McCree v. McCreeMcCree v. McCree
This case presents a variant of the issue that we addressed today in
Barbour v. Barbour,
Here, in contrast to
Barbour,
appellant does not challenge the trial court’s basic conclusion that pension benefits may constitute marital property within the meaning of
On cross-appeal appellee contends that the trial court erred in declining to require appellant to pay alimony. Concluding that no abuse of discretion occurred, we also affirm this aspect of the trial court’s rulings, but remand for consideration of appel-lee’s request for compensation for legal fees incurred in connection with these proceedings, a matter not ruled upon by the trial court.
I
The parties to this proceeding were married in 1955. The couple had two children, one of whom was a minor at the time of trial. In November 1978, the couple separated. In September 1981, the trial court entered a judgment of absolute divorce, and awarded appellee custody of the minor child.
During the couple’s marriage appellant was employed by the federal government as a pressman. He continued in this position nearly 35 years, until his retirement in November 1980. At the time of his retirement appellant earned approximately $27,000 per year.
Appellant is now in his late 50’s. Since retiring, appellant’s Civil Service pension benefits have been his sole source of income. At the time of trial these benefits amounted to over $14,000 per year; because of cost of living adjustments this figure can be expected to increase in the future.
Appellee was employed as a domestic during much of the marriage. Now in her late 40’s, she continues to be so employed, working 5 days a week for five different employers. Appellee has no pension of her own, although she may eventually receive modest Social Security benefits. The trial court found that appellee suffered from serious physical and emotional problems that necessitated regular expenditures for medication and counseling.
As required by
II
Appellant’s constitutional arguments rest on the premise that the trial court retroactively, and hence improperly, applied
A.
The nature of the statute’s remedial purpose lends support to this construction.
We therefore conclude that the current version of
Having rejected appellant’s contention that the trial court erroneously gave
The amendments became effective on September 15, 1978. Appellant retired in November 1980, and thereafter began receiving monthly pension benefits. In September 1981, the trial court entered a judgment of absolute divorce and ordered that 36.5% of appellant’s future monthly benefit payments should be paid by OPM directly to appellee. Given these facts, it is difficult to perceive how the trial court’s order can be regarded as giving rise to a retroactivity question. It is appellant’s contention, however, that the court’s order did give
First, we note that although the statute itself is silent with respect to this issue, its legislative history demonstrates that Congress contemplated that the amendments would govern future payments under pensions that vested before September 15, 1978. For example, the report of the Senate Government Affairs Committee stated that the amendments:
[S]hall only apply to payments made from the civil service retirement fund after the date of the enactment of this legislation. Thus, the amendments could apply to divorces or legal separations which took place before the date of enactment, but the amendments will not affect any payments of annuities or lump-sum refunds made prior to such enactment date. In . addition, State law will determine if a final divorce decree could be revised; however, the Civil Service Commission would be authorized to honor a decree revised after enactment.
S.Rep. No. 1084, 95th Cong., 2d Sess. 3-4,
reprinted in
[1978] U.S.Code Cong. & Ad. News 1379, 1381-82. In our view, this passage lends support to the conclusion that Congress intended the 1978 amendments to have prospective effect in the sense that they would govern pension benefit payments made after September 15, 1978, regardless of whether the pension rights vested or the divorce decree was entered before that date.
See Hobbs v. United States Office of Personnel Management,
An additional consideration affecting our construction is the remedial purpose of
We therefore conclude that
Ill
As discussed above, we conclude that the trial court’s construction of
A.
The first prong of appellant’s constitutional attack is based on a claim that
Because marriage is a social relationship that in all respects is subject to the state’s police power,
see, e.g., Rothman, supra,
Against this exercise of the police power in the public interest we must balance appellant’s property interest in his
No interest in property is taken from one person and transferred to another by the language of the enactment. Only if a person becomes a party to a proceeding for divorce ... does the statute even have potential relevance. Finally ... no change in property rights will occur except upon entry of a judgment of allocation, which must by its terms be “equitable.”
Rothman, supra,
Second, appellant cannot claim that even under the law of this jurisdiction as it existed before 1977, he had any reasonable expectation of an absolute right to his pension in the event of divorce. Although before 1977 our courts lacked statutory power to distribute individually titled property, our courts did sometimes, in reliance on general equitable principles, look beyond strict concepts of title when necessary to reach just results.
See Lyons v. Lyons,
Given these facts, we conclude that to the extent that
Appellant appears to raise a similar due process argument with respect to the 1978 amendments to the Civil Service Act. His contention, as we understand it, is that because his pension had vested long before 1978, the pension was completely protected against subsequent congressional modifications to the Civil Service retirement system. Appellant’s contention, then, is that the 1978 amendments divested him of property in violation of the Fifth Amendment. We cannot agree.
