Pineman v. Fallon

662 F. Supp. 1311, 56 U.S.L.W. 2043, 8 Employee Benefits Cas. (BNA) 1992, 1987 U.S. Dist. LEXIS 5488
CourtDistrict Court, D. Connecticut
DecidedJune 9, 1987
DocketCiv. H-77-164(JAC)
StatusPublished
Cited by16 cases

This text of 662 F. Supp. 1311 (Pineman v. Fallon) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pineman v. Fallon, 662 F. Supp. 1311, 56 U.S.L.W. 2043, 8 Employee Benefits Cas. (BNA) 1992, 1987 U.S. Dist. LEXIS 5488 (D. Conn. 1987).

Opinion

RULING ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

JOSÉ A. CABRANES, District Judge:

Introduction

Plaintiffs in this class action are all employees of the State of Connecticut who were employees of the state on June 30, 1975 and remained employees as of April 1, 1977 and who did not reach the retirement age of the pre-existing state retirement system prior to June 30, 1980. The defendants are the Chairman of the Employees State Retirement Commission (originally, in this action, William G. Oechslin and currently William J. Fallon); the Treasurer of the State of Connecticut; and the Comptroller of the State of Connecticut who also serves as Secretary of the State Employees Retirement Commission.

Plaintiffs have brought this action challenging the 1975 Amendments to the Connecticut State Employees Retirement Act. The 1975 legislation established a minimum age of fifty-five for retirement from state employment for both male and female employees with at least twenty-five years of service. Under previous law, female employees with the requisite years of service were eligible to retire with full pension rights at the age of fifty and male employ ees were eligible for retirement at the age of fifty-five. In 1974, a challenge to the constitutionality of the retirement provisions resulted in a ruling that the disparate treatment of male and female employees was in violation of Title VII of the 1964 Civil Rights Act. This case involves a challenge to the provisions of the retirement system adopted by the legislature in 1975 in response to the 1974 decision.

Plaintiffs argue that the 1975 legislation is unconstitutional. They base this claim on two theories. First, they claim a contractual right against the State of Connecticut to the earlier lower minimum retirement age. Second, plaintiffs assert that the 1975 legislation represents a deprivation of state employees’ property interest in pension benefits without due process of the law.

In 1980, this court ruled in favor of the plaintiffs on their contract claim. (Plaintiffs, in their initial suit before this court did not assert a property rights claim.) In 1981, however, the United States Court of Appeals for the Second Circuit remanded the case to the district court for the entry of an order of abstention, to give the judicial system of the State of Connecticut an opportunity to determine certain questions of Connecticut state law. Proceedings in this court were stayed pending consideration of the case by the state courts. In 1985, the Supreme Court of the State of Connecticut held that the State had not entered into a contractual relationship with employees under the minimum retirement age with respect to prospective benefits. Thus, they held that the retirement ar *1313 rangement provided under the State Employees Retirement Service is not contractual.

Informed by the reasoning of the Connecticut Supreme Court and an independent analysis of the merits of plaintiffs’ claim, this court agrees that no legally valid contract exists between the State and its employees which prohibits the legislature’s 1975 modification of the retirement system.

Further, in response to plaintiffs’ due process claim, this court finds that the 1975 legislative action was neither arbitrary nor irrational. Accordingly, there is no basis for interference by this court with the judgment of the state legislature. Plaintiffs’ claims fail on both counts and summary judgment is granted to defendants.

It should be emphasized that the legislature did not undertake to modify the retirement benefits of those who had already left state service by 1975. Indeed, the 1975 enactment provided a “grandfather clause” which permitted all state employees who would become eligible for retirement under the former system within five years of the new legislation to take advantage of the former, more liberal plan. This case and today’s ruling have no bearing on the retirement status of these other employees.

I.

Background of the Case

The case before this court began in 1977 when the named plaintiffs brought a class action on behalf of themselves and similarly situated state employees. The suit was brought to challenge the constitutionality of a 1975 Connecticut state law, Public Act 75-531 (“the 1975 Act”), which amended portions of the 1939 Connecticut State Employees Retirement Act, 1939 Conn.Pub. Acts 271 (“the 1939 Act” or “SERA”). The factual background leading to the 1977 litigation and the legislative history of the 1975 Act are set forth in detail in Pineman v. Oechslin, 494 F.Supp. 525 (D.Conn.1980) (“Pineman I”), vacated and remanded on grounds of abstention, 637 F.2d 601 (2d Cir.1981) (“Pineman II”). Therefore, only a summary of the background of this case will be set forth here for purposes of the discussion. The 1975 Act was a response to the 1974 decision in Fitzpatrick v. Bit-zer, 1 in which then Chief Judge T. Emmet Clarie held invalid the provisions of SERA requiring male employees of the state to work five years longer than similarly situated female employees in order to earn state pension benefits. Prior to Fitzpatrick, female state employees with twenty-five years of service could retire with full benefits when they reached the age of fifty, while male state employees with twenty-five years of service could not retire with full benefits until they reached the age of fifty-five. In Fitzpatrick, Chief Judge Clarie held that this disparate treatment of men and women violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.

Between the time of the 1974 Fitzpatrick decision and the passage of the 1975 Act, the State of Connecticut permitted both male and female employees to retire with full pension benefits at the ages formerly applicable only to women. Pineman I, 494 F.Supp. at 533.

At the next legislative session, the General Assembly passed the 1975 Act, which established for all employees retirement ages identical to the higher retirement ages applicable only to male employees pri- or to Fitzpatrick. The 1975 Act also contained a “grandfather clause” which exempted from the new, more stringent age requirements for eligibility those employees who would, before June 30, 1980, reach the lower age threshhold of prior law. See Conn.Gen.Stat. § 5-163(a).

In 1980, this court ruled that the 1975 Act constituted an unconstitutional impairment of the State’s contractual obligation and enjoined the enforcement of the 1975 Act “with respect to those state employees who were in state service on June 30, 1975 (the effective date of the 1975 Act), are still in the state’s service, and will not be eligi *1314 ble to retire with full pension benefits prior to June 30,1980.” Pineman I, 494 F.Supp. at 528.

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Bluebook (online)
662 F. Supp. 1311, 56 U.S.L.W. 2043, 8 Employee Benefits Cas. (BNA) 1992, 1987 U.S. Dist. LEXIS 5488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pineman-v-fallon-ctd-1987.