Fobar v. City of Dearborn Heights

994 F. Supp. 878, 1998 U.S. Dist. LEXIS 2101, 1998 WL 84591
CourtDistrict Court, E.D. Michigan
DecidedFebruary 25, 1998
Docket2:97-cv-71430
StatusPublished
Cited by7 cases

This text of 994 F. Supp. 878 (Fobar v. City of Dearborn Heights) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fobar v. City of Dearborn Heights, 994 F. Supp. 878, 1998 U.S. Dist. LEXIS 2101, 1998 WL 84591 (E.D. Mich. 1998).

Opinion

OPINION AND ORDER REGARDING CROSS-MOTIONS FOR SUMMARY JUDGMENT

ROSEN, District Judge.

I. INTRODUCTION

Plaintiff Wayne T. Fobar brings this discrimination action under the Americans with Disabilities Act (“ADA”) to recover a regular retirement pension. The parties have stipu *879 lated to the facts, and now bring Cross-Motions for Summary Judgment.

II. FACTS

The parties have stipulated to the following facts.

Plaintiff Wayne T. Fobar was employed by the City of Dearborn Heights (“City”) as a police officer on January 5, 1970. The City of Dearborn Heights Police and Fire Pension Board (“Retirement Board”) administered all pensions for the police officers and firefighters employed by the City. The Retirement System was established by the voters of the City, effective July 1, 1965, by the adoption of Public Act 345 of 1937, as amended (M.C.L. § 38.551 et al.j (“Act 345”). Act 345 provides that the Retirement Board shall be a corporate body and is vested with the authority and fiduciary responsibility for the administration, management and operation of the Retirement System. The payment of retirement benefits to members and their beneficiaries is governed by provisions contained in Act 345, applicable collective bargaining agreements, and applicable federal and state law. The Retirement Board many not change the terms of the Retirement System and is vested only with the authority to grant those benefits which are authorized by the provisions of the Retirement System.

This case is brought pursuant to, and jurisdiction is predicated on, 42 U.S.C.A. § 12101 et seq., commonly known as the Americans with Disabilities Act. On June 13, 1995, within 180 days of the date of the discriminatory act complained of, Plaintiff filed a Charge of Discrimination with the Equal Employment Opportunity Commission (“EEOC”) encompassing the complaints. On January 31,1997 the EEOC issued plaintiff a right to sue letter. (Ex. A).

Fobar suffered several injuries while on the job as a Dearborn police officer. The cumulative effect of these injuries was that the Retirement System granted Fobar a duty disability pension effective November 15, 1985. (Ex. B).

Pursuant' to Retirement System’s rules and procedures and Act 345 Section 6(l)(g), M.C.L.A. § 38.556(l)(g), upon attaining the age of 55 years, a police officer on duty disability pension is converted to a regular disability pension terminating at the death of the officer. The officer is not allowed an election, which includes an automatic 60% surviving spouse pension.

Section 6(2)(d) of Act 345 provides in pertinent part:

Upon retirement for disability as provided in this subdivision, a member who has not attained 55 years of age shall receive a disability retirement pension of 50% of the member’s average final compensation, which shall be determined according to subsection (l)(f), and shall be payable until the member becomes 55 years of age. Upon becoming 55 years of age, the disabled member shall receive a disability retirement pension computed according to subsection (l)(e). In computing the disability retirement pension, the member shall be given service credit for the period of receipt of a disability retirement pension before, attainment of 55 years of age. If a member retired after attaining 55 years of age on account of disability, as provided in this subdivision, the member shall receive a disability retirement pension computed according to subsection (l)(e), notwithstanding that the member may not have 25 years of service credit. The disability retirement pension provided for in this subdivision is subject to subdivisions (f) and . (g)-

Section 6(2)(g) of Act 345 provides:

Within 60 days before a member becomes 55 years of age, or before retirement from . service if retirement occurs after the member becomes 55 years of age, a disabled member who is retired as provided in subdivision (d) or (e) may elect to continue to receive a disability retirement pension as a benefit terminating at death, to be known as a regular disability pension, or may elect to receive the actuarial equivalent, at that time, of a regular disability pension in a reduced disability pension payable throughout life pursuant to an option provided in subsection (l)(h).

Accordingly, a disability retiree, upon attaining age 55, may elect to receive a regular disability pension which terminates upon *880 death or may elect to receive a reduced disability pension and select an option benefit ás provided in Section 6(l)(h) in pertinent part as follows:

(i) Option I. Upon the death of a retired member, his or her reduced retirement pension shall be continued throughout the life of and paid to the person, having an insurable interest in-the retired member’s life, that the member nominated by written designation duly executed and filed with the retirement board before the effective date of the member’s retirement.
(ii) Option II. Upon the death of a retired member, 1/2 of his or her reduced retirement pension shall ' be continued throughout the life of and paid to the person, having an insurable interest in the retired member’s life, that the member nominated by written designation duly executed and filed with the retirement board before the effective date of the member’s retirement.

Hence, there are no provisions which entitle a surviving spouse of a disability retiree to receive 60% of the retirement benefits the disability was receiving.

Pursuant to Defendants’ rules and procedures and Section 6(l)(h) of Act 345, a regular retiree attaining the age of 55 years is awarded an automatic 60% surviving spouse pension. Regular retirees are permitted to elect options which vary the amount of the surviving spouse pension and the corresponding pension amounts. Section 6(l)(h) of Act 345 provides in pertinent part:

Before the effective date of the member’s retirement as provided in this subsection, but not after the effective date of the member’s retirement, a member may elect to receive his or her benefit in a pension payable throughout the member’s life, called a regular retirement pension, or the member may elect to receive the actuarial equivalent, computed as of the effective date of retirement, of the member’s regular retirement pension in a reduced retirement pension payable throughout the member’s life, and nominate a" survivor beneficiary, pursuant to an option provided in this subdivision. Upon the death of a retirant who retires on or after July 1, 1975, and who is receiving a regular retirement pension, his or her spouse, if living, shall receive a pension equal to 60% of the regular retirement pension the deceased retirant was receiving.

Age and service retirees who elect to receive a regular pension benefit do not have their benefits reduced to provide for the 60% surviving spouse benefit

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Bluebook (online)
994 F. Supp. 878, 1998 U.S. Dist. LEXIS 2101, 1998 WL 84591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fobar-v-city-of-dearborn-heights-mied-1998.