James v. Police Pension Commission

87 Pa. D. & C. 454, 1953 Pa. Dist. & Cnty. Dec. LEXIS 223
CourtPennsylvania Court of Common Pleas, Lackawanna County
DecidedDecember 30, 1953
Docketno. 1136
StatusPublished

This text of 87 Pa. D. & C. 454 (James v. Police Pension Commission) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lackawanna County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James v. Police Pension Commission, 87 Pa. D. & C. 454, 1953 Pa. Dist. & Cnty. Dec. LEXIS 223 (Pa. Super. Ct. 1953).

Opinion

Hoban, P. J.,

The action is mandamus brought by a retired regular police officer of the City of Scranton to compel the police pension commission to pay him retired pay at a rate different than that fixed by the commission at the time of plain[455]*455tiff’s retirement. By stipulation the case was tried before Hoban, P. J., without a jury. The facts were developed entirely from admitted paragraphs of the pleadings; hence are not in dispute.

Facts

For simplicity we state the facts in narrative form and in chronological order.

Under the general powers conferred by article III, sec. 1 of the Act of March 7, 1901, P. L. 20, 53 PS §8457, the City of Scranton in 1911 created a police pension fund and entrusted its administration to a police pension commission. The ordinance (file of the council no. 47, 1911) provided for a retirement system for regular policemen or detectives. The policeman joined the fund when eligible. Thereafter he contributed one percent of his pay to the fund. The city appropriated certain moneys to support the fund and the fund was eligible to receive gifts, donations, etc. The policeman was made eligible for retirement after 30 years’ service or upon incapacitation due to service causes. Upon retirement the policeman was to be paid a pension amounting to one half of the salary which the policeman received from the city at the time he ceased from active duty in the bureau of police. If the fund should be so depleted as to prevent the payment in full of pensions to those entitled thereto, then the commission was authorized to reduce all pensions in a proportionate ratio.

William James, this plaintiff, having become a regular member of the police department, hence eligible for membership, was accepted into the police pension fund on December 2, 1914. The Pension Fund Ordinance was amended in 1915 (file of the council no. 66), in 1917 (file of the council no. 14) and in 1919 (file of the council no. 72) in ways whch were immaterial to the rights of this plaintiff. In 1936, however, by [456]*456file of the council no. 3, the Council of the City of Scranton enacted a complete new ordinance providing for a police pension fund and for its administration, which ordinance repealed all ordinances or parts of ordinances inconsistent therewith. The new system continued the one percent of salary payment by members of the fund, provided for the continuance of the members of the police pension commission and the appointment of their successors, and generally reenacted the basic provisions of the Ordinance of 1911 as amended through 1919. However, the Ordinance of 1936 made this significant change from the previous system. All pensions payable to policemen or detectives who were members of the bureau of police retired after the passage and approval of the Ordinance of 1936, shall be one half of the fixed salary of the policeman or detective at the time he ceased active service in the Bureau of Police, provided, however, that the maximum pension to be paid to any retired member of the bureau shall be $100, and provided further that the retiring policeman should have held his retirement rank for a period of not less than one year or more of full and continuous service previous to retirement. Otherwise his pension rank would revert to the previous rank which he had held for a period of one year.

In 1950 by Ordinance (file of the council no. 4) the maximum pension was raised to $110 per month for those retiring after the passage of the ordinance.

William James, this plaintiff, after 37 years and 6 months of full and continuous service as a regular member of the bureau of police, ceased to be an active member of the bureau of police on June 1, 1952. On that date his rate of pay from the bureau was $300 per month. Thereafter, plaintiff applied to the police pension commission for retirement allowance. The commission granted him retirement pay at the rate of $110 a month from June 1952.

[457]*457In 1953 by Ordinance (file of the council no. 2), by another amendment to the Ordinance of 1936, the council eliminated the maximum money limitation of $110 per month and provided that “on and after the effective date of this Ordinance all policemen, detectives and officers who have, proper Civil Service certification, and who are retired from duty from the Bureau of Police, shall receive a pension at the rate of one-half the respective monthly salary at the time of retirement.”

Discussion

In the complaint this plaintiff pleads his cause of action in the alternative. His theory under the first count is that his rights were fixed by the Ordinance of 1911, which governed the pension fund situation at the time he joined it in 1914. Once he joined the fund he acquired as to it a contractual, or at least a quasi-contractual status entitling him upon retirement after the appropriate service to retired pay at the rate of one half of his last pay in active duty status. Any amendments or changes to the basic ordinance or to the system as a whole, in derogation of his rights, would be invalid.

In the alternative he pleads that the Ordinance of 1953, regardless of the limitations imposed by the Ordinance of 1936 as amended, would apply to plaintiff as a retired officer and would entitle him to retirement pay at one half of the last active service pay, at least from February 1, 1953, the effective date of the ordinance.

I am of the opinion that the plaintiff in count 1 of the complaint has stated a good case, and since the facts are undisputed a decree must be entered in his favor. There seems to be no doubt from all the cases that plans similar to the one under consideration are not considered as pension plans in the sense that they provide for gratuities to municipal employes but pro[458]*458vide for a system of retirement pay, deferred pay or adjusted compensation for past services, and hence are really earned by the employe who has contributed to the fund in accordance with the terms and conditions under which it was operated at the time of his entrance into membership of the fund, the plan, the association or other administrative agency which is charged with its management. Nor does there seem to he any doubt that the right of the employe to participate in the fund is one based upon contract, that is, a contract between the employe and the public agency which employs him and which as an inducement to employment and as a condition thereof offers him an opportunity to participate in such a retirement pay plan. I think it is obvious that the terms of the contract are those which are set at the time of his employment and entry into the plan. If, therefore, a contract has been established as of that particular time, the contract cannot be changed without the consent of the parties thereto and certainly the employe by his contribution to the plan,'as well as the contribution to the municipality of his services, has supplied the ordinary contract requirement of consideration.

A good deal of the argument of counsel turns about the nature of the contract, whether it was executory in nature or was inchoate and not to be considered as a complete contract until the employe had performed all the conditions essential to collect the benefits payable thereunder, including the serving of the time provided for in the articles controlling the plan, in this case the rules and regulations provided in the various ordinances establishing the pension fund.

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

Related

Koehnlein v. Allegheny County Employees' Retirement System
97 A.2d 88 (Supreme Court of Pennsylvania, 1953)
Kane v. Policemen's Relief & Pension Fund
9 A.2d 739 (Supreme Court of Pennsylvania, 1939)

Cite This Page — Counsel Stack

Bluebook (online)
87 Pa. D. & C. 454, 1953 Pa. Dist. & Cnty. Dec. LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-v-police-pension-commission-pactcompllackaw-1953.