Greene v. Public Emp. Retirement Ass'n

• Decision Date: 30 June 1977
• Docket Number: No. 76-711,76-711
• Citation: 39 Colo.App. 468,570 P.2d 24
• Parties: Vera GREENE, Plaintiff-Appellee, v. PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION; Mark E. Schwartz, Adrian Williamson, John E. Moreland, Thomas D. Lindquist, Barclay Watson, Margaret Whilden, Ada Houck, Carl Wilkerson, Arthur Croissant, Bernal Brooks, Wilborn S. Whitehead, Mary E. Buchanan, Sam Brown and John Proctor, Individually and as Members of the Public Employees' Retirement Association, Defendants-Appellants, and Lisa Marie Greene, by her next friend Jere M. Greene, and James Greene, Defendants. . I
• Court: Colorado Court of Appeals

Page 24

570 P.2d 24

39 Colo.App. 468

Vera GREENE, Plaintiff-Appellee, v. PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION; Mark E. Schwartz Adrian Williamson, John E. Moreland, Thomas D. Lindquist Barclay Watson, Margaret Whilden, Ada Houck, Carl Wilkerson Arthur Croissant, Bernal Brooks, Wilborn S. Whitehead, Mary E. Buchanan, Sam Brown and John Proctor, Individually and as Members of the Public Employees' Retirement Association Defendants-Appellants, and Lisa Marie Greene, by her next friend Jere M. Greene, and James Greene, Defendants.

No. 76-711.

Colorado Court of Appeals, Div. I.

June 30, 1977.

Rehearing Denied July 28, 1977.

Certiorari Granted Oct. 11, 1977.

Feder & Morris, P. C., Katherine Tamblyn, Denver, for plaintiff-appellee. J. D. MacFarlane, Atty. Gen., Jean E. Dubofsky, Deputy Atty. Gen., Edward G. Donovan, Sol. Gen., Mary A. Rashman, Asst. Atty. Gen., Denver, for defendants-appellants.

COYTE, Judge.

Defendant, the Public Employees' Retirement Association (PERA), appeals the district court judgment declaring plaintiff to be entitled to certain funds held by defendant. We affirm the judgment.

Plaintiff was the second wife of Donald Greene, who, prior to his death, was a teacher in the State college system and a member of PERA. As the designated beneficiary of her deceased husband's retirement plan, plaintiff requested payment of decedent's accumulated deductions or contributions pursuant to § 24-51-117(1), C.R.S. 1973. PERA concluded that, inasmuch as the decedent was also survived by the minor children of his former marriage, plaintiff was not eligible for a refund of decedent's contributions, although she would be eligible for an annuity at the age of 62 provided she had not remarried.

Plaintiff subsequently commenced this action for declaratory judgment. The district court held that, in conformance with the applicable statutory provisions, PERA was obligated to make the requested payment. We agree.

Section 24-51-117(1), C.R.S. 1973 provides that a member of PERA may designate one or more beneficiaries under the plan. If the member dies without receiving an annuity, "an amount equal to the total of his accumulated deductions shall be paid in one lump sum to the beneficiaries designated by such member . . ." The member's interest in the fund is deemed to be personal, and his designation of a beneficiary will be given the intended legal effect in accordance with contractual principles analogous to those governing the designation of beneficiaries in life insurance contracts. See, e. g., Caravaggio v. Retirement Board of the Teachers' Retirement System, 36 N.Y.2d 348, 368 N.Y.S.2d 475, 329 N.E.2d 165 (1975); Gunsaulis v. Tingler, 218 N.W.2d 575 (Iowa 1974); Di Dio v. Board of Trustees of the Milwaukee Public School Teachers' Annuity and Retirement Fund, 38 Wis.2d 261, 156 N.W.2d 418 (1968); see generally Annot., 5 A.L.R.3d 644.

Here, relying on §§ 24-51-803 et seq., C.R.S. 1973, which provides for the payment of annuities to statutorily specified survivors, PERA determined that the existence of other persons eligible for survivors' benefits under the system would defeat plaintiff's claim for a refund of the accumulated deductions. We hold, to the contrary, that plaintiff's claim does not depend on the rights of other potential claimants and that she is presently entitled to the refund.

PERA's construction of § 24-51-117(1) and § 24-51-803, C.R.S. 1973, would render ineffective the plain language of the former provision conferring...