State ex rel. Hanrahan v. Zupnik

111 N.E.2d 42, 64 Ohio Law. Abs. 463, 51 Ohio Op. 405, 1952 Ohio Misc. LEXIS 349
CourtCuyahoga County Common Pleas Court
DecidedJune 19, 1952
DocketNos. 602097, 602098, 602099, 602100
StatusPublished
Cited by2 cases

This text of 111 N.E.2d 42 (State ex rel. Hanrahan v. Zupnik) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Hanrahan v. Zupnik, 111 N.E.2d 42, 64 Ohio Law. Abs. 463, 51 Ohio Op. 405, 1952 Ohio Misc. LEXIS 349 (Ohio Super. Ct. 1952).

Opinion

OPINION

By HOOVER, J.

These are four mandamus cases. Each is a group action to enforce pensions. Two cases involve police pensions. Two [465]*465eases involve firemen’s pensions. In each case, the respondents are the particular pensions fund’s trustees, its custodian and the City of Cleveland. The facts are all agreed. Only questions of law are presented. Firemen’s pensions are governed by §4600 GC, et seq. Police pensions are governed by §4616 GC, et seq.

One of the police cases and one of the firemen’s cases involves pensioners who were qualified and placed on the respective pension payrolls prior to May 26, 1937. The other police case and the other firemen’s case involves pensioners who were qualified and placed on the respective pension payrolls after May 26, 1937.

May 26, 1937 is an important date because it was the effective date of the so-called “vested rights” statutes (§4612-1 GC as to firemen pensions and §4628-1 GC as to police pensions). The rights of those who became pensioners before that date and the rights of those who became pensioners after that date are governed by slightly different principles. Two classes of pensioners were created by those statutes. State, ex rel. Cunst v. Trustee et al, 150 Oh St 377, 379. These two groups will be referred to as the “before vested right statute group” and the “after vested right statute group.”

Due to lack of funds, there were certain months in between the years 1940 to 1946 when no payments or only partial payments were made to police pensioners; and certain months in between the years 1945 to 1946 when no payments or only partial payments were made to firemen pensioners. However, during those years the pension trustees of each fund did distribute to pensioners all the money that was in the fund. At the time these actions were brought in 1949, due to replenishment there were on hand in the respective pension funds sufficient money to pay these so-called past delinquencies as well as all other presently due obligations.

Defendants say that during each so-called delinquent year every step required by law to be taken to raise money to pay pensions was taken; that all money raised was wholly distributed during each such year; and that whenever the trustees in any one year have distributed all the money on hand during that year, their obligation to the pensioner for that year is forever discharged even though the distribution was not sufficient to pay him the full amount of his pension for that year. The relators deny any such automatic chopping-off of their rights at the end of. each calendar year. Relators say that these pensioners have a vested right to a definite amount, that the inability of the fund in any one year fully to pay that amount does not destroy the obligation and that [466]*466the delinquencies must be paid at any later time when sufficient money is available to pay them.

To the defendants, a pension is a matter of each calendar year being a separate little compartment of business unto itself. To the relators, each year cannot hide behind its own little sort of corporate entity; it is a matter of one, continuing single business being responsible for its obligations whether they were incurred this year or last year or the year before.

We first discuss the “after vested right statute group.” Secs. 4612-1 and 4628-1 GC, applying respectively to firemen’s pensions and police pensions and known as the “vested right” statutes, provided in the forms thereof that became effective on May 26, 1937:

“The granting of a pension to any person hereafter pursuant to the rules adopted by the trustees shall operate to vest a right in such person, so long as he shall remain the beneficiary of such pension fund, to receive such pension at the rate so fixed at the time of granting such pension.” There is no denying it because the statutory words are specific — the effect of the statute is to “vest a right” — The standard definition of “vest” is “To give an immediate fixed right of present or future enjoyment.” Accordingly he who became a pensioner on or after May 26, 1937 (unless there was some statutory modification before he became a pensioner) got an immediate fixed right. It was a right to receive a pension. It was a right to receive it at a fixed rate. It was a right to receive it at the rate fixed at the time the pension was granted.

The only conditions to vesting imposed by the statute are (1) that a pension be granted and (2) that this granting be pursuant to rules adopted by the trustees. These conditions were met as to this “after vested right statute group.” The vested right continues so long as the grantee remains a beneficiary of the fund. This requirement too was met by this group.

Note that the statute does not impose any other condition. The vested right to receive a pension payment due in any year at a fixed rate is not made dependent upon the size or condition of the fund in any year, nor upon the amount of collections in any year, nor upon payment from collections made in any year, nor upon there being enough in the fund in any year to meet all the pension payments coming due that year, nor upon payment out of money derived from any particular source. The statute does not say that this vested right to receive fixed pension payments due in any year is discharged if there is no money in the fund or if the money is all paid out in any year.

[467]*467We have no right to clutter this clear statute with conditions. If we started reading into this statute any one of these conditions that are not there we could just as well read into it all the others that are not there, and a right that the statute intended to guarantee would vanish instead of vest. The purpose of pension statutes is the humane one of caring for people. The purpose of the “vested right” statutes is to make that care effective by providing these people with something definite on which they can count. Their purpose is to do away with the gnawing, destructive, nerve-wracking peril of uncertainty. Respondents would have us restore the uncertainties that the “vested right” statutes remove. These statutes remove this awful business of constantly being kicked around by harrowing uncertainty. They do it by imposing a fixed obligation. The fixed right of a pensioner to receive a fixed pension is not destroyed by the fund being temporarily out of money, any more than is a creditor’s right to payment impaired because his debtor is temporarily embarrassed.

A pension fund is only one fund. It is not a series of separate funds made up of money received in separate calendar years or a series of separate funds made up of money derived from separate sources or a series of separate funds with separate beneficiaries. All money goes into one till un-earmarked except to pay fund obligations. To quarter or carve up the fund would be to quarter or carve up some needy persons’ human rights.

There is no doubt that the present size of the pension funds and the present availability of money to pay past delinquencies are in great measure due to contributions made by the state pursuant to the state subsidy statute, §4631-4 GC, which became effective on September 25, 1947. Respondents contend that money derived from this source cannot be used to pay such delinquencies. We fail to find that the legislature has clamped any such shackles on its use. Essentially the statute merely says that the subsidy money shall be paid to the pension fund. The statute does not specify for what the subsidy money shall be used or for what it shall not be used.

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Cite This Page — Counsel Stack

Bluebook (online)
111 N.E.2d 42, 64 Ohio Law. Abs. 463, 51 Ohio Op. 405, 1952 Ohio Misc. LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-hanrahan-v-zupnik-ohctcomplcuyaho-1952.