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Council Agenda: 8/22/2023
Item Number: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN JOSE AMENDING
SECTION 1468 OF CHAPTER 3.36 OF TITLE 3 OF THE
SAN JOSE MUNICIPAL CODE TO EXTEND THE
DEADLINE FOR A RETIRED MEMBER TO SUBMIT A
POST-RETIREMENT ELECTION FOR AN OPTIONAL
SETTLEMENT NAMING A NEW SPOUSE OR DOMESTIC
PARTNER AS BENEFICIARY FROM 30 DAYS TO 90 DAYS
AFTER THE DATE OF MARRIAGE OR ESTABLISHMENT
OF THE DOMESTIC PARTNERSHIP IN THE POLICE AND
FIRE DEPARTMENT RETIREMENT PLAN
WHEREAS, the City of San José seeks to extend the deadline for a retired member to submit a post-retirement election for an optional settlement naming a new spouse or domestic partner as beneficiary from thirty (30) days to ninety (90) days after the date of marriage or the establishment of the domestic partnership;
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. PP PP17-008 (General Procedure & Policy Making); 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:
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Council Agenda: 8/22/2023
Item Number: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
Section 3.36.1468 Chapter 3.36 of Title 3 of the San José Municipal Code is hereby amended to read as follows:
3.36.1468 Marriage or domestic partnership after commencement of monthly allowance.
A. Notwithstanding any provision in this Part 9.5 to the contrary, a person who is receiving a monthly retirement allowance or is receiving a monthly allowance from the retirement fund pursuant to Section 3.36.1640 and who marries or establishes a domestic partnership after beginning to receive such monthly allowance may elect an optional settlement under this section by filing a written election with the retirement board on a form provided by the secretary to the board.
B. The election for an optional settlement must be filed within the time specified in this Subsection B.
1. The election must be filed on or before January 15, 2003, in the case of a person who, as of July 12, 2002:
a. Is receiving a monthly allowance; and
b. Has married after first receiving the monthly allowance; and c. Has been married to that spouse for at least thirty days.
2. The election must be filed on or before January 31, 2007, in the case of a person who, as of July 1, 2006:
a. Is receiving a monthly allowance; and
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Council Agenda: 8/22/2023
Item Number: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
b. Entered into a domestic partnership on or after January 1, 2005, and after first receiving the monthly allowance; and
c. Has been in a domestic partnership with that domestic partner for at least thirty days.
3. The election must be filed within thirty ninety days after the date of the marriage or the establishment of the domestic partnership, in the case of any person not described in paragraph 1. or paragraph 2. above.
C. The optional settlement consists of either:
1. An election to have the actuarial equivalent of any monthly allowance to which the former member (including a tier 2 member) is entitled under this plan applied to provide a lesser monthly allowance to the former member until the former member's death and, thereafter, subject to the provisions of Subsection D. below, to have such percentage of the former member's reduced retirement allowance as the former member may select paid to the former member's spouse or domestic partner named in the election for the optional settlement for the life of that spouse or domestic partner. The reduction in the former member's monthly allowance shall begin with the first monthly allowance payable after the effective date of the optional settlement. In the event the former member's spouse or domestic partner predeceases the former member, the reduced retirement allowance shall continue to be paid to the former member until the former member's death.
2. An election to have the actuarial equivalent of any monthly allowance to which the former member (including a former tier 2 member) is entitled under this plan applied to provide a lesser monthly allowance to the former member until the former member's death and, thereafter, subject to the NVF:SH:JMD
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Council Agenda: 8/22/2023
Item Number: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
provisions of Subsection D. below, to have such percentage of the former member's reduced allowance as the former member may select paid to the former member's spouse or domestic partner named in the election for the optional settlement for the life of that spouse or domestic partner. The reduction in the former member's monthly allowance shall begin with the first monthly allowance payable after the effective date of the optional settlement. In the event the former member's spouse or domestic partner predeceases the former member, the former member shall be paid thereafter, until the former member's death, a monthly allowance in an amount equal to the monthly allowance that would have been paid to the former member had no optional settlement been elected.
D. For the purposes of this Section 3.36.1468:
1. In no case shall the percentage paid to the named spouse or domestic partner be greater than one hundred percent or be less than fifty percent of the reduced retirement allowance paid to the member (including a tier 2 member).
2. The percentage paid to the named spouse or domestic partner shall be a multiple of five percent (e.g., fifty percent, fifty-five percent, sixty percent, sixty-five percent).
3. In no case shall any monthly allowance be paid to a former member (including a tier 2 member) that is greater than the monthly allowance that would have been paid had no optional settlement been elected.
4. The optional settlements provided in this section shall be paid only to the person who was married to the former member (including a tier 2 member) both at the time of the former member's election of the optional settlement NVF:SH:JMD
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Council Agenda: 8/22/2023
Item Number: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
and at the time of the former member's death or to the person who was the member's domestic partner both at the time of the member's retirement and at the time of the member's death, whichever is applicable.
5. In no case shall the total of the monthly allowance payable to a named spouse or domestic partner under an optional settlement plus the monthly allowances payable to any surviving children under the provisions of this chapter exceed a maximum of seventy-five percent of the deceased former member's final compensation. In the event the total of such monthly allowances would exceed said maximum, the amounts payable to the children shall be reduced to such amounts as, when added to the amount payable to the named spouse or domestic partner, will not exceed said maximum.
6. "Actuarial equivalent" shall have the meaning set out in Section 3.36.1466.
In determining the actuarial equivalent, a former member who is receiving a benefit pursuant to Section 3.36.1640 shall be treated as though retired for service.
E. Unless revoked within the time specified in Subsection F. or unless automatically revoked as provided in Subsection G., any optional settlement elected pursuant to this section shall become effective:
1. In the case of a person described in paragraph 1. of Subsection B., the later of six months from the date the election is made or one year from the date of the marriage or the establishment of the domestic partnership; or
2. In the case of a person described in paragraph 2. or paragraph 3. of Subsection B., one year from the date of the marriage or the establishment of the domestic partnership.
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Council Agenda: 8/22/2023
Item Number: 2.8
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
F. Any election made pursuant to this section may be amended or revoked by the former member (including a tier 2 member) who made the election provided that the amendment or revocation is made in writing and is filed with the retirement board within the time specified in Subsection B. If an election is revoked, a new one may be made in the manner and time specified in Subsections A. and B. of this section.
G. Any election made pursuant to this section that is not amended or revoked within the time specified in Subsection B. shall be irrevocable and benefits shall be paid in accordance with such election and the provisions of this section except under the following circumstances:
1. In the event the former member (including a tier 2 member) is reemployed by the city and becomes a member of this plan, any election made pursuant to this section prior to such reemployment shall be automatically revoked, and no benefits shall be paid pursuant to such election.
2. In the event a former member (including a tier 2 member) elects an optional settlement and the former member's spouse or domestic partner predeceases the member prior to the effective date of the optional settlement, the election shall be automatically revoked, and benefits shall be paid to the member as though no optional settlement had been elected.
3. In the event a former member (including a tier 2 member) elects an optional settlement and the former member dies leaving an eligible surviving spouse who is not the person named in the election or leaving an eligible surviving domestic partner who is not the person named in the election, the election shall be automatically revoked, and no benefits shall be paid pursuant to the election.
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Council Agenda: 8/22/2023
Item Number: 2.8
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