Atchley v. City of Fresno

151 Cal. App. 3d 635, 199 Cal. Rptr. 72, 1984 Cal. App. LEXIS 1584
CourtCalifornia Court of Appeal
DecidedJanuary 17, 1984
DocketCiv. 7374
StatusPublished
Cited by97 cases

This text of 151 Cal. App. 3d 635 (Atchley v. City of Fresno) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atchley v. City of Fresno, 151 Cal. App. 3d 635, 199 Cal. Rptr. 72, 1984 Cal. App. LEXIS 1584 (Cal. Ct. App. 1984).

Opinion

Opinion

GALLAGHER, J. *

On May 12, 1980, appellants filed a complaint for declaratory, injunctive and compensatory relief. A court trial was held in March 1982. The court entered judgment for respondent City of Fresno.

Statement of the Facts

Allan Atchley, Curtis Bosch, Jack Enos, Duane Garey, and Mark Smith are retired employees of the police department of respondent City of Fresno. Each appellant is receiving a retirement benefit from respondent City of Fresno due to a service-connected disability.

The Council of the City of Fresno established two retirement systems in 1955. One of these systems is the fire and police retirement system (Fresno Mun. Code, § 2-1702) 1 which is administered by the retirement board (§ 2-1703).

All members of the system may become eligible for service retirements or disability retirements. The general provisions pertaining to service and disability retirements are contained in sections 2-1727 through 2-1731, inclusive. A service retirement is generally awarded to any member who has been a member for at least 10 years and is at least 50 years of age. A *640 disability retirement is generally awarded to any member physically or mentally incapacitated for the performance of his duties. There is no minimum age for disability retirement and there is no minimum length of service if the disability was incurred in the line of duty. “Ordinary disability” refers to a disability which was incurred in a manner unrelated to employment. “Industrial disability” refers to a service-connected disability.

Section 2-1731, subdivision (c) 2 requires the retirement board to reduce, under certain circumstances, the monthly pension of a pensioner who, prior to attaining age 50, engages in a gainful occupation. The pension is reduced to an amount which when added to his monthly compensation of such occupation, does not exceed the amount of the compensation currently being paid to members at the rank the retiree held at the time of retirement. This concept of reducing the pension pursuant to this formula is referred to as the “earnings test.”

The gravamen of appellants’ complaint is that the City of Fresno has required each of the individual appellants to file a quarterly report of their outside income and asserts the right to either compel an audit or to withhold those retirement benefits until such quarterly report or audit is made. Each appellant is a retiree being paid retirement pay, and each has a form of outside income. Based on section 2-1731, subdivision (c), the respondent City of Fresno undertook to determine the amount of said outside income for each appellant, and deducted a certain amount by withholding the amount from appellants’ retirement benefits.

The controller and director of finance for respondent City of Fresno, Walter Berg, discussed implementation of the “earnings test” with the retirement board in 1960. Subsequent to that meeting, the current practice of auditing and withholding retirement benefits where excess outside income was present, was adopted. Richard Turner, a senior account auditor in charge of the retirement section in the department of finance for respondent City of Fresno, testified that no written policy existed for the implementa *641 tion of the “earnings test” other than the explanation that appears on the reporting form.

Discussion

I. The withholding of retirement benefits for failure to file report forms was lawful.

Appellants contend it was error for the trial court to fail to determine the unlawfulness of withholding of disability benefits for failure of the beneficiary to file report forms. Appellants argue that there is no statutory requirement for the filing of the report forms, and the attempt to impose the reporting requirement is an impairment of the contractual right to said benefits as a part of the employment contract. Appellants cite Winslow v. City of Pasadena (Cal.App.).

