NVF:SH:JMD
6/1/2022
T-41430\ 1912331_3.doc 1
Council Agenda: 6/14/22
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
DRAFT
ORDINANCE NO.
AN ORDINANCE OF TH E CITY OF SAN JOSE
AMENDING TITLE 3 OF THE SAN JOSE MUNICIPAL
CODE TO AMEND SECTION 3.28.700 AND SECTION
3.28.725 OF CHAPTER 3.28 RE LATED TO THE CITY OF
SAN JOSE PAYING THE NORMAL CONTRIBUTIONS
FOR ELIGIBLE TIER 1 MEMBERS AT THIRTY YEARS OF
SERVICE
WHEREAS, effective September 3, 2021, City of San José City Ordinance No. 30633 amended the 1975 Federated City Employees Retirement Plan (“Plan”) to cease the normal contributions for eligible Tier 1 members who reach 30 years of service credit in the Federated Plan; and
WHEREAS, the Federated Plan’s Board’s actuary assumed that the remaining pool of Tier 1 members would pay the normal contributions that would have otherwise been paid by eligible Tier 1 members that reached 30 years of service credit in the Plan; and
WHEREAS, the Federated Plan’s Board’s auditor assumed that the City of San José would pay for the normal contributions that would have otherwise been paid by eligible Tier 1 members that reached 30 years of service credit in the Plan; and
WHEREAS, the Federated Plan’s Board requested that the City of San José clarify its intention for payment of the normal contributions that would have otherwise been paid by eligible Tier 1 members that reached 30 years of service credit in the Plan through an amendment to Federated Plan in the Municipal Code; and
WHEREAS, pursuant to the provisions and requirements of the California Environmental Quality Act of 1970, together with related State CEQA Guidelines and Title 21 of the San José Municipal Code (collectively, "CEQA"), it has been determined that the provisions of this Ordinance do not constitute a project, under File No. PP17- NVF:SH:JMD
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Council Agenda: 6/14/22
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
008, General Procedure and Policy Making resulting in no changes to the physical environment; and
WHEREAS, the City Council of the City of San José is the decision-making body for this Ordinance; and
WHEREAS, this Council has reviewed and considered the "not a project" determination under CEQA prior to taking any approval actions on this Ordinance;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE:
SECTION 1. Section 3.28.700 of Chapter 3.28 of Title 3 of the San José Municipal Code is amended to read as follows:
3.28.700 Normal Rate of Contribution – Described - Amount
Except as may be otherwise provided elsewhere in this Chapter 3.28 , all members of this System must make monthly (or biweekly , if compensation is pa id biweekly by the City) normal contributions to this System. The normal co ntribution required of a member for each month (or for each two (2) we eks, if compensation is paid biweekly by the City) shall be a pe rcentage of compensation earned (or of "compensation earnable" when so required by ot her provisions of this Chapt er 3.28) by him or her in such period. Said percentage is hereinafter referr ed to as members' "normal rate of contribution." Non-Tier 2 members and Tier 2 members may have a different rate of contribution. Except as other wise provided in Sect ion 3.28.710 or an other provision of this Chapter 3.28, all non- Tier 2 members will have the same normal rate of contribution. The normal rate of contribution may be different among Tier 2 members, but shall be the same percentage for all Tier 2 members of the same bargaining unit unless otherwise pr ovided under Section 3.28 .710 or another provis ion of this Chapter NVF:SH:JMD
6/1/2022
T-41430\ 1912331_3.doc 3
Council Agenda: 6/14/22
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
3.28. Notwithstanding any other provisions of this Section 3.28.700, the normal contributions of a member subject to Section 3.28.725 shall be paid by the City, as described in that Section 3.28.725.
SECTION 2. Section 3.28.725 of Chapter 3.28 of Title 3 of the San José Municipal Code is amended to read as follows:
3.28.725 Ceasing Member Contributions at Thirty Years of Service
A. Notwithstanding any other provisions of this Chapter 3.28, upon attainment of at least thirty (30) years of service credit by an eligible member that is not a Tier 2 member in this System, normal contributions described in Section 3.28.700 shall not be deducted from the member’s monthly or bi-weekly compensation. Eligible members are those employees who are in positions assigned to an unrepresented employee unit or a represented bargaining unit that has agreed to the provisions in this Section 3.28.725 and has been approved by the City Council.
B. Members shall continue to make all other member contributions that would otherwise be required under this Chapter 3.28 without regard to this provision.
C. The City shall continue make all cont ributions that would otherwise be required under this Chapter 3.28 without regard to this provision. The City shall also make the normal contributions described in Section 3.28.700 that would have been deducted from an eligible member's monthly or bi-weekly compensation but for subsection A. of this Section 3.28.725, at the same time and in the same manner as the City makes other normal contributions described in Section
3.28.850 or Section 3.28.940 in the event the City has elected a lump sum NVF:SH:JMD
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Council Agenda: 6/14/22
Item No.: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
payment of the City’s contributions to the retirement fund .
PASSED FOR PUBLICATION of title this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Ma
yor
ATTEST:
TONI J. TABER, CMC
Cit
y Clerk