Collins v. Board of Trustees of the Firemen's Annuity & Benefit Fund

610 N.E.2d 1250, 155 Ill. 2d 103, 183 Ill. Dec. 6, 1993 Ill. LEXIS 17
CourtIllinois Supreme Court
DecidedMarch 18, 1993
DocketNo. 73460
StatusPublished
Cited by209 cases

This text of 610 N.E.2d 1250 (Collins v. Board of Trustees of the Firemen's Annuity & Benefit Fund) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. Board of Trustees of the Firemen's Annuity & Benefit Fund, 610 N.E.2d 1250, 155 Ill. 2d 103, 183 Ill. Dec. 6, 1993 Ill. LEXIS 17 (Ill. 1993).

Opinion

JUSTICE NICKELS

delivered the opinion of the court:

Plaintiffs, Fred Collins and Michael Spencer, brought a complaint individually and on behalf of a similarly situated class of plaintiffs composed of fire paramedics for the City of Chicago (the fire paramedics). They sought a declaration, in the circuit court of Cook County, that section 6 — 210.1 of article 6 of the Illinois Pension Code (40 ILCS 5/6 — 210.1 (West 1992)) (the Code), which pertains to the “Firemen’s Annuity and Benefit Fund — Cities over 500,000” (Firemen’s Fund), unconstitutionally diminished fire paramedics’ vested pension rights in violation of section 5 of article XIII of the Illinois Constitution (Ill. Const. 1970, art. XIII, §5). Defendant, the board of trustees of the Firemen’s Annuity and Benefit Fund of Chicago (the Board), filed a motion to dismiss, arguing as a matter of law that section 6 — 210.1 was not unconstitutional.

The circuit court granted the Board’s motion, and the fire paramedics appealed. The appellate court reversed relying solely on this court’s decision in Herhold v. Retirement Board of the Firemen’s Annuity & Benefit Fund (1987), 118 Ill. 2d 436. (226 Ill. App. 3d 316.) In Herhold, the court held that, for purposes of computation of disability benefits, a fire paramedic was entitled to service credits for pre-1983 periods during which he had performed the duties of his position, but for which he had neither been a member of nor made contributions to the Firemen’s Fund. (Herhold, 118 Ill. 2d at 439.) The Board petitioned to appeal as a matter of right or alternately for leave to appeal. This court granted leave to appeal (134 Ill. 2d R. 315(a)).

Section 6 — 210.1, which was enacted in 1989, conditions the fire paramedics’ retirement annuity service credits for pre-1983 service on payment of contributions to the Firemen’s Fund for such period. To reach the question of the constitutionality of section 6 — 210.1, this court must first consider section 6 — 209 (40 ILCS 5/6— 209 (West 1992)) and section 6-106 (40 ILCS 5/6-106 (West 1992)) of article 6 of the Code. As part of the total revision of prior pension legislation in 1963, section 6— 209 established the method of computation of service credits for both ordinary disability and retirement annuities since its enactment. Section 6 — 106 was enacted in 1983 and amended the definition of fireman contained there to include fire paramedic.

BACKGROUND

Prior to 1977, fire paramedics did not participate in any retirement annuity system. In 1977, however, fire paramedics began participating in the Municipal Employees’, Officers’, and Officials’ Annuity and Benefit Fund (Municipal Fund) created by article 5 of the Code (40 ILCS 5/8 — 101 et seq. (West 1992)). Under the statutory provisions creating the Municipal Fund, a fire paramedic could retire at age 55 after 20 years of service with a minimum retirement annuity of 38% of his average salary at retirement. (40 ILCS 5/8 — 138 (West 1992).) In contrast, article 6 of the Code, creating the Firemen’s Fund, provided for retirement at age 50 after 20 years of service with a minimum retirement annuity of 50% of the pensioner’s average salary at retirement. 40 ILCS 5/ 6-125, 6-128 (West 1992).

Fire paramedics continued to participate in the Municipal Fund until 1983, at which time the legislature amended the definition of fireman found in section 6— 106 to include fire paramedic. Specifically, section 6 — 106 was amended to define “fireman” as “[a]ny person who: (a) was, is, or shall be employed by a city in its fire service as a ***, fire paramedic ***.” (40 ILCS 5/6 — 106 (West 1992).) In all other respects, section 6 — 106 remains otherwise unchanged since its enactment in 1963.

In anticipation of the amendment of section 6 — 106, which was enacted and took effect September 24, 1983, the Board began automatically deducting contributions from fire paramedics’ salaries on July 1, 1983, at which time the Municipal Fund ceased such deductions. At the time of the amendment in 1983, however, no provision was made for transfer of the fire paramedics’ Municipal Fund contributions to the Firemen’s Fund, and the Firemen’s Fund was not, then or now, subject to the Retirement Systems Reciprocal Act (the Reciprocal Act) of the Code (40 ILCS 5/20 — 101 et seq. (West 1992)), which allows transfer of contributions and concomitant transfer of service credits between participating funds.

Therefore, the Board advised the fire paramedics that it was not authorized to accept transfer of their Municipal Fund contributions. At the same time, the Municipal Fund sent the fire paramedics unsolicited forms to apply for refunds of their contributions. The Municipal Fund advised the fire paramedics that they could not remain members of the Municipal Fund system, they were ineligible for any retirement annuity benefits from the Municipal Fund, and they would cease to earn interest on their contributions after July 1, 1983. The fire paramedics, therefore, applied for and received refunds from the Municipal Fund.

In 1987, this court decided Herhold and held that, for purposes of computation of disability benefits, paramedics were entitled to service credit for periods prior to 1983 during which they performed the duties of their position. The court relied on the language of both section 6 — 152 (40 ILCS 5/6 — 152 (West 1992)), pertaining to ordinary disability benefits, and section 6 — 209, providing the method of computations of service credits for both disability and retirement annuity purposes, to reach that conclusion. Herhold, 118 Ill. 2d at 438-39.

The legislature passed section 6 — 210.1 effective August 23, 1989. It provides:

“Prior service as paramedic. Any fireman who (1) accumulated service credit in the Article 8 fund for service as a paramedic, and (2) has terminated such Article 8 service credit and received a refund of contributions therefor, may establish service credit in this Fund for such period of service as a fire paramedic under the Article 8 fund by making written application to the Board by January 1, 1992, and paying to this Fund (i) employee contributions based upon the actual salary received and the rates in effect for members of this Fund at the time of such service as a paramedic, plus (ii) interest thereon at 4% per annum, compounded annually, from the date of termination of such service to the date of payment. The employer shall not be responsible for making any employer contributions for any credit established under this Section.” 40 ILCS 5/6-210.1 (West 1992).

In October 1989, the Board filed suit against its counterpart at the Municipal Fund seeking to obtain the city’s contributions to that fund made on behalf of the fire paramedics between 1977 and 1983.

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Cite This Page — Counsel Stack

Bluebook (online)
610 N.E.2d 1250, 155 Ill. 2d 103, 183 Ill. Dec. 6, 1993 Ill. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-board-of-trustees-of-the-firemens-annuity-benefit-fund-ill-1993.