Wisley v. City of San Diego

188 Cal. App. 2d 482, 10 Cal. Rptr. 765, 1961 Cal. App. LEXIS 2449
CourtCalifornia Court of Appeal
DecidedJanuary 25, 1961
DocketDocket Nos. 6187, 6188, 6189, 6190, 6191, 6192
StatusPublished
Cited by16 cases

This text of 188 Cal. App. 2d 482 (Wisley v. City of San Diego) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wisley v. City of San Diego, 188 Cal. App. 2d 482, 10 Cal. Rptr. 765, 1961 Cal. App. LEXIS 2449 (Cal. Ct. App. 1961).

Opinion

SHEA, J. pro tem. *

These are six consolidated cases involving pension rights of the plaintiffs. The Wisley and Woodward eases are actions by retired policemen and firemen to recover excess salary deductions. The Woods and Wright cases are actions by active members of the police and fire departments to recover excess salary deductions and to have a judicial declaration of their present and future pension rights. The Klein and Donnelly cases are actions by retired policemen and firemen to recover unpaid pension benefits as well as excess salary deductions.

The plaintiffs sought and recovered judgments on the ground that their pension rights became vested at the time they were employed by the city; that the amount each was required to contribute to the retirement fund was fixed at that time; and that various charter amendments which increased the percentage of salary deductions for pension purposes were illegal as applied to the plaintiffs.

In 1923 the then existing pension system of the city of San Diego was changed and policemen and firemen were required to contribute one per cent monthly by salary deduction into the pension fund. In 1931 the city of San Diego adopted a charter which made provision for pensions and increased the monthly salary deduction from 1 per cent to 2 per cent; by charter amendments in 1935 the deductions were increased from 2 per cent to 4 per cent; in 1945 from 4 per cent to 6 per cent; and in 1947 the amount was increased from 6 per cent to 8 per cent.

The trial court found that none of the amendments which increased the amount and percentage of the salary deductions was accompanied by the addition of any corresponding or commensurate advantages of any kind. The court concluded *485 that the maximum amount that could legally he deducted from the employees’ gross pay was that percentage which was in effect at the time each of the individual plaintiffs was originally employed. The court further concluded that the excess deductions were the result of a mutual mistake of fact; that the defendants were holding such excess in trust for each of the plaintiffs; and that the defendants are obligated to account to the plaintiffs for such sums plus interest. Interlocutory judgments were entered fixing the percentage of contribution each plaintiff was required to pay when he was first employed and directing the defendants to prepare and file a statement of account of the amounts that had been deducted in excess of that percentage.

In four of the cases the court also decreed that certain plaintiffs were entitled to a fluctuating pension rather than the fixed monthly pension they had been receiving and ordered an accounting for the difference. In the other two cases this had already been done in a prior action. With respect to the plaintiffs who had not yet retired, the court also gave a declaratory judgment defining their future pension rights.

The various accountings were subsequently made and money judgments were entered for each plaintiff for the amount of excess salary deductions plus interest. Judgments were also given for the recovery of unpaid pension benefits in the eases of those plaintiffs who were determined to be entitled to a fluctuating rather than a fixed pension.

The defendants have appealed from the entire judgment. However, the only point raised in the briefs is whether or not the increases in the percentage of salary deductions were reasonable and constitutional. The defendants contend that the plaintiffs had the burden of proving that the charter amendments which increased the amount and percentage of the salary deductions were unreasonable and unconstitutional and that, as a matter of law, the plaintiffs have not sustained their burden of proof.

Where a city charter provides for pensions, it is well settled that the pension rights of the employees are an integral part of the contract of employment and that these rights are vested at the time the employment is accepted. An amendment to the charter which attempts to take away or diminish these vested rights is an unconstitutional impairment of contract. However, this does not preclude reasonable modifications of the pension plan prior to the employees’ retirement. Reasonable modifications are often necessary in order that the *486 pension system may be kept flexible, to permit adjustments in accord with changing conditions and to maintain the integrity of the system in order to carry out its beneficent purpose. (Kern v. City of Long Beach, 29 Cal.2d 848 [179 P.2d 799].) To be sustained as reasonable, alterations of the employees’ pension rights must bear some material relationship to the theory of a pension system and its successful operation, and changes which result in a disadvantage to the employees should be accompanied by comparable new advantages. (Allen v. City of Long Beach, 45 Cal.2d 128, 131 [287 P.2d 765].) The validity of attempted changes in vested pension rights depends upon the advantage or disadvantage to the individual employee whose rights are involved, and benefits to other employees cannot offset detriments imposed upon those whose pension rights have accrued. (Abbott v. City of Los Angeles, 50 Cal.2d 438, 453 [326 P.2d 484].)

It is obvious that the increase in the percentage of the employee’s contribution to the retirement fund is a detriment, and it is undisputed in this ease that by successive amendments these contributions were gradually increased from 1 per cent to 8 per cent. It thus becomes necessary to ascertain whether these detriments have been accompanied by commensurate benefits to the employees. While the defendants concede that the 1935 amendment did nothing more than increase the salary contribution from 2 per cent to 4 per cent and conferred no commensurate benefit to the employees, the defendants contend that through the years there has been a continual expansion of pension benefits for all employees and that these expanded benefits make the increases in salary contributions reasonable. In support of this contention, they have set forth an historical chronology of the changes that have been enacted in the San Diego pension system since its inception. This chronology is almost identical with the one that was considered by this court in Abbott v. City of San Diego, 165 Cal.App.2d 511 [332 P.2d 324]. In fact, a comparison of the briefs shows that, with a few minor exceptions, the chronology recited in this case is a verbatim repetition of the one set forth in the Abbott v. City of San Diego case. A description of the nature and extent of the statutory changes in the pension program is amply set forth in that case at pages 518 and 519, and it need not be repeated here. It will suffice to say that in Abbott v. City of San Diego, supra, this court held that in the recital of historical changes in the pension program it was not *487

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Bluebook (online)
188 Cal. App. 2d 482, 10 Cal. Rptr. 765, 1961 Cal. App. LEXIS 2449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wisley-v-city-of-san-diego-calctapp-1961.