from outside occupation.
San José Municipal Code § 3.28.1330
in effect3.28.1330 - Deductions - Recipient's earnings from outside occupation.
A. In any case where the recipient of a disability retirement allowance meets the following conditions, the recipient's disability retirement allowance shall be reduced as provided in subsection B. below:
1. The recipient has not reached age fifty-five (55) (sixty-two (62) in the case of a Tier 2 member recipient); and
2. The recipient is still incapacitated for the performance of duty; and
3. The recipient is engaged in a gainful occupation other than service as an officer or employee of the City.
B. During the period the recipient is engaged in gainful employment, the recipient's disability retirement allowance shall be reduced to the amount which, when added to the recipient's income or earnings from such gainful occupation and when also added to all other applicable deductions, if any, required by other provisions of this Chapter 3.28, shall not exceed the amount of the maximum compensation earnable in such period by a person holding the position which the recipient held at the time of retirement, or, if that position has been abolished, the maximum compensation earnable by a person holding it immediately prior to its abolition. In no event, however, shall the disability retirement allowance payable for any period exceed the amount of disability retirement allowance to which the recipient would have been entitled for such period in the absence of this Section.
C. For the purposes of this Section, income and earnings shall not include interest, dividends or rent.
D. Any overpayment of disability retirement allowance made to a recipient may be deducted from future allowances payable to the recipient or any beneficiary of the recipient or shall otherwise be collected from the recipient.
E. The following conditions shall apply in any case where, pursuant to Section 3.28.1325, the recipient has elected to file tax returns in lieu of monthly statements of income and earnings:
1. Reductions in disability retirement allowances shall be made based upon the statement of projected reportable income and earnings filed by the recipient.
2. Any overpayment of disability retirement allowance made during the applicable tax reporting period may be deducted from future allowances in substantially equal monthly deductions over a period not to exceed twelve (12) months. If the deductions are made as provided in this subsection E., the deductions shall include interest on the outstanding overpayment at the actuarial rate adopted by the Board.
3. Any underpayment of disability retirement allowance made during the applicable tax reporting period shall be paid to the disability retirement allowance recipient in one (1) lump sum within thirty (30) days of the verification of the underpayment by the Secretary to the Board.
F. When the recipient of a disability retirement allowance reaches age fifty-five (55), (sixty-two (62) for Tier 2 member recipients), the deductions described in this Section shall cease except to the extent necessary to recover any overpayment.
(Prior code § 2904.1465; Ords. 20147, 24916, 29120, 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_PT10REDI_3.28.1330DEECEAOUOCFetched: 11/1/2026