Method of payment of benefits upon occurrence of severance event.
San José Municipal Code § 3.49.131
in effect3.49.131 - Method of payment of benefits upon occurrence of severance event.
A. In the event of termination of employment because of retirement, disability, separation from service or other severance event or attainment of age fifty-nine and a half, except death, the full benefits credited to the participant's account plus or minus subsequent investment gains or losses, but less any federal or state income taxes required to be withheld, shall be distributed to the participant in any one or more of the following ways:
1. In a lump sum;
2. In monthly, quarterly, semiannual, or annual installments, or, for a participant eligible for an annuity payout option, installments during the lifetime of the participant with or without a provision for a period certain, but in no case less frequently than annual payments. Life expectancy shall be actuarially determined by the city based on the date the distribution shall begin. Each installment payment shall not be less than fifty dollars, unless such payment is the entire balance remaining in the participant's account.
B. The amount payable with respect to the participant shall be paid at such times specified by the Secretary of the United States Treasury pursuant to regulations promulgated by said Secretary.
C. No payment option may be selected by a participant unless it satisfies a good faith interpretation of the requirements of Internal Revenue Code Section 401(a)(9).
(Ords. 29184, 31113.)
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_CH3.49UNMADECO401PL_3.49.131MEPABEUPOCSEEVFetched: 11/1/2026