Aronson v. Public Employees Retirement Board

236 P.3d 731, 236 Or. App. 17, 2010 Ore. App. LEXIS 666
CourtCourt of Appeals of Oregon
DecidedJune 23, 2010
Docket061026; A137578
StatusPublished
Cited by1 cases

This text of 236 P.3d 731 (Aronson v. Public Employees Retirement Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aronson v. Public Employees Retirement Board, 236 P.3d 731, 236 Or. App. 17, 2010 Ore. App. LEXIS 666 (Or. Ct. App. 2010).

Opinion

*19 HASELTON, P. J.

Petitioner seeks judicial review of a final order of the Public Employees Retirement Board (board), in which the board concluded that petitioner’s membership in the Public Employees Retirement System (PERS) had lapsed in 1981 and recalculated the service time, contributions, and associated earnings that had been credited to her member account between 1975 and 1976, and 1978 through 1991. The board reached that conclusion based on its determination that petitioner was “absent from the service” of all participating PERS employers within the meaning of former ORS 237.109(2) when she was working less than 600 hours a year, each year between 1978 and 1987. 1 As a result of that recalculation, petitioner’s projected retirement benefit dropped from a range of $1,006 to $1,214 per month, to approximately $665 per month. For the reasons set forth below, we reverse and remand.

The material facts are uncontested. On January 6, 1975, petitioner started working for the University of Oregon Health Sciences Center (which later became Oregon Health and Sciences University), a public employer participating in PERS, in a position that normally required more than 600 hours of service each year. In August of that same year, after six months of uninterrupted service, she became a *20 PERS member. Petitioner resigned from that position on November 15,1976.

On January 3,1978, petitioner started working part-time as an instructor at Clackamas Community College (CCC), which also participated in PERS. Petitioner worked for CCC from January 1978 until March 1987, but did not work 600 hours during any of those years. 2 Both petitioner and CCC made contributions to the Public Employees Retirement Fund (the fund), 3 based on petitioner’s work, each year between 1978 and 1987.

From 1988 until 1990, petitioner worked part-time as a pediatric nurse practitioner for Kaiser, which was not a PERS-participating employer. Then, in April 1991, petitioner began working for Benton County and worked more than 600 hours each year for that employer until she retired on April 3, 2006. Benton County participated in the PERS system and made contributions to petitioner’s member account every year.

In February 2006, PERS informed petitioner that her projected monthly retirement benefit amount was between $1,006 and $1,214, depending on the calculation method and option she chose. 4 Subsequently, petitioner submitted to PERS a Service Retirement Application and a check to purchase her waiting period from 1975. 5

After petitioner retired, PERS audited her account and work history and concluded that the contributions that *21 CCC had made to petitioner’s member account each year between 1978 and 1987 were in error. According to PERS, petitioner was not employed in a “PERS-qualifying position” at CCC because she did not work 600 hours during any of those years. Accordingly, PERS reversed petitioner’s service time, contributions, and associated interest from that period. 6 Relatedly, PERS determined that petitioner had lost her PERS membership on December 1, 1981, and had not vested, because, after she became a member in 1975, she was not employed in a “PERS-qualifying position” for at least five consecutive years. Thus, PERS concluded that all of petitioner’s service time and contributions before November 15, 1976, had gone into “Loss of Membership” status, and that petitioner was entitled to a refund of $425. Additionally, PERS determined that petitioner had to reestablish her membership upon obtaining PERS-qualifying employment at Benton County in 1991, which required serving a new six-month waiting period, and so reversed her contributions and earnings during that six-month period as well. 7 Based on those adjustments, PERS recalculated petitioner’s estimated retirement benefit amount to be about $665 per month.

Petitioner sought and received a hearing before an administrative law judge (ALJ). The ALJ issued a proposed order sustaining PERS’s determination that petitioner’s employment with CCC was not PERS-qualifying employment and, accordingly, that she had lost her membership and did not vest between 1978 and 1987. The ALJ reasoned that, although former ORS 237.109 (1989) did not expressly require 600 hours of service per year to prevent loss of membership, that standard for qualifying employment inhered in the PERS statutory and regulatory scheme.

In reaching that determination, the ALJ considered, as relevant context to former ORS 237.109 (1989), PERS administrative rules that employed a 600-hour annual service standard, including Rules 1 and 19 of the Public Employees *22 Retirement Board (Administrative Order-PER 3; adopted August 12, 1949) (hereinafter “Rule 1” and “Rule 19”). 8 Further, the ALJ adopted the reasoning of an Attorney General Opinion from 1952, which, inter alia, examined then-extant PERS rules and various PERS statutes that imposed a 600-hour annual service requirement in particular contexts and concluded that “[a] public employe whose periods of employment * * * do not in any fiscal year total 600 hours is, during such year, an inactive member * * * and contributions by him or in his behalf cannot be accepted by the retirement board.” 26 Op Atty Gen 58 (1952) (boldface omitted). In its final order, the board “affirm[ed] and adopt[ed]” the ALJ’s reasoning and conclusions of law.

On review, the parties’ dispute continues to center around the correct interpretation of former ORS 237.109(2) and how it fits into the PERS statutory scheme. Former ORS 237.109 provided, in part, that

“[a]n employe shall cease to be a member of the system:
“(2) In the event that he is absent from the service of all employers participating in the system for a total of more than five consecutive years after he becomes a member of the system!.]” 9

Petitioner contends that the terms of former ORS 237.109

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Eugene Water & Elec. Bd. v. Pub. Emps. Ret. Bd.
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Cite This Page — Counsel Stack

Bluebook (online)
236 P.3d 731, 236 Or. App. 17, 2010 Ore. App. LEXIS 666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aronson-v-public-employees-retirement-board-orctapp-2010.