Pree v. Board of Trustees of Firemen's Retirement System of City of St. Louis

• Decision Date: 13 April 1953
• Docket Number: No. 2,No. 43075,43075,2
• Citation: 363 Mo. 1131,257 S.W.2d 685
• Parties: PREE v. BOARD OF TRUSTEES OF FIREMEN'S RETIREMENT SYSTEM OF CITY OF ST. LOUIS
• Court: Missouri Supreme Court

Page 685

257 S.W.2d 685

363 Mo. 1131

PREE v. BOARD OF TRUSTEES OF FIREMEN'S RETIREMENT SYSTEM OF CITY OF ST. LOUIS.

No. 43075.

Supreme Court of Missouri, Division No. 2.

April 13, 1953 Motion for Rehearing or Transfer to Court en Banc Denied May 11, 1953.

James E. Crowe, City Counselor, Charles J. Dolan, Associate City Counselor, St. Louis, for appellant.

Michael J. Doherty, St. Louis, George W. Curran, St. Louis, for respondent.

TIPTON, Judge.

The respondent is the widow of John B. Pree who had been a member of the fire department of the city of St. Louis and who retired on January 8, 1951, at the age of 60 years. Since he was a member of the Firemen's Retirement System of St. Louis he was entitled to certain benefits of its pension plan. The appellant had determined that he was entitled to the sum of $14,053 on the date of his retirement, under the option he had elected to accept. He died on January 15, 1951. Respondent, who had been designated as his beneficiary in the event of his death, presented this claim to appellant, which was denied because he died within 30 days after his retirement. Appellant's decision was based upon its construction of section 34 of the ordinance that created the Firemen's Retirement System. In a certiorari proceedings in the circuit court of the city of St. Louis, the action of appellant was reversed and the appellant was ordered to pay $14,053 with interest to respondent. From this judgment the appellant has duly appealed.

The facts in this proceedings are not in dispute and we will adopt the findings of the trial court. They are as follows:

'That the Relatrix [respondent] is the widow of John B. Pree, a retired fireman. Pree was born on the 8th day of January in the year 1891. He became a member of the Fire Department of the City of St. Louis on the 1st day of March in the year 1918. He became a member of the Firemen's Retirement System of St. Louis, Missouri, on the 1st day of September in the year 1944. From September 1, 1944, until September 16, 1945, there was withheld each month from his salary as fireman, a sum in the amount of 6.39% of his salary, which sum was paid by the City of St. Louis into an annuity fund of the Retirement System and credited to the account of the said John B. Pree.

'From January 15, 1945, to January 3, 1951, there was withheld from his monthly salary a sum in the amount of 7.36%, which was paid into the annuity fund of the Retirement System and credited to the account of the said John B. Pree. The total amount so contributed from September 1, 1944, to January 1, 1951, was $1,358.50. Prior to September 1, 1944, the said John B. Pree had been a member of the Firemen's Pension Fund, to which he had contributed the sum of $606.00, which sum had been deducted from his monthly pay as an assessment. A prior service certificate was issued to Pree acknowledging said service.

'On the 20th day of December, 1950, the said John B. Pree made formal application in writing to the Board of Trustees of the Firemen's Retirement System of St. Louis for service retirement, in which he stated that the last day upon which he would receive compensation from the St. Louis Fire Department would be January 3, 1951, and in which he requested that his service retirement allowance become effective on the 8th day of January, 1951.

'In the month of December, 1950 (day unspecified) the said John B. Pree filed with the Firemen's Retirement System of St. Louis, in writing, his election to take his retirement allowance under Option 1 of the law governing the operation of the Retirement System.

'On December 27, 1950, the Board of Trustees of the Firemen's Retirement System approved the application of the said John B. Pree for retirement, effective on January 8, 1951.

'On January 15, 1951, the said John B. Pree died. Prior to his death the said John B. Pree had nominated his wife, Minnie Pree, by written designation duly acknowledged and filed with the Board of Trustees, as the person to receive the present value of his retirement allowance under Option 1.

'It has been determined by the actuary of the Retirement System that the value of the retirement allowance of the said John B. Pree at the time of his retirement was $14,053.00.

'Relatrix duly filed her claim and proof of death. Notice of claim and proof was duly served upon all interested parties.

'The Board heard and considered Relatrix claim on April 25, 1951 and denied the same on the same date.

'Relatrix duly filed her petition for Review in this Court as by law provided, Art. V., Sec. 22, Constitution 1945 Mo.R.S.A.

'No payments on account of the retirement allowance have been offered to or received by the Relatrix.'

Under authority of Sections 86.480 to 86.630 RSMo 1949, V.A.M.S. (enacted by the 62nd General Assembly and approved July 30, 1943), the city of St. Louis, by its ordinance No. 43009, approved June 26, 1944, created and established the Firemen's Retirement System of St. Louis. The language used in the several sections and subsections of the statutes and ordinance is similar.

The legislative intent as expressed both by the act of 1943 and the ordinance creating the Firemen's Retirement System was to provide a voluntary pension system for the members of the city fire department and their widows and orphans. A fireman was entitled to a pension when he had reached the age of 60, had 20 years of service or became disabled in service. It also provided for the widows and minor children of firemen who died in service. The retirement allowance to be paid a retired fireman who was 60 years old was derived from an annuity that was the actuarial equivalent of his accumulated contributions, and in addition thereto, a pension equal to one-one hundred fortieth of his average final compensation multiplied by the number of years he was in the service. If he had been in a pension system that was in existence prior to the creation of the Firemen's Retirement System of St. Louis, he was given a prior service certificate, and that entitled the retired fireman to one-seventieth of his average final compensation multiplied by the number of years of service as stated in his prior service certificate.

There were other methods of arriving at a pension due a retired fireman, depending on the reason for the retirement. It will serve no useful purpose to explain the various methods used in determining the amount of the pensions paid the retired firemen as it is conceded by appellant that if respondent's husband had lived 30 days after the date of his retirement, his pension would amount to $14,053.

The sole issue before us depends upon the proper interpretation of section 34 of this ordinance. It reads:

'Section Thirty-Four. With the provision that no optional selection shall be effective in case a beneficiary dies within thirty days after retirement, in which event such a beneficiary shall be considered as an active member at the time of his death; until the first payment on account of any benefit becomes normally due any beneficiary may elect to receive his benefit in a retirement allowance payable throughout life or he may elect to receive the actuarial equivalent at that time of his retirement allowance in a lesser retirement allowance payable throughout life, with the provision that:

'Option 1. If he dies before he has received in payments the present value of his retirement allowance as it was at the time of his retirement, the balance shall be paid to his legal representatives or to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees.'

We will not quote options 2, 3 and 4 as they are not involved in this...