Board of Trustees of the Teachers' Retirement System v. West

916 N.E.2d 648, 334 Ill. Dec. 233, 395 Ill. App. 3d 1028, 2009 Ill. App. LEXIS 1011
CourtAppellate Court of Illinois
DecidedOctober 15, 2009
Docket4-08-0955
StatusPublished
Cited by5 cases

This text of 916 N.E.2d 648 (Board of Trustees of the Teachers' Retirement System v. West) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees of the Teachers' Retirement System v. West, 916 N.E.2d 648, 334 Ill. Dec. 233, 395 Ill. App. 3d 1028, 2009 Ill. App. LEXIS 1011 (Ill. Ct. App. 2009).

Opinion

JUSTICE KNECHT

delivered the opinion of the court:

In August 2007, plaintiffs, the Board of Trustees of the Teachers’ Retirement System of Illinois and the Board of Trustees of the State Retirement System of Illinois, filed a complaint for declaratory judgment, seeking a ruling determining whether defendant, Scott H. West, could combine service credits from separate retirement systems to immediately qualify for his pension. In November 2008, the trial court granted plaintiffs’ cross-motion for summary judgment and denied defendant’s summary judgment motion.

Defendant appeals, arguing the trial court erred where (1) it added a “legislative-enactment” limitation to section 20 — 109 of the Retirement Systems Reciprocal Act (Reciprocal Act) (40 ILCS 5/20 — 109 (West 2006)), (2) it failed to consider all of the section 20 — 109 language, and (3) its interpretation of the Reciprocal Act is contrary to legislative intent. We agree and reverse.

I. BACKGROUND

On April 15, 1986, the Illinois State Board of Education (ISBE) hired defendant as a field auditor. As a result, defendant participated in and contributed to the ISBE’s State Employees’ Retirement System (SERS). Approximately six months later, defendant learned his position as a field auditor was considered an “executive.” As an “executive” or “professional” employee of the ISBE, defendant was eligible to participate in the ISBE’s Teachers’ Retirement System of Illinois (TRS) pursuant to section 16 — 106(3) of the Illinois Pension Code (Pension Code). See Ill. Rev. Stat. 1985, ch. 108½, par. 16 — 106(3).

In November 2006, the then-superintendent of education, Ted Sanders, “certified” to TRS defendant had an “executive” employment classification with ISBE. This certification was required by TRS for defendant to transfer from SERS to TRS. Defendant transferred to TRS. ISBE began transmitting defendant’s retirement contributions to TRS. Defendant continued to participate in TRS until his 2006 retirement from the ISBE.

Following the transfer, SERS informed defendant it was going to refund the pension contributions withheld from his pay by SERS from April 15, 1986, through November 30, 1986. Defendant maintained he did not want the refund. Nonetheless, SERS sent defendant a refund check. Defendant eventually redeposited his pension payments with SERS. In a July 25, 2006, letter, SERS informed defendant it received his payment and credited his SERS account with the appropriate eight months’ service credit. See 40 ILCS 5/20 — 118 (West 2006) (“Any employee who shall have waived, by the acceptance of a refund, his pension credit in any participating system, may have his pension credit reinstated by repayment of the refund”).

According to defendant’s complaint (1) his job duties had expanded greatly from those for which he had been first hired; (2) a difficult new function of his job was dealing with the mandates of the “No Child Left Behind” law; (3) beginning in November 2005, he began receiving unsatisfactory job performance evaluations and was being threatened with discharge; and (4) defendant was under duress to either resign or be fired.

According to defendant, he was continually pressured by his supervisors to tender a letter of resignation by April 1, 2006.

Defendant checked the ISBE online attendance Web site and determined he would have 20 years of service as of April 15, 2006.

On April 3, 2006, defendant signed an agreement to retire from ISBE on June 30, 2006.

On April 7, 2006, defendant met with TRS retirement consultant Michael Bracey. Bracey informed defendant if he retired on June 30, 2006, he would fall approximately 72 days short of the required 20 years’ service.

On April 19, 2006, defendant attempted to rescind his retirement offer. Defendant cited the fact he learned he must work an additional 73 days beyond June 30, 2006, to reach 20 years’ service. However, ISBE refused to allow defendant to rescind his offer. In fact, ISBE informed defendant he would not be permitted in ISBE offices beyond June 30, 2006.

On August 31, 2006, defendant filed for his retirement benefits with TRS.

In October 2006, TRS notified defendant his monthly benefit would not begin until June 6, 2011, his sixtieth birthday, because he had 72 days less than 20 years’ service credit with TRS. TRS did not include in its calculations the eight months’ service credit defendant earned while participating in SERS.

In a December 21, 2006, letter, defendant requested SERS certify to TRS he had eight months’ service credit with SERS and he transferred from SERS as part of a class. Defendant maintained he was a member of SERS during 1986, after which time he transferred as part of a class of ISBE employees to TRS. He argued the combination of his SERS and TRS credit would give him enough credit to immediately begin receiving his retirement benefits.

In a January 17, 2007, letter, SERS responded to defendant’s certification request. SERS informed defendant it was unable to certify he was transferred as part of a class. As a result, SERS denied defendant’s request to provide certification to TRS. SERS notified defendant the denial was temporary pending a review during a February 2007 meeting of the SERS executive committee.

On March 12, 2007, SERS notified defendant of the executive committee’s March 8, 2007, decision to ratify the January 17, 2007, temporary denial of defendant’s certification request and that a personal hearing would be scheduled. However, no hearing was ever scheduled.

In June 26, 2007, letters, defendant again requested TRS and SERS render a final administrative decision regarding defendant’s ability to transfer his pension credits. TRS and SERS did not issue a final administrative decision.

Instead, on August 1, 2007, plaintiffs filed a complaint for declaratory judgment to determine whether defendant could combine his service credits under section 20 — 109 of the Reciprocal Act and immediately qualify for his pension.

Section 20 — 109 prevents transferring service credits to another retirement system if the credits were earned in less than one year. See 40 ILCS 5/20 — 109 (West 2006). However, the one-year limitation “shall not apply to *** employees who transfer or are transferred, as a class, from one participating system to another.” 40 ILCS 5/20 — 109(1) (West 2006).

On August 26, 2008, defendant filed a motion for summary judgment, arguing he transferred to TRS within the meaning of section 20 — 109.

On September 22, 2008, plaintiffs filed their cross-motion for summary judgment arguing defendant was ineligible to transfer his service credits pursuant to section 20 — 109 because he was not transferred to TRS by a legislative enactment.

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Bluebook (online)
916 N.E.2d 648, 334 Ill. Dec. 233, 395 Ill. App. 3d 1028, 2009 Ill. App. LEXIS 1011, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-of-the-teachers-retirement-system-v-west-illappct-2009.