Lee v. Retirement Board of the Policemen's Annuity & Benefit Fund

317 N.E.2d 758, 22 Ill. App. 3d 600, 1974 Ill. App. LEXIS 2071
CourtAppellate Court of Illinois
DecidedAugust 5, 1974
Docket58459
StatusPublished
Cited by7 cases

This text of 317 N.E.2d 758 (Lee v. Retirement Board of the Policemen's Annuity & Benefit Fund) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee v. Retirement Board of the Policemen's Annuity & Benefit Fund, 317 N.E.2d 758, 22 Ill. App. 3d 600, 1974 Ill. App. LEXIS 2071 (Ill. Ct. App. 1974).

Opinion

Mr. PRESIDING JUSTICE EGAN

delivered the opinion of the court:

The plaintiffs, Noble W. Lee and Palmer D. Edmunds, as taxpayers, sought to enjoin the Retirement Board of the Policemen’s Annuity and Benefit Fund of the City of Chicago, its individual members and the city treasurer of Chicago from using section 5 — 212 of the Illinois Pension Code (Ill. Rev. Stat. 1965, ch. 108%, par. 5 — 212) in computing the pensions of any policeman who had served in the armed forces after he had been placed on the civil service eligible list but before he had been certified. They contended that the act violated article IV, sections 19, 20 and 22, of the 1870 Constitution, and article IV, section 13, and article VIII, section 1, of the 1970 Constitution. The trial court upheld the validity of the act and dismissed the complaint.

Section 5 — 212 provides that in computing pension eligibility the following period shall be included:

“(d) time that the policeman was engaged in the military or naval service of the United States of America, during which he was passed over on any eligible list posted from an entrance examination, due to the fact that he was in such military or naval service at the time he was called for appointment to the Police Department, to be computed from the date he was passed over on any eligible list and would have been first sworn in as a policeman had he not been engaged in the military or naval service of the United States of America, until the date of his discharge from such military or naval service; provided that such policeman shall pay into this fund the same amount that would have been de-ducted from his salary had he been a policeman during the aforementioned portion of such military or naval service; * #

Article IV, sections 19 and 20, provide as follows:

“§ 19. The general assembly shall never grant or authorize extra compensation, fee or allowance to any public officer, agent, servant or contractor, after service has been rendered or a contract made, nor authorize the payment of any claim, or part thereof, hereafter created against the state under any agreement or contract made without express authority of law; and all such unauthorized agreements or contracts shall be null and void; Provided, the general assembly may make appropriations for expenditures incurred in suppressing insurrection or repelling invasion.
§ 20. The state shall never pay, assume or become responsible for the debts or liabilities of, or in any manner give, loan or extend its credit to or in aid of any public or other corporation, association or individual.”

At the time the judgment was entered, sections 19 and 20 of article IV had been replaced by section 1 of article VIII of the 1970 Constitution (See Constitutional Commentary by Robert A. Helm an and Wayne W. Whalen) which provides in part:

“§ 1. General provisions.
(a) Public funds, property or credit shall be used only for public purposes.”

The plaintiffs contend, and correctly so, "that one whose induction as a City pohceman awaits the completion of his military service is not a City employee while performing military service.” Since, the plaintiffs reason, section 19 specifically prohibits payment after service has been rendered, a fortiori, compensation before service has been rendered must also be barred. The plaintiffs’ major premise, however, is bottomed on the supposition that an increase in pension rights after service is completed is always constitutionally prohibited. Such a supposition is iH founded.

In Raines v. Board of Trustees, 365 Ill. 610, 7 N.E.2d 489, the petitioner paid the amounts into a pension fund as required by statute before his retirement in 1927. After retirement he received an annuity of $400. In 1935 the act was amended, and tire petitioner paid $200 plus interest into the fund pursuant to the act. He then sought an increase in his annuity to $600. The respondent contended that the act was not meant to apply to persons who had already retired and to construe it otherwise would render it unconstitutional. The court held that the petitioner was entitled to the increased annuity as provided by the act, reasoning that the amount paid by the petitioner was a voluntary contribution to a fund under a statutory elective right rather than a compulsory deduction. It thus distinguished those previous cases which had struck down statutes granting increased pension rights to policemen who had retired and from whom compulsory contributions had previously been exacted: Porter v. Loehr, 332 Ill. 353, 163 N.E. 689; People ex rel. Kroner v. Abbott, 274 Ill. 380,113 N.E. 696.

The plaintiffs here seek to distinguish Raines by pointing out that participants in the Chicago Police Fund are pensioners rather than voluntary contractual annuitants since the deductions from their salary are mandatory. But the flaw in the plaintiffs’ argument is that the mandatory deductions are for the period after certification of employment and not before. The act before us expressly provides that an applicant has an option to pay or not for that period of time he was in military service. Once the participant exercises the option by paying the required sum, we judge, as did the Raines court, that a contractual relationship existed between the participant and the State. Raines v. Board of Trustees, 365 Ill. at 616.

There are many other sections of the Pension Code which give credit for service rendered in other positions before becoming a participant, provided, as here, the participant pays an additional sum of money including the contribution he would have made plus interest. For exam-pie, section 18 — 112 provides that under the judicial retirement system a participant may receive credit for time spent as a justice of the peace, police magistrate, master in chancery, referee in the Municipal Court of Chicago, a member of the General Assembly, a judge of the Court of Claims and State’s Attorney. Section 5 — 214 gives credit for service as a temporary police officer or while serving in the Office of Mayor, the Office of the Corporation Counsel, as an employee of the Policeman’s Annuity Benefit Fund, as the head of an organization whose membership consists of members of the Police Department, the Public Vehicle License Commission and the Board of Election Commissioners. Section 2 — 110.1 provides for credit in the General Assembly retirement system if the legislator had been an elected official in a municipality. Section 7 — 139(a) (6) provides for credit for a teacher for service previously rendered to an out-of-state local governmental body. If the act before us is constitutionally defective for the reason ascribed by the plaintiffs, it would appear that so also are the sections we have enumerated. As was said in People ex rel. Douglas v. Barrett, 370 Ill. 464, 468-469, 19 N.E.2d 340:

“The people of this State, by not challenging the long line of statutes similar to the one here considered, have signified their approval of such enactments.

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Bluebook (online)
317 N.E.2d 758, 22 Ill. App. 3d 600, 1974 Ill. App. LEXIS 2071, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-retirement-board-of-the-policemens-annuity-benefit-fund-illappct-1974.