Part 3 — EMPLOYEE STATUS AND CONTRIBUTIONS

Sections:

• 3.24.250 Employee status change - Secretary to notify board.

• 3.24.260 Employees to furnish data.

• 3.24.270 Determination of status questions.

• 3.24.280 Adjustment of contributions and payments.

  2. The borrower shall provide collateral to the lender in a form approved by the board, and shall be in an amount equal to at least one hundred two percent of the market value of the loaned securities as agreed.

  3. Daily monitoring of the market value of the loaned securities.

  4. Payment by the borrower of additional collateral on a daily basis, or at such times as the value of the loaned securities increases, to agreed-upon ratios, but in no event shall the amount of the collateral be less than the market value of the loaned securities.

  5. Maintenance of detailed records of all security loans.

  6. Development of controls and reports to monitor the conduct of the transactions.

  7. Publication of the net results of the security loan transactions separate from the results of other investment activities.

• (Ords. 21865, 24690.)

The secretary shall give the board as it may require notice of the change in status of any member, resulting from transfer, promotion, leave of absence, resignation, reinstatement, dismissal or death, and other pertinent information. (Prior code § 2904.49.)

Each employee shall file with the board such information affecting his status as a member as the board may require. (Prior code § 2904.50.)

T3:56

PERSONNEL

If there is disagreement between any member and the board with respect to the length of service, compensation or age of any member, or if any member refuses or fails to give the board a statement of his city service, compensation or age, the board shall hold a hearing, and upon the basis of available testimony and available records, determine such length of service, compensation or age. (Prior code § 2904.51.)

If more or less than the correct amount of contribution required of members of the city is paid, proper adjustment shall be made in connection with subsequent payments, or such adjustments may be made by direct cash payments between the member or the city and the board. Adjustments to correct any other errors in payments to or by the board may be made in the same manner.

(Prior code § 2904.52.)

Part 4

RETIREMENT FUND

Sections:

• 3.24.300 Continuation of federated employees' retirement fund.

• 3.24.310 Control and administration.

• 3.24.320 Custodian of retirement fund - Payment.

• 3.24.330 Deposit of funds.

• 3.24.340 Earnings from funds.

• 3.24.350 Investment of funds - Conditions and restrictions.

• 3.24.355 Security loan agreements.

• 3.24.360 Investment of funds - Delegation of authority.

• 3.24.370 Investment counseling - Restrictions.

The "San José federated employees' retirement fund," in the city treasury is continued in existence. (Prior code § 2904.53.)

The board has exclusive control of the administration and investment of the retirement fund. (Prior code § 2904.54.)

• A. Except as provided in subsection B., the city director of finance is the sole custodian of the retirement fund, subject to the exclusive control of the board as to administration and investment. All payments from the fund shall be made in the manner required for the disbursement of other public funds, but only upon authorization of the board.

• B. The board may enter into contractual arrangements with California banks or with national banking associations to provide master custody services with respect to the assets of the retirement fund. Such contracts shall be entered into in the name of the board of administration for the federated city employees retirement system.

(Prior code § 2904.55; Ord. 25092.)

The board shall deposit, to the credit of the retirement fund, all amounts received by it under this chapter in the city treasury or in such custodial accounts as are established with the custodian bank. (Prior code § 2904.57; Ord. 25092.)

Interest earned on any cash deposit in a fund by the treasurer and income on other assets constituting a part of the fund shall be credited to the

T3:57

SAN JOSÉ CODE

§ 3.24.340

fund as received. Income of whatever nature earned on the retirement fund during any fiscal year in excess of the interest credited to contributions during that year shall be retained in the fund as a reserve against deficiencies in interest earned in other years, losses under investments, and other contingencies. The board, however, may apply to reduce the book value of securities purchased, or all or part of the excess of the proceeds of the sale of securities over the book value of the securities sold:

• A. If the purchase of securities is made with those proceeds; and

• B. If the terms of both securities from the date of sale or purchase, as the case may be, to the respective dates of maturity do not differ by more than three years.

• (Prior code § 2904.56.)

The board shall invest and reinvest the moneys in the retirement fund in accordance with the following standards:

• A. The assets of the retirement plan are trust funds and shall be held for the exclusive purposes of providing benefits to members of the plan and their beneficiaries and defraying reasonable expenses of administering the system.

• B. The board shall discharge its duties with respect to the system solely in the interest of, and for the exclusive purposes of providing benefits to, members of the system and their beneficiaries, minimizing city and member contributions to the retirement fund, and defraying reasonable expenses of administering the system. The board's duty to the members and their beneficiaries shall take precedence over any other duty.

• C. The board shall discharge its duties with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like

capacity and familiar with these matters would use in the conduct of an enterprise of like character and with like aims.

• D. The board shall diversify the investments of the system so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so.

(Prior code § 2904.58; Ords. 19988, 21144, 21606, 22509, 23559, 25092.)

• A. The retirement board may enter into contractual arrangements with broker-dealers and with banks for such broker-dealers or banks to provide security lending services pursuant to security loan agreements on such conditions, consistent with this section, as the board may determine.

• B. For the purposes of this section, "security loan agreement" and "marketable securities" shall be defined as follows:

  1. "Security loan agreement" means a written contract whereby a legal owner, the lender, agrees to lend specific marketable corporate or government securities for a period not to exceed one year. The lender retains the right to collect from the borrower all dividends, interest, premiums, rights, and any other distributions to which the lender would otherwise have been entitled. The lender waives the right to vote the securities during the term of the loan.

  2. "Marketable securities" means securities that are freely traded on recognized exchanges or market places.

• C. Any contractual arrangements entered into pursuant to this section shall require all of the following:

  1. The lender may terminate the security loan agreement upon not more than five business days' notice as agreed and the

T3:58

PERSONNEL

Without limiting the authority of the board itself to invest and reinvest the moneys of the retirement fund as provided in Section 3.24.350, the board may adopt an investment resolution or resolutions containing detailed guidelines, consistent with Section 3.24.350. While the resolution or resolutions are in effect, investments consistent with such guidelines may be made by an officer of the board, an officer or employee of the city, or a qualified investment advisor who has entered into a contractual arrangement pursuant to Section 3.24.370, provided that such officer, employee or advisor has been delegated such authority by the board and such officer, employee or advisor has been designated by name in the investment resolution or resolutions. Any transactions made pursu-

ant to the foregoing provisions of this section shall be reported monthly to the board by the person or persons to whom the board has delegated such authority.

(Prior code § 2904.59; Ords. 20116, 21077, 21304, 23559, 25092.)

• A. The board may enter into contractual arrangements with any person or persons or association or associations, who meet the requirements of subsection B. or C., to provide counsel to the board with respect to the board's policies of investing and reinvesting of moneys in the retirement fund. Such contracts shall be entered into in the name of the board of administration for the federated city employees retirement system.

• B. Any person or association who provides services to the board with regard to financial securities:

  1. Shall be a person or association whose principal business consists of investment counseling services; and

  2. Shall be registered as an investment adviser under such laws as may require such registration.

• C. With respect to real estate advisors, the board shall enter into contractual arrangements only with persons or associations whose principal officers are engaged in the business of advising and evaluating commercial, industrial or residential real estate investments, mortgage banking, or property management, and which are duly licensed to perform real estate advisor services in the jurisdiction where the real property is located.

(Prior code § 2904.60a; Ords. 25092, 25641.)

Notwithstanding any provision in this chapter or any other ordinance to the contrary, whenever any check drawn against the retirement fund in payment of accumulated contributions or benefits remains unclaimed, or the claimant cannot be found,

T3:59

SAN JOSÉ CODE

§ 3.24.380

the proceeds of such check shall be redeposited in the retirement fund and held for the claimant without further accumulation of interest, and such redeposit shall not operate to reinstate the membership of the claimant in this system. If such proceeds, whether heretofore or hereafter redeposited, are not claimed within four years after the date of redeposit, they shall revert to and become a part of the accumulated contributions of the city, held in the retirement fund to meet the liabilities of the city on account of current services. The board may at any time after reversion of proceeds to the city, and upon receipt of proper information satisfactory to it, return such proceeds so held for the city to the credit of the claimant, to be administered in the manner provided under this system. (Prior code § 2904.60; Ord. 25092.)

