Chapel v. Board of Trustees

609 A.2d 1294, 258 N.J. Super. 389
CourtNew Jersey Superior Court Appellate Division
DecidedJuly 13, 1992
StatusPublished
Cited by10 cases

This text of 609 A.2d 1294 (Chapel v. Board of Trustees) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chapel v. Board of Trustees, 609 A.2d 1294, 258 N.J. Super. 389 (N.J. Ct. App. 1992).

Opinion

258 N.J. Super. 389 (1992)
609 A.2d 1294

JOHN CHAPEL, PETITIONER-APPELLANT,
v.
BOARD OF TRUSTEES OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM, DIVISION OF PENSIONS, RESPONDENT-RESPONDENT, AND FORT LEE BOARD OF EDUCATION, INTERVENOR-RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Argued May 11, 1992.
Decided July 13, 1992.

*390 Before Judges PETRELLA, R.S. COHEN and KESTIN.

Roger W. Breslin, Jr., argued the cause for appellant (Beattie Padovano, attorneys; Roger W. Breslin, Jr. on the brief).

Louis G. Karagias, Deputy Attorney General, argued the cause for respondent (Robert J. Del Tufo, Attorney General, attorney; Mary C. Jacobson, Deputy Attorney General, of Counsel; Louis G. Karagias, Deputy Attorney General, on the brief).

Robert T. Tessaro, Attorney for Intervenor, Fort Lee Board of Education, on the letter brief.

The opinion of the court was delivered by KESTIN, J.S.C., (temporarily assigned).

From 1971 until his retirement in 1988, petitioner (Chapel) was employed by the Fort Lee Board of Education as Supervisor *391 of Buildings and Grounds. In 1974, the Board of Education also appointed Chapel as Clerk of the Works for several construction projects. He was paid additionally for this position.[1]

With one brief hiatus in 1979, Chapel continued to discharge these further duties along with his responsibilities as Supervisor of Buildings and Grounds until his retirement. In 1982 the "Clerk of the Works" title was changed to "Construction Consultant".

Throughout the period in which Chapel functioned as Supervisor of Buildings and Grounds and as Clerk of the Works/Construction Consultant, he was paid separately for each position with the customary deductions for taxes, social security and state disability reflected in each paycheck. Pension deductions, however, were taken only from his paychecks as Supervisor of Buildings and Grounds.

About a year before his retirement, Chapel was advised by an employee of the Division of Pensions that the Board of Education should have been deducting pension contributions from his salary as Clerk of the Works/Construction Consultant as well as from his salary as Supervisor of Buildings and Grounds. Chapel then requested corrective action by the Board of Education, i.e., that pension deductions be taken from his salary as Construction Consultant. No such action was taken.

Shortly after his retirement, Chapel formally requested the Public Employees' Retirement System (PERS) to include in the base for computing his retirement benefits the compensation he had received as Clerk of the Works/Construction Consultant. This request was denied and Chapel demanded a hearing under the Administrative Procedure Act, N.J.S.A. 52:14B-1 et seq., and the Office of Administrative Law Act, N.J.S.A. 52:14F-1 et seq.

*392 A contested case hearing was held before Administrative Law Judge Reiner who concluded that Chapel's service as Clerk of the Works/Construction Consultant was pension-eligible and that, under N.J.S.A. 43:15A-7.1b, the Board of Education was responsible for one-half of Chapel's contribution. Judge Reiner's initial decision was filed on December 7, 1990.

In a letter to Chapel's attorney captioned "Final Administrative Determination", dated January 17, 1991, the PERS Board of Trustees "rejected the recommendation of the Administrative Law Judge and affirmed the denial of salary received as construction consultant and clerk of the works to be used toward pension calculation." This document noted further that "[t]he Board has directed the Secretary to draw up findings of fact and conclusions of law consistent with its decision which will be presented to the Board at its meeting for discussion and review. The next meeting of the Board will be on February 20, 1991." On February 22, another letter was sent. It was similar in form to the January 17 letter except that it noted the receipt of cross-exceptions by Chapel's attorney dated January 4, referred to the January 17 letter as the Board's "original decision" and noted that that decision would be "reviewed at a subsequent meeting for [the Board's] final administrative determination."

A letter dated May 17, 1991, recited that the PERS Board of Trustees at its meeting on May 15, 1991 "adopted the Findings of Fact contained in the report of the ALJ...." The letter then set out the reasons why the PERS Board's conclusions differed with those reached by Judge Reiner. The May 17 document ended thusly:

For the reasons cited above, the Board of Trustees, PERS, rejects the December 7, 1990 Initial Decision of the ALJ and affirms the denial of the use of the monies received by John Chapel in his capacity as Clerk of the Works and Construction Official, which were paid in addition to his regular salary as Supervisor of Building [sic] & Grounds, for retirement calculation purposes. Pursuant to New Jersey Court Rules, you have a period of 45 days from the date of service of this notice in which to file an appeal with the Appellate Court from this Final Administrative Determination of the Board of Trustees.

*393 We view the decision of the PERS Board of Trustees as wanting in two respects and we reverse.

The Board of Trustees found that the "monies [Chapel] received as Clerk of the Works and Construction Consultant were in addition to the regular compensation he received in his PERS eligible position of Supervisor of Building [sic] and Grounds." From this undisputed fact, the Board of Trustees concluded that the payment received for the second position was not pension-creditable because it was "additional remuneration for performing temporary or extracurricular duties beyond the regular work day or the regular work year." [Emphasis deleted, citing N.J.S.A. 43:15A-6r.] The PERS Board of Trustees concluded further that the monies received by Chapel in respect of his additional duties were a "bonus", a type of non-creditable extra compensation listed in N.J.A.C. 17:2-4.1(d), because the term "bonus" was used in the Board of Education's appointment resolutions to describe the payment Chapel was to receive for his position as Clerk of the Works/Construction Consultant over and above his salary as Supervisor of Buildings and Grounds.

This issue may not be resolved by reliance on labels. Whatever the additional payment was called, it must be understood for what it truly was in the pension sense.

A test for pension creditability is whether the amount received is "compensation" as defined in N.J.S.A. 43:15A-6r. Compensation and salary are synonymous for this purpose. See Fasolo v. Board of Trustees, 181 N.J. Super. 434, 438 A.2d 328 (App.Div. 1981). "Salary" has been defined in case law as "monies received by a person on a fixed and continuous basis, i.e., normally paid in regular periodic intervals in specific regular amounts." Koribanics v. Board of Educ., 48 N.J. 1, 6, 222 A.2d 87 (1966). The dictionary definition of "bonus" has also been recognized in our case law as "`something given or paid in addition to the usual or expected.'". In re Estate of Gregoriou, 142 N.J. Super. 465, 468, 361 A.2d 636 (Co.Ct. 1976), rev'd *394 on other grounds, 153 N.J. Super. 44, 378 A.2d 1168 (App.Div. 1977). See also Webster's New International Dictionary, (2d Ed. 1957).

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Bluebook (online)
609 A.2d 1294, 258 N.J. Super. 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapel-v-board-of-trustees-njsuperctappdiv-1992.