Landán Román v. Torres Braschi

82 P.R. 465
CourtSupreme Court of Puerto Rico
DecidedApril 21, 1961
DocketNo. 12268
StatusPublished

This text of 82 P.R. 465 (Landán Román v. Torres Braschi) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Landán Román v. Torres Braschi, 82 P.R. 465 (prsupreme 1961).

Opinion

Mr. Justice Blanco Lugo

delivered the opinion of the Court.

Antonio Landán Ach, who rendered services to the ‘Government of Puerto Rico for more than 20 years, retired involuntarily on July 1, 1942, because his job was eliminated from the budget. A life pension was granted to him, 'computed in accordance with § 8 of Act No. 23 of July 16, 1935 (Spec. Sess. Laws, p. 126), Landán v. Retirement Board, 65 P.R.R. 117 (1945). This retirement Act of 1935 was substituted and replaced by Act No. 447 of May 15, 1951 (Sess. Laws, p. 1298, 3 L.P.R.A. § 762).1 To that effect it was provided that “the pension funds herein above named [which includes the one prescribed by Act No. 23 of 1935] shall be merged into and become part of the system herein created and such system shall be construed to be a continuation of the said pension funds which it shall supersede and replace.” (Section 2, Act No. 447 of 1951, 3 L.P.R.A. § 762.) It was also provided at the time of the suppression of all these retirement systems, that “all annuities, pensions and other benefits granted prior to the operative date shall from and after the said operative date be paid by the System herein created, according to the Acts named [467]*467above”; that “all amounts deducted and withheld from the salaries or compensation of the participants of the superseded pension funds shall be credited to the said participants who shall become members of the System”; and finally, that “all claims for annuities, pensions, benefits, refunds or other benefits against the superseded pension funds, which may be pending on the operative date of the System, shall be allowed or disallowed by the Administrator according to the provisions of the respective superseded Acts. Such claims as are allowed shall be paid by the System.”

Section 13 of the Act in force (3 L.P.R.A. § 773) established a benefit for payment upon death while in active service and for those participants receiving an annuity due to retirement or disability.2 In regard to the latter it was provided that:

“Upon death of a member in receipt of a retirement annuity or disability annuity, unless a reversionary annuity is payable under the provisions of sections 761-788 of this title, a death benefit shall be paid in a single cash sum to such person or persons as he shall have nominated by written direction duly acknowledged and filed with the Administrator, or to his heirs, if such nomination shall not have been made, consisting of the excess, if any, of the accumulated contributions of the member at the time of retirement over the total amount of all retirement annuity payments received by the member prior to his death, Provided That, in any event, there shall be payable in any case a minimum amount of two hundred (200) dollars.”

The plaintiff, Marcelino Landán Román is the beneficiary designated on December 21, 1953 by Antonio Landán Ach in a printed form filed with the Personnel Office of the Government of Puerto Rico. At the death of Antonio Landán Ach, on May 26, 1954, he claims the payment as beneficiary upon death, which in his case, amounts to the minimum sum of two hundred dollars. The defendant refused to order the [468]*468payment of the benefit requested, and his action was affirmed by the Board of Trustees of the Retirement System. He appealed to the Superior Court and from the judgment granting the complaint and ordering the payment, an appeal was taken to this Court.

The sole issue for decision is whether under the provisions of Act No. 447 of 1951, Antonio Landán Ach had the status of “participant” in the retirement system created thereby. A negative answer is due.

An examination of Act No. 447 leads to the inescapable conclusion that the persons who had retired and were pensioned under Act No. 23, were still subject, as to the payments of benefits to which they were entitled, to the provisions of the latter. It was so expressly provided as to the payment of pensions already approved, and as to those pending on July 1, 1951, the effective date of the new system, it was provided that they would be granted in accordance with the provisions of the superseded Acts (§ 2, Act No. 447 of 1951). The only scope of the merger in question was to transfer the funds available to the previous retirement systems, to the new system then created. It is but a mere administrative measure. That is why when indicating the persons who shall be members of the new system, § 4 (3 L.P.R.A. § 764) limits it to: (1) any person who on June 30, 1951 is an employee of the Government of Puerto Rico, provided he has completed twelve months of services uninterrupted by an absence from service of more than three consecutive months;3 and (2) any person who becomes an employee for the first time on and after the date the new system comes into effect, and who shall become a member of the system as a condition of employment, upon completion of a minimum of twelve months of service.

Special notice was given by the court of first instance [469]*469to the amendment introduced by Act No. 73 of June 19, 1954 (Sess. Laws, p. 374), to paragraph seven of § 2, which by virtue thereof reads as follows:

“All amounts deducted and withheld from the salaries or compensation of the participants of the superseded pension funds shall be credited to the said participants who shall become members of the System if they are in active service, or if not, then when they enter into active service.” 4

The purpose of this amendment is clearly stated in the report rendered to the Senate by the Electoral and Personnel Committee 5 in relation to Senate Bill No. 399, that later became Act No. 73 of June 19, 1954, and that insofar as pertinent says:

“The purpose of this bill is to make clear some concepts of the Act in force, No. 447 of May 15, 1951, which are not clear.
“The seventh paragraph of Section 2 provides that all amounts deducted and withheld from the salaries and compensation of the participants of the superseded pension funds, shall be credited to the said participants who should become members of the Pension System. This last phrase in the paragraph tends to be interpreted as if all the employees that were participants in superseded pension funds will become part of the present Retirement System, even though they were not in active service at the date of the approval of the Act. This interpretation is erroneous and could give pause to the participants of superseded funds to believe that they have a right to the benefits provided in the System, even though they have ceased to be Government employees. Hence, this amendment by addition to this paragraph.”

The foregoing is sufficient to support our conclusion that the employees who had already retired when the new retire[470]*470ment system went into effect on July 1, 1951, do not benefit from the present Act, but their rights are governed by the respective acts in force at the time they were pensioned. This interpretation is widely corroborated by the subsequent legislative action, Cía. Ferroviaria v. See. of the Treasury, 80 P.R.R. 507 (1958), directed to grant to those persons the benefits of the new system, for which reason it was necessary to approve specific legislation.

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82 P.R. 465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landan-roman-v-torres-braschi-prsupreme-1961.