Beard v. Missouri State Employees' Retirement System

379 S.W.3d 167, 2012 WL 3792058, 2012 Mo. LEXIS 233
CourtSupreme Court of Missouri
DecidedAugust 28, 2012
DocketNo. SC 92142
StatusPublished
Cited by9 cases

This text of 379 S.W.3d 167 (Beard v. Missouri State Employees' Retirement System) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beard v. Missouri State Employees' Retirement System, 379 S.W.3d 167, 2012 WL 3792058, 2012 Mo. LEXIS 233 (Mo. 2012).

Opinion

GEORGE W. DRAPER III, Judge.

Laurel Beard (hereinafter, “Beard”), deceased, and her assigned heirs, Theresa Beard and Beth Carll (hereinafter and collectively, “Plaintiffs”), appeal the trial court’s judgment against them in their challenge to the constitutional validity of section 104.1030, RSMo 2000.1 Plaintiffs raise two issues on appeal claiming: (1) the trial court wrongfully interpreted section 104.1030; and (2) section 104.1030 is unconstitutional for vested members of the Missouri State Employees’ Retirement System (hereinafter, “MOSERS”) who have filed for retirement but die before their annuity start date.

Facts and Procedural Background

Beard worked for the Missouri Department of Corrections for more than 26 years. As a state employee, Beard was a member of MOSERS.

On June 18, 2009, Beard filed her application for retirement with MOSERS. Beard indicated August 1, 2009, as her retirement date which also was her annuity starting date. Since Beard was em[169]*169ployed by the State before July 1, 2000, she was provided a written comparison of her coverage under the “closed plan” and potential coverage under the “year 2000 plan.” Beard was required to elect which plan she wanted. On June 30, 2009, Beard filed her retirement election form with MOSERS, indicating she elected to change from the closed plan to the year 2000 plan.

Beard died on July 29, 2009. At the time of her death, Beard had no surviving spouse or dependent children who were either under the age of 21 years or totally incapacitated. Beard had not retired and still was an employee of the Department of Corrections.

Following Beard’s death, Plaintiffs requested MOSERS to distribute Beard’s retirement benefits to them as Beard’s designated beneficiaries. In January 2010, MOSERS’ board of trustees determined Plaintiffs were not entitled to retirement or survivor benefits because Beard died prior to her annuity starting date and did not have a surviving spouse or dependent children.

On April 15, 2010, Plaintiffs filed suit, seeking review of the MOSERS decision denying benefits. After a bench trial, the trial court entered judgment in favor of MOSERS, denying Plaintiffs Beard’s retirement benefits. Plaintiffs bring this appeal.

(1) Application of section 104.1030

Plaintiffs allege the trial court wrongly interpreted section 104.1030 in denying them retirement benefits. Plaintiffs claim section 104.1030 is ambiguous and argue Beard was a vested member of MOSERS whose beneficiaries were improperly denied Beard’s retirement benefits because she died before her retirement date.

Statutory construction is a matter of law. Theerman v. Frontenac Bank, 308 S.W.3d 756, 764 (Mo.App. E.D.2010). When engaging in statutory construction, the primary purpose is to ascertain the legislature’s intent from the language used to give effect to that intent if possible. Morse v. Director of Revenue, 353 S.W.3d 643, 645 (Mo. banc 2011). “Presumably, the legislature does not insert superfluous language in a statute.” Cook v. Newman, 142 S.W.3d 880, 889 (Mo.App. W.D.2004).

When Beard decided to retire, she was required to elect whether she wanted her retirement benefits to be administered by the closed plan or the year 2000 plan. Beard elected coverage under the year 2000 plan.

The payment of the annuity for the death of a vested member who has retired under the year 2000 plan is governed by section 104.1030. Section 104.1030.1 states: “If a member with five or more years of credited service or a vested former member dies before such member’s or such vested former member’s annuity starting date, the applicable annuity provided in this section shall be paid.” (emphasis added). This section provides that if the member dies before the annuity’s start date, the member’s annuity shall be paid to a surviving spouse or to dependent children. Sections 104.1030.2 and 104.1030.3. However, there is no provision in this section allowing a member’s annuity to be paid to a designated beneficiary if the member were to die prior to the annuity’s start date when the member was still an employee. Had the legislature intended to allow the payment of a member’s annuity to a designated beneficiary regardless of when the member died, it could have done so. Accordingly, the courts are limited by the plain language of the statute governing the death of a vested member prior to the member’s annuity start date.

In this case, Beard was an employee when she died. At the time of her [170]*170death, she did not have a surviving spouse nor did she have dependent children. Accordingly, the trial court applied section 104.1030.1 properly, denying Plaintiffs’ request for Beard’s retirement benefits.

(2) Constitutional validity of section 104.1030

Plaintiffs claim the trial court erred in granting judgment in favor of MOSERS because section 104.1030 is unconstitutional on its face or as applied to vested members of MOSERS who have filed for retirement and die before their annuity start date. Plaintiffs argue the Missouri Constitution protects an individual’s right to the enjoyment of the gains from her own industry, provides no person shall be deprived of her property without due process of law, and provides that no law shall impair the obligations of contracts.

This Court reviews the constitutional validity of a statute de novo. Gurley v. Missouri Bd. of Private Investigator Examiners, 361 S.W.3d 406, 411 (Mo. banc 2012). “A statute is presumed valid and will not be held unconstitutional unless it clearly contravenes a constitutional provision.” In re Brasch, 332 S.W.3d 115, 119 (Mo. banc 2011). This Court “resolve[s] all doubt in favor of the [statute’s] validity” and in doing so should make every reasonable intendment to sustain its constitutional validity. Ocello v. Roster, 354 S.W.3d 187, 197 (Mo. banc 2011) (quoting Westin Crown Plaza Hotel Co. v. King, 664 S.W.2d 2, 5 (Mo. banc 1984)). “The person challenging the statute’s validity bears the burden of proving the act clearly and undoubtedly violates the constitution.” Kansas City Premier Apartments, Inc. v. Missouri Real Estate Com’n, 344 S.W.3d 160, 167 (Mo. banc 2011) (quoting In re Brasch, 332 S.W.3d at 119).

Plaintiffs raise three constitutional challenges. First, Plaintiffs claim section 104.1030 is unconstitutional in that it violates the equal protection clauses of the United States and Missouri constitutions. Article I, section 2 of the Missouri Constitution provides, in pertinent part, “[T]hat all persons have a natural right to life, liberty, the pursuit of happiness and the enjoyment of the gains of their own industry.” Missouri’s equal protection clause provides the same protections as the United States Constitution.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
379 S.W.3d 167, 2012 WL 3792058, 2012 Mo. LEXIS 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beard-v-missouri-state-employees-retirement-system-mo-2012.