Keegan v. Board of Trustees of Ill. Municipal Retirement Fund

• Decision Date: 22 May 1952
• Docket Number: No. 32267,32267
• Citation: Keegan v. Board of Trustees of Ill. Municipal Retirement Fund, 107 N.E.2d 702, 412 Ill. 430 (Ill. 1952)
• Parties: KEEGAN v. BOARD OF TRUSTEES OF ILLINOIS MUNICIPAL RETIREMENT FUND.
• Court: Illinois Supreme Court

Page 702

107 N.E.2d 702

412 Ill. 430

KEEGAN v. BOARD OF TRUSTEES OF ILLINOIS MUNICIPAL RETIREMENT FUND.

No. 32267.

Supreme Court of Illinois.

May 22, 1952.

Rehearing Denied Sept. 15, 1952.

Ivan A. Elliott, Atty. Gen. (William C. Wines, and John T. Coburn, Chicago, of counsel), for appellant.

Hollerich & Hurley, of La Salle, for appellee.

MAXWELL, Justice.

This case is an appeal from an order of the circuit court of La Salle County, reversing and remanding, under the Administrative Review Act, an order of the Board of Trustees of the Illinois Municipal Retirement Fund.

The plaintiff is beneficiary of all death benefits accruing to one Katherine Keegan, a participant in the Illinois Municipal Retirement Fund, who, during her lifetime, was employed by the board of education of School District 120 of La Salle County, as secretary of the board. On January 1, 1947, School District 120 became a participating municipality under the provisions of the Illinois Municipal Retirement Fund Act. (Ill.Rev.Stat. 1945, chap. 24, par. 1175 et seq.) Katherine Keegan died on October 12, 1947, having contributed to said fund less than one year.

At the time that Katherine Keegan became a participant in the fund, (January 1, 1947,) the statute provided for death benefits for employees of participating municipalities of 'an amount equal of the sum of the accumulated additional and normal credits of such employee on the date of death, and an amount equal to the excess of an annual payment of earnings at the final rate of earnings, over the accumulated normal credits at such time.' (Ill.Rev.Stat. credits at such time.' (Ill.Rev.Stat.1945, chap. 24, par. 1187(b)1.) Subsequent and before her death, the legislature, on July 21, 1947, amended the pertinent provisions of the act to read 'an amount equal to the sum of the accumulated additional and normal credits of such employee on the date of death, and if the employee has contributed to this Fund for at least one year an additional amount equal to the excess of an annual payment of earnings at the final rate of earnings, over the accumulated normal credits at such time.' Ill.Rev.Stat. 1947, chap. 24, par. 1187(b) 1.

The facts are not in dispute. Katherine Keegan became a participant January 1, 1947. During the time she was a contributing participant, on July 21, 1947, the statute was amended. She died on October 12, 1947, having contributed to the fund less than one year. The parties stipulated that her accumulated normal credits in the fund on the date of her death amounted to $67.49; that there was an overpayment of normal contributions of 72 cents; that there were no additional credits in her account in said fund; that if plaintiff is entitled to the additional death benefit it would amount to $2295.57, making the total of the normal credits, the overpayment, and the additional death benefit the sum of $2363.78.

The Board of Trustees of the Municipal Retirement Fund, by resolution dated November 28, 1947, authorized the payment to the plaintiff as beneficiary of Katherine Keegan the sum of $68.21, the amount of the normal credits and the overpayment. Plaintiff requested a reconsideration of her claim and the board, by resolution of February 24, 1950, sustained its previous ruling and tendered payment. Plaintiff refused to accept payment and, on March 30, 1950, filed her complaint under the Administrative Review Act in the Circuit court.

The plaintiff alleged in her complaint that prior to April 2, 1946, all the employees of School District 120, including Katherine Keegan, voted unanimously to participate in the fund, and that the election of Katherine Keegan to participate in the fund constitutes a contract between said Katherine Keegan and the State and that, therefore, the rights of Katherine Keegan in the fund became vested as of the time of her participation. The defendant filed a motion to strike and dismiss the complaint alleging that the provisions of the act as of the time of participation of Katherine Keegan did not create a contract, and that the subsequent amendment controls the disposition of all benefits due and owing to plaintiff as beneficiary of Katherine Keegan. Defendant also filed a motion to strike that portion of plaintiff's complaint alleging that the employees of School District 120 voted to participate in the fund, contending that such election by the employees was not required or authorized by the act and therefore was immaterial to the issues. The trial court overruled defendant's motion, defendant elected to stand thereon and the trial court entered an order reversing the board and remanding the cause to the board with instructions to pay plaintiff the sum of $2363.78 as the sum due her as beneficiary of Katherine Keegan's death benefits under the act. The defendant has appealed to this court, the public revenue being involved.

The sole question presented in this case is whether Katherine Keegan had a vested contractual interest in the Illinois Municipal Retirement Fund at the time of her participation therein, which the legislature could not constitutionally take from her by a subsequent amendment of the act.

The appellee contends that the provisions of the act as ...