BOSTON ASS'N OF SCH. ADM'RS & SUP. v. Boston Ret. Bd.

419 N.E.2d 277, 383 Mass. 336
CourtMassachusetts Supreme Judicial Court
DecidedApril 8, 1981
StatusPublished
Cited by13 cases

This text of 419 N.E.2d 277 (BOSTON ASS'N OF SCH. ADM'RS & SUP. v. Boston Ret. Bd.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BOSTON ASS'N OF SCH. ADM'RS & SUP. v. Boston Ret. Bd., 419 N.E.2d 277, 383 Mass. 336 (Mass. 1981).

Opinion

383 Mass. 336 (1981)
419 N.E.2d 277

BOSTON ASSOCIATION OF SCHOOL ADMINISTRATORS AND SUPERVISORS[1] & another[2]
vs.
BOSTON RETIREMENT BOARD & another.[3]

Supreme Judicial Court of Massachusetts, Suffolk.

January 7, 1981.
April 8, 1981.

Present: HENNESSEY, C.J., KAPLAN, WILKINS, LIACOS, & ABRAMS, JJ.

Paul F. Kelly for Boston Association of School Administrators and Supervisors.

John E. Rogerson for Boston Retirement Board.

Francis X. Bellotti, Attorney General, & E. Michael Sloman, Assistant Attorney General, for Commissioner of Insurance, submitted a brief.

KAPLAN, J.

Boston Association of School Administrators and Supervisors (BASAS), an unincorporated association, *337 joined as plaintiff by the Boston School Committee, sued the Boston retirement board (see G.L.c. 32, § 20 [4]) and the Commissioner of Insurance, who is charged by statute with supervising the retirement board (see G.L.c. 32, § 21), and prayed a declaration that any early retirement incentive payments agreed to be made by the Boston school committee to BASAS members should be included by the retirement board in the base on which retirement benefits to those persons are calculated. The judge below held against the plaintiffs' contention and entered a declaratory judgment in favor of the defendants. We agree with that disposition.

The case. Upon the plaintiff BASAS's motion for summary judgment based on the pleadings, an affidavit of its president, and a statement of agreed facts, the following appeared. Having in view the abolition of various administrative positions in the Boston public school system, the Boston school committee on October 16, 1978, entered into an agreement with BASAS entitled "Abolition of Positions and Reorganization" by which three options were offered to BASAS members who might hold such positions. We need advert only to the first option called "Early Retirement Incentive Program" (ERIP): A member aged fiftyfive years or more who in September, 1978, held a position abolished in the reorganization for the 1978-1979 school year, and who had twenty years or more of continuous service in the Boston school system, could make known his purpose to retire with effect from January 2, 1979. In that case he was to receive three payments stated to represent "salary increases" — $4,665 for each of the three school years 1976-1977, 1977-1978, and 1978-1979.

Under date of November 29, 1978, the parties entered into a collective bargaining agreement for the period September 1, 1977, to August 31, 1980, formally approved by the Boston School Committee by order of December 13, 1978, which in article VII set out a different early retirement program: A BASAS member who retired at an age between fifty-five and sixty-five would receive, as a "salary *338 increase," 20% of his final year's salary or, instead, 10% of each of his two final years' salaries. If a member should receive a payment under the plan but decide not to retire by the "expected date of departure," he would be obligated to return any payment made with legal interest. The Boston school committee undertook to allocate $40,000 to fund this article VII plan during the 1979-1980 school year.[4]

The question naturally arose whether the payments to be made to retirees under ERIP or article VII would fit under the retirement statute as "regular compensation" upon which retirement benefits are required to be calculated. The retirement board made it known that in its opinion they would not so fit. This precipitated the present lawsuit, filed on April 10, 1979.

On November 5, 1979, while the action was pending, the Governor approved an amendatory "clarifying" statute which by added language expressly excluded from the statutory definition of "regular compensation," payments made to participants in a retirement system in consequence of their giving notice of retirement, and referred specifically to early retirement incentives (as well as severance pay for unused sick leave).

