Smith v. Policemen's Annuity & Benefit Fund

909 N.E.2d 300, 391 Ill. App. 3d 542
CourtAppellate Court of Illinois
DecidedMay 26, 2009
Docket1-07-2421
StatusPublished
Cited by4 cases

This text of 909 N.E.2d 300 (Smith v. 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
Smith v. Policemen's Annuity & Benefit Fund, 909 N.E.2d 300, 391 Ill. App. 3d 542 (Ill. Ct. App. 2009).

Opinion

JUSTICE CUNNINGHAM

delivered the opinion of the court:

Plaintiff George J.W. Smith appeals from the circuit court of Cook County’s August 9, 2007, order granting the defendant Judicial Retirement System of Illinois’s (JRS) motion for summary judgment, which denied mandamus relief to the plaintiff regarding the transfer of pension funds and service credits from the Chicago Policemen’s Annuity and Benefit Fund (the Police Fund) to JRS. On appeal, the plaintiff argues that retired judges have the statutory right to transfer pension funds and service credits to JRS. For the following reasons, we affirm.

BACKGROUND

The facts of this case are undisputed. Beginning in 1968, the plaintiff served as a police officer with the City of Chicago. In February 1981, the plaintiff resigned as a police officer to begin practicing law. On April 23, 1981, the Police Fund issued the plaintiff a refund in the amount of $18,089.81, which constituted salary contributions the plaintiff made to the police pension fund during his tenure as a police officer.

In March 1995, the plaintiff became a judge in the circuit court of Cook County, where he served until his resignation in 2002. During his service as a judge, the plaintiff contributed to the judicial pension fund established by JRS. However, the plaintiff stopped making contributions to the judicial pension fund after his retirement from the bench.

In November 2005, the plaintiff, who was then 60 years old, made an oral inquiry to the Retirement Board of the Policemen’s Annuity and Benefit Fund (the Retirement Board) 1 regarding whether he could repay the $18,089.81 refund of his police pension to the Police Fund, for the purpose of transferring those funds and the corresponding service credits toward his judicial pension. On November 28, 2005, in a letter signed by the Retirement Board’s executive director John J. Gallagher, Jr. (Gallagher), the Retirement Board instructed the plaintiff to repay a total of $37,412.44 in order to cover the refunded $18,089.81, plus 3% per annum accumulated interest. The letter further stated that the “amounts accumulated to your credit, including interest, *** as of December 16, 2005 and the municipality credits computed and credited under Article 5 [of the Illinois Pension Code], including interest, *** as of February 20, 1981 shall be transferred to [JRS] on December 16, 2005.” Subsequently, the plaintiff tendered $37,412.44 to the Retirement Board, which attempted to transfer the funds to JRS. JRS rejected the attempted transfer of the funds.

In a January 2006 letter to the Police Fund, JRS’s deputy director Timothy Blair (Blair) explained the basis for JRS’s rejection of these funds:

“[The plaintiff] is an inactive member of [JRS]. Per 40 ILCS 5/5 — 232 of the Illinois Compiled Statutes, only active members of the [JRS] may transfer service credit from the [Police Fund] to [JRS]. Therefore, [JRS] cannot accept the transferred contributions or service credit of [the plaintiff].”

On February 6, 2006, the Retirement Board returned $37,412.44 to the plaintiff, stating in a letter signed by Gallagher that this return of funds was an administrative decision subject to judicial review (the February 6, 2006, order).

On February 28, 2006, the plaintiff filed a complaint for administrative review in the circuit court of Cook County against the Police Fund, the Retirement Board, and various Police Fund individuals, 2 pursuant to the Administrative Review Law (735 ILCS 5/3 — 101 et seq. (West 2006)), alleging that he was denied due process of law because there was no hearing, no statement of charges, and no opportunity to appear and defend before the Retirement Board made its decision on February 6, 2006. Further, the complaint alleged that the Retirement Board’s decision was arbitrary and capricious, that it denied the plaintiff equal protection of the law, and that section 5 — 232 of Article 5 of the Illinois Pension Code (40 ILCS 5/5 — 232 (West 2006)) specifically provided for the “restatement of pension rights upon repayment of refunds.” The complaint also requested that the trial court reverse the Retirement Board’s February 6, 2006, order, and that the defendants be ordered to accept the repayment of the refund, and to transmit the refund, along with the city’s portion of the contributions, to JRS.

On April 4, 2006, the Retirement Board answered the complaint by submitting the administrative record relevant to the plaintiff’s repayment request, which included all correspondence from JRS and the Police Fund regarding the attempted transfer of funds and service credits.

On August 10, 2006, the Retirement Board filed a motion to dismiss the plaintiffs complaint, arguing that it did not arbitrarily refuse the plaintiffs repayment of the refund, that it had tendered the funds to JRS, which rejected the funds, and that it had no authority to compel JRS to accept the funds. The Retirement Board also asserted that any order entered by the trial court requiring JRS to act “would be futile because [JRS] is not a party to this action.”

Subsequently, on October 10, 2006, the plaintiff filed an amended complaint adding JRS as a defendant. The amended complaint included the same allegations (count I) as the original complaint, but also sought mandamus relief (count II) against JRS to accept the funds. In count II, the plaintiff alleged that he was an “active member” of JRS because he had not “taken or claimed” a refund of his salary contributions to JRS. He also contended that the acceptance of payment by JRS from the Police Fund was a “ministerial act” that required no discretion and that he was entitled to combine his pension payments and service credits earned during his tenure as a police officer with those he earned as a judge.

On March 22, 2007, JRS filed a motion for summary judgment regarding count II’s mandamus relief against JRS, arguing that the plaintiff had no clear right to mandamus relief because he was not an “active member” of JRS at the time the request to transfer funds was made. Further, JRS argued that the plaintiffs reliance on the Retirement Systems Reciprocal Act (40 ILCS 5/20 — 101 et seq. (West 2006)) (Reciprocal Act) was misplaced because it was inapplicable to this case.

On June 29, 2007, a hearing on JRS’s motion for summary judgment was held during which the Retirement Board stated that it attempted to transfer the funds to JRS only because it believed the plaintiff was an active member of JRS at the time of the transfer and that it promptly returned the plaintiff s funds once JRS rejected them. By contrast, the plaintiff argued that he was an active member of JRS and that JRS had no authority to review the Retirement Board’s decision to forward the funds to JRS and, thus, JRS must accept them.

On August 9, 2007, the trial court entered an order granting JRS’s motion for summary judgment as to count II of the plaintiffs amended complaint.

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Cite This Page — Counsel Stack

Bluebook (online)
909 N.E.2d 300, 391 Ill. App. 3d 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-policemens-annuity-benefit-fund-illappct-2009.