Henslee v. McLaughlin

562 N.E.2d 526, 55 Ohio App. 3d 83, 1990 Ohio App. LEXIS 442
CourtOhio Court of Appeals
DecidedFebruary 6, 1990
Docket89AP-1002
StatusPublished

This text of 562 N.E.2d 526 (Henslee v. McLaughlin) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henslee v. McLaughlin, 562 N.E.2d 526, 55 Ohio App. 3d 83, 1990 Ohio App. LEXIS 442 (Ohio Ct. App. 1990).

Opinion

Wolff, J.

Laura J. Henslee appeals the dismissal of her petition for declaratory judgment. The record, briefs, and oral arguments indicate that the facts are not in dispute.

Henslee was employed by the state of Ohio on four separate occasions. She withdrew contributions made to the Public Employees Retirement System of Ohio (“PERS”), on account of the first three periods of employment, at the end of those periods of employment. The withdrawn contributions represent almost eighteen years of service credit with PERS. Henslee has approximately thirteen years of service credit with PERS which she accumulated during her most recent period of employment. She received her final check for this last period of employment on October 26, 1985. Henslee is presently eligible to apply for and receive retirement benefits on account of this last thirteen-year period of service, with an effective benefit date of November 1, 1985.

Henslee seeks to receive retirement benefits based on approximately thirty-one years’ service credit, with an effective date of November 1,1985, by now redepositing her previously withdrawn contributions, together with interest, i.e., by repurchasing service credit for approximately eighteen years.

On May 10, 1989, Henslee, representing herself, filed a petition for declaratory judgment regarding her rights to collect retirement benefits. Henslee requested that the trial court decide the following issues:

“* * * (1) [I]f she redeposits withdrawn contributions with compound interest prior to retirement, when shall her benefits begin according to statute and (2) if she does not redeposit withdrawn contributions prior to retirement when will her monthly benefits begin in accordance with [the] statute and does she have the right to redeposit withdrawn contributions after she retires and is receiving benefits.”

William S. McLaughlin, Executive Director of the Public Employees Retirement System of Ohio, moved to dismiss for failure to state a claim upon which relief may be granted, which motion the court sustained. The court reviewed R.C. 145.31, 145.41, 145.01(E), Ohio Adm. Code 145-19-01, and 145-9-02, and stated that, if Henslee repurchases the withdrawn PERS service credit, “* * * the effective date of benefits will be the first day of the month following the repurchase of such service credit as outlined in O.A.C. 145-9-01(A)(3) [sic].”

Henslee appeals and raises five assignments of error:

“ 1. It constitutes error to dismiss a petition for declaratory judgment based upon a claim that no controversy exist [sic] when the appellant clearly set forth that the controversies are that the defendant refuses to pay benefits in accordance with statute and insists] that administrative rule prevails over statute which denies the appellant forty-six months of retirement benefits.

“2. The lower court ruled that canceled service credit cannot be restored after retirement. This is contrary to ORC 145.31 and there is no administrative rule that precludes one retired to restore canceled service credit. So in this instance the lower court ignored the provisions of statute *85 [sic] because there is none [sic] that deals with this matter.

“3. It constitutes error to claim to dismiss the petition for declaratory-judgment and then to rule on the rights of the appellant in this matter without a hearing. Due process of law consists of notice and a hearing, the Appellant [sic] did not get a hearing, on this matter.

“4. It constitutes error to make a ruling that is neither supported by statute nor administrative rule. The lower court ruled that after retirement redeposit can never take place but there is no statute to support that and there is no administrative rule that precludes redeposit after retirement either. This is abuse of discretion to make a ruling that is not supported by anything.

“5. It constitutes error to make a ruling on an administrative rule when statute [sic] is contrary to that administrative rule. The lower court ruled that benefits will not be paid until the date of redeposit, as set forth in administrative rule 145-19-01, and this is in direct contradiction to ORC 145.32.”

Henslee raises similar issues in assignments of error one and five. These assignments of error will be discussed together.

Henslee maintains that the trial court erred in relying on Ohio Adm. Code 145-19-01 instead of R.C. 145.32 in deciding that, if she repurchased service credit, she would only receive retirement benefits effective as of the date of repurchase.

R.C. 145.31 discusses restoration of membership and service credit as follows:

“A member or former member of the public employees retirement system with at least eighteen months of contributing service credit in this system * * * after the withdrawal of contributions and cancellation of service credit in this system, may restore such service credit by redepositing in the employees’ savings fund the amount withdrawn, with interest on such amount compounded annually at a rate to be determined by the public employees retirement board from the first day of the month of withdrawal to and including the month of redeposit. The member may choose to purchase only part of such credit in any one payment, subject to board rules. The total payment to restore canceled service credit, plus any interest credited thereto, shall be considered as accumulated contributions of the member.”

R.C. 145.32 states, in pertinent part, as follows:

“A member, who has passed his sixtieth birthday and has five or more years of total service credit, or has twenty-five or more years of total service credit and has attained his fifty-fifth birthday, or has thirty or more years of total Ohio service credit, regardless of age, may file with the public employees retirement board an application for retirement.

“Service retirement shall be effective on the first day of the month immediately following the later of:

“(A) The last day for which compensation was paid;

“(B) The attainment of minimum age or service credit eligibility provided under this section.”

Ohio Adm. Code 145-19-01 states, in pertinent part, as follows:

“(A) Benefits shall be effective the first day of the month following the later of:

“(1) Service termination date;

‘ ‘(2) Eligibility by virtue of attaining the minimum age requirement;

“(3) Eligibility by virtue of accumulating required service credit, including purchase of any additional credit;

“(4) At a later date specified by a retiring member.”

Henslee argues that Ohio Adm. *86 Code 145-19-01 denies what R.C. 145.32 grants, which is payment of retirement benefits on the first day of the month immediately following the last day for which compensation was paid, which would be November 1, 1985, in this case. A close reading of R.C. 145.31, 145.32, and Ohio Adm. Code 145-19-01 leads us to conclude that R.C.

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Related

§ 145.31
Ohio § 145.31
§ 145.32
Ohio § 145.32

Cite This Page — Counsel Stack

Bluebook (online)
562 N.E.2d 526, 55 Ohio App. 3d 83, 1990 Ohio App. LEXIS 442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henslee-v-mclaughlin-ohioctapp-1990.