A hearing was granted in the Winslow case, and the Supreme Court’s opinion is cited as Winslow v. City of Pasadena (1983) 34 Cal.3d 66 [192 Cal.Rptr. 629, 665 P.2d 1], In the now defunct opinion filed by the Second District Court of Appeal, it was held that the trial court erred in denying a former city police officer’s petition for a writ of mandate by which he sought to set aside the city’s action terminating his medical disability retirement pension and ordering him back to duty in a newly created “light duty” assignment. The decision rested on the case authority of Newman v. City of Oakland Retirement Bd. (1978) 80 Cal.App.3d 450 [145 Cal.Rptr. 628], The Supreme Court affirmed the trial court’s decision.

Winslow was employed by the City of Pasadena Police Department as a police officer in 1958. In 1975, serving as a motorcycle officer, he developed an employment-connected disease. He was granted a service-connected disability retirement continuing “until further order of the Retirement Board.” In 1979, a number of light duty positions were created in the department, including that of “desk officer.” The retirement board had Winslow reexamined to determine his eligibility for this type of service, and after a hearing, recommended his reinstatement based on the finding that Winslow was not totally disabled, and that his physical condition “has ceased to disable him from service as a police officer with the assignment as desk officer. ...” Winslow then filed a petition for writ of mandate pursuant to Code of Civil Procedure section 1094.5. (Winslow v. City of Pasadena, supra, 34 Cal.3d 66, 67-68.) The trial court found that the weight of the evidence supported the board’s action and concluded that the board’s action did not constitute a change in policy impairing Winslow’s vested pension rights.

The Supreme Court held in Winslow that the assignment did not constitute a change in policy which unconstitutionally impaired the officer’s vested *642 pension rights, where, when an officer retired, there was no guarantee or reasonable expectation that the department would not create new positions, where the retirement was subject to further order of the retirement board, and where the reinstatement involved no policy change and was consistent with the city charter, which did not require conditioning reinstatement an officer’s capacity to serve either as a motorcycle officer or in every other police position; rather, the charter permitted reinstatement to any equivalent position which the officer’s health permitted. The court distinguished the case of Newman v. City of Oakland Retirement Bd., supra, 80 Cal.App.3d 450.

In Newman, a police officer who had suffered a gunshot wound in his right wrist was mandatorily retired in 1974. Two years later, the city’s retirement board voted to reinstate him. On appeal, the Newman

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ahmed v. City of Los Angeles CA2/4
California Court of Appeal, 2025
In re R.C. CA3
California Court of Appeal, 2025
In re M.B. CA3
California Court of Appeal, 2025
In re J.B. CA3
California Court of Appeal, 2025
Mendoza v. City of Duarte
California Court of Appeal, 2025
Executive Dynamics Search v. Lawrence CA4/1
California Court of Appeal, 2024
In re C.E. CA3
California Court of Appeal, 2023
In re N.B. CA3
California Court of Appeal, 2023
Walgreen Co. v. Anest CA3
California Court of Appeal, 2023
Blaser v. Cal. State Teachers' Retirement System
California Court of Appeal, 2022
(HC) Wells v. Lizarraga
E.D. California, 2022
In re I.S. CA3
California Court of Appeal, 2021
In re L.A. CA3
California Court of Appeal, 2021
Land Value Holdings, LLC v. Miller CA1/3
California Court of Appeal, 2020
In re E.B. CA3
California Court of Appeal, 2020
Salarkia v. Faghihi CA2/1
California Court of Appeal, 2020
Krolikowski v. San Diego City Employees' Ret. Sys.
234 Cal. Rptr. 3d 499 (California Court of Appeals, 5th District, 2018)
Hardesty v. State Mining and Geology Board
California Court of Appeal, 2017
Central Valley Gas Storage, LLC v. Southam
11 Cal. App. 5th 686 (California Court of Appeal, 2017)
Tun v. Wells Fargo Dealer Services, Inc.
5 Cal. App. 5th 309 (California Court of Appeal, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
151 Cal. App. 3d 635, 199 Cal. Rptr. 72, 1984 Cal. App. LEXIS 1584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atchley-v-city-of-fresno-calctapp-1984.