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Board accepts City of San Jose prepayment election and approves police, fire contribution rates
Summary
The retirement board accepted the city manager’s election to make lump‑sum prepayments toward the police and fire plan and approved contribution rates for multiple tiers after staff and actuary input.
The San Jose Office of Retirement Services Board of Trustees voted to accept a memorandum from the City Manager’s Office electing to make lump‑sum prepayments on employer contributions to the police and fire retirement plan for fiscal year 2025. Staff described the board action as an acceptance and filing of the city’s election.
Staff said the prepayment acceptance is linked to recent actuarial work: following recommendations to create a discount on the assumed rate, the city elected how it would pay its contribution. Staff presented a five‑year contribution outlook provided to the city as part of the valuation process.
On a related agenda item, the board voted to accept proposed contribution rates for police and fire across the different tiers. Staff said the contribution adjustments reflect differences in benefit structures, retirement timing patterns and recent contracts: for example, the small year‑to‑year change in fire contributions was explained by differences in benefit numerators and a recently negotiated contract for the fire unit. Trustees asked why police and fire moves differed; staff replied it is due to differences in benefit structure, anticipated retirement timing and recent or ongoing labor negotiations.
Trustees moved, seconded and approved the motions accepting the city’s letter and adopting the contribution rates. Staff said communications to members about contribution changes are typically issued in May or June and that members who lack a work email will receive materials through HR or by paper upon request.
