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DRAFT
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN JOSÉ
AMENDING SECTION 3.28.1470 AND SECTION 3.28.1480
OF CHAPTER 3.28 OF TITLE 3 OF THE SAN JOSE
MUNICIPAL CODE TO CLARIFY TIER 2 MEMBER
SURVIVOR BENEFITS
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE:
SECTION 1. Section 3.28.1470 of Chapter 3.28 of Title 3 of the San José Municipal Code is hereby amended to read as follows:
3.28.1470 - Eligibility for allowance.
The benefits hereinafter specified in Section 3.28.1480 shall be payable to the persons specified in such section in each of the following situations, and none other:
A. Upon the death before retirement of a non-Tier 2 member who at the time of death was entitled to credit under this System for five (5) or more years of Federated City Service rendered after June 30, 1975;
B. Upon the death before retirement of a Tier 2 member who, at the time of death, would have been entitled to immediately commence a retirement benefit;
C. Upon the death before retirement of a member who was a former member of the Chapter 3.24 Retirement System who became a member of this System pursuant to the provisions of Section 3.28.400 and who, in addition, has five hundred dollars ($500.00) or more of accumulated contributions in the retirement fund at the time of death;
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D. Upon the death before retirement of any other member, regardless of amount of service or accumulated contributions, if such death is found and determined by the Retirement Board to be a service-connected death as such is defined in this Part 11.
SECTION 2. Section 3.28.1480 of Chapter 3.28 of Title 3 of the San José Municipal Code is hereby amended to read as follows:
3.28.1480 Amount of allowance to spouse, domestic partner or children if they are eligible under Section 3.28.1470
Allowances payable to those persons only who are eligible for an allowance under the provisions of Section 3.28.1470 shall be as follows:
A. Subject to other provisions of this Chapter 3.28, in any of the situations specified in Section 3.28.1470, the surviving spouse or surviving domestic partner, if any, of such member shall thereafter be entitled to receive and be paid, from the retirement fund, the following annual allowance.
1. If the deceased as of the time of his or her death, had attained the minimum age for service retirement and was credited with twenty (20) or more years of Federated City Service, the surviving spouse or surviving domestic partner shall be entitled to receive said allowance until the surviving spouse or surviving domestic partner dies.
2. If the deceased, as of the time of his or her death, had not attained the minimum age for service retirement or was not credited with twenty (20) or more years of Federated City Service, the surviving spouse or surviving domestic partner shall be entitled to receive said allowance until the surviving spouse or surviving domestic partner dies or marries or NVF:SH:JMD
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establishes a subsequent registered domestic partnership, whichever is earlier.
3. Said annual allowance shall be equal to two and one-half percent (2.5%) of the deceased member's final compensation times the number of years of Federated City Service for which the deceased member was entitled to credit under the Retirement System at the time of the deceased member's death; provided and excepting, however, that:
a. Such annual allowance shall never be more than seventy-five percent (75%) of the deceased member's final compensation; and b. Such annual allowance shall not be less than forty percent (40%) of the deceased member's final compensation if the deceased member at the time of death was in the employ of the City for the purpose of rendering Federated City Service and such employment had not been terminated by resignation, discharge or layoff.
B. Subject to other provisions of this Chapter, in any of the situations specified in Section 3.28.1470, if, at the time of said member's death, there is no surviving spouse or surviving domestic partner but there is or are one or more eligible surviving children, the following annual allowance shall be paid to said child or children, as follows:
1. If there is only one (1) eligible surviving child, such child shall be entitled to receive and shall be paid, from the retirement fund, until he or she attains the age of eighteen (18) years, marries, establishes a registered domestic partnership, or dies, whichever is earlier, an annual allowance equal to twenty-five percent (25%) of the annual allowance that would have been payable to a surviving spouse or surviving domestic partner under subsection A. of this Section if there had been a surviving spouse or surviving domestic partner.
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2. If there are two (2) or more eligible surviving children, each surviving child thereafter in existence shall be entitled to receive and shall be paid from the retirement fund, until he or she attains the age of eighteen (18) years or marries, establishes a registered domestic partnership, or dies, whichever is earlier, an annual allowance equal to that proportion of the annual allowance which would have been payable to the surviving spouse or surviving domestic partner under subsection A. of this Section if there had been a surviving spouse or surviving domestic partner which one bears to the total number of eligible surviving children in existence at the time any such allowance becomes payable, subject to the following limitations:
a. The annual allowance payable to any surviving child shall never exceed twenty-five percent (25%) of the annual allowance that would have been payable to a surviving spouse or surviving domestic partner under subsection A. of this Section if there were a surviving spouse or surviving domestic partner; and
b. The total annual allowances payable to all children shall never exceed seventy-five percent (75%) of the annual allowance that would have been payable to a surviving spouse or surviving domestic partner if there were a surviving spouse or surviving domestic partner.
C. Subject to other provisions of this Chapter, in any of the situations specified in Section 3.28.1470, if at the time of said member's death there is a surviving spouse or surviving domestic partner but payment of an annual allowance to said surviving spouse or surviving domestic partner ceases because of his or her death or marriage or because he or she has established a subsequent registered domestic partnership, and if at the time of cessation of said surviving spouse's or NVF:SH:JMD
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surviving domestic partner's allowance there is or are one or more eligible surviving child or children, then in such event, the following annual allowance or allowances shall be payable, upon cessation of said surviving spouse's or surviving domestic partner's allowance, to the eligible surviving child or children then in existence, as follows:
1. If only one (1) eligible surviving child exists after the surviving spouse's or surviving domestic partner's allowance ceases, such child shall be entitled to receive and shall be paid, from the retirement fund, until he or she attains the age of eighteen (18) years, marries, establishes a registered domestic partnership, or dies, whichever is earlier, an annual allowance equal to twenty-five percent (25%) of the annual allowance which was theretofore payable under subsection A. of this Section to the surviving spouse or surviving domestic partner.
2. If two (2) or more eligible surviving children exist after the surviving spouse's or surviving domestic partner's allowance ceases, each such child shall be entitled to receive and shall be paid, from the retirement fund, until he or she attains the age of eighteen (18) years, marries, establishes a registered domestic partnership, or dies, whichever is earlier, an annual allowance equal to that proportion of the annual allowance which the surviving spouse or surviving domestic partner was theretofore entitled to receive under subsection A. of this Section, which one bears to the total number of eligible surviving children in existence at the time any such allowance becomes payable, subject to the following limitations:
a. The annual allowance payable to any surviving child shall never exceed twenty-five percent (25%) of the annual allowance theretofore payable under subsection A. of this Section to the surviving spouse or surviving domestic partner; and
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b. The total annual allowances payable to all the children shall never exceed seventy-five percent (75%) of the annual allowance theretofore payable under subsection A. of this Section to the surviving spouse or surviving domestic partner.
D. Effective June 17, 2017, Iif the deceased person is a Tier 2 member on or after June 16, 2017 and meets the eligibility requirements of Section 3.28.1470, the Tier 2 member shall receive the same death benefits as provided to other members of this Plan under this Section 3.28.1480; provided, however, the annual allowance shall be equal to two percent (2.0%) of the deceased member's final compensation times the number of years of Federated City Service for which the deceased member was entitled to credit under the Retirement System at the time of the deceased member's death and that in no event shall any such annual benefit ever exceed seventy percent (70%) of the Tier 2 member's final compensation.
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Item No.: 2.12
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
PASSED FOR PUBLICATION of title this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk