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Break in service required of a member of the State Teachers? Retirement System to effect retirement

Break in service required of a member of the State Teachers? Retirement System to effect retirement
Matter of Boyce v New York State Teachers' Retirement System, 2009 NY Slip Op 29356, decided on July 21, 2009, Supreme Court, Albany County, Judge Henry F. Zwack

Barbara A. Boyce, a member of the New York State Teachers? Retirement System [TRS], submitted her application for superannuation retirement.*

According to the decision, Boyce?s last day of work at Onteora Central School District, her employer at the time, was "close of business" September 30, 2008 and the effective date of her retirement was October 1, 2008.

Boyce, however, was employed by another school district in New York State, the Hudson City School District, effective "beginning of business" October 1, 2008.

TRS subsequently notified Boyce that under the circumstances, ?she had effectively not retired because she had not had a one day break in service.? The System noted that 21 NYCRR §5005.3(a) provides, in pertinent part, that "An application for retirement may not take effect until the member has ceased to be paid on the payroll of a participating employer.? TRS than demanded repayment of retirement allowance it had already paid to Boyce totaling $10,067.08 and suspended further payments of benefits to her.

Arguing that ?she was never given notice of [the System?s] requirement of a one day break in service? to effect a valid retirement, Boyce petitioned the court to vacate the System?s determination and to reinstate her retirement benefits.

In rebuttal, TRS contended that Boyce's October 1, 2008 retirement date ?was not legally effective because she did not cease to be on the payroll of a participating employer prior to that date for one business day.? TRS also stated that this requirement ?is set forth in a regulation and is also published in its information publications and correspondence."

Judge Zwack agreed with TRS, noting that the System ?is charged with administering and interpreting the law governing retirement of members of the Teachers' Retirement System [and] that its interpretation of the regulation that there be a one business day break in service is rational.?

Concluding that based on the ?plain language of the regulation? Boyce never ceased to be paid on the payroll of a participating employer ?because she attempted to retire from one school district and then resumed work for another school district the following business day,? Judge Zwack dismissed her petition.

* Except for educators 70 years of age or more, a member is required to file his or her application for retirement with the New York State Teacher's Retirement System indicating the effective date of his or her retirement, which date "shall not be less than thirty days nor more than ninety days? after filing his or her application for retirement [see Education Law §510.1, subdivisions a and b.

The decision is posted on the Internet at:
http://www.courts.state.ny.us/reporter/3dseries/2009/2009_29356.htm

Full post as published by New York Public Personnel Law on September 08, 2009 (boomark / email).