Cavoretto

Plaintiffs, retired firemen who receive pensions from the City of Richmond, brought this action to recover amounts which the city had deducted from their pension payments because of awards which the pensioners received under the Workmen’s Compensation Insurance Act of the State of California.

The deductions were made pursuant to article XI, section 17 of the city charter, which provides that anyone who receives a pension and who is also entitled to workmen’s compensation shall receive a monthly payment equal only to the monthly pension. The city is insured for workmen’s compensation by the State Compensation Insurance Fund. When a pensioner is awarded workmen’s compensation, a check is sent by the fund to the finance department of the city, which then sends the cheek to the pensioner together with the city’s check for the balance of the pension sum. If the workmen’s compensation amount exceeds the earned pension payment in any month, only the compensation cheek is sent, and a credit for the excess is taken by the city and is applied in later months.

The sources of the pension fund are contributions from the employees, equal contributions by the city, and awards and gifts made…