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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 contributions 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 10 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 10 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 and 20 years
have elapsed from date of membership, 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 that the Department 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. If you are applying for a service retirement, Retirement Services
needs your application two months prior to your retirement date. If you
are applying for a disability retirement, Retirement Services needs your
application six months prior to your retirement date. If you are eligible
for a service retirement, but want a disability retirement, you can apply
for both at the same time, go out on a service and come back for a disability
retirement. The application for disability would go before the Board
and if the medical reports support a disability retirement, your application
would be approved for a Change in Status.
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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 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 estimate will also show
the options for the continuance of benefits for your eligible spouse. You
can get an estimate of your benefit online in the WEB Members Services
Section of this website.
The calculation for Fire prior to July 1, 2008 & Police prior
to July 2, 2006 is:
Up to 20 yrs. of service x 2.5% x Final Compensation
21-25 yrs. of service x 3% x Final Compensation
26-30 yrs. of service x 4% x Final Compensation |
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The calculation for Police After July 2, 2006 is:
Up to 20 yrs. of service x 2.5% x Final
Compensation
21-30 yrs. of service x 4% x Final Compensation
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The calculation for Fire After July 1, 2008 is:
Up to 20 yrs. of service x 2.5% x Final
Compensation
Beginning of 21st year of service
1 to 30 years of service x 3% x Final Compensation
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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 is the Police & Fire Medicare Part B Reimbursement calculated?
The Police & Fire Retirement Fund will pay the cost of the lowest cost
plan for health coverage. If the Member chooses a plan other than the lowest
cost plan they pay the difference. The same goes for the reimbursement
of Medicare Part B. If there is a subsidy balance, that balance may be
used toward the reimbursement of the Medicare Part B premium paid to Social
Security. Therefore a Member may get a full reimbursement or they may only
get a partial reimbursement depending on the subsidy balance.
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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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Can I add a new spouse as a Beneficiary to my city pension?
Yes, if you remarry after retirement, you have the option of naming your
new spouse as a beneficiary for a continuance of benefits in the event
of your death. This option is actuarially calculated based on your monthly
pension amount, your date of birth and your spouses date of birth to
show the amount your monthly pension would be reduced to pay for this
benefit. The greater the age difference, the greater the cost.
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What is SRBR and how is it distributed?
The Police & Fire 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.
Police & Fire Distributions began in 2002 to members and survivors
as of June 30, 2001, with a continued annual distribution beginning in
2003.
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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. If you want to claim reciprocity,
you must leave your money in the fund. You will then retire from both
plans simultaneously. Both plans will look at your highest final average
salary (FAS) 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 Police & Fire retiree if
you retired for disability or service with either 15 years of service or
receive allowance that is at least 37.5% of final compensation.
You are eligible for health benefits as a Police & Fire retiree if
you retired for disability or service with either 15 years of service with
the City of San Jose or receive allowance that is a t least 37.5% of final
compensation.
If you separate City employment and leave your contributions in the fund
(Defer Vest), you can enroll in health and dental benefits at the time
of retirement 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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If I want to change my beneficiaries, what do I do?
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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