Refund or withdrawal of accumulated contributions in teachers’ Retirement System are not included in the term “monetary benefits” as used in paragraph 9 of Section 169.070, , Cum. . 1961.

PUBLIC SCHOOt RETIREMEliT SYSTEM : Refund or witl:dra\·;al of accumulated contributions in teachers ' Retirement System are not included in the term "monetary benefits" as used in paragraph 9 of Section 169, 070, RSMo, TEACHERS 1 RETIREMENT SYSTEM: CONTRIBUTIONS : BENEFITS : Cum. Supp. 1961. ?>1arch 30, 1962 1~ . G. L. Donahoe Executive Secretary Public School Retire- ment SyBtem or r~ssouri Room 8o1, Jefferson Building Jefferoon City, t!.ssouri Dear 1-tr. Donahoe : (Opin. No . 389 II 28 This is in reply to your letter or October 23, 1961, in which you requected an opinion of this office . The queo- tionn you propound are stated in the last paragraph of your letter, as follows: "He need t o lmo\·T uhcthcr the paymentc provided for in aubocctiono 3, 4, and 5 of Section 169 . 070 nrc to be considered an •monetary benefits •. I f the payments nrc to be considered ao •monetary benc- fi to • , are 1·rc to pay only two- thirds of the amount provided for in subcection 3, 4 or 5 if a member has elected to pay a retro- active contribution? I f a member ha~ not elected to ~ay a retroactive contribution, will l'te make two calculations; i .e . , one becau~e of the contributions and interest resulting from aerv1ccs prior to July 1, 1961, for uhich \'le make payment in full, and another because of the contributions and 1ntercct rccult1ng from serviceo after July 1, 1961, and for \'lhich ue pay t\'ro-thirds of the amount pr ovided for in subsection 3, 4 or 5?" The csGence of your question is the meruung or the word 'bene.!'its ' and t he phrase "monetary benefito contained in l4r. G. L. Donahoe - 2- paragraph 9 of Section 169.070, RSf~, CUm. Supp. 1961, and whether the word or phrase includes the refunding of accumu- lated contributions in accordance with paragraphs 3, 4 and 5 of that section. Paragraphs 3, 4 and 5 of Section 169.070, RSMb 1959, read as follmts: "3. If the t otal of the retirement allowances paid to an ind1 vidual before his death is less than hie accumulated contri butions at t he titOO of his retire- ment, the difference shall be paid to his beneficiary, or to his estate, if there be no beneficiary, pr ovided how- ever, that no sueh payment shall be made if one of the options 1n subsection 1 of this section has been elected. "4. I f a roomber dies before receiving a retirement allowance, his accumulated contributions at the time of his death shall be paid to his beneficiary or to his estate, if there be no beneficiary, provided however that no such payment shall be made if the beneficiary elects option 1 in subGection 1 of this section. ,. 5. If a member ceases to be a public school employee as herein defined and certifies t o the board of trustees that such cessation is permanent, or if his membership is otherwise terminated, he shall be paid his accumulated contribu- tions with interest if he has contributed for more than five years, or if he has contributed for less than five years and such termination occurs after he has attained age sixty-five ~th less than five years of creditable service . If he has contributed for not more than five years and his termination occurs before he has attained age sixty-five, Mr . G. L. Donahoe - 3- he ohall be paid the amount he has contributed 111thout int<!rest." The question presented then is t-~hether the payments pro- vided for in t hese t hree paragraphs are included in the term "monetary benefits• ao t hat term is used in paragraph 9 of Section 169.070, RSMb, Cum. Supp . 1961. In order to determine that question, we direct our attention to that paragraph, and in order t o fully underst and that particular pnra~aph we should first trace ita history. Parasraph 9 of Section 169.070, RS~~ 1959, was amended by the 7lst General Ascembly, and the present law became effccti ve on October 13, 1961 . The present la\'1 tr1 th which \•/e are concerned nou rendo as follows: "9. Notwithst anding anything in t his la,., to the contrary, from the effccti ve date of this latt, the contribution rate under this lat1 shall be multiplied by the factor of t wo-thirdG for any member of the system for l·lhom Federal Old Age and Survivors Insurance tax 1a paid from atate or local tax funds on account or hiB employment entitling him to member- ship in the system. The monetary ~one­ fits under this law for such a mombcr shall be multiplied by t he factor or tuo-thirda if the member elect s 1·1ithin one year after t hie law becomes effective to pay into the system a retroactive con- tribution or four per cent on that part of hie annual salary r ate which ua.s in exceso of four thou~and eight hundred dollaro but not j_n c.xce:sn of eight thou- cand four hundred dollar~ for each yenr of employment i n a position covered by the ayotem bet?teen July l, 1957 and July 1, 1961 . The retroacti vc payment shall be made by tho member paying to t he oystem over a period of not l onger t ho.n four yearn from the date or election provided ho\·Tever, t hat if a member i s retired prior t o completing 5Uch ~a1mcnt3 t he balance due shall be deducted from hio retirement allowance. The monetary benefits under Mr. G. L. Donahoe -4- this law for a member not elect~ to make retroactive payments shall be the sum of " (1) The benefits provided in this ecction, as it appenro in RSMo 1959, ror years of creditable service prior to July 1, 1961; and " (2) 1'\>ro-th.irds of the monetary bene- fit;) under this 10.11 for years of credit- able service after July 1, 1961. I f there io a discontinuance or termination or the payment of Federal Old Age and 5urvivors Insurance tax from atate or l ocal funds the provi sions of secti ons 169.010 to 169.130, RSMo, shall be in full force and effect for such a member. " Prior to th1 o novt enactment, this particular paragraph of this section as it appeared in the 1959 Hcvised Statuteo was as follows: "9. Notvi1thstandiJl8 anything in thi::s law to the contrary, the contribution rate fixed by the board or trustees prior to the effective date or this la\t and all other conditions with respect to contributions, salary upon tth1ch contributions are made, and bcne- f1 ts as provided by lmi rior to the effective date of t his la\'t shall be in force for any member of the system for \1hom federal old age and nurvi voro ' insurance tax io paid from state or l ocal tax funds on account of his employment entitling h1m to membernhip in the system, provided that if there 1~ a discontinuance or termination of the payment of federal olc:1 age :md surv1 vor..s • insurance tax from otate or local tax funds for such member, the provisi ons of this lal'1 relative to contribution rate, salary upon which Mr. G. L. Donahoe -5- contributions arc made and benefit s for services t hereafter shall be in Pull force and effect as of t he date of di s- continuance of such payment. 11 'I'hia paragraph 9 of Section 169.070, RSlof~ 1959, was a ne\1 paragraph which was added by amendment in 1957 (LatJS of 1957 1 page 432). The primary rule in the construct ion of statutes is set out in A. P. Green Fire Brick Company v. f.U.ssour1 State Tax Commission, I-to. Sup . 1 '277 S\12d 5441 1. c. 545, as foll0\15: '' •The primary rule of construction of statute a i s to ascertain the lat'll'Dakers • intent., from the \·rorde used if possible ; and t o put upon t he language of the Legislature, honestly and faithfully, its plain and rational meaning and to promote its object., and "the manifest purpose of the statute, considered historically., ' 1 i s properl y si von con- sideration.• Cummins v. Kansas City Public Service Co., 334 Mo. 672, 66 S. N. 2d 920, 925. 11 In determining the meaning or t he \'tord "benefits" and the phrase "monetary benefitan as used in paragraph 9 of Section 169. 070, we f i rst rercr to t he definitions contained in Section 169. 010 and see that neither t he word nor the fthrase are defined in that oection. In fact , the phrase 'monetary benefits" can be found in no other oection of the lat·r governing the Public School Retire-ment System of Missouri. We a:re unable to see any distinction between t he \'lOrd ''benefits" and. the phrase "monetary benefits'', and f or t he purposes of thio opinion we t1ill treat t hem as synonymous. In other words, w~ will con sider nmoneta.ry benefitsu t o be the same as 11benefits" . Although the uord "benefits" is not defined in Sec- tion 169. 010, t he v10rd appears i n many other sections of the la\t governing t he Public School Retirement System of Missour-1 . As used, the t10rd appears t o be a generic term applying variousl y to retirement allm·;unccs, di sability a1lo\'Ta.nceo., survivors ' death bene!'it s , or other epec1al benefits. Not'lhere in this law i s the word "benefits" given any technical mean- ing. In paragraph 9 of Section 169. 070, RSf-1o, cum. Supp . 1961, the t enn "monetary benef 1ts 11 i s used 1n reference to Mr. G. L Donahoe -6- two separate categories . The first category applies t o the members specified in that aub3eot1on vzho elect to make a rotroacti ve contribution, and fora s ueh members the monetaey benefits under t ho System shall be multiplied by the faetor of tt·To-th1rd~. The second categQey- applies to members t11ho do not elect to make the retroactive contributions to the System, and for such members t he monetary benefits under the System are declared t o be the sum of {1) "The benefits •** for r,ears of creditable service prior to July 1, 1961 n , and - (2} ·~fo-thirds or the monetary benefi t s *** fur ycaro of creditable :Jerv1ce arter July 1, 1961. *"" In this second category, t he benefits or monetary benefito referred to are · only those benef:tto "f'or yearn of creditable service" . A refund, return or Hithdrot'tal: of accumulated contribut i ons under paragraphs 3, 4 or 5 of Section 169.070 is not in any way connect ed to "years of creditable servie"C". Therefore, a refund, return or \d.thdrt:n'lal of oontr1but1onc io not in- cluded in t he term nbenefits or monetary benefits" as it applies t o the second ca.tes;ot-y. tie are of the opinion that the monetary benefits referred t o under t he first category are the samo as t hose refert~d t o in the second category, and therefore, under this 1ntorpretat1on, t he benef its or monetary bonefito referred t o i n pnregrnph 9 of Section 169 . CI'(O do not include a ref und, return or "'1 thdrm'lo.l of accumulated contributions under paragraph~ 3, 4 or 5 of t hat section. This interpretation is l ogical and gives a plain and rational menn1ng t o the law in quest1on. A contrary inter- pretation would not be in conformity with the mani fest pur- pose or the law and would produce the inoongruoue result of' permi tt1ng those members ''·i1 thin the pur view or paregraph 9 to v1ithdraw onl y two-thi rds or their accumulated contribu- tions while all ot her members of the ayatem could withdraw all ot their aceunlUlated contributiono. This interpretation and c onclu~ion are supported by the decision regarding benefits and tdthdt-al'tal of contribu- tion~ in the caoe of State ex rel . State Etnploycea • Retire- ment Board v . Yelle, 195 P. 2d 646, 61.S, 31 Uash. 2d it(. xn that case it wan held that t he refunding of contributions of a melftbe:r of the state retirem~tlt system \<tho had ceased to be an @~loyee before his retirenten~ was not a "retirement allowance" nor one of the 11benet'1ts ' to which a retiri.ng . Mr. G. L. Donahoe -7- member was entitled under the act setting up the state employees• ret1rement system. We therefore conclude that the pal%D8nts provided t:or in paragraphS 3 1 4, and 5 Of 8eet1on lOg, (]'{0 are. not con- ai.dezted as "benefits" or "mone.tary benefits" re.rerred to 1n paragraph 9 or section 169. 070, RSMO, cum. Supp. 1961. Since we have conclud.ed that such payments are not benefits, it will be wmecessary to anm~er the other questi ons which you have propounded. CONCLUSION It 1s the opinion or tnis office that the payment of a refund, return or withdrawal or accumulated cont ributions under par.agrapha 3, 4 or 5 of Section 169. 070, RSI&>, is not included in the word .. benefits" o,r the phPase "monetary benefits" as used i n paragraph 9 or section 169.070, RBlt>, Cum. Supp. 1961 , This opinion, which I hereby approve, tt~as prepared by my assistant, wavne tf . Waldo. Ve~ truly yours, '!'ROMAs F. !AamTCN Attorney General