Part 5

RECORDS AND REPORTS

Sections:

• 3.24.410 Financial statements.

• 3.24.420 Annual reports.

In addition to other records and accounts, the board shall keep such records and accounts as may be necessary to show at any time:

• A. The total accumulated contributions of members;

• B. The total accumulated contributions of retired members less the annuity payments made to such members;

• C. The accumulated contributions of the city held for the benefit of members on account of current service;

• D. All other accumulated contributions of the city, which shall include the amounts available to meet the obligation of the

city on account of benefits that have been granted to retired employees and on account of prior service of members. (Prior code § 2904.61.)

The board shall cause to be issued, as of the date of the investigation and valuation made pursuant to Section 3.24.160, a financial statement showing an actuarial valuation of the assets and liabilities of this system and a statement as to the accumulated cash and securities in the retirement fund as certified by the auditor. The board shall include in the statement, which shall be issued as of the end of each fiscal year, other than the year of the investigation, assets and liabilities resulting from current and prior service, in amounts equal only to accumulated contributions held on account of such service.

(Prior code § 2904.62.)

As soon as practicable after the close of each fiscal year, the board shall file with the city council a report of its work for such fiscal year, and the board shall make the report available to any member who requests it. Among other things, the report shall contain recommendations for or against changes in the retirement system. (Prior code § 2904.63.)

Part 6

MEMBERSHIP

Sections:

• 3.24.450 Continuance of membership.

• 3.24.460 Conditions of membership.

• 3.24.470 Exclusions from membership - Generally.

• 3.24.480 Part-time employees excluded with exceptions.

• 3.24.490 City manager excluded - City auditor excluded with exceptions.

T3:60

PERSONNEL

All members of the retirement system immediately prior to the time this chapter became operative continue to be members of this system. (Prior code § 2904.64.)

Every other employee who is not excluded by the following sections becomes a member of the retirement system upon entry or reentry into city service.

(Prior code § 2904.65.)

• A. The following persons are hereby excluded from membership in this system:

  1. The mayor and each member of the city council;

  2. Each member of a city board or commission who holds no other city office or position of employment which qualifies him for membership in this system;

  3. Persons temporarily employed pursuant to the provisions of subparagraph (4) of subsection (a) of Section 1101 of the Charter of the city to make or conduct a special inquiry, investigation, examination or installation, or to render professional, scientific or technical services of an occasional or exceptional character;

  4. Persons employed pursuant to the provisions of subparagraph (5) of subsection (a) of Section 1101 of the Charter of the city in the event of an emergency to perform services required because of and during such emergency;

  5. Each volunteer member of any police, fire or civil defense force or organization

who holds no other city office or position of employment which qualifies him for membership in this system;

6. Persons employed or whose services are contracted for pursuant to any transfer, consolidation or contract mentioned or referred to in Section 1109 of the Charter of the city;

7. Persons employed pursuant to Section 1110 of the Charter of the city;

8. Each person employed or paid on a parttime, per diem, per hour or any basis other than a monthly basis, unless he is a member by virtue of the provisions of Section 3.24.480;

9. Persons employed pursuant to any relief or anti-poverty program primarily for the purpose of giving relief or aid to such persons;

10. Persons who are members of any police, fire or other retirement or pension system, other than this system or the Federal Social Security System or any other federal retirement system supported in whole or in part by funds of the United States, any state government or political subdivision thereof, the city or any other municipal corporation, who are receiving or are entitled to credit in such other system for service rendered to the city; provided, however, that nothing contained in this subdivision 10 shall be deemed to prohibit any such person from becoming a member of this retirement system after he has ceased being a member of the abovementioned police, fire or other retirement or pension system if he should thereafter otherwise qualify for membership.

• B. For purposes of this section, persons who merely are receiving pensions or retirement allowances or other payments, from any source whatever, on account of service rendered to an employer other than the city while they were

T3:61

SAN JOSÉ CODE

An employee serving on a part-time basis is excluded from this system unless:

• A. He becomes a member prior to the time this chapter becomes effective and continues to be a member by reason of Section 3.24.450;

• B. His employment is regular and continuous and in the opinion of the board will extend for more than one year, and requires service for at least one-half the time of employees serving on a full-time basis; or

• C. Unless he is a member at the time he commences to serve on a part-time basis.

