Frietzsche v. First Western Bank Etc. Co.

California Court of Appeal Mar 17, 1959 No. Civ. No. 18018Published

Before: Bray

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Holding. The court held that the defendant's pension plan was designed for retirement benefits rather than death benefits, and because the deceased employee had not reached the age of eligibility for a pension, his widow was not entitled to benefits under the plan.

Issues

Is a widow entitled to a pension under a plan that provides for retirement benefits but not death benefits?
Does a pension plan's optional beneficiary provision create a new pension right for a widow if the deceased employee was not yet eligible for a pension?

Disposition. affirmed

Quotations verified verbatim against the opinion

“The plan is geared to retirement benefits. There is no language indicative of an intent to confer death or prospective retirement benefits on a deceased employee's widow.”

“It is clear one must first be eligible for a pension under section 6 (a), 6 (b) or 6 (c) in order for section 6 (d) to be applicable.”

“There cannot be a "continuance" of payments until payments start, and for the widow to have a pension the employee husband must first be entitled to a pension.”

168 Cal.App.2d 705 (1959) HELEN D. FRIETZSCHE, Appellant,

FIRST WESTERN BANK AND TRUST COMPANY (a Corporation), Respondent.

Civ. No. 18018. California Court of Appeals. First Dist., Div. One.

Mar. 17, 1959. Courtney L. Moore and William A. Lahanier for Appellant.

Orrick, Dahlquist, Herrington & Sutcliffe for Respondent.

BRAY, J.

Plaintiff appeals from a judgment entered on an order sustaining demurrer to her complaint without leave to amend. [706]

Question Presented

Is plaintiff widow entitled to a pension under defendant's pension plan? In substance, this question depends upon whether the plan is for retirement benefits or death benefits.

Facts

Plaintiff's deceased husband, Albert, was employed by defendant from 1918 until his death July 15, 1955. He was then 54 years and 6 months of age, and a vice president. Defendant's pension plan was then in effect. Albert designated plaintiff as a beneficiary under section 6(d) of the plan, hereafter quoted. Plaintiff sued for declaratory relief and also for monthly payment of half the amount Albert would have received upon retirement after he reached the age of 55. (It will be noted that he died before reaching that age.)

Was the Plan a Death Benefit One?

An examination of it clearly shows that it was not. The sections of the plan principally involved here are sections 6(c) and 6(d).

"(c) Deferred pension on termination of service. If, upon termination of service prior to his normal retirement date, a member has attained the age of forty-five (45) years and has completed an aggregate of fifteen (15) years or more of credited service, he shall be entitled, at normal retirement date, if then living, to receive a pension which shall be the actuarial equivalent of that portion of his normal pension which shall have accrued at the time of termination of his service. ..."

Frietzsche v. First Western Bank Etc. Co.

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BRAY, J.

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