Grella v. Hevesi

38 A.D.3d 113, 827 N.Y.S.2d 756
Appellate Division of the Supreme Court of the State of New York·Decided January 11, 2007·Published·Cited by 20 cases

Opinion

OPINION OF THE COURT

Spain, J.

The narrow issue presented by this appeal is whether a public employment retiree who is appointed to be a Judge of the Court of Claims and then temporarily assigned to the Supreme Court qualifies for the “elective public office” statutory exception (Civil Service Law § 150), an exception to the general rule that pension benefits are suspended when such a retiree returns to work in the public sector (see Retirement and Social Security Law § 101 [a]; Civil Service Law § 150). We agree with the sound reasoning and conclusion of Supreme Court that this exception is inapplicable to petitioner because he was neither elected to nor appointed to any elective office. Thus, we affirm the dismissal of petitioner’s CPLR article 78 petition which challenged respondent’s determination denying his request to receive retirement benefits without reduction due to his postretirement employment as a Court of Claims Judge.

The facts are not in dispute. Petitioner is eligible to receive full retirement benefits as a retiree of the New York State and Local Employees’ Retirement System, having served as an As[115] sistant District Attorney in Nassau County for 24 years and an appointed (July 1996) and then elected (November 1996) Judge of the Nassau County District Court, for a combined total of 30 years. Following his unsuccessful reelection bid in 2002, petitioner, then age 56, consulted with Office of Court Administration benefits’ representatives and then applied for retirement before the expiration of his elected term; he began collecting his annual pension ($75,534) upon his retirement, effective January 1, 2003. Petitioner was later appointed by the Governor as a Court of Claims Judge, effective June 30, 2003, and, upon the commencement of his duties, he was administratively assigned to Supreme Court. Thereafter, he was informed by the Retirement System that his pension benefits would be suspended, due to his postretirement employment (see Retirement and Social Security Law § 101 [a], [d]), once his earnings reached $25,000 (see Retirement and Social Security Law § 212 [2003 annual limit applicable to those under age 65]); since petitioner had returned to the same employer, he could earn $36,000 if he obtained a waiver from his employer (see Retirement and Social Security Law § 211; see also Matter of Incorporated Vil. of Nissequogue v New York State Civ. Serv. Commn., 220 AD2d 53, 54 [1996]), which the Office of Court Administration granted. The Retirement System also concluded that petitioner was not eligible for the Civil Service Law § 150 elective office exception.

Upon petitioner’s request for a redetermination, a hearing was conducted (see Retirement and Social Security Law § 74 [d]) at which petitioner advocated that he was entitled to full retirement benefits without any reduction. The Hearing Officer issued written findings of fact and conclusions of law, adopted by respondent in its final determination, that petitioner was not eligible for the Civil Service Law § 150 exception for elective office. Supreme Court thereafter dismissed petitioner’s CPLR article 78 petition (10 Misc 3d 519 [2005]), and we affirm.

Under long-standing public policy as expressed by the Legislature, the general rule is that when a retired member of the Retirement System returns to public service, the member’s pension benefits are suspended until he or she again retires (see Retirement and Social Security Law § 101 [a]; Civil Service Law § 150; see also Matter of Baker v Regan, 68 NY2d 335, 341 [1986]; Matter of Incorporated Vil. of Nissequogue v New York State Civ. Serv. Commn., supra at 54). Limited exceptions have been legislatively crafted (see Retirement and Social Security [116] Law § 101 [dj; §§ 211, 212; Civil Service Law § 150). Retirement and Social Security Law § 212 sets forth limits on annual earnings which a retiree under the age of 65 may make from a public employer without diminution of retirement benefits. Here, petitioner obtained a waiver to exceed the section 212 limit (see Retirement and Social Security Law § 211 [1] [a]; [2] [a] [7]; [b]); since he returned to work for the same employer* for which he worked prior to retirement—i.e., the Office of Court Administration—that waiver permits him to earn, without diminution in his retirement benefits, only up to the amount governed by the statutory formula (see Retirement and Social Security Law § 211 [1] [a]), calculated at $36,000.

Petitioner’s central contention has been that he qualifies for the Civil Service Law § 150 exception which allows a retiree to earn a full salary from an elective office that the retiree did not hold prior to retirement, without any diminution or suspension of the retiree’s full retirement allowance (see Retirement and Social Security Law § 101 [d]). Specifically, under an interpretation rejected by respondent and Supreme Court, petitioner submits that his appointment as a Court of Claims Judge and assignment to Supreme Court under Court of Claims Act § 2 (b), pursuant to which he assumed and performed the duties of a Supreme Court Justice, constitutes “accept [anee] . . . [of] an elective public office” within the meaning and intendment of this exception (Civil Service Law § 150).

Our review of respondent’s determination is limited to ascertaining whether it is erroneous or arbitrary and capricious and, thus, without a rational basis (see CPLR 7803 [3]; see also Matter of Johnson v State of New York, 26 AD3d 379, 380 [2006]). We adhere to our prior conclusion that the administration of Civil Service Law § 150 does not require the type of expertise or special competence warranting deference to respondent’s interpretation (see Matter of Baker v Regan, 114 AD2d 187, 190 [1986], affd in part and revd in part 68 NY2d 335 [1986]; see also Matter of New York Botanical Garden v Board of Stds. & Appeals of City of N.Y., 91 NY2d 413, 419-421 [1998]; Kurcsics v Merchants Mut. Ins. Co., 49 NY2d 451, 459 [1980]). Thus, we endeavqp “to ascertain the proper interpretation from the statutory language and legislative intent” (Matter of Gruber [New York City Dept. of Personnel—Sweeney], 89 NY2d 225, 231-232 [1996]).

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Grella v. Hevesi, 38 A.D.3d 113, 827 N.Y.S.2d 756 (N.Y. Ct. App. 2007).

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