Day v. Mruk

121 N.E.2d 362, 307 N.Y. 349, 1954 N.Y. LEXIS 964
CourtNew York Court of Appeals
DecidedJuly 14, 1954
StatusPublished
Cited by18 cases

This text of 121 N.E.2d 362 (Day v. Mruk) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Day v. Mruk, 121 N.E.2d 362, 307 N.Y. 349, 1954 N.Y. LEXIS 964 (N.Y. 1954).

Opinion

Van Voorhis, J.

This appeal concerns the status of petitioner as a member of the police pension fund of the City of Buffalo. He entered the police department as a patrolman on June 5, 1930, became a member of the police pension fund on that date making his regular contributions at the rate of 4% and 5% of his salary, and applied for retirement September 22,1952, effective October 1,1952. Thus it appeared that he served as patrolman for a period of twenty-two years. After a hearing before the board of police pensions, his application for a service pension was rejected on October 24,1952, and he is still serving as patrolman in the Buffalo Police Department.

At the time of his employment as patrolman in 1930, section 464 (subd. [2]) of the Charter of the City of Buffalo provided that members of the police department were entitled to pensions “ after twenty years of actual service in said department or a combined service of twenty years in the police and fire departments of the city.” Said provision was repealed by Local Law No. 8 adopted June 30, 1940, and in substitution therefor it was enacted that any member who had completed thirty years of actual service should be entitled to a pension. This thirty years was reduced to twenty-five years by Local Law No. 1 of 1945.

Other contingencies are covered in these provisions of the charter, which it is not necessary to specify inasmuch as they do not apply to petitioner’s situation. He had, for example, not served twenty years as patrolman at the time when section 464 was amended in 1940, nor is it a compulsory retirement.

Petitioner’s right to the relief which he has demanded depends upon whether the twenty-year clause as it existed in section 464 of the Buffalo City Charter in 1930 when he entered the police department as patrolman, constituted a vested interest [354]*354in the nature of a contract right inuring to his benefit which could not constitutionally be altered in 1940 and 1945 when the length of time required in which to entitle him to a pension was increased from twenty to thirty and then reduced to twenty-five years. If he obtained a vested contractual right in the clause entitling him to a pension after twenty years of service, then, manifestly, the required length of service could not be extended after he had become a patrolman as a result of any amendment to the charter by local law or otherwise. Upon the other hand, if he was entitled to a mere expectancy, and if no contractual right to a pension could have matured prior to his actual retirement, then the increase of the length of service required to entitle him to a pension, from twenty to twenty-five years, was lawful, and he cannot retire until he shall have completed twenty-five years of service in the police department which he has not yet done.

Section 7 of article V was added to the Constitution of the State of New York in 1938. The amendment took effect except as otherwise provided on January 1, 1939 (art. XX, § 1). The effective date of section 7 of article Y was postponed for one and one-half years, however, until July 1, 1940, presumably to enable the State and its civil divisions to review their pension systems and to adjust, amend, modify or supplement the provisions of existing systems in the light of the fact that after such effective date such systems were no longer gratuitous, but by virtue of the new amendment became contracts and the members of pension systems thereby acquired vested interests which could not thereafter be diminished or impaired. Excerpts from the proceedings of the Convention appear to bear out this conclusion. The text of this amendment to the State Constitution is as follows: “ [Membership in retirement systems; benefits not tobe diminished or impaired.] § 7. After July 1,1940, membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired. ’ ’

Theretofore it had been held that members of pension and retirement systems generally had no vested interest therein •until the right to retirement matured. The leading case was Roddy v. Valentine (268 N. Y. 228, 231-232). It was there held, [355]*355prior to this amendment to the Constitution, that a policeman obtained a vested right to his pension upon his retirement, but the court was careful to point out that prior thereto no such contractual right inhered in a member of the pension funds, stating:

“ Where the statutory scheme creates a fund wholly or largely out of public moneys, the interest of the member down to the point where there has been compliance with all precedent conditions and the award has been or as of right should have been made, can hardly be deemed contractual. There has been a suggestion that it is quasi-contr actual. (40 Harvard Law Review, 504, 505.) In Pennie v. Reis (132 U. S. 464, 471) it is called ‘ a mere expectancy created, by the law. ’ But whatever its legal nature may be, there seems to be no doubt that it is subject to change or even to revocation at the will of the Legislature. (People ex rel. Devery v. Coler, 173 N. Y. 103; Pennie v. Reis, supra; Matter of Friel, 101 App. Div. 155; affd., 181 N. Y. 558.)

