Snyder v. Tucson Police Public Safety Personnel Retirement System Board

32 P.3d 420, 201 Ariz. 137, 357 Ariz. Adv. Rep. 22, 2001 Ariz. App. LEXIS 144
CourtCourt of Appeals of Arizona
DecidedSeptember 27, 2001
DocketNo. 2 CA-CV 98-0126
StatusPublished
Cited by5 cases

This text of 32 P.3d 420 (Snyder v. Tucson Police Public Safety Personnel Retirement System Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snyder v. Tucson Police Public Safety Personnel Retirement System Board, 32 P.3d 420, 201 Ariz. 137, 357 Ariz. Adv. Rep. 22, 2001 Ariz. App. LEXIS 144 (Ark. Ct. App. 2001).

Opinion

OPINION

DRUKE, J.

¶ 1 After we issued our opinion in this case, Snyder v. Tucson Police Public Safety Personnel Retirementy System Board, 198 Ariz. 239, 8 P.3d 1153 (App.1999), the supreme court granted review and remanded the case for reconsideration in light of its opinion in Parada v. Parada, 196 Ariz. 428, 999 P.2d 184 (2000). We have considered the facts, rationale, and holding in Parada, as well as the parties’ supplemental briefs in this case, and with minor modification, we reaffirm our earlier decision.

¶ 2 The basic facts and procedural history are as follows. Bemey and Rowena Snyder are the surviving parents of Caren Thomas, whose will devised all of her property to them. Before Caren died, a decree dissolving her marriage to Michael Thomas awarded her 21.61 percent of his retirement benefits in the Arizona Public Safety Personnel Retirement System (the pension plan or plan). See A.R.S. §§ 38-841 through 38-859. Caren received a monthly check for her share of the retirement benefits until her death. The personal representative of her estate then applied to the Tucson Police Public Safety Personnel Retirement System Board to have the monthly retirement benefits paid to the estate. Michael objected, and the Board denied the application. Upon administrative review,1 the superior court granted summary judgment to the personal representative, ruling that the share of Michael’s retirement benefits awarded to Caren was her separate property, citing Koelsch v. Koelsch, 148 Ariz. 176, 713 P.2d 1234 (1986), and was thus subject to the laws of descent and distribution. See A.R.S. §§ 14-2101 through 14-2907.

¶3 We affirmed that ruling on appeal, rejecting Michael’s and the Board’s arguments that the antiassignment provisions of § 38-850(0 barred Caren from devising her share of the retirement benefits to her parents and that her share was a mere expectancy and thus uninheritable. While review of our decision was pending, the supreme court decided Parada, which also involved this pension plan and the antiassignment provisions of § 38-850(C). The court then granted review of our decision and remanded this case for our reconsideration.

¶ 4 In his supplemental brief,2 Michael renews his argument that Caren’s testate disposition of her share of his retirement benefits is void under § 38-850(C). The relevant part of the statute provides:

Benefits ... payable under this system shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to actually being received by the person entitled to the benefit, contribution, earning or credit, under the terms of the system, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any such right hereunder shall be void.

Michael asserts that, because Parada makes clear that the statute invalidates a purported assignment of the pension plan’s death benefits, Caren’s “attempted ‘assignment,’ ‘transfer,’ or ‘other disposition’ of the retirement benefits ... [is] likewise void.” The personal representative and Caren’s parents respond that Parada is not controlling because it concerned only the plan’s death benefits, not its retirement benefits. We agree that Parada has limited application here, given its factual posture and underlying rationale.

¶ 5 In Parada, the dissolution decree awarded the wife, Guillermina, one-half of the husband’s, Raul’s, retirement benefits in the pension plan. Raul later remarried and then died. The surviving spouse, Ana, re[139]*139fused to pay Guillermina one-half of the death benefits, even though Ana had executed an assignment providing otherwise. The trial court and this court agreed that § 38-850(C) precluded Ana’s assignment of the death benefits, but we held that Guillermina had an interest in those benefits to the extent that she had not received her full community share of Raul’s retirement benefits. A majority of the supreme court disagreed with our holding, concluding that the language of the statute establishing the plan’s death benefits, § 38-846, “deprives an ex-spouse of any right or claim to death benefits under the plan.” Parada, 196 Ariz. 428,¶ 21, 999 P.2d 184, ¶ 21. But, from our reading of Parada, we discern nothing in the court’s analysis that would suggest its conclusion also applies to the plan’s retirement benefits, the only benefits at issue here.3

¶ 6 The court’s analysis recognized that, under Koelsch, pensions that are “paid for with community funds or earned with community effort ... [should] be treated as community property,” absent “ ‘clear and unequivocal language’ ” that the legislature intended to deprive a former spouse of his or her community interest. Parada, 196 Ariz. 428, ¶¶ 16, 17, 999 P.2d 184, ¶¶ 16, 17, quoting Koelsch, 148 Ariz. at 180, 713 P.2d at 1238. The Parada court found such an intent as to the plan’s death benefits after reviewing the various provisions of § 38-846.

[Under the statute,] the employee may not designate a primary beneficiary. Instead, benefits are paid to his or her “surviving spouse,” and thereafter to eligible children. Remaining amounts, if any, go to a residual or “refund” beneficiary that can be named by the employee. See A.R.S. § 38-846(B), (C), (E), and (F)....
Survivors’ benefits are paid only after the community has been terminated [by death]. The employee spouse cannot control who receives the payments and does not enjoy any part of them. The employee also may not transfer or devise his or her “share” of the asset The legislature has determined who must receive these benefits ____

Parada, 196 Ariz. 428, ¶¶ 18, 19, 999 P.2d 184, ¶¶ 18, 19 (citation omitted). The court thus determined that “the intent behind this statute is to. provide for current survivors of plan members, even at the expense of community property interests of former spouses.” Id. at ¶25. It is apparent, however, that this déviation from the general rule enunciated in Koelsch resulted solely from the court’s determination that the language of § 38-846 clearly and unequivocally demonstrates a legislative intent to deprive former spouses of their community interest in the plan’s death benefits.

¶ 7 We find no similar language in § 38-845, the statute establishing the plan’s retirement benefits.

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Snyder v. TUCSON POLICE PUB. SAF. RET. SYS.
32 P.3d 420 (Court of Appeals of Arizona, 2001)

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Bluebook (online)
32 P.3d 420, 201 Ariz. 137, 357 Ariz. Adv. Rep. 22, 2001 Ariz. App. LEXIS 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snyder-v-tucson-police-public-safety-personnel-retirement-system-board-arizctapp-2001.