At the outset, it is worth noting that
Even if
We must conclude that a person covered by the Act has not such a right in benefit payments as would make every defeasance of “accrued” interests viola-tive of the Due Process Clause of the Fifth Amendment.
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This is not to say, however, that Congress may exercise its power to modify the statutory scheme free of all constitutional restraint. The interest of a covered employee under the Act is of sufficient substance to fall within the protection from arbitrary governmental action afforded by the Due Process Clause.... Particularly when we deal with a noncon-tractual benefit under a social welfare program such as this, we must recognize that the Due Process Clause can be thought to interpose a bar only if the statute manifests a patently arbitrary classification, utterly lacking in rational justification.
Accordingly, we believe that due process requires only that legislative modifications to the Civil Service retirement program be neither arbitrary nor irrational. The modification challenged here appears to represent a rational means of protecting dependent former spouses of federal retirees. We therefore are satisfied that to the extent that
Appellant’s remaining constitutional argument requires only brief attention. Appellant contends that
Quite simply, it is settled law that marriage contracts are not “contracts” within the meaning of this constitutional provision. As the Supreme Court explained nearly a century ago:
“When the contracting parties have entered into the marriage state, they have not so much entered into a contract as into a new relation, the rights, duties, and obligations of which rest not upon their agreement, but upon the general law of the State, statutory or common, which defines and prescribes those rights, duties, and obligations. They are of law, not of contract. It was of contract that the relation should be established, but, being established, the power of the parties as to its extent or duration is at an end. Their rights under it are determined by the will of the sovereign, as evidenced by law. They can neither be modified nor changed by any agreement of parties. It is a relation for life, and the parties cannot terminate it at any shorter period by virtue of any contract they may make. The reciprocal rights arising from this relation, so long as it continues, are such as the law determines from time to time, and none other.... It is not, then, a contract within the meaning of the clause of the Constitution which prohibits the impairing the obligation of contracts. It is, rather, a social relation, like that of parent and child, the obligations of which arise not from the consent of concurring minds, but are the creation of the law itself .... ”
Maynard v. Hill,
IV
We now turn to the issues raised by ap-pellee on cross-appeal. Specifically, we consider whether the trial court erred in declining to order appellant to pay permanent alimony and the counsel fees that appellee incurred in connection with these proceedings in the Superior Court.
With respect to the denial of permanent alimony, the trial court concluded that “[g]iven the limited incomes of both parties, and the near identity of their incomes after distribution of the marital assets, the court does not believe that an award of alimony is justified.” Decisions respecting the grant or denial of alimony
The trial court’s memorandum opinion and order is silent concerning appellee’s request for attorney fees incurred at the trial level of these proceedings. Although the trial court might have intended such silence to be construed as a denial of appellee’s request, the present record is insufficient to permit appellate review of the bases for the denial. We therefore remand for the limited purpose of having the trial court rule explicitly on the attorney fee request. 6 In view of the foregoing,
This action is remanded to the trial court for the limited purpose set forth in Section IV of this opinion, but the judgment is in all other respects affirmed.
Notes
. We note that because appellant did not raise his constitutional arguments in the trial court, he did not preserve the issue for appellate review. We nevertheless will pass on the issues, which have been fully briefed and argued.
We also note that the Superior Court rules require that the Corporation Counsel be notified and allowed to intervene in any proceeding
. The court arrived at this figure by dividing the number of years that the couple had been married (25.5) by the number of years of creditable service that appellant had accumulated before his retirement (34.83), and multiplying the quotient by .50:
(25.5 - 34.83) X .50 = 73 X .50 = .365, or 36.5%.
. A number of decisions which have addressed the constitutionality of legislative modifications to federal pensions may be read as suggesting that an employee’s right to a Civil Service pension does not constitute a property interest protected by the due process clause of the Fifth Amendment. For example, in
Nordstrom, supra,
the Court of Claims stated that “it is settled that, if there can be any such vested rights
at all
in a federal civilian service annuity, they do not accrue unless the employee is fully entitled to immediate payment under pre-existing law.”
Other decisions indicate not that governmental retirement benefits do not constitute constitutionally protected property, but rather that such benefits represent a property interest that is protected only against arbitrary and irrational congressional actions.
See Flemming, supra,
. Unlike private pension plans, in which an employee’s benefits are based upon his contributions to the retirement fund, Civil Service and Social Security benefits are based upon an employee’s earnings record and his years of service.
See Flemming, supra,
. By its terms, the contract clause only applies to legislation enacted by states. It is therefore unnecessary for us to consider whether
.
Cf., e.g., Darling v. Darling,