Federated city employees retirement system - Effective April 1, 2006 and for tier 2, effective September 30, 2012.
San José Municipal Code § 3.44.160
in effect3.44.160 - Federated city employees retirement system - Effective April 1, 2006 and for tier 2, effective September 30, 2012.
A. Notwithstanding the other provisions of this Chapter to the contrary, effective April 1, 2006, the following provisions shall apply to those persons who receive monthly allowances pursuant to the provisions of the Federated City Employees Retirement System as set forth in Chapter 3.24 or Chapter 3.28 of the San José Municipal Code:
1. Each retirement allowance and each survivorship allowance which is payable under Chapter 3.24 or Chapter 3.28 any subject year which begins on or after April 1, 2006, together with any increases or decreases in the amount of any such allowance which were previously made pursuant to this Chapter 3.44, shall be increased by three percent (3%) per annum in lieu of the increase otherwise provided in this Chapter. The first such three percent (3%) increase shall be made on April 1, 2006. With respect to Tier 2 members, the Retirement Board of the retirement plan pursuant to which the retirement allowances and survivorship allowances under Chapter 3.24 or 3.28 specified in the preceding sections of this Chapter are payable, shall within the first three (3) calendar months of each subject year, beginning with the first three (3) months of the calendar year 2013, determine the percentage of increase or decrease in the cost of living during the index-year next preceding the subject year. Such shall be done by reference to the most current consumer price index for all urban consumers (CPI-U), San José-San Francisco-Oakland metropolitan area, all items (1967 = 100), as published by the United States Department of Labor's Bureau of Labor Statistics, showing the cost-of-living increase or decrease during the month of December of such index-year over or below the cost of living during the month of December of the calendar year immediately preceding such index-year. Effective June 16, 2017, each retirement allowance and each survivorship allowance which is payable to a Tier 2 member (or survivor of such Tier 2 member) shall be increased in the following manner:
a. For Tier 2 members hired on or after the effective date of the implementing ordinance, such allowance shall be increased by the lower of: (i) the percentage of such increase in the CPI-U, or (ii) the applicable percentage determined by the number of years of Federated City Service at retirement as follows: if at the time of retirement the Tier 2 member had at least one (1) but less than eleven (11) years of Federated City Service, one and one-quarter percent (1.25%); if at the time of retirement the Tier 2 member had at least eleven (11) but less than twenty-one (21) years of Federated City Service, one and one-half percent (1.5%); if at the time of retirement the Tier 2 member had at least twenty-one (21) but less than twenty-six (26) years of Federated City Service, one and three-quarters percent (1.75%); or, if at the time of retirement the Tier 2 member had at least twenty-six (26) years of Federated City Service, two percent (2%); or
b. For Tier 2 members employed before the effective date of the implementing ordinance such allowance shall be increased by the lower of: (i) the percentage of such increase in the CPI-U or (ii) the applicable percentage determined by the number of years of Federated City Service at retirement as follows: if at the time of retirement the Tier 2 member had at least one (1) but less than eleven (11) years of Federated City Service, one and one-half percent (1.5%); if at the time of retirement the Tier 2 member had at least eleven (11) but less than twenty-one (21) years of Federated City Service, one and one-half percent (1.5%); if at the time of retirement the Tier 2 member had at least twenty-one (21) but less than twenty-six (26) years of Federated City Service, one and three-quarters percent (1.75%), or, if at the time of retirement the Tier 2 member had at least twenty-six (26) years of Federated City Service, two percent (2%). A Tier 2 member's first COLA after retirement shall be prorated based on the number of months retired.
2. Each increase (if any for Tier 2 members) shall become effective beginning with the allowance payable for the month of April in each subject year.
3. The accumulation of the excess of cost-of-living percentages as provided in Section 3.44.040 shall not apply.
B. In the event the Board's actuary determines that there is an increased cost to implement the change to a flat-rate three percent (3%) cost-of-living adjustment, or to implement the cost-of-living adjustment maximum in subsection 3.44.160.A for Tier 2 members, such increased cost shall be calculated as a percentage of each member's earned compensation and that percentage rate shall be added to the contributions made by members pursuant to Section 3.44.100. The additional percentage rate imposed pursuant to this paragraph shall be the same for all members other than Tier 2 members. For Tier 2 members that amount shall be an amount which is the same for all Tier 2 members and which is intended to produce an equal sharing of the cost of any cost-of-living adjustment between the City and Tier 2 members.
C. The provisions of this Chapter 3.44 which are not inconsistent with the provisions of subsections A. and B. shall continue to apply with respect to the persons described in subsection A.
D. Notwithstanding any other provisions of the Federated Employees Retirement Plan to the contrary including Section 3.28.710.C and Section 3.28.860.C, in determining any cost-of-living contributions that may be due under this Chapter 3.44, any excess of assets over the actuarial accrued liability shall not be taken into account in determining such cost-of-living contributions to the Plan.
(Ords. 27652, 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_CH3.44CO-LAD_3.44.160FEEMRESYFFAP12006TI2EFSE302012Fetched: 11/1/2026