Wehmeier v. Public School Retirement System

631 S.W.2d 893, 4 Educ. L. Rep. 315, 1982 Mo. App. LEXIS 2846
CourtMissouri Court of Appeals
DecidedMarch 2, 1982
DocketNo. 43584
StatusPublished
Cited by9 cases

This text of 631 S.W.2d 893 (Wehmeier v. Public School Retirement System) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wehmeier v. Public School Retirement System, 631 S.W.2d 893, 4 Educ. L. Rep. 315, 1982 Mo. App. LEXIS 2846 (Mo. Ct. App. 1982).

Opinion

PUDLOWSKI, Judge.

This appeal is brought by the plaintiff-appellant, Arthur E. Wehmeier, from a judgment entered by the circuit court of St. Louis County on September 23, 1980. Essentially, appellant is challenging the denial by respondent (The Public School Retirement System of Missouri) of creditable service in the Missouri Retirement System purchased by appellant on the basis of his out-of-state teaching service in the State of Illinois. The facts are as follows.

Appellant was a member of the Illinois State Teachers’ Retirement System from 1939 through 1942, and 1946 through 1951. From 1943 to 1946 appellant was in the Armed Forces of the United States, for which he received service credit in the Illinois Retirement System. When he left Illinois in 1951, appellant had fifteen years of service credit. Under Illinois law in 1951 the appellant would become eligible with fifteen years of service credit, to receive retirement benefits upon reaching the age of sixty. Ill.Rev.Stat., ch. 122 § 25-49(1) (1951). Appellant could forfeit his future benefits in two ways. First, he could demand a refund of his contributions to the Illinois Retirement System under Ill.Rev. Stat., ch. 122 § 25-58(1) (1951). Second, appellant could forfeit his Illinois service credit and thus his future benefits, if he used it for credit in any other statutory public school teachers’ retirement system. Ill.Rev.Stat., ch. 122 § 25-44(7) (1951). Appellant’s rights under Illinois law remained substantially unchanged through his retirement in Missouri in 1976.

Appellant became a member of the respondent-retirement system in 1952. On June 21,1955 appellant made application to the respondent to purchase Missouri service credit (creditable service) on the basis of his Illinois service credit pursuant to 1953 Mo. Laws, §§ 169.050(7) and (8), pp. 485-486.1 A member of the Missouri Retirement System may elect to purchase up to ten years of membership service credit in the system [895]*895for service rendered by the member as a teacher outside of Missouri after 1946; “provided he is not receiving and is not eligible to receive retirement credit or benefits for such service in any other teacher retirement system 169.050(7). The statute goes on to provide that:

The purchase shall be effected by the member paying to the retirement system with interest the amount he would have contributed thereto had he been a member for the number of years for which he is electing to purchase credit .... The payment may be made over a period not longer than the period of membership service credit being purchased, measured from the date of election ....

§ 169.050(7).2

On June 24, 1955 the executive secretary of respondent acknowledged by letter' receipt of appellant’s application, and informed appellant of the conditions which must be met before completion of the service credit purchase.3 First, appellant must pay the contributions required by statute prior to June 23, 1961. Second, appellant must serve in a district included in respondent-retirement-system after the effective date of § 169.050 for as many years as the years of service credit claimed. Third, appellant may not purchase credit if he is receiving, or is eligible to receive retirement credit or benefits from another retirement system. In addition to the conditions outlined above, respondent informed appellant that credit for teaching services out of Missouri would not be allowed to respondent until he applied for retirement.

Appellant paid in full the required contributions on June 15, 1961.4 He also served in a district included in the retirement system more than the number of years necessary to allow his purchase of service credit. Both parties agree that the first two conditions to the purchase were satisfied. When appellant made his election to purchase service credit in 1955 he certified that he was not receiving and was not eligible to receive retirement credit or benefits in any other teacher retirement system. From the time appellant became a member of the respondent-retirement-system in 1952 until his retirement in 1976, he made no attempt to forfeit his service credit in Illinois by applying for a refund of his contributions to the Illinois Retirement System.

In 1976 appellant was sixty years old, and applied for retirement. At this time respondent sent a questionnaire to the Illinois Retirement System asking if appellant was eligible to receive retirement credit or benefits from the Illinois Retirement System. Illinois responded that, since the appellant had fifteen years of service credit and had reached the age of sixty, he was eligible to receive monthly retirement benefits. The Illinois Retirement System subsequently informed the respondent that appellant is not eligible for retirement benefits if his Illinois credit is or will be used as credit in another statutory public employee retirement system.

Upon receipt of this information the respondent disallowed appellant’s purchase of creditable service on the basis that appellant was eligible to receive retirement credit or benefits from the Illinois Retirement System. In addition respondent refused to allow appellant to forfeit his Illinois service credit in order to qualify for the purchase. On appeal to the circuit court, County of St. [896]*896Louis, the trial court held that the appellant was eligible to receive from Illinois retirement credit or benefits in 1955, and that appellant may not forfeit his Illinois credit to qualify for the purchase of membership credit in the respondent-retirement-system. This appeal followed.

In order to arrive at a proper resolution of the issues in this case it is imperative that we first define the rights and duties of the parties, and determine when those rights and duties arose. Initially we note that the Missouri legislature established contractual rights for members of the Public School Retirement System of Missouri when it created that system. State ex rel Phillip v. Public School Retirement System, 364 Mo. 395, 262 S.W.2d 569, 578 (1953). The legislation contains a statutory offer of retirement benefits to certain public school employees. The offer is accepted by the employee when he becomes a member of the retirement system and begins compliance with the statutory conditions. State ex rel Phillip v. Public School Retirement System, supra. This is not to say that the employee’s right to retirement payments vests at the time of acceptance. “A condition is an event, not certain to occur, which must occur, unless its non-occurrence is excused, before performance under a contract becomes due.” Restatement (Second) of Contracts § 224 (1979). Thus, at acceptance a valid contract is formed, but the employee-member’s right to receive retirement benefits does not finally vest until said member has fully complied with the statutory conditions. Atchison v. Retirement Board of Police Retirement System, 343 S.W.2d 25, 34 (Mo.1960). In other words, the retirement system is not obligated to pay retirement benefits to a member until the member satisfies the conditions prescribed by statute.5

With these general principles in mind we now turn to examine §§ 169.050(7) and (8).

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Bluebook (online)
631 S.W.2d 893, 4 Educ. L. Rep. 315, 1982 Mo. App. LEXIS 2846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wehmeier-v-public-school-retirement-system-moctapp-1982.