Fox v. STATE, DEPT. OF RETIREMENT SYSTEMS

225 P.3d 1018
CourtCourt of Appeals of Washington
DecidedFebruary 10, 2010
Docket63863-7-I
StatusPublished

This text of 225 P.3d 1018 (Fox v. 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
Fox v. STATE, DEPT. OF RETIREMENT SYSTEMS, 225 P.3d 1018 (Wash. Ct. App. 2010).

Opinion

225 P.3d 1018 (2009)

Gary FOX, Appellant,
v.
STATE of Washington, DEPARTMENT OF RETIREMENT SYSTEMS, Respondent.

No. 63863-7-I.

Court of Appeals of Washington, Division 1.

November 23, 2009.
Ordered Published February 10, 2010.

*1019 Paul Anthony Neal, Attorney at Law, Olympia, WA, for Appellant.

Spencer Walter Daniels, Office of the Attorney General, Kathryn Wyatt, Attorney General's Office-Gov't Oper Div., Olympia, WA, for Respondent.

LAU, J.

¶ 1 After the Washington State Department of Retirement Systems denied Gary Fox's claim for Public Employee Retirement System (PERS) membership based on his part-time, University of Washington janitorial employment from 1970 through 1972, Fox appealed to the Thurston County Superior Court. The court affirmed the Department's final order. Fox appeals that order, arguing the Department's decision misapplied the burden of proof and is not supported by substantial evidence. Because the Department properly imposed the burden of proof on Fox to establish he worked the requisite number of hours for PERS membership and its findings of fact are supported by substantial evidence, we affirm the Department's order disqualifying him for PERS retirement benefits.

FACTS

¶ 2 Gary Fox attended the University of Washington between September 1968 and June 1972. While a student, Fox was a member of the University's gymnastics team. His gymnastics coach, Dr. Eric Hughes, also taught community classes through the University's extension services. Fox worked as a student assistant in these classes. And while attending the University, Fox worked for Bethlehem Steel Corporation in 1968, 1969, and 1970. According to his social security records, this work occurred primarily during the summer. But he also worked for the company during the school year, into the last quarter of 1970. Earlier in the school year, Fox asked Hughes for help finding additional work. After learning about a job opening with the University's janitorial department, Hughes contacted M.B. Byrd, the manager responsible for filling the opening, and recommended Fox for the job. Byrd interviewed Fox and hired him.

¶ 3 Fox began working as a janitor at the University's health sciences complex on June 1, 1970. Soon after, he was transferred to a different area of campus under the immediate supervision of Joseph Caldwell. He worked under Caldwell's direction until June 1972, earning up to $2.05 per hour. In addition to his job as a janitor and ongoing work as a student assistant for Hughes's gymnastics classes, Fox also served as a volunteer reserve officer with the Seattle Police Department. After graduation, he hoped to work in law enforcement.

¶ 4 In 1974, the City of Tukwila hired Fox as a police officer. Fox immediately joined the Washington State Law Enforcement Officers' and Fire Fighters' retirement system (LEOFF). He continued as an active contributing *1020 member of this plan until January 7, 1990, when he retired due to a work-related disability.

¶ 5 In 1991, he started working as an investigator for the Washington State Attorney General's office. Because he was already receiving LEOFF retirement benefits, he was not permitted to join PERS. Since March 19, 1976, employees have generally been prohibited from participating in both PERS and LEOFF. RCW 41.04.270(1)(c).[1] But in 1995, the Department adopted a rule clarifying that this prohibition is inapplicable if a person can establish membership in PERS before March 1, 1976.[2] WAC 415-108-725.

¶ 6 Fox claimed he qualified for PERS membership under this rule based on his janitorial work between June 1970 and June 1972. He remembered working 20 hours a week throughout this period. He also remembered filling out a PERS enrollment form and deductions taken out of his janitorial pay for social security and PERS contributions. But despite a comprehensive search, Fox found no records documenting his janitor job, related social security tax payments, or PERS contributions. In addition, University personnel discovered no employment records for Fox except for a small portion of his student assistant pay in 1969 and 1970. They found no record of Fox's PERS enrollment form or PERS contributions. And the Social Security Administration records showed no earnings for Fox's employment at the University. The Department searched its records as well, but found no evidence to support his claim. Fox discovered no federal income tax records for the critical period between 1970 and 1972.

¶ 7 After the Department denied Fox's claim for PERS membership and service credits, he appealed the denial to the Department's presiding officer, who then conducted an evidentiary hearing pursuant to the Administrative Procedures Act. At the hearing, Fox testified that he had worked 80 hours a month, 12 months a year, for 2 years. He stated that he did not take summers off, that he typically worked four hours a day, five days a week, and that the hours he worked varied based on his class schedule. He testified that he received paychecks directly from the University for this work and that PERS contributions were withheld from his paychecks.[3]

¶ 8 Fox also submitted a 1974 letter of recommendation written by Caldwell, his former supervisor, to the Tukwila Police Department. In part, it stated,

I am Joseph Caldwell, Gary's former supervisor while employed at the University of Washington. I have know[n] Gary since he came to work for me as a custodian in July of 1970. He held that position until he graduated in June of 1972. His duties not only included augmenting my regular crew with cleaning and maintaining the classrooms, labs and bathrooms, but he did many special projects for me due to his special hours he was allowed to work as a half time employee.

In addition, Fox provided a signed declaration from Byrd that stated, "I remember interviewing and hiring Gary in June of 1970 as a half-time custodian scheduled to work 80 hours per month."

¶ 9 The Department presented two witnesses. Kathleen Dwyer, the Director of the University's Benefits Office, explained that in the 1970s, the University maintained a centralized payroll system for its employees, including student employees. She testified *1021 that no University department had authority to hire and pay an employee outside the central payroll system. She testified that the University maintains copies of its payroll files at its records retention center where they are organized alphabetically and by year of employee termination. These records are retained for 75 years. According to Dwyer, the University also maintains on microfiche a copy of every payroll it has ever generated. Dwyer said that she personally searched the University's payroll records and microfiche, but "found absolutely no evidence that he was a University of Washington employee" between June 1970 and June 1972.

¶ 10 And Michelle Hardesty, PERS Plan Administrator, described the comprehensive but unsuccessful efforts by PERS plan staff to locate records to support Fox's PERS eligibility. After a diligent search, she concluded no such records existed to support Fox's claim that he enrolled in the PERS plan.

¶ 11 On March 7, 2008, the presiding officer entered a final order, containing extensive findings of fact and conclusions of law, denying Fox's claim for PERS membership.

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