In re Goffstown Education Support Staff

846 A.2d 1179, 150 N.H. 795, 2004 N.H. LEXIS 73
CourtSupreme Court of New Hampshire
DecidedApril 21, 2004
DocketNo. 2003-370
StatusPublished
Cited by8 cases

This text of 846 A.2d 1179 (In re Goffstown Education Support Staff) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Goffstown Education Support Staff, 846 A.2d 1179, 150 N.H. 795, 2004 N.H. LEXIS 73 (N.H. 2004).

Opinion

BRODERICK, C.J.

In this petition for a writ of certiorari, the petitioner, the Goffstown Education Support Staff, NEA-New Hampshire (union), seeks review of the determination by the Board of Trustees (board) of the New Hampshire Retirement System (NHRS) that the support staff employees (support staff) of the respondent, the Goffstown School District (school district), may not obtain credit for services they rendered before July 1,2001, pursuant to RSA 100-A:3, VI(d) (2001). We affirm.

Before discussing the facts relevant to this appeal, it is helpful to outline the basic framework of the NHRS. The State retirement system was created in 1945. See Laws 1945, ch. 183 (current version at RSA ch. 100-A). At that time, there were separate retirement systems for State employees, public school teachers, policemen and firemen. See Laws 1945, 201:1. These separate retirement systems were merged in 1967. See Laws 1967, 134:1.

Despite the merger, State employees, public school teachers, permanent policemen and permanent firemen are governed by a different set of rules than are other public employees. For instance, membership in the State retirement system for any State employee, teacher, permanent policeman or permanent fireman generally is automatic as “a condition of employment,” RSA 100~A:3, 1(a) (2001); membership for other local government employees generally is not, see RSA 100-A:20 (2001) (amended 2002).

Non-teacher school district employees may become members if their school district elects to make them eligible for State retirement benefits and the board sets an effective date of participation in the State retirement system. See RSA 100-A:20; State Employees’ Ass’n of N.H. v. Belknap County, 122 N.H. 614, 619 (1982). Membership in the State retirement system is then optional for employees hired before the effective date of participation and compulsory for those hired after that date. See Belknap County, 122 N.H. at 619; RSA 100-A22 (2001) (amended 2002).

We turn now to the facts of this case. In March 2001, the school district elected to have the support staff become eligible to participate in the NHRS. See RSA 100-A.-20. The board subsequently set July 1,2001, as the effective date for their participation. See RSA 100-A:20,1. In October 2001, the union inquired about whether the support staff could receive credit for services rendered before July 1, 2001, noting that in 1950 the school district had voted to participate in the State retirement system. A NHRS [797]*797benefit administrator advised that because the NHRS had no record of the school district’s 1950 vote, the official date of participation for the support staff was July 1,2001.

The union appealed this determination and sought relief for the support staff under RSA 100-A:3, VI(d), sometimes referred to as the employer oversight provision. This provision “provides a mechanism through which an employee may receive credit for prior service when the employer has failed to enroll him or her in the [NHRS].” McKenzie v. City of Berlin, 145 N.H. 467, 472 (2000). If an employer “through its own fault, and not the fault of the employee,” has failed to enroll an “eligible employee” when the employee “became eligible for membership” in the NHRS or a predecessor system, “the employer and not the employee” pays for an actuarial statement, which is used to determine the cost of the prior service credit. RSA 100-A:3, VI(d)(l). The employer and employee must each pay one-half of the cost of the prior service credit. See id.; City of Berlin, 145 N.H. at 472. “If the employee is financially unable to pay his or her portion, then the employer pays its portion directly to the employee, and the employee receives no prior service credit.” City of Berlin,, 145 N.H. at 472; see RSA 100-A:3, VI(d)(3).

The union argued that the school district’s 1950 vote entitled the support staff to membership in the State retirement system. The union contended that, under the employer oversight provision, the support staff were entitled to prior service credit from their pre-July 1, 2001 dates of hire and the school district was required to pay for one-half of the cost of the credit and the full cost of the actuarial statement. See RSA 100-A:3, VI(d).

In January 2002, a NHRS hearings examiner denied the union’s requested relief. He determined that the support staff did not become “eligible” for membership in the NHRS until the board set July 1,2001, as the official participation date. See RSA 100-A:20, I. Although the school district voted to allow the support staff to participate in the predecessor to the NHRS in 1950, the hearings examiner found that it never informed the predecessor retirement system of this fact. Therefore, no effective date of participation was set based upon that vote. Because the support staff were not “eligible” to participate in the NHRS before July 1, 2001, the hearings examiner ruled that they could not obtain credit for services rendered before that date under the employer oversight provision. See RSA 100-A:3, VI(d).

The hearings examiner informed the union that the support staff could, however, obtain credit for services rendered before July 1, 2001, under RSA 100-A.-22. Pursuant to RSA 100-A:22, employees employed as of the effective date of participation (i,.e., July 1, 2001) are “credited with prior [798]*798service covering such periods of prior service ... for which the employer is willing to make accrued liability contributions.” If the employer is unable or unwilling to make these contributions, the employees may petition the board for the prior service credit “within 5 years from the date when the employer’s participation becomes effective” and pay for it themselves. Id.; see RSA 100-A:3, VI(b) (2001) (amended 2002).

The union moved for “rehearing” in February 2002. The hearings examiner treated this motion as a request for adjudicative proceedings. See N.H. ADMIN. RULES, Ret 204.01. Accordingly, he conducted a prehearing conference and permitted the school district to file an otherwise untimely opposition to the motion. See N.H. ADMIN. RULES, Ret 204.02, 204.08. The school district did not object to this procedure. The hearings examiner recommended that the board find July 1,2001, to be the effective date for support staff participation in the NHRS and concluded that the employer oversight provision applied only prospectively as of that date. The board upheld the hearings examiner’s recommended decision on February 11, 2003. See N.H. ADMIN. RULES, Ret 204.09. In March 2003, the union timely filed a motion for rehearing, which the board denied in May 2003. See N.H. Admin. RULES, Ret 204.10. This petition for a writ of certiorari followed. See RSA 541:6 (1997).

We review the board’s decision to determine whether it: (1) acted illegally with respect to jurisdiction, authority or observance of the law whereby it arrived at a conclusion that could not legally or reasonably be made; (2) acted arbitrarily, unreasonably, or capriciously; or (3) engaged in an unsustainable exercise of discretion. See Petition of Bailey, 146 N.H. 197, 198 (2001); cf. State v. Lambert, 147 N.H. 295, 296 (2001) (explaining unsustainable exercise of discretion standard).

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Bluebook (online)
846 A.2d 1179, 150 N.H. 795, 2004 N.H. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-goffstown-education-support-staff-nh-2004.