Following is a list of the most Frequently Asked Questions (FAQ) in the
Retirement
Services Department, throughout this document referred as
the Department.
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What happens to my retirement when I terminate my employment with the city?
The Department receives a copy of the Notice of Separation at which time they
send a Return of Contributions packet giving the options available. If you
have less than 5 years of service, you can either request a Return of Contributions
(ROC) or request to have the contributions rolled over to an Individual Retirement
Account (IRA). If you have more than 5 years, you can choose either of the
above options, or you can choose to leave your contributions in the fund until
you are eligible to retire and begin collecting a benefit. This is classified
as a Deferred Vested retiree. At the beginning of the year in which you turn
55 years of age, the Department will send an application for your completion.
Your retirement date will be the date of your 55th birthday. Your personal
contributions are yours, however the only way to collect any of the City’s
contributions is to retire from City service and draw a monthly pension.
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How do I make application for retirement?
Request Retirement Services send an Application for Retirement or you can stop
by the office to pick one up. As soon as the Department receives your completed
application, you are assigned to an Analyst who will meet with you to go over
all of your options in retirement and sign all necessary documents.
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How much money will I get when I retire?
The Department is able to run an estimate that will show your actual years
of service on a given date, the percentage of your highest average compensation
that you will receive, what you highest average compensation will be and what
you will receive as a monthly benefit. The calculation for Federated retirees
is Years of Service (YOS) times 2.5% times Final Average Salary (FAS).
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What do I do when I turn 65 years of age?
About three months prior to your 65 birthday you need to go to Social Security
to enroll in Medicare Part A (hospitalization) and Part B (outpatient) UNLESS
you are still a full-time employee. In that case you would enroll for only
Part A. You would not enroll in Part B until you retire from full-time employment.
Medicare Part A is the part that you must pay into Social Security for 10
years or 40 quarters to be eligible. If you have worked most of your career
with the City of San Jose and did not pay into Social Security, you need to
obtain a letter from Social Security stating your ineligibility. You may be
able to meet the eligibility requirements for Part A through the work history
of you spouse, ex-spouse or deceased spouse.
Everyone is eligible for Medicare Part B. In the year 2004 the premium for
Part B is $66.60. This is either deducted from you monthly Social Security
check or can be paid each quarter directly to Social Security by personal check
or money order.
If you have Kaiser, you will complete a Kaiser Permanente Senior Advantage
(KPSA) election form and submit it with a copy of your Medicare card to the
Department. KPSA is a risk plan that locks your Medicare in the Kaiser Health
system.
With KPSA or Secure Horizons you are not free to use you Medicare coverage
with any other health plan. In the event that your spouse has Blue Shield and
you have KPSA or Secure Horizons, you are not free to use your Medicare coverage
with both systems as your Medicare is locked in the Kaiser or Secure Horizons
plans.
If you have Blue Shield, you will simply submit a copy of your Medicare card
to the Department and you will be enrolled in their senior supplement plan.
Medicare will then by your primary provider and Blue Shield will be your secondary
provider.
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How long can my dependent child(ren) be on my Health and Dental coverage?
Your dependent can remain on your health and dental plans until their 19th
birthday. However if he/she is a full-time student enrolled with a minimum
of 12 units at an accredited college or university they can remain on your
plan until their 24th birthday. At that point they will be offered Consolidated
Omnibus Budget Reconciliation Act (COBRA), which is a Federally mandated provision
of continuation of health and dental care benefits. The maximum duration of
this self-paid coverage is 36 months.
It is necessary for you to provide student verification to the Department
each quarter or semester. If verification is not received he/she may be dropped
from your health plan.
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What is SRBR and how is it distributed?
The Federated Supplemental Retirees’ Benefit Reserve (SRBR) is a reserve
account, which is 10% of the Plan’s pre-funded actuarial accrued liability
as of June 30, 1999. Each June 30, interest earned is credited to the SRBR
account plus 10% of excess earnings, which is the amount after SRBR interest
credited and the actuarially assumed interest rate has been credited to other
reserve accounts. The excess earnings will be added to the principal SRBR amount
and not be available for distribution. Federated distributions began in 2000
to members and survivors as of June 30, 2000, with a continued annual distribution
beginning in June 2000 and continuing for three consecutive years, February
2001 and February 2002.
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How do I transfer my contributions over to PERS?
If you are terminating your employment with the City and going to work for
a PERS agency, you will be given an option at the time of separation from the
City to leave your money in the fund. That is the option that you will have
to make if you want to claim reciprocity. You will then retire from both plans
simultaneously. Both plans will look at your highest final average salary (FAS)
throughout your civil service career and will calculate your benefit based
on that salary, whether it is with the City or with PERS. You will then draw
a pension from each plan.
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How do I buy back previous years of employment with the city?
If you worked for the City and withdrew your contributions at the time of separation
and then returned to work for the City, you can buy back the previous years
of service by establishing a Contract with the City. You have an option to
pay it back in lump sum or by paying a specified amount each pay period for
a maximum of 78 pay periods.
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What are the medical benefits for retirees?
The Retirement plan provides subsidized health and dental benefits if you meet
the necessary eligibility requirements. The plan will pay 100% of the premium
for dental and 100% of the premium for medical for the lowest cost plan. If
you choose a plan other than the lowest cost plan, you pay the difference.
You are eligible for dental benefits as a Federated retiree if you have at
least 5 years of service with the City of San Jose or receive allowance that
is at least 37.5% of final compensation.
You are eligible for health benefits as a Federated retiree if you have at
least 15 years of service with the City of San Jose or receive allowance that
is at least 37.5% of final compensation.
If you separate City employment and leave your contributions in the fund (Defer
Vest), you lose your dental benefits, however can enroll in health benefits
if you meet the eligibility requirements as stated above.
If you have Blue Shield and do not meet the eligibility for subsidized health
benefits, you may continue with that coverage and pay the full monthly premium.
Once you terminate this continued coverage, you cannot enroll again. This gives
you the benefit of the richness of the City contracted plan and the premium
will be deducted from your monthly pension check.
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What do I need to do to change my address and/or direct deposit?
Call Retirement Services and request the appropriate form to change your address
and/or you direct deposit, or you can state the change in a brief note to the
Department. If you are changing your direct deposit, attach a voided check
to our request. Each request must be signed and dated.
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How do I change my beneficiaries?
If for any reason you want to change your primary and/or secondary beneficiaries,
please call Retirement Services and request a beneficiary form. It is wise
to review your beneficiary forms annually to be sure they are as you want them
to be especially if there has been a death, divorce or remarriage.
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Where can I get information on Long Term Care (LTC)?
The City of San Jose offers a Long Term Care (LTC) plan through Prudential.
For inside California, call (800) 732-0416, or outside California, call (800)
732-0416.
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Where is the Retirement Services Department located, what is the
schedule of business hours and what are the phone and fax numbers?
The Retirement Services office is open from 8:00 a.m. to 5:00 p.m. and is located
at 1737 N. First Street, Suite 580, San Jose. We are about two miles north
of City Hall at the corner of North First and Metro. If you are taking the
light rail, exit at the Metro station. If you are driving, there is ample free
parking behind the building. You can call the Department at (408) 392-6700
or if outside the 408 area code you can use (800) 732-6477. The fax number
is (408) 392-0771 or (408) 392-6732.
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When I retire, when will I receive my pension check?
If you retire prior to the payroll deadline date within your retirement month,
you will receive your first retirement check on the last day of the first month
of retirement. If you retire past the payroll deadline date of your retirement
month, you will receive your first retirement check on the last day of the
following month. You will then receive a pro-rated amount for the month your
retired plus the full following month.
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Where do I get my notice of separation?
When you meet with your Benefit Analyst, the Notice of Separation is one of
the forms that she will have you sign. She will then forward the completed
document to your Department for their part of the processing.
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When will I receive my annual member statement?
The Member Statements are mailed in February of each year. It is important
to check all of the information for correctness and notify the Department of
Retirement Services of anything that is needs to be corrected.
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I am applying for a loan and my loan officer has requested written
confirmation of the monetary value of my retirement account. How do I get
that?
The Department of Retirement Services can provide this information with your
written consent for release of the information.
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I would like to speak to a specific analyst about my issue. What
do I need to do to be put through to that person?
You simply ask for the individual. If he/she is available they will be happy
to take your call. If they are not available at that particular time, they
will be happy to return your call at a more convenient time.
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