Jiricek v. WOONSOCKET SCHOOL DIST. NO. 55-4

489 N.W.2d 348, 1992 S.D. LEXIS 100, 1992 WL 171398
CourtSouth Dakota Supreme Court
DecidedJuly 22, 1992
Docket17491, 17497
StatusPublished
Cited by10 cases

This text of 489 N.W.2d 348 (Jiricek v. WOONSOCKET SCHOOL DIST. NO. 55-4) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jiricek v. WOONSOCKET SCHOOL DIST. NO. 55-4, 489 N.W.2d 348, 1992 S.D. LEXIS 100, 1992 WL 171398 (S.D. 1992).

Opinions

MILLER, Chief Justice

(on reassignment).

Woonsocket School District #-55-4 (District) appeals from the circuit court’s judgment ordering District to pay $23,472.25 to the South Dakota Retirement System (SDRS) on behalf of William Jiricek (Jiri-cek), District’s former superintendent of schools. We reverse in part and affirm in part.

FACTS

Jiricek taught school in Greenwood, South Dakota, from 1961 — 1963. At that time, public school teachers were covered by the South Dakota Teachers’ Retirement System (TRS). SDCL ch. 13-45 (repealed by 1974 S.D.Sess.L. ch. 35, § 80). The retirement plan was voluntary; however, Jiri-cek never joined during that time period.

On July 1, 1964, SDCL 13-45-21 (repealed by 1974 S.D.Sess.L. ch. 35, § 80) made participation in TRS mandatory for all teachers entering employment after that date. Teachers employed before that date did not have to participate. On July 1, 1967, a public employees’ retirement system was established. SDCL 3-12-3 (repealed by 1974 S.D.Sess.L. ch. 35, § 80). Teachers who were members of TRS were excluded from that plan. In 1974, all previous public employee retirement systems were consolidated and participation became mandatory. See SDCL 3-12-46 and 3-12-62. This plan became known as the South Dakota Retirement System (SDRS).

Jiricek left South Dakota in 1963 to take a teaching job in Montana. In September, 1967, he returned to South Dakota to teach in the Woonsocket School District. At that time, he intentionally did not join TRS because he thought it would be tough to support his family on his salary. This somehow occurred even though participation was legally mandatory.

In 1971, after he had obtained a master’s degree in school administration he became the Woonsocket Superintendent of Schools. He remained superintendent until 1976. [349]*349When he became superintendent, he again intentionally chose not to participate in the retirement system. As superintendent, he was responsible for administrating all of District’s payroll deductions, including retirement contributions. SDCL 13-45-31 (repealed). He stated that he chose not to participate (and prevented the payroll deductions) because he felt this change would not be popular with the school board. Additionally, during his testimony, he admitted that he had no desire to participate in the retirement plan prior to 1974, because it was not, in his opinion, a very good system.

In 1974, when participation became mandatory for all public employees, Jiricek began making contributions and filed a Notice of Participation in SDRS. On this form, he was required to explain why his participating date (7-1-74) was later than his employment date (9-1-67). Although he obviously knew otherwise, he wrote, “participation was optional.”

In 1976, Jiricek moved to Madison, South Dakota, to become the superintendent of schools for Lake Central School District. In 1979, Jiricek contacted District and the Department of Labor (which at that time administered SDRS) in an attempt to receive credit for the seven-year-period (1967-1974) when he made no contributions. In response to his inquiry, SDRS informed Jiricek that he could purchase the years of credited service; however, it would cost him $18,725.00 to purchase these years. At the time of trial, this amount had increased to $23,472.25.

Jiricek was dissatisfied with SDRS’ recommendation that he purchase the seven years’ credited service and therefore he tried to get a cash settlement from District. Jiricek wrote to District: “The amounts being discussed here would well run into several tens of thousands of dollars at a retirement age especially when age 55 is considered.1 With the rapid changes in the economy in the past couple of years I do not feel that I can afford to write these years off, nor would it be fair to my family to do so.”

Later, he tried to get SDRS to support legislation that would secure his credit for the seven years. In a memo dated February 13,1986, from the deputy administrator of SDRS to the administrator, it was written: “He [Jiricek] wanted SDRS to slip an amendment on one of our bills to mandate the employer to make the payments and then settle with the ex-employee_ [W]e said no.” All of Jiricek’s collateral efforts failed and, in February, 1990, he commenced this suit.

The trial court found that District was obligated to pay $23,472.25 to SDRS on Jiricek’s behalf and ordered District to pay that amount to SDRS pursuant to SDCL 3-12-83’s “buy-back” provision. This amount represented 7½% of Jiricek’s current salary of $51,520, multiplied by the number of years in which no contributions were made (seven). This calculation was made pursuant to SDCL 3-12-83. The trial court then deducted $3,434 which was equivalent to the amount which would have been deducted from Jiricek’s salary had the required contributions been made. (The parties do not dispute these calculations.)

District argues that Jiricek’s claim was barred by the six-year statute of limitations set forth in SDCL 15-2-13(2). Jiricek, on the other hand, argues that since he has not yet retired the statute of limitations has not yet begun to run. In his notice of review, Jiricek argues that District should be compelled to pay the entire amount of the unpaid contributions, both the employer’s share ($23,472.25) and the employee’s share ($3,434.00), for a total of $26,906.25.

DECISION

The statutes creating SDRS do not include any limitation period regarding contributions which an employer fails to make. SDCL 15-2