Flanigan v. West Virginia Public Employees' Retirement System

352 S.E.2d 81, 177 W. Va. 331, 1986 W. Va. LEXIS 574
West Virginia Supreme Court·Decided December 12, 1986·No. No. 16999·Published·Cited by 4 cases

Opinion

McGRAW, Justice:

This case comes before us on a rule to show cause why the respondents should not be held in contempt of this Court. The respondents are the West Virginia Public Employees Retirement System (hereinafter “PERS”), its Board of Trustees1 and its Executive Secretary, J.D. Hinkle, Jr. Willard M. Ansel, the Executive Secretary of the Teacher’s Retirement Board, is also named as a respondent. The petitioner, Michael M. Flanigan, contends that the respondents have disobeyed an order of this Court directing them to enroll the petitioner in PERS. We agree, in part, and we order that the petitioner be enrolled.

The issue previously before this Court was whether the petitioner, a Mercer County magistrate, was eligible to participate in PERS and to have his more than 40 years of contributing service under the State Teachers Retirement System (hereinafter “TRS”) credited to his PERS annuity. In 1977, when the petitioner first assumed the office of magistrate, he was advised by the State Court Administrator’s Office (hereinafter “Administrator’s Office”) that he was ineligible to participate in PERS by virtue of his membership in TRS. In reliance on this advice, the petitioner made no attempt to participate in PERS and immediately began drawing retirement benefits from TRS.

In Flanigan v. West Virginia Public Employees’ Retirement System, 176 W.Va. 330, 342 S.E.2d 414 (1986), we recognized that the advice of the Administrator’s Office had been erroneous and that the petitioner had, in fact, been eligible to participate in PERS in 1977. To correct this error, we issued a writ of mandamus directing PERS to allow the petitioner to enroll in the system upon his election of one of the following options:

(a) paying into PERS (retroactively or prospectively) for three or more years and repaying (or suspending) his TRS annuity for the same period, thereby entitling him to three years PERS credit plus a full transfer of TRS credit; or (b) paying into PERS (retroactively or prospectively) for three or more years and transferring his military service credit from TRS, and continuing to draw an annuity from TRS. 176 W.Va. at 338, 342 S.E.2d at 422.

Our decision was rendered on March 25, 1986. On May 1,1986, TRS terminated the petitioner’s retirement benefits.

On or about May 14, 1986, the petitioner tendered to PERS a certified check for $3000 which he asserted represented his PERS employee contribution for the years 1983 to 1986. This payment was refused by Secretary Hinkle on the ground that the Administrator’s Office had not yet submitted a membership enrollment showing that the petitioner was an employee of a participating employer. The Administrator’s Office subsequently advised PERS that the petitioner was employed by a participating employer and resubmitted the certified check on his behalf. Secretary Hinkle again refused to accept payment, however, explaining in a letter dated May 28, 1986, that PERS had no record of the petitioner’s prior service or of his employer’s contribution for such service. Secretary Hinkle further stated that PERS would not credit the petitioner with prior service under TRS until all funds contributed to the latter system were legally transferred to PERS along with interest plus cost for funds expended.

By letter dated June 13, 1986, the petitioner’s son, William Flanigan, notified the Administrator’s Office that the petitioner had elected to pursue option (a) as set forth in the opinion of this Court and enclosed with his letter the petitioner’s $3000 employee contribution. Mr. Flanigan also notified the Administrator’s Office that the petitioner was prepared to repay to TRS the sum of $15,000 which, it is asserted, represented the amount of TRS benefits [334] paid to the petitioner from 1983 to 1986. By letter dated June 27, 1986, the Administrator’s Office notified PERS of the petitioner’s election of option (a) and forwarded to PERS the petitioner’s employee contribution.

By letter dated July 1, 1986, Secretary Hinkle again informed the Administrator’s Office that he could not accept the petitioner’s contribution, this time on the ground that PERS could not grant a credit for the petitioner’s prior service under TRS until the petitioner and his employer had made retroactive PERS contributions, with interest, for all nine years of the petitioner’s magistrate service. On that same day, respondent Ansel notified the Administrator’s Office that the Teacher’s Retirement Board believed the petitioner’s contributions to TRS and his years of service under that plan could not be transferred to PERS until the petitioner had reimbursed TRS for all retirement benefits paid between January 1, 1977 and May 1, 1986. On July 8, 1986, the petitioner instituted this contempt proceeding.

I.

At the beginning of our analysis in Flan-igan, supra, we stated that “if the petitioner wishes to receive service credit for any or all of his past service as a magistrate he must pay the statutorily required employee contributions due for such periods. (Emphasis added)” 176 W.Va. at 336, 342 S.E.2d at 420. Later, in discussing the petitioner’s right to have PERS credit him for his years of contributing service under TRS, we stated:

Of course, as is true for turning back the clock for past PERS service credit, the petitioner must repay all benefits received from the Teachers System for the same years for which he establishes as PERS contributing service in order to
transfer such credit. [Footnote omitted] In other words, the petitioner’s TRS annuity must be suspended (i.e. repaid) for those years of contributing PERS service he establishes [Footnote omitted]. (Emphasis added) Id. 176 W.Va. at 336, 342 S.E.2d at 420-421.

It was on this basis that we formulated option (a), which permitted the petitioner to participate in PERS by “paying into PERS (retroactively or prospectively) for three or more years and repaying (or suspending) his TRS annuity for the same period, thereby entitling him to three years PERS credit plus a full transfer of TRS credit. (Emphasis added)” Id. 176 W.Va. at 338, 342 S.E.2d at 422.

There is no support in this language for the respondents’ conclusion that, under option (a), the petitioner is required to make retroactive employee contributions, with interest, from January 1, 1977 and to repay all TRS retirement benefits he has received since that date. The clear import of our previous opinion is to allow the petitioner, if he elects option (a), to designate any number of his prior years of service as a magistrate as the years establishing his PERS contributing service. Pursuant to W.Va. Code § 5-10-14(b) (1986 Cum. Supp.),2 the petitioner was required to have at least three years of contributing PERS service in order to have his prior contributing service under TRS credited to his PERS annuity. Thus, to avail himself of option (a), the petitioner could have designated from three to nine years of his prior magistrate service as PERS service.

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Flanigan v. West Virginia Public Employees' Retirement System, 352 S.E.2d 81, 177 W. Va. 331, 1986 W. Va. LEXIS 574 (W. Va. 1986).

352 S.E.2d 81 (Flanigan v. West Virginia Public Employees' Retirement System) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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