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Thurston v. Q Judges /Q '' Retirement Plan6/16/1994
Admittedly, some of the Arizona cases dealing with this subject contain some confusing and possibly contradictory language. Yeazell holds that "subsequent legislation may not be arbitrarily applied retroactively to impair the contract." Yeazell, 98 Ariz. at 117, 402 P.2d at 546. However, we also read Yeazell as holding that when the amendment is beneficial to the employee or survivors, it automatically becomes part of the contract by reason of the presumption of acceptance. Id. Such beneficial amendments present no constitutional issue of impairment of contract, the usual focus of cases considering the validity of retirement fund amendments. See McClead v. Pima County, 174 Ariz. 348, 849 P.2d 1378 (App. 1992); Fund Manager v. City of Phoenix Police Dep't, 151 Ariz. 487, 728 P.2d 1237 (App. 1986). Where the modification is detrimental to the employee, it may not be applied absent the employee's express acceptance of the modification because it interferes with the employee's contractual rights. Yeazell, 98 Ariz. at 117, 402 P.2d at 546. Because the amendment in this case was beneficial to the employee and survivor, it became part of the contract.
At Judge Thurston's death, his contract provided that his surviving spouse was entitled to benefits equaling two-thirds of his monthly benefits. Because Mrs. Thurston qualifies as Judge Thurston's surviving spouse, she is entitled to receive those benefits.
Disposition
The trial court correctly granted Mrs. Thurston's motion for summary judgment. Accordingly, we affirm the judgment of the trial court and vacate the opinion of the court of appeals.
James Moeller, Vice Chief Justice
Stanley G. Feldman, Chief Justice
Robert J. Corcoran, Justice
Thomas A. Zlaket, Justice
Frederick J. Martone, Justice
Page 1 2 3 Arizona Personal Injury Attorneys
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