Brian Wilson v. Wa State Dept. Of Retirement Systems

CourtCourt of Appeals of Washington
DecidedNovember 2, 2020
Docket79867-7
StatusPublished

This text of Brian Wilson v. Wa State Dept. Of Retirement Systems (Brian Wilson v. Wa State Dept. Of Retirement Systems) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brian Wilson v. Wa State Dept. Of Retirement Systems, (Wash. Ct. App. 2020).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

BRIAN WILSON, ) No. 79867-7-I ) Respondent, ) ) DIVISION ONE v. ) ) WASHINGTON STATE DEPARTMENT ) OF RETIRMENT SYSTEMS, ) ) PUBLISHED OPINION Appellant. ) )

MANN, C.J. — After over 33 years of police service, Brian Wilson retired from his

position as chief of police for the City of Federal Way and sought to collect his Law

Enforcement Officers’ and Fire Fighters’ Retirement System Plan 2 (LEOFF 2)

retirement benefits. The Department of Retirement Systems (Department) denied

Wilson’s retirement benefits because, after leaving the police force, Wilson took a new

job as chief of staff for the mayor of Federal Way. Wilson sought judicial review of the

Department’s final order under the Administrative Procedure Act (APA), ch. 34.05 RCW.

The superior court reversed the Department’s final order concluding that the

Department was equitably estopped from denying Wilson’s retirement benefit. The No. 79867-7-I/2

Department appeals, arguing that the superior court erred because equitable estoppel

may be used only as a “shield” or defense, not as a “sword” or cause of action.

Because Wilson raised equitable estoppel as a defense to the Department’s denial of

his earned retirement benefits, we conclude that the trial court did not err, and affirm.

FACTS

LEOFF 2 is a public retirement plan for the State’s law enforcement officials and

fire fighters. Any LEOFF 2 member at least 53 years old and has at least “five service

credit years of service” is eligible to retire and to receive retirement benefits. RCW

41.26.430(1). Any member eligible to receive retirement benefits “shall be eligible” to

begin receiving their retirement benefit after applying with the Department. RCW

41.26.490(1). Retirement benefits “shall accrue from the first day of the calendar month

immediately following such member’s separation from service.” RCW 41.26.490(1). A

person is “separated from service” on the date that they have “terminated all

employment with an employer.” RCW 41.26.490(5).

Wilson began his law enforcement career with the Renton Police Department on

May 1, 1980. Wilson enrolled in LEOFF 2 at that time. In May 1996, Wilson joined the

newly formed police department for the City of Federal Way as deputy chief. Wilson

became chief of police for Federal Way in December 2006.

In November 2013 James Ferrell was elected mayor of Federal Way. Shortly

after, Wilson met with Ferrell to discuss pressing issues in the city. Ferrell discussed

hiring Wilson as his chief of staff. Wilson expressed interest in the position, but

indicated that he intended to retire from law enforcement and wanted to ensure that he

received his LEOFF 2 retirement benefits.

-2- No. 79867-7-I/3

Wilson worked on his transition with Jean Stanley, the city’s human resources

director, and Patricia Richardson, the city attorney. Wilson reiterated to Stanley that he

intended to retire from LEOFF 2, and “his expectation that all steps would be done

properly to accomplish that.” Stanley contacted the Department to ensure that Wilson

would receive his LEOFF 2 retirement benefits. As the Department’s presiding officer

explained:

On December 19, 2013, Ms. Stanley telephoned the Department for information about retirement from LEOFF. She spoke with Employer Support Specialist Seth Miller, whose job duties included responding to inquiries from retirement system employers. Their five-to-fifteen-minute conversation covered steps necessary for the City’s police chief to receive his LEOFF retirement benefit, in the context of future employment with the City in a general government, PERS-eligible position.[1] Ms. Stanley knew that in PERS, a 30-day break in employment had to be observed or a retiree could lose retirement benefits, and she asked if there was a similar condition for retirement from LEOFF. Mr. Miller responded that LEOFF did not have a similar requirement for a particular period of absence to avoid a payment penalty, so taking a new position even the day after termination from a LEOFF position would not affect the police chief’s LEOFF retirement. He pointed out to Ms. Stanley that there could be advantages for the LEOFF member if he became a member of PERS without taking retirement from LEOFF (dual membership), but he understood Ms. Stanley’s inquiry as a request for general information on the subject of LEOFF retirement, rather than advice for a particular individual’s circumstances.

Mr. Miller emphasized that clear termination of the LEOFF employment would be key. He advised that the City should follow its normal employment termination process for the particular type of employee. He told Ms. Stanley that while different employer’s normal procedures for terminating employees might vary, commonly an employ would return all employer-owned items (such as vehicles and credit cards), and all items that would allow access to the employers’ security and IT systems (such as key cards and access codes), and the employer would be expected to remove the individual as an active employee from the employer’s HR and payroll systems. He mentioned that a retirement party might be expected.

1 PERS is the Public Employees Retirement System which applies generally to all public employees not covered by LEOFF or other special retirement plans. Ch. 41.40 RCW.

-3- No. 79867-7-I/4

When Stanley spoke with Miller, the Department did not have a rule defining the

term “separation from service” in RCW 41.26.490(5). Miller’s advice to Stanley tracked

Department published materials at the time. For example, the Department publishes

overview booklets of general information for LEOFF members. Between 2006 and

2014, the booklets advised that benefits would be effective on the first day of the month

following the end of employment. For LEOFF 2 retirees, the booklets stated that a

retiree that returned to work in positions eligible for membership in other Department

administered systems, such as PERS, could participate in the new system, “in which

case their LEOFF benefit would be temporarily stopped or suspended, or not to

participate, in which case they would continue to receive their LEOFF retirement

benefit.”

The Department also published handbooks for members of the retirement

systems it administers. Much like the booklets, between June 2011 and April 2015, the

LEOFF 2 handbook explained the choice available to LEOFF retirees that returned to

work in a position covered by another retirement system such as PERS. As with the

booklets, the handbooks were silent about how long between separating from service

under LEOFF 2 and returning to work.

To be covered under return to work rules, you must first retire by terminating all employment with your employer. This is called separating from service. Separating from service demonstrates that you’ve completed the necessary actions of leaving employment.

If you then decide to return to public service in Washington, your benefit may be affected, depending on the position you return to.

If you return to work in a position that is eligible for membership in the Washington State Public Employees’ Retirement System (PERS) . . . you

-4- No. 79867-7-I/5

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