Court Opinion

ID: 9884720
Source: CourtListenerOpinion
Date Created: 2023-10-06 03:09:31.266757+00
Date Added: 2024-06-11T07:48:40.344762
License: Public Domain

SHORT, Judge
(dissenting).
I respectfully dissent. Essentially the retirement plan at issue is a promise from Lutheran Brotherhood to pay Falck in monthly installments upon his retirement. Like many promises to pay, it is unsecured. That fact makes no legal difference, however, because the statute does not distinguish between secured and unsecured promises to pay. Minn.Stat. § 550.37, subd. 24 (1986) exempts the “right to receive * * * future payments * * * under a * * * pension * * * or similar plan. * * *” The plan at issue (1) is available to Falck only because of his status as a self-employed agent of Lutheran Brotherhood, and (2) is based on Falck’s compensation and commissions throughout his tenure with Lutheran Brotherhood. The plan thus meets the test for inclusion in the list of property exempt from creditor attachment under Minn.Stat. § 550.37, subd. 24. See In Re Raymond, 71 B.R. 628, 630 (Bankr.D.Minn.1987); In Re Schuette, 58 B.R. 417, 421-22 (Bankr.D.Minn.1986). The fact that the retirement plan is unfunded does not matter for purposes of the issue before us.
Moreover, this result is consistent with the legislative intent to protect retirement benefits. Denying the legislature’s intended protection to unfunded pension plans is contrary to the purpose of the statute. The treatment afforded such plans by the tax laws is irrelevant.
I agree with the majority that the statutory exemption is available only to the extent that the pension monies are reasonably necessary for the support of Falck and his dependents. See Minn.Stat. § 550.37, subd. 24. However, the trial court’s “hunch” that Falck had sufficient other retirement assets to provide for his “basic” needs is not based on the evidence. In addition, there has been no showing that Falck acquired the asset for the purpose of defrauding his creditors. See In re Johnson, 80 B.R. 953, 958 (Bankr.D.Minn.1987). Under these circumstances, I conclude that the plan is exempt under Minn.Stat. § 550.37, subd. 24 and that the creditor cannot collect its judgment against the plan.