292 N.W. 767 | Minn. | 1940
Plaintiff entered the employ of the state in 1901. He voluntarily became a member of defendant in 1929 and retired February 1, 1937. His annuity, fixed by the statute then in force at $110.05 per month, was paid each month up to and including December, 1938. For the month of January, 1939, he received only $17.95; for February, $83.45; and for March, $48.09. No claim is made that he is entitled to recover more than he has been paid for those months. On April 22, 1939, L. 1939, c. 432, 3 Mason Minn. St. 1940 Supp. §§ 254-1 to 254-19a, was approved, effective the next day. This act amended the original law, L. 1929, c. 191, and the amendments thereof (3 Mason Minn. St. 1938 Supp. §§ 254-1, 254-4, 254-9, 254-10, 254-11, and 254-19). The here important amendments were an appropriation of $50,000 to the retirement fund; a provision for more of a reduction according to a sliding scale of the employe's monthly salaries, such reduction going to the retirement fund; and this provision, which occasions this suit: "provided that no such retirement annuity shall exceed the sum of $100 per month." § 254-11. As a result of this amendment whereby *114 the retirement fund was replenished, plaintiff was paid $100 for April, 1939, and each succeeding month. He claims that he should be paid the amount payable at the time of his retirement, and brought this suit for a declaratory judgment in his own behalf and for 30 other retired members whose monthly annuity at the time of retirement was in excess of $100 up to $150 per month. He states two causes of action, first, to have it adjudged that his annuity for April, 1939, and succeeding months is $110.05 per month; and, second, failing in the first, that he be granted at the rate of $110.05 for the first 22 days in April, before c. 432 took effect. Findings and conclusions of law were in favor of plaintiff on the first cause of action, thereby eliminating the second. From the judgment, defendant appeals.
The appeal presents the one legal question whether plaintiff has a vested contract right to the amount of the monthly annuity fixed by the statute at the time of his retirement so that a subsequent statute changing such annuity would be impairing a contract and violative of the constitution. Defendant is a creature of statute. It was given no power to contract with members. The provision in the law from the first (still retained) that the monthly annuity due a beneficiary may not be paid unless the condition of the retirement fund permits indicates no absolute contract obligation. On the other hand, the whole setup is statutory, and a statute may be repealed or altered as the legislature deems just and proper. It appears to us that the legal question presented has already been determined in this state by Hessian v. Ervin,
"The beneficiary has no vested right in a pension granted by government except as payments become due him absolutely under the law." *115
And in Gibbs v. Minneapolis F. D. Relief Assn.
"As against the state there is no vested right in the pension accruing in the future from month to month. It may be taken away. The whole pension system may be abrogated without a violation of the Constitution. A pension already accrued cannot be taken away."
It is true that in Stevens v. Minneapolis F. D. Relief Assn.
"For a right to be within the protection of the Constitution it must be a vested right and not a mere expectancy based upon an anticipated continuance of an existing law."
And in the opinion, after referring to the rule adhered to by some courts that when the particular event has happened upon which the beneficiary becomes entitled to a pension he thereby acquires a vested right which the legislature may not disturb, this statement is made [
"There is another line of decisions to the effect that as pensions granted to employees of the State or its municipalities are purely of statutory origin, the employees, in making contracts of employment under which the right to participate in the pension fund accrues, do so in contemplation of the reserved right of the Legislature to amend or to repeal the laws on which the pension systems are founded; and therefore, the right to participate in the fund, even though arising from the contract, is based upon the anticipated continuance of existing laws. Under this theory, there can be no vested interest in future installments of pensions which will prevent the Legislature from repealing the law upon which the system is founded, or modifying the law in such way as to diminish the amount of future monthly payments. This is true even though the pension fund is made up partly with deductions from salaries or wages agreed to be paid *117 participating employees. It is well settled that the mere circumstance that a part of a pension fund is made up by deductions from the agreed compensation of employees does not in itself give the pensioner a vested right in the fund, and does not make it any less a public fund subject to the control of the Legislature."
Supporting authorities are cited and discussed. So far as this court has considered so-called pension cases, the trend accords with the views expressed in the Dallas case.
We cannot make any distinction between those members who joined defendant voluntarily and those who became such by so-called compulsion. There may well be some objection to providing a pension based on a certain percentage of the salary and limiting the maximum to any specified amount. But insofar as the objection is based upon inequality or injustice as between employes, it is for the legislature and not the courts. It may be said that as to plaintiff and those placed on the pension roll before him, no wrong has been done, for they have received much more from the retirement fund than was deducted from their salaries. The retirement fund was not contributed to by the state prior to April 23, 1939, and its only source was from deductions from the salaries of employes; but that can be of no importance from a legal point for no power was given defendant to contract with its members for the pension or annuity. That was fixed by the legislature.
We are aware that there are authorities holding that when a pensioner is placed on the pension roll or when the event occurs which makes him eligible he obtains a vested right to the then rate, which cannot be disturbed or impaired by subsequent legislation. We refer to O'Dea v. Cook,
As to the second cause of action, we think plaintiff's contention is correct that for the first 22 days of the month of April, 1939, the rate of $110.05 per month applies. Defendant contends that the pension did not accrue until the first part of the following May when due and payable, that the pension is for the month and not for the day. We think it right to say that it accrued under the old law until the new took effect, and that for the month of April, 1939, the pension should be computed at $110.05 for the first 22 days and at $100 for the balance of that month.
The judgment is reversed with direction to enter judgment in harmony with this opinion.