Opinion ID: 2609061
Heading Depth: 1
Heading Rank: 2

Heading: vested rights and employer's interests

Text: The next hurdle facing counsel seeking a share of pension benefits in 1967 was authority indicating a spouse could not have a vested right in an employee's pension because it would interfere with the employer's interests in two respects. In Benson v. City of Los Angeles, supra, 60 Cal.2d 355, 361-362, it was stated that the public policy permitting a governmental body to make reasonable modifications and changes to a retirement system would be defeated by the vesting of rights in someone other than the employee. The court also stated: No reason is suggested why we should depart from the foregoing decisions to the effect that a wife of a public employee acquires no vested interest in a pension until it becomes payable to her. On the other hand, to vest such an interest prior thereto `would remove a considerable amount of the flexibility necessary for operation of pension systems, because it would mean that provisions benefiting any third person would be frozen into the law with respect to all employees then in service and that these interests could not be removed regardless of the consent of the employee and regardless of whether the employee was given other pension benefits which might be of greater value to him than the one sought to be eliminated.' ( Packer v. Board of Retirement, supra, 35 Cal.2d 212, 217 [217 P.2d 660].) The second reason in Benson for denying the spouse a vested right was that it would defeat the employer's purpose in providing a pension, namely, inducing competent persons to enter and remain in public service. (60 Cal.2d at p. 361.) In Benson the court concluded: The vested interest which the wife may protect by her collateral control thus precludes an involuntary deprivation thereof in the case of the community interest in insurance on the husband's life. But the acquisition by a wife of a vested interest in her husband's public employment contract might defeat the public purpose in providing a retirement plan for public employees. The distinction lies in the nature of the control which the law permits the husband and wife to independently, lawfully exercise regardless of the community nature of the pension right, and for policy reasons it is deemed necessary that the husband-employee alone exercise control unhampered by vested interests in any third party, including his community partner. (Italics added; 60 Cal.2d at p. 363.)