Dabagh v. State Employees' Retirement System

SCHOTTKY, J. The State Employees’ Retirement System of the State of California has appealed from a judgment in a declaratory relief action in favor of Thomas S. Dabagh by which it was determined that he was entitled to have his retirement allowance computed on the entire salary earned by him while an employee of the Los Angeles County Law Library without the payment of contributions on salary in excess of $416.66 per month. The judgment also directed the retirement system to return the contributions paid under protest to the retirement system for such excess salary.

Margaret B. Dabagh, executrix of the last will of Thomas S. Dabagh, has been substituted in place of her deceased husband.

From 1939 to July 1, 1949, Thomas S. Dabagh was employed by the law library at a salary in excess of $416.66 per month. The law library was and is a contract member of the state retirement system.

Prior to October 1947, only the first $416.66 salary was considered for retirement benefits and only contributions based on this amount were required. By chapter 732 of the Statutes of 1947, effective September 19, 1947, section 20025 of the Government Code was amended and the salary ceiling was removed as to state employees who were given the opportunity to make contributions on the excess salary earned prior to October 1, 1947. By the same statute a local agency could amend its contract with the retirement system to provide for benefits on the entire salary earned by its employees. Again the employees were given the right to make contributions based on the excess salary. In June 1949, the law library amended its contract and removed the salary ceiling. The amount of back contributions due from Dabagh, which he paid under protest, was $918.69.

On July 1, 1949, Dabagh left his job with the Los Angeles County Law Library and accepted employment with the University of California. He became a member of the state retirement system as a university member.

Effective October 1, 1949 (Stats. 1949, ch. 747), the state [824]enacted a statute which provided in part that any contributions made prior to the effective date of the act by any state member of the State Employees’ Betirement System pursuant to section 20025 of the Government Code, as the section existed prior to the effective date of- the' act, be -either refunded to the employee or credited to his account as additional contributions. This statute also withdrew the requirement of excess contributions as to state members. The statute did not purport to give similar relief to employees of contracting agencies.