• (Prior code § 2904.68.)

• A. The city manager is excluded from membership in this system.

• B. 1. The city auditor is excluded from membership in this system unless he files or has already filed with the board an election in writing to become a member. He may make such election at any time during his employment by the city.

  2. If he elects to become a member, he shall make contributions to this system in the amount which he would have contributed had he not been so excluded, plus interest which would have been credited on such contributions. If he affirmatively exercises the option:

     • a. He shall receive credit for prior service, from the date of his first exclusion, in the same manner as if he had not been excluded; and

• b. The contributions of the city because of his membership shall be the same as they would have been had he not been excluded; and

• c. His rate of contribution shall be based on the nearest age at the time he first was excluded.

(Prior code § 2904.69.)

A person ceases to be a member:

• A. Upon retirement;

• B. If he is credited with less than twenty years of city service, or with less than five hundred dollars in accumulated contributions, or with a greater amount and has not elected to allow it to remain in the retirement fund, and renders less than five years of service in any period of ten consecutive years.

• C. If he is paid more than one-fourth of his normal contributions. For the purpose of this subsection C., deposit in the United States mail of a warrant drawn in favor of a member, addressed to the latest address of the member on file in the office of this system, constitutes payment to the member of the amounts for which the warrant is drawn.

(Prior code § 2904.70.)

• A. Any other provisions in this chapter to the contrary notwithstanding, if the city service of a member is discontinued by reason of resignation or discharge, or by reason of layoff or leave of absence deemed by the board to have resulted in permanent discontinuance (and in such case, as of the date of the determination by the board that the discontinuance is permanent), or if the disability retirement of a member is followed by cessation of the disability and by cancellation of the disability allow-

T3:62

PERSONNEL

§ 3.24.510

• ance, but the member does not reenter city service, and the amount of his accumulated contributions standing to his credit at that time is five hundred dollars or more, he shall have the right to elect, not later than ninety days after the date upon which notice of said right is mailed by this system to the member's latest address on file in the office of this system, whether to allow all or part (but in no event less than five hundred dollars) of his accumulated contributions to remain in the retirement fund. Failure to make such election shall be deemed an irrevocable election to withdraw his accumulated contributions unless the member is entitled to be credited with twenty years of service. An election to allow all or part of one's accumulated contribution to remain in the retirement fund may be revoked at any time as to all the contributions allowed to remain in the fund, or as to any part of them in excess of five hundred dollars; and all contributions covered by such revocation may then be withdrawn. Upon withdrawal of any accumulated contributions, the member withdrawing the same shall lose, and shall not be entitled to, any credit for any service on account of which such withdrawn contributions has theretofore been paid into the retirement fund. In determining the service for which a member is no longer entitled to credit upon withdrawal of all or part of his contributions, the withdrawn contributions shall be deemed to have been paid into the retirement fund on account of the latest service rendered by the member to the city, or on account of his earliest service if so requested by the member at the time he withdraws such contributions.

• B. A member may at any time, if he so elects, voluntarily relinquish such right as he may have to be credited for service during such periods of time as may be designated by him, without withdrawing any contributions paid by him because of such service, provided he retains credit for not less than five years of continuous service; and in such event, in de-

termining his eligibility for or the amount of any benefits to which he may become entitled, he shall be given no credit for any service so relinquished by him, and any contributions left in the fund which were made because of the service for which he has relinquished credit shall be treated as additional contributions made pursuant to Section 3.24.590 of this Code.

• C. A member whose membership continues under this section is subject to the same age and disability requirements as apply to other members for service or for disability retirement but he is not subject to a minimum service requirement.