The pleadings in the action were extended to include a contention on the part of the plaintiffs that the amendatory statute would be invalid as "retroactive" if applied to persons already employed and participating in the retirement systems — see Opinion of the Justices, 364 Mass. 847 (1973), discussing G.L.c. 32, § 25 (5) (quoted at n. 8), and constitutional questions — and a retort by the defendants that *339 the new amendment was merely a clarifying restatement of the effect of the statute as it stood before amendment; the defendants also defended the amendment as a constitutional exercise of the police power even if it were taken as effecting a change of the law.

The upshot of the lawsuit was a judgment entered on July 1, 1980, in substance declaring (with some apparent help from the 1979 statute as a clarifying enactment) that retirement incentive payments under any agreement between the School Committee and BASAS, whatever the payments might be called, were not statutory "regular compensation" on which retirement allowances were to be computed. We brought the case here on our own motion for direct appellate review.

Discussion. We need to get two matters out of the way. First, no contention is made here that the school committee undertakes any illegal action in sponsoring or agreeing to such a plan as ERIP or article VII. There is indeed a constitutional doctrine that public funds may not be handed over to private citizens as a gratuity, but no claim is before us that payments promised to be made under any such plan would be illicit as prohibited gifts. This renders not more than tangentially relevant the cases that have dealt with the powers of public employers to add recompense of one kind or other to their employees for past performances, or otherwise to provide rewards where technical "consideration" may have been wanting. See Averell v. Newburyport, 241 Mass. 333, 335 (1922); Attorney Gen. v. Woburn, 317 Mass. 465, 467-468 (1945); Quinlan v. Cambridge, 320 Mass. 124 (1946); Fitchburg Teachers Ass'n v. School Comm. of Fitchburg, 360 Mass. 105, 107 (1971). The question to be answered here is the quite different one whether given payments to the employees contingent on retirement may form part of the basis for figuring retirement benefits and thereby increase those benefits. Cf. Selectmen of Brookline v. Allen, 325 Mass. 482 (1950).

Second, it is of no more than incidental interest in solving the question just mentioned what the parties to the agreements *340 might choose to call the payments proposed to be made to the employees, whether "salary increases" or "bonuses" or something else. For the system of retirement benefits covering the employees is described in a chapter of the General Laws which contains its own terms and definitions of terms.

Therefore we turn to the statutory provisions. General Laws c. 32, § 5 (2) (a), is in part as follows:

"(2) Amount of Allowance. Upon retirement under the provisions of this section a member shall receive a superannuation retirement allowance to become effective on the date of his retirement....
(a) The normal yearly amount of the retirement allowance ...

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pub. Emp. Ret. Admin. Comm'n v. Contributory Ret. Appeal Bd.
90 N.E.3d 744 (Massachusetts Supreme Judicial Court, 2018)
Rotondi v. Contributory Retirement Appeal Board
977 N.E.2d 1042 (Massachusetts Supreme Judicial Court, 2012)
Pelonzi v. Retirement Board
451 Mass. 475 (Massachusetts Supreme Judicial Court, 2008)
Katosh v. Sonoma County Employees' Retirement Ass'n
163 Cal. App. 4th 56 (California Court of Appeal, 2008)
Bulger v. Contributory Retirement Appeal Board
856 N.E.2d 799 (Massachusetts Supreme Judicial Court, 2006)
Chandler v. County Commissioners
437 Mass. 430 (Massachusetts Supreme Judicial Court, 2002)
Hallett v. Contributory Retirement Appeal Board
725 N.E.2d 222 (Massachusetts Supreme Judicial Court, 2000)
Mastroianni v. Public Employees Retirement Administration
4 Mass. L. Rptr. 710 (Massachusetts Superior Court, 1996)
Leary v. Contributory Retirement Appeal Board
657 N.E.2d 224 (Massachusetts Supreme Judicial Court, 1995)
Mitchell v. Employees' Retirement System of Alabama
642 So. 2d 480 (Court of Civil Appeals of Alabama, 1994)
Bower v. Contributory Retirement Appeal Board
471 N.E.2d 1296 (Massachusetts Supreme Judicial Court, 1984)
Cooley v. Hollister
38 Wash. App. 447 (Court of Appeals of Washington, 1984)
Globe Newspaper Co. v. Boston Retirement Board
446 N.E.2d 1051 (Massachusetts Supreme Judicial Court, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
419 N.E.2d 277, 383 Mass. 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boston-assn-of-sch-admrs-sup-v-boston-ret-bd-mass-1981.