Hickey v. Pittsburgh Pension Board

106 A.2d 233, 378 Pa. 300, 52 A.L.R. 2d 430, 1954 Pa. LEXIS 596
CourtSupreme Court of Pennsylvania
DecidedJune 28, 1954
DocketAppeal, No. 104
StatusPublished
Cited by82 cases

This text of 106 A.2d 233 (Hickey v. Pittsburgh Pension Board) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hickey v. Pittsburgh Pension Board, 106 A.2d 233, 378 Pa. 300, 52 A.L.R. 2d 430, 1954 Pa. LEXIS 596 (Pa. 1954).

Opinion

Opinion by

Mr. Justice Musmanno,

On May 10, 1910, Thomas W. Hickey, being then less than 28 years of age, entered the employment of the City of Pittsburgh. Five years later the Legisla[302]*302ture of Pennsylvania enacted a law, Section 3 of which reads: “Every person now or hereafter employed by the said cities, as herein provided, if any, of the age of sixty years and upwards, who shall have been so employed for a period of twenty years or more, shall, upon application to the board of pensions herein created, be retired from service, and shall during the remainder of his or her life receive the pension or compensation fixed by this act...” (Sec. 3, Act of Assembly, May 28, 1915, P. L. 596).

The establishment of this pension undoubtedly offered a substantial inducement to Thomas Hickey to remain in government service. He was then only 33 years of age. Employment in private industry could have brought him a higher rate of pay with even possibly better opportunities for promotion, but against those attractions government service offered a more certain tenure and, with this pension law, an assured annuity in the future. Hickey could even build upon the prospect of obtaining, when he had reached his sixtieth year, another job, compensation from which, added to the guaranteed pension, would make for a comfortable living in his later years. With this long-ranged plan of his life ahead of him he agreed to remain 20 years with the City and pay certain sums into the Pension Fund.

In 1930 Hickey completed his twentieth year in the employment of the City and thus, under the Act of 1915, was qualified to receive his pension when he reached the three-score milestone of his life. Contractually, financially and morally Hickey had met all requirements for the pension and its fulfillment was delayed for reasons of chronology alone.

On April 26, 1933 (three years after Hickey had met the minimum tenure requirement in the City service,) the Legislature amended the Act of 1915, as fol[303]*303lows: “If a pensioner of the cities of the second class shall or may hereafter be employed by the government of the United States, or the Commonwealth of Pennsylvania, or the same county in which such cities are, or by any subdivision of such counties, then such pension board of said cities of the second class shall have, and is hereby given, the authority to suspend the pension payments to such pensioner during the period of such employment.” (Sec. 14, Act of Assembly, April 26, 1933, P. L. 81, amending Act of May 28, 1915, P. L. 596).

On January 1, 1947, Thomas Hickey, having now passed his sixtieth birthday, retired from the City, and the City, in accordance with the Act of 1915, initiated pension payments to him in the sum of $126.36 per month. But when, on February 1, 1952, Hickey obtained employment with the County of Allegheny, the City Pension Board discontinued payments to him under the supposed authority of the above-mentioned Act of 1933.

Hickey filed a Complaint in Mandamus to compel the defendant Pension Board to pay him the pension installments regardless of other employment. The court below dismissed the Complaint and the plaintiff appealed.

A similar question to the one raised in this case came before us in Baker v. Retirement Board of Allegheny Bounty, 374 Pa. 165, where the defendant Allegheny County Retirement Board maintained that Baker who had been an employe of the City of Pittsburgh and was receiving a pension from the City and who after retirement from the City became a County employee, was not entitled to a pension from the County of Allegheny because of the Act of 1937, P. L. 191, (16 PS 326) prohibiting such double pensions. We ruled that the Act of 1937 which was passed after [304]*304Baker became a County employe, could not affect his already vested right to the County Pension: “When the legislation in question was passed, [The Act of 1937,] appellee already had been a member of, and had contributed to, the County retirement fund for approximately nine years. He made these contributions on the basis of the existing rules, regulations and provisions for eligibility for retirement allowance. As of the time he joined the fund, his right to continued membership therein, under the same rules and regulations existing at the time of his employment, was complete and vested. The legislature could not thereafter constitutionally alter the provisions of his already existing contract of membership.”

