Gibson v. Utah State Teachers' Retirement Board

105 P.2d 353, 99 Utah 576, 1940 Utah LEXIS 81
CourtUtah Supreme Court
DecidedSeptember 13, 1940
DocketNo. 6220.
StatusPublished
Cited by2 cases

This text of 105 P.2d 353 (Gibson v. Utah State Teachers' Retirement Board) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gibson v. Utah State Teachers' Retirement Board, 105 P.2d 353, 99 Utah 576, 1940 Utah LEXIS 81 (Utah 1940).

Opinions

LARSON, Justice.

This cause involves the interpretation of subdivision (b) of Sec. 12 of Chap. 85, Laws of Utah 1937, known as the Teachers’ Retirement Act, and is before us on an application for a Writ of Mandate. Plaintiff, a teacher at the University of Utah since 1904 sought membership in Teachers’ Retirement System. Defendants, as the Teachers’ Retirement Board, refused to admit or recognize plaintiff as entitled to membership in the system and he applied for a mandate directing the Board to admit him to, or recognize him as entitled to, membership in the system. Plaintiff has been a teacher in the public schools of the State of Utah for over 35 years. In 1923, through the University of Utah where he was teaching, he became the holder of a retirement annuity contract with the Teachers’ Insurance and Annuity Association of America, commonly spoken of as the Carnegie Retirement System. Plaintiff and the University of Utah each contributed one half of the monthly premiums until December, 1937 when at the request of plaintiff the payment of premiums ceased. Based upon the payments which had been made there has accrued a nonassignable deferred annuity, payable as a paid up contract for a lesser amount when the holder shall retire. When the Retirement Board rejected plaintiff’s application for membership, he commenced in the District Court an action under the Declaratory Judgment Act, Title 104, Chapter 64, R. S. U. 1933, for a determination of his rights and status under the Teachers’ Retirement Act. The District Court in due time entered an order dismissing plaintiff’s action. *578 These proceedings were then instituted in this court.

The Act under consideration provides in Sec. 11 that all teachers employed in the public schools of the state on or after July 1, 1937, and nab excluded by Sec. 12, become members of the Retirement System. We quote subdivision (b), Sec. 12, in haec verba:

“Section 12. Teachers Excluded From Membership.
“The following teachers shall be excluded from membership in the retirement system:
* * *
“ (b) Every teacher who is the holder of a retirement annuity contract with the teachers’ insurance and annuity association of America or with any other private organization or company, in which the state of Utah, or any subdivision thereof contributes part of the premium, under said contract; provided, however, that every such teacher, upon ceasing to be a holder of such contract and being otherwise eligible to membership in this system, shall forthwith become a member of the system.”

Plaintiff contends that having had the University cease payments under his annuity contract in December, 1937, he, as a teacher employed in the public schools of the state, automatically became a member of the State Teachers’ Retirement System December 29, 1938. The defendant, Retirement Board, urges three defenses:

(a) That the decision of the District Court in the suit under the Declaratory Judgment Law is res adjudicata and therefore this action will not lie.

(b) That by the terms of the Act the decision of the Retirement Board on questions of eligibility and membership is final, conclusive and not reviewable; and since its determination of eligibility was against plaintiff such decision is final, conclusive and controlling.

(c) That since plaintiff cannot divest himself of his deferred annuity contract he is holder of an annuity contract with the Teachers’ Insurance and Annuity Association *579 of America and so is ineligible for membership in the association.

Since it is conceded that plaintiff is, and since 1904 has been, a teacher in the public schools of Utah, as that term is defined by the Act, he is entitled to his writ unless he fails for one of the three reasons urged by defendants. We will therefore consider the question in connection with the defenses urged by the Retirement Board in the order given.

(a) The record reveals that the District Court did not make any finding or determination, or enter any judgment with respect to the status or rights of Plaintiff under the Teachers’ Retirement Act. The action was dismissed, presumably on the ground of lack of jurisdiction since that was the only issue raised or heard there. Such action was, and is, not res adjudicata.

(b) Is the decision of the Retirement Board on questions of eligibility to membership final and conclusive, and not subject to any judicial review on questions of law or jurisdiction?

The Retirement Act does not create a voluntary association or one with a permissive membership. The teacher has no option as to whether he is a member or not, that is, he cannot of his own free will decline membership and refuse to pay in his contributions to the retirement fund. Such contributions are by express mandate of law deducted from his earnings by the school board and by it remitted to the State Treasurer for the credit of the fund. All teachers in the public schools of the state on or after July 1, 1937, are by the mandate of law members of the retirement system, except those excluded by Sec. 12, to-wit: Part-time or substitute teachers; exchange teachers from without the state; contributing members of a local system who do not comply with Sec. 13; and holders of annuity contracts with a private organization or company to which the State or a subdivision thereof is contributing part of the premium. The Retirement Board is vested with the duty of determining the facts *580 as to whether a person, is in a.status requisite to membership, and to determine all questions of fact pertaining to application for benefits on retirement. Sec. 8. But the facts having been determined by the Board, the question of membership in the system under such facts is a question of law. Here the Board having determined the facts — they are not in dispute — the question as to whether or not under those facts the plaintiff is or is not entitled to membership is a question of law, and subject to our review.

(c) We come now to the real crux of the case. Does the fact that plaintiff is the holder of a paid up, deferred annuity contract with the Teachers’ Insurance and Annuity Association of America, of which he cannot divest himself, although neither the State nor any other public body or institution is contributing to the payment of premiums thereon, place plaintiff in a status of permanent ineligibility for membership in the retirement system? In other words what is the meaning of subdivision (b) of Sec. 12?

Subdivision (b) of Sec. 12, Chap. 85, Laws of Utah 1937, reads as follows:

“ (b) Every teacher who is the holder of a retirement annuity contract with the teachers’ insurance and annuity association of America or with any other private organization or company, in which the state of Utah, or any subdivision thereof contributes part of the premium, under said contract; provided, however, that every such teacher, upon ceasing to be a holder of such contract and being otherwise eligible to membership in this system, shall forthwith become a member of the system.”

The argument resolves itself as to whether the expression “the State of Utah * * * contributes

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Bluebook (online)
105 P.2d 353, 99 Utah 576, 1940 Utah LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibson-v-utah-state-teachers-retirement-board-utah-1940.