“ Where, however, the statutory conditions for retirement existing when application is made have been met and the award of the pension or benefit has been made, or as of right should have been made (Matter of O’Brien v. New York State Teachers’ Retirement Board, 215 App. Div. 220; affd., 244 N. Y. 530), the interest becomes vested and takes on the attributes of a contract, which in the absence of statutory reservations, may not legally be diminished or otherwise adversely affected by subsequent legislation. (Pennie v. Reis, supra; People ex rel. Mulvey v. York, 41 App. Div. 419; Klench v. Board of Pension Fund Comrs., 79 Cal. App. 171, and cases therein cited.) ”

The same appears to have been held in Matter of Friel v. McAdoo (101 App. Div. 155, affd. 181 N. Y. 558), where the question arose concerning the pension rights of a member of the police force of the City of Brooklyn, after Brooklyn had become part of Greater New York. It was held that he had no contractual vested right in the Charter of the former City of Brooklyn, the opinion stating that “ The relator had no vested right in an act of the Legislature; the State, in the exercise of its sovereign authority, might have repealed absolutely the statute of 1888 under which he claims, and it might have abolished the [356]*356office of policeman in the city of Brooklyn, or have destroyed absolutely the municipal corporation, and the relator would have had no legal right to complain.” The opinion continues by pointing out that instead of such a drastic change, the Legislature contented itself “ with what amounts to an amendment of subdivision 6 of section 42 of title 11 of chapter 583 of the Laws of 1888, and has given the police commissioner the power to retire the relator after serving twenty years, if he is at that time, fifty-five years of age ” (p. 158). Even so, the new act rendered such retirement on a pension discretionary at the election of the police commissioner.

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

Related

In Re the Estates of Covert
761 N.E.2d 571 (New York Court of Appeals, 2001)
McDermott v. Regan
155 Misc. 2d 137 (New York Supreme Court, 1992)
Slewett & Farber v. Board of Assessors of County of Nassau
80 A.D.2d 186 (Appellate Division of the Supreme Court of New York, 1981)
Cook v. City of Binghamton
398 N.E.2d 525 (New York Court of Appeals, 1979)
Kraus v. Board of Trustees of Police Pension Fund
390 N.E.2d 1281 (Appellate Court of Illinois, 1979)
Chamber of Commerce E. Union Cty. v. Leone
357 A.2d 311 (New Jersey Superior Court App Division, 1976)
Boryszewski v. Brydges
334 N.E.2d 579 (New York Court of Appeals, 1975)
McCaffrey v. Board of Education
48 A.D.2d 853 (Appellate Division of the Supreme Court of New York, 1975)
Kleinfeldt v. New York City Employees' Retirement System
324 N.E.2d 865 (New York Court of Appeals, 1975)
Brown v. New York State Teachers Retirement System
48 Misc. 2d 805 (New York Supreme Court, 1965)
Bachow v. Kowal
39 Misc. 2d 439 (New York Supreme Court, 1963)
Kumm v. Allen
36 Misc. 2d 816 (New York Supreme Court, 1962)
Ayman v. Teachers' Retirement Board
172 N.E.2d 571 (New York Court of Appeals, 1961)
Haupt v. Teachers' Retirement Board
28 Misc. 2d 686 (New York Supreme Court, 1960)
Ayman v. Teachers' Retirement Board
19 Misc. 2d 355 (New York Supreme Court, 1959)
Montesani v. Levitt
9 A.D.2d 51 (Appellate Division of the Supreme Court of New York, 1959)
Birnbaum v. New York State Teachers Retirement System
152 N.E.2d 241 (New York Court of Appeals, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
121 N.E.2d 362, 307 N.Y. 349, 1954 N.Y. LEXIS 964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/day-v-mruk-ny-1954.