Miller v. Board of Directors of the Firemen's Pension & Relief Fund

378 So. 2d 973, 1979 La. App. LEXIS 3083
CourtLouisiana Court of Appeal
DecidedOctober 10, 1979
DocketNo. 7149
StatusPublished
Cited by3 cases

This text of 378 So. 2d 973 (Miller v. Board of Directors of the Firemen's Pension & Relief Fund) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Board of Directors of the Firemen's Pension & Relief Fund, 378 So. 2d 973, 1979 La. App. LEXIS 3083 (La. Ct. App. 1979).

Opinion

STOKER, Judge.

This is a mandamus action on behalf of several individual retired Lake Charles firemen. It is also a class action on behalf of all persons who were retired from the Lake Charles fire department on the effective date of Act 347 of the 1976 Regular Session of the Louisiana Legislature.1

The question posed by this appeal is whether or not the Act should be given [974]*974retroactive effect. The effective date of this Act was October 1, 1976. The Act in question amended the Louisiana statute relative to the Firemen’s Pension and Relief Fund for the City of Lake Charles, hereinafter referred to as the “Fund”. The defendants are the Fund and its Board of Directors.

The objective of plaintiffs’ suit is to obtain the benefits of Act 347 of 1976. They seek a writ of mandamus directing the Board of Directors of the Fund to recompute the retirement benefits of plaintiffs and the class they represent as they were increased under Act 347 of 1976. The trial court denied the relief sought; it held that the Act did not apply retroactively, that is, it did not apply to persons who retired prior to October 1, 1976. The present appeal is from that denial. We affirm.

Counsel for both parties extensively and ably briefed their respective positions. They favored the Court with a detailed history of the various acts of the Legislature which developed the present version of the legislation providing for the Fund.

FACTS

As succinctly as we can state them, the facts of this case are as follows. The legislation in question began with Act No. 186 of 1944. It has been amended and revamped several times since 1944.2 Prior to the meeting of the Louisiana Legislature in 1976, deep concern developed over the solvency of the Fund. A comprehensive study was conducted. The conclusion was reached that the Fund was, indeed, in fiscal trouble.3 The concern prompted suggestion to the 1976 Legislature that it make major provision for a sound financial base for the Fund. Placing the Fund on a fiscally sound basis appears to be the only objective sought. Nevertheless, the benefit provisions were liberalized. All evidence indicates that in the study made of the Fund, in local considerations of the study findings and in legislative hearings, no thought was given to the effect which proposed changes would have if such changes were applied to firemen already retired or their survivors.

Following the events mentioned above, the Louisiana Legislature adopted Act 347 of 1976, the Act which is the subject of this litigation. In addition to providing for increased contributions to the Fund, the Act liberalized benefits to some extent.4 The Fund failed to give retroactive effect to the Act. Defendants take the position that the Act was meant to have prospective effect only. This law suit tests the contentions and position of each party.

Basically, plaintiffs rely upon two arguments to support retroactive application. They point out that in adopting previous amendatory legislation to liberalize the benefit provisions of the Fund, the Legislature had always provided a caveat or proviso. Each such piece of legislation carried a provision making it prospective in operation by specifically providing that the legislation would not apply to persons who retired prior to a certain date, generally the effective date of the legislation. Act 347 of 1976 did not carry such a provision. Plaintiffs urge this absence is significant. They argue that, having uniformly included a provision limiting previous Acts to prospective operation, the Legislation must be deemed to have meant for Act 347 of 1976 to apply retroactively as well as prospectively. In addition, plaintiffs assert that pension and [975]*975retirement legislation is regarded as remedial legislation, and it is generally the rule in statutory construction that remedial legislation is construed to have retroactive effect.

The position of defendants is as follows. First, it is urged that the insertion of provisions in prior amendments limiting their effect to prospective operation does not dictate that failure to include such a clause in the 1976 amendment is significant. Secondly, the defendants urge that legislation is generally considered to be prospective in operation. They recognize exceptions which include remedial legislation. However, defendants urge that, if the thrust of Act 347 of 1976 is remedial, it is necessary to consider the situation the Act was intended to remedy. In this case the reason for the Act was to make the Fund financially safe. The legislative history shows that projections on which the contribution provision of the 1976 Act were established did not include any increased drain on the Fund which would result from making it applicable to persons already drawing benefits from the Fund when it became effective. Hence, to now make it so applicable, would work at cross purposes with the fundamental reason for adoption of the Act.

Beyond the above reasons defendants rely on what they refer to as an interpretive act — Act 656 of 1978. That Act was passed subsequent to the filing of plaintiffs’ suit in this matter. In other words, it was adopted while the litigation was pending. The 1978 Act simply readopted the benefit provision of the 1976 Act with the addition of a proviso reading “The benefits provided herein also provide with respect only to persons who retire on or after October 1, 1976.”

THE TRIAL COURT’S RULING

The trial court found in favor of defendants and declined to issue the writ of mandamus sought by defendants. It relied almost entirely on the 1978 “interpretive act”. Defendants argue that their right to benefits conferred upon them by their interpretation of the 1976 Act became vested on October 1, 1976. The trial court devoted extensive portions of its reasons for judgment to supporting the proposition that the 1978 interpretive act could validly apply retroactively to October 1, 1976. Defendants vigorously attack this position of the trial court. They also urge that interpretive legislation should not be permitted to affect pending legislation.

We agree with the result reached by the trial court. We do not find it necessary, however, to rely on the 1978 interpretive act for a resolution of this case.

EFFECT OF ACT 347 of 1976 ASIDE FROM INTERPRETATION BY ACT 656 of 1978

In our opinion, the intent of the 1976 Legislature as to whether Act 347 should operate retroactively or prospectively only, may be gleaned from the Act itself. It was meant to operate prospectively only. This conclusion is buttressed by the evidence as to all that led up to the adoption of Act 347 of 1976.

Language of Act 347 of 1976.

The 1976 Act amended two sections of the original Act only. These were Section 9 and 13. Section 9(3) and (4) were amended to increase the flow of contributions into the Fund. This is what had prompted introduction of the bill in the Legislature which became Act 347 of 1976. Prior to 1976 the last Act affecting the Fund had been Act 236 of 1970. In the 1970 Act, Section 9(3) and 9(4) established employee contributions into the Fund at four percent of gross salary and a matching contribution of four percent of the total salary of all employees of the Fire Department of the City of Lake Charles. The 1976 legislation set up a graduated annual increase of one percent in employee contributions and in city matching funds.

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Related

Rico v. Vangundy
461 So. 2d 458 (Louisiana Court of Appeal, 1984)
Frito-Lay, Inc. v. Wapco Constructors, Inc.
520 F. Supp. 186 (M.D. Louisiana, 1981)
Miller v. Board of Directors of the Fireman's Pension & Relief Fund
379 So. 2d 1104 (Supreme Court of Louisiana, 1980)

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378 So. 2d 973, 1979 La. App. LEXIS 3083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-board-of-directors-of-the-firemens-pension-relief-fund-lactapp-1979.