When the Act of 1933 involved in the case at bar was passed, Thomas Hickey had completed 23 years of service as an employee of the City of Pittsburgh and had made contributions into the pension fund for more than 17 years. His pension was as assured (upon his attaining 60 years of age) as if the Pension Board had already placed the pension installments in a safety deposit box and had given him the key to the lock which would open to that key each month, once the intervening time limitation had expired. This right became private property belonging to Hickey, and the Legislature could not under any circumstances demand from Hickey surrender of the key to the deposit vault.

Much of the misapprehension which apparently still exists in the minds of conscientious administrators of pension funds is possibly due to the fact that there still lingers a remnant of the ancient idea that a pension is a manifestation of sovereign generosity. The concept of pensions has come down through the centuries wearing a cloak of monarchical dispensation. Kings conferred pensions on court favorites, artists and military heroes with a flourish which proclaimed [305]*305that the royal treasury was as inexhaustible as the crown’s power was unlimited. However, despite ceremony and pronunciamento, the pensioner obtained no vested right to the proclaimed pension. In fact, he could not be any more assured of a continuation of the pension than he could be assured that his head would remain on his shoulders if he should displease his absolutist benefactor. But the pension of today is not a grant of the Republic nor in this case is it a gift of the City Fathers. It is the product of mutual promises between the pensioning authority and the pensioner; it is the result of contributions into a fund which exists for the single purpose of pensions. Adhering to the theory that pensioners are in the nature of glorified petitioners for public largesse, the appellees call to our attention general statements in the law books which undoubtedly originated in the era of imperial and kingly sway. For instance, counsel for the appellees quote: “The unquestioned rule is that a pension granted by the public authorities is not a contractual obligation, but a gratuitous allowance, in the continuance of which the pensioner has no vested right; and that a pension is accordingly terminable at the will of the grantor.” (54 A.L.R. Ann. 943)

Also: “the weight of authority seems to be that the mere fact that a beneficiary has been compelled to contribute a part of his compensation to the support of a pension plan will not ordinarily give him vested rights.” 137 A.L.R. Ann. 252, Miller v. Price, 282 Ky. 611, 139 S.W. 2d.

But only last year our Superior Court said, in the case of Hamilton v. Wilson, 172 Pa. Superior Ct. 437, 443: “The basic theory which supports retirement statutes is that retirement pay is adjusted or delayed compensation for service rendered in the past.”

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

Related

AFT Michigan v. State
315 Mich. App. 602 (Michigan Court of Appeals, 2016)
Arkansas Tech University v. Link
17 S.W.3d 809 (Supreme Court of Arkansas, 2000)
Bailey v. State
500 S.E.2d 54 (Supreme Court of North Carolina, 1998)
Rybak v. State Employees' Retirement Board
624 A.2d 286 (Commonwealth Court of Pennsylvania, 1993)
Police Pension Fund Ass'n Board v. Hess
562 A.2d 391 (Commonwealth Court of Pennsylvania, 1989)
Bayrón Toro v. Serra
119 P.R. Dec. 605 (Supreme Court of Puerto Rico, 1987)
Baker v. Oklahoma Firefighters Pension and Retirement System
1986 OK 8 (Supreme Court of Oklahoma, 1986)
Sebastionelli v. City of Bethlehem
31 Pa. D. & C.3d 685 (Northampton County Court of Common Pleas, 1984)
Petras v. State Board of Pension Trustees
464 A.2d 894 (Supreme Court of Delaware, 1983)
Osser v. City of Philadelphia
461 A.2d 639 (Commonwealth Court of Pennsylvania, 1983)
Nash v. Boise City Fire Department
663 P.2d 1105 (Idaho Supreme Court, 1983)
Commonwealth ex rel. Zimmerman v. Officers & Employees Retirement Board
461 A.2d 593 (Supreme Court of Pennsylvania, 1983)
Catania v. Commonwealth, State Employees' Retirement Board
455 A.2d 1250 (Commonwealth Court of Pennsylvania, 1983)
In re Appeal of Stanton
452 A.2d 496 (Supreme Court of Pennsylvania, 1982)
Miller v. Commonwealth, State Employees' Retirement Board
445 A.2d 88 (Supreme Court of Pennsylvania, 1981)
McKenna v. Commonwealth
421 A.2d 1236 (Commonwealth Court of Pennsylvania, 1980)
Grady v. Division of Retirement
387 So. 2d 419 (District Court of Appeal of Florida, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
106 A.2d 233, 378 Pa. 300, 52 A.L.R. 2d 430, 1954 Pa. LEXIS 596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hickey-v-pittsburgh-pension-board-pa-1954.