After the qualification of such member for retirement by reason of age or disability, he shall be entitled to receive a retirement allowance based upon the amount of his accumulated contributions and service standing to his credit at the time of retirement and on the employer contributions held for him and calculated in the same manner as for other members, except that the provisions in this chapter for minimum service and disability retirement allowances do not apply to him unless he meets such minimum service requirements. Upon the death of such a member prior to retirement under this section, such death benefits as may be payable under Section 3.24.2000 of this chapter shall be computed upon the basis of his average annual compensation earnable for the year preceding the date of termination of the service for which he is entitled to credit, multiplied by the years of city service prior to such termination not to exceed six.

(Prior code § 2904.71.)

Part 7

MEMBER CONTRIBUTIONS

Sections:

3.24.550 Normal rate of monthly contributions.

• 3.24.560 Applicability limitation.

T3:63

SAN JOSÉ CODE

• 3.24.600 Annuity to be actuarial equivalent of accumulated contributions.

• 3.24.610 Return of contributions - Conditions.

• 3.24.620 Return of contributions - Payment.

• 3.24.630 Contributions upon reentry into system.

• 3.24.640 Board may withhold accumulated normal contributions.

• 3.24.650 Redeposit of withdrawn contributions.

• 3.24.660 Normal rate of contributions following redeposit.

• 3.24.670 Effect of reentering system without redepositing.

All members of the system shall be required to make normal monthly contributions to the system. The normal monthly contribution which shall be required of a member for each month from and after July 1, 1971, shall be a percentage of the compensation earned by him in such month. Said percentage, for normal contribution purposes, shall be the same for all members, regardless of their age or sex. Said percentage is hereinafter referred to as the member's "normal rate of monthly contribution."

(Prior code § 2904.72.)

On and after the effective date of this section, the provisions of this Part 7 shall no longer apply to any person to whom the provisions of Part 8 of Chapter 3.24 thereafter B. apply. (Prior code § 2904.83a.)

The normal rate of monthly contribution required of a member on or after July 1, 1971, or on

or after the date he enters the system if he enters after July 1, 1971, shall be such that the amount of normal monthly contributions paid by him, when added to all normal monthly contributions paid by other members of the system for the same period, will be sufficient to pay 3/11ths of the cost of all pensions and other benefits which are or will become payable to members on account of current service rendered by members on and after July 1, 1971; provided and excepting, however, that whenever a normal rate of monthly contribution for members is adopted or from time to time amended, the new or amended rate shall not include any amount designed to thereafter recover from members or return to members the difference between the amount of normal contributions therefore actually required of members and any greater or lesser amount which, because of amendments to the system changing the time at which members may retire, or changing the benefits members will receive, or as a result of experience under the system, said members would have theretofore been required to pay in order to make their normal contributions equal to 3/11ths of the cost of all pensions and other benefits which are or will become payable to members on account of current service rendered prior to the effective date of the new or amended rate.

(Prior code § 2904.73.)

• A. Until amended or revised by the board in accordance with Section 3.24.170, the normal rate of monthly contribution required of members on and after July 1, 1971, shall be three and eighty-five one-hundredths percent of earned compensation.

• B. The normal rate of monthly contribution set forth in this section is based on the interest and mortality tables used by this retirement system on July 1, 1971, and subject to other provisions of this part, shall be adjusted by the board from time to time, in accordance with the provisions of Section 3.24.170.

• (Prior code § 2904.73a.)

T3:64

PERSONNEL

Subject to rules prescribed by the board, any member may elect to make contributions in excess of his normal contributions for the purpose of providing additional benefits. The exercise of this privilege by a member does not require the city to make any additional contributions. Upon application, the board shall furnish information concerning the nature and amount of additional benefits to be obtained from additional contributions. (Prior code § 2904.77.)

The actual amount of annuity receivable by a member upon retirement shall be the actuarial equivalent of his accumulated contributions. (Prior code § 2904.76.)

A member who, because of his employment by the city, is required to become a member of any other retirement system supported in whole or in part by public funds shall, with respect to his right to withdraw his accumulated contributions, be considered as permanently separated from city service. (Prior code § 2904.78.)

If the city service or membership herein of a member is discontinued, except by death on account of which a death benefit is payable or by retirement, he shall, six months after date of discontinuance, termination or resignation, be paid such part of his accumulated contributions as he demands, except that if he is credited with less than five hundred dollars in accumulated contributions, or with a greater amount, and has not elected to allow it to remain in the retirement fund and, in the opinion of the board, is permanently separated from city service by reason of such discontinuance, he shall be paid forthwith all of his accumulated contributions.

(Prior code 3.24.660 § 2904.79.)

Upon a member's reentry into the retirement system on and after July 1, 1971, at reinstatement from service or disability retirement, his normal rate of monthly contribution shall be the same as that of other members.

(Prior code § 2904.74.)

The board may withhold, for not more than one year after a member last rendered city service, all or part of his accumulated normal contributions if after a previous discontinuance of city service he withdrew all or a part of his accumulated normal contributions and failed to redeposit such withdrawn amount in the retirement fund. (Prior code § 2904.80.)

A member may redeposit in the retirement fund, in one sum or in not to exceed thirty-six monthly or seventy-two semimonthly payments:

• A. An amount equal to the accumulated contributions that he has withdrawn at one or more terminations of service, but in reverse chronological order in which they occurred, and subject to minimum payments fixed by the board; and

• B. An amount equal to additional interest which would have been credited to his account at the date of the election, had such contributions not been withdrawn; and

• C. If he elects to redeposit in other than one sum, interest on the unpaid balance of the amount payable to the retirement fund, beginning on the date of such election, at the rate of interest currently being used from time to time under the system.

(Prior code § 2904.81.)

If upon a member's reentry into the system on or after July 1, 1971, he redeposits his accumulated

T3:65

SAN JOSÉ CODE

§ 3.24.660

contributions, his membership is the same as if it were unbroken by such termination. His normal rate of monthly contribution for future years shall be the same as that of other members. (Prior code § 2904.82.)

Upon reentering this system on or after July 1, 1971, after a termination of his membership, if a member fails to elect within not more than thirty days after the date upon which notice of the right to redeposit is mailed by this system to the member's latest address on file in the office of this system, to make, or having so elected, subsequently does not make such redeposit, he reenters as a new member without credit for any service except the service rendered before he first became a member, credited to him before termination, and his normal rate of monthly contribution for future years is the same as that of other members. (Prior code § 2904.83.)

Part 8

MEMBER CONTRIBUTIONS AFTER EFFECTIVE DATE

Sections:

• 3.24.710 Normal rate of monthly contributions.

• 3.24.720 Normal contributions - Initial rate.

• 3.24.730 Normal contributions - Rate.

• 3.24.740 Additional contributions.

• 3.24.750 Contributions on reentry into the system.

• 3.24.760 Annuity to be actuarial equivalent of accumulated contributions.

• 3.24.770 Return of contributions on joining other system.

• 3.24.780 When board may withhold accumulated normal contributions.

• 3.24.810 Effect of reentering system without redepositing.

• A. The provisions of this part shall govern and be applicable only on and after the effective date of this part, and shall then apply only to the following members of the retirement system, and to contributions required of them after the effective date of this part, as follows:

  1. All persons who become members of the retirement system on or after the effective date of this part, excepting persons who on the effective date of this part are on service retirement or disability retirement under this system who may subsequently be reinstated from such retirement;

  2. Each person who became a member of the retirement system prior to the effective date of this part and is such a member on said effective date if such person is given the option specified in Section 3.24.1560, and exercises such option in the manner and within the time specified in Section 3.24.1570;

• B. Any person who became a member of the retirement system prior to the effective date of this Part 8, and such member's contributions, shall continue to be governed by the provisions of Part 7 of this chapter and not by the provisions of this Part 8, if he is not given the option specified in Section 3.24.1560, or if he is given such option but refuses or fails to exercise the same in the manner and within the time specified in Section 3.24.1570.

• (Prior code § 2904.83h.)

All members of the system to whom this Part 8 applies shall be required to make normal monthly

T3:66

PERSONNEL

§ 3.24.770

contributions to the system. The normal monthly contribution which shall be required of a member for each month from and after July 1, 1971, shall be a percentage of the compensation earned by him in such month. Said percentage is hereinafter referred to as the member's "normal rate of monthly contribution."

(Prior code § 2904.83i.)

• A. Until amended or revised by the board in accordance with Section 3.24.160, the normal rate of monthly contribution required of members on and after July 1, 1971 shall be three and eight-five one-hundredths percent of earned compensation.

• B. The normal rate of monthly contribution set forth in this section is based on the interest and mortality tables used by this retirement system on July 1, 1971, and, subject to other provisions of this part, shall be adjusted by the board from time to time, in accordance with the provisions of Section 3.24.160 of this Code.

• (Prior code § 2904.83k.)

For each member of the system to whom the provisions of this part apply, the normal rate of monthly contribution required on or 3.24.750 after July 1, 1971, or on or after the date he enters the system if he enters after July 1, 1971, shall be such that the amount of normal monthly contribution paid by him when added to all normal monthly contributions paid by other members of the system for the same period, will be sufficient to pay 3/11ths of the cost of all pensions and other benefits which are or will become payable to members on account of current service rendered by members on and after July 1, 1971; provided and excepting, however, that whenever a normal rate of monthly contribution for members is adopted or from time to time amended, the new or amended rate shall not include any amount designed to thereafter recover from members or return to members the difference between the amount of normal contributions there-

tofore actually required of members and any greater or lesser amount which, because of amendments to the system changing the time at which members may retire, or changing the benefits members will receive, or as a result of experience under the system, said members would have theretofore been required to pay in order to make their normal contributions equal 3/11ths of the cost of all pensions and other benefits which are or will become payable to members on account of current service rendered prior to the effective date of the new or amended rate.

(Prior code § 2904.83j.)

Subject to rules prescribed by the board, any member may elect to make contributions for the purpose of providing additional benefits. The exercise of this privilege by a member does not require the city to make any additional contributions. Upon application, the board shall furnish information concerning the nature and amount of additional benefits to be obtained from additional contributions.

(Prior code § 2904.83o.)

Upon a member's reentry on or after July 1, 1971, into the retirement system at reinstatement from service or disability retirement, his normal rate of monthly contribution shall be the same as that of other members.

(Prior code § 2904.831.)

The actual amount of annuity receivable by a member upon retirement shall be the actuarial equivalent of his accumulated contributions. (Prior code § 2904.38n.)

A member who, because of his employment by the city is required to become a member of any

T3:67

SAN JOSÉ CODE

§ 3.24.770

other retirement system supported in whole or in part by public funds, shall, with respect to his right to withdraw his accumulated contributions, be considered as permanently separated from city service. (Prior code § 2904.83p.)

Anything in Section 3.24.510 to the contrary notwithstanding, the board may withhold, for not more than one year after a member last rendered city service, all or part of his accumulated normal contributions if after a previous discontinuance of city service he withdrew all or part of his accumulated normal contributions and failed to redeposit such withdrawn amount in the retirement fund. (Prior code § 2904.83q.)

A member to whom this part applies may redeposit in the retirement fund, in one sum or in not to exceed thirty-six monthly or seventy-two semimonthly payments:

• A. An amount equal to the accumulated contributions that he has withdrawn at one or more terminations of service, but in reverse chronological order in which they occurred, and subject to minimum payments fixed by the board; and

• B. An amount equal to additional interest which would have been credited to his account at the date of the election, had such contribution not been withdrawn; and

• C. If he elects to redeposit in other than one sum, interest on the unpaid balance of the amount payable to the retirement fund, beginning on the date of such election, at the rate of interest currently being used from time to time under the system.

(Prior code § 2904.83r.)

If, upon a member's reentry into the system on or after July 1, 1971, a member redeposits his accu-

mulated normal contributions, his membership is the same as if it were unbroken by such termination. His normal rate of monthly contribution for future years shall be the same as that of other members.

(Prior code § 2904.83s.)

Upon reentering this system on or after July 1, 1971, after a termination of his membership, if a member fails to elect within not more than thirty days after the date upon which notice of the right to redeposit is mailed by this system to the member's latest address on file in the office of this system to make, or having so elected, subsequently does not make such redeposit, he reenters as a new member without credit for any service except service rendered before July 1, 1951, credit to him before termination, and his normal rate of monthly contribution for future years is the same as that of other members.

(Prior code § 2904.83t.)