Knight v. BD. ETC. EMPLOYEES'RETIREMENT

CARTER, J.

The controversy here presented involves the validity of the 1947 legislation establishing a retirement system for members of the state Legislature. (Gov. Code, § 9350 et seq., as added by Stats., 1947, ch. 879.) There is a state employee’s retirement system administered by a state agency (Gov. Code, § 20000 et seq.) and it is provided that the legislator ’s retirement system be administered by the same agency. (Gov. Code, § 9353.)

Various constitutional provisions are invoked by respondents as invalidating the legislation: First, ‘ ‘ The members of the Legislature shall receive for their services the sum of one hundred dollars each for each month of the term for which they are elected, to be paid monthly in the even numbered years and to be paid during the regular legislative session in the odd numbered years at such times as may be provided by law and mileage to be fixed by law, all paid out of the State Treasury, such mileage not to exceed five cents per mile.” (Cal. Const., art. IV, §23.) Second, “Members of the Legislature shall receive no compensation for their services other than that fixed by the Constitution but each member shall be allowed and reimbursed expenses necessarily incurred by him while attending regular, special and extraordinary sessions of the Legislature. The amount of the expenses necessarily incurred by the respective members, while attending any such sessions, shall be determined and payment thereof provided for by joint rules of the Senate and Assembly. Such expense allowances may equal but shall not exceed the expense allowances now authorized for other elected State officers.” (Cal. Const., art. IV, § 23b.) It is reasoned by respondents that payments made under a retirement system, that is, pensions to employees or officers, are, in effect, compensation for services; that the compensation allowable to legislators is limited by the above-quoted provisions of the

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Constitution; and that hence, pensions cannot he given to members of the Legislature.

On the other hand those constitutional provisions, argues petitioner, do not control or are modified by a third provision of the Constitution reading: “The Legislature shall have power to provide for the payment of retirement salaries to employees of the State who shall qualify therefor by service in the work of the State as provided by law. The Legislature shall have power to fix and from time to time change the requirements and conditions for retirement which shall include a minimum period of service, a minimum attained age and minimum contribution of funds by such employees and such other conditions as the Legislature may prescribe, subject to the power of the Legislature to prescribe lesser requirements for retirement because of disability. ...” (Cal. Const., art. IV, § 22a); that the phrase “employees of the state” as used therein, properly interpreted, is sufficiently broad to embrace members of the Legislature; that thus the first and second constitutional provisions with reference to compensation above quoted, are modified to the extent of permitting a retirement system for legislators. We believe those contentions are sound.