Fraternal Order of Police Lodge 2 v. City of St. Joseph

8 S.W.3d 257, 1999 Mo. App. LEXIS 2456, 1999 WL 1255681
CourtMissouri Court of Appeals
DecidedDecember 28, 1999
DocketNo. WD 56691
StatusPublished
Cited by7 cases

This text of 8 S.W.3d 257 (Fraternal Order of Police Lodge 2 v. City of St. Joseph) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fraternal Order of Police Lodge 2 v. City of St. Joseph, 8 S.W.3d 257, 1999 Mo. App. LEXIS 2456, 1999 WL 1255681 (Mo. Ct. App. 1999).

Opinion

ULRICH, Presiding Judge.

Fraternal Order of Police and three individual city police officers, each representing a separate class of officers with different total years of service,1 appeal the declaratory judgment of the trial court in favor of St. Joseph Police Pension Board of Trustees (“Pension Board”) and the summary judgment entered by the trial court in favor of the City of St. Joseph (“St.Joseph”). Appellants sought a declaratory judgment against Pension Board and St. Joseph to determine the rights, liabilities, and obligations of the parties in regard to the change in the method used to calculate retired officers’ monthly pension amounts for service as St. Joseph police officers. Appellants claim that the trial court, in its declaratory judgment in favor of the Pension Board, erred in (1) finding the change in the method of calculating monthly pension amounts did not violate section 86.549.3, RSMo 1994, which prohibits first class cities from reducing retirement benefits; (2) ruling that the Pension Board was not estopped from changing the method of calculating pension amounts; (3) finding that the officers’ future benefits are an expectancy and not a contractual entitlement, and the 'retired police officers had no contractual right to the former pension calculation; and (4) ruling that the pension plan trustees properly exercised their discretion by adopting a new method of calculating pension amounts. Appellants further contend that the trial court erred in granting St. Joseph summary judgment by ruling that the ordinance enacted by St. Joseph did not cause the changes in the pension benefit calculation. The judgment of the trial court is affirmed.

Facts

Prior to November 1961, St. Joseph, Missouri, operated pursuant to section 72.010, RSMo (repealed 1975) as a first class city. While operating as a first class city, St. Joseph and the St. Joseph police department established the police officers’ pension fund pursuant to sections 86.510-577, RSMo. St. Joseph became a constitutional charter city in 1961, and its first city charter specifically provided that “ ... existing retirement plans shall be continued ..:. ” St. Joseph Charter § 7.8 (1961). In 1981, St. Joseph adopted its second charter, which included a provision that “all ordinances, regulations and resolutions in force at the time this charter takes effect, which are not inconsistent with ... this charter, shall remain and be in force until altered, modified or repealed.” St. Joseph Charter § 16.2 (1981).

For many years until July 1989, the Pension Board determined pension benefits pursuant to first class city statutes, §§ 86.510-577, RSMo, even though St. Joseph was no longer a first class city. St. Joseph adopted the language of these statutes by ordinance, including section 86.549.3, RSMo 1994, which prohibited the reduction of pension retirement benefits, and section 86.540.1, RSMo 1994, which set the monthly pension benefit as “one-half the average monthly rate of salary ... during the twelve months immediately preceding ... retirement.” §§ 86.549.3, 86.540.1, RSMo 1994. These provisions [261]*261were included in the Saint Joseph Police Pension Fund Reference Manual for Board of Trustees. In 1989, St. Joseph adopted Special Ordinance 2090, which replaced sections 86.510 through 86.577, RSMo, and changed the pension benefit to forty percent of the “average monthly rate of salary ... in the highest twelve (12) consecutive months in the 120 months preceding ... retirement.”2 Thereafter, the Pension Board began the practice of including lump sum payments for earned accrued overtime (in 1991) and vacation pay (in 1994) as “salary” in the calculation of monthly pension amounts. St. Joseph also began including these lump sum payments in the calculation of both city and officer contributions to the pension plan.

In 1996, St. Joseph enacted Special Ordinance 4041 which authorized the implementation of the “City of St. Joseph, Missouri Police Pension Plan”(“1996 plan”) and specifically repealed all previous pension ordinances, including Special Ordinance 2090. St. Joseph’s 1996 plan provided a plan benefit of forty percent of the “average of the highest twelve (12) consecutive months of the last one hundred twenty (120) consecutive months of covered employment at retirement.” After St. Joseph adopted its 1996 plan, concerns over the pension plan’s unfunded liability prompted the Pension Board to change its policy of including lump sum payments for accrued unpaid overtime and vacation pay in the calculation of monthly retirement pension amounts. This change effectively reduced the monthly pension amount for officers who had received a lump sum payment for accrued unpaid overtime and vacation pay within the twelve month calculation period. Under the new policy, accrued but unpaid overtime and vacation pay was prorated over the time which it was earned, even if paid in a lump sum during the pension-benefit calculation period.

Standard of Review

The judgment of the trial court will be affirmed unless there is no substantial evidence to support it, unless it is against the weight of the evidence, unless it erroneously declares the law or unless it erroneously applies the law. Murphy v. Carron, 586 S.W.2d 80, 82 (Mo. banc 1976).

I. Application of Section 86.549.3, RSMo 1994, to Charter Cities

In appellants’ first point on appeal, they claim that the trial court erred in holding that section 86.549.3, RSMo 1994, which prohibits first class cities from reducing retirement benefits, does not apply to St. Joseph. Appellants contend that since St. Joseph’s police pension fund was created pursuant to the “first class cities” statutes (§§ 86.510-577, RSMo) when St. Joseph was a first class city, and these “first class cities” statutes were later incorporated by reference when St. Joseph become a constitutional charter city, these statutes continue to apply even though St. Joseph has since adopted ordinances which set out a different eligibility standard and formula for calculating pension benefits.

Missouri’s general assembly, as authorized by article VI, § 15 of the Missouri Constitution, established four classes of cities, defining the classes of cities by population. Cities with populations equaling or exceeding the statutory amount may elect to become a city of that class. §§ 72.010-72.050, RSMo 1969. This classification scheme was organized so that “the powers of each class [are] defined by general laws so that all such municipal corporations of the same class shall possess the same powers and be subject to the same restrictions.” Mo. Const. ART. VI, § 15.

As an alternative to a city electing to become a first, second, third, or fourth class city, the Missouri Constitution permits a qualifying city3 to frame and adopt [262]*262a charter for its own government. Mo. Const. Art. VI, § 19. Specifically, the Missouri Constitution grants a constitutional charter city “all powers which the general assembly ... has authority to confer upon any city, provided such powers are consistent with the constitution of this state and are not limited or denied either by the charter so adopted or by statute. Such city shall, in addition to its home rule powers, have all powers conferred by law.” Mo. Const. ART. VI, § 19(a). Under section 19(a), the emphasis is whether the exercise of home rule city power conflicts with the Missouri Constitution, state statutes or the charter itself. Cape Motor Lodge, Inc. v. City of Cape Girardeau,

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

Related

Christopher Chad Price v. the State of Texas
Court of Appeals of Texas, 2023
Lehmann v. Fox C-6 Sch. Dist.
564 S.W.3d 721 (Missouri Court of Appeals, 2018)
St. Louis Association of Realtors v. City of Ferguson
499 S.W.3d 395 (Missouri Court of Appeals, 2016)
Jason A. Prescott v. Missouri Department of Social Services
464 S.W.3d 560 (Missouri Court of Appeals, 2015)
State ex rel. City of Monett v. Lawrence County
407 S.W.3d 635 (Missouri Court of Appeals, 2013)
JGJ PROPERTIES, LLC v. City of Ellisville
303 S.W.3d 642 (Missouri Court of Appeals, 2010)
Amos v. CITY OF NOEL
276 S.W.3d 355 (Missouri Court of Appeals, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
8 S.W.3d 257, 1999 Mo. App. LEXIS 2456, 1999 WL 1255681, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fraternal-order-of-police-lodge-2-v-city-of-st-joseph-moctapp-1999.