Chirmside

In this appeal we are asked to approve an extension of the terminable interest doctrine to community contributions in a fully vested public retirement plan. We decline to so do and reverse the judgment herein.

The facts disclose that William and Irene Chirmside were married January 27, 1941. In 1946, William Chirmside commenced working for the San Bernardino City Water Department and on March 1, 1948, became a member of the Public Employees’ Retirement System (PERS). On November 13, 1975, the parties were divorced. The final judgment of dissolution did not adjudicate the parties’ entitlements to William’s PERS account, nor was the pension even alluded to in either the petition, response or decree.

William retired February 26, 1977, at which time the balance of his contributions to his account totaled $24,827.45, including interest. He elected to take his retirement benefits under “optional settlement one,” which provided for monthly payments of $958.01, the balance of any of his contributions at his death to be paid to his designated beneficiary. He designated his sister, Isabel Wall, as beneficiary.

At his death on February 18, 1980, the balance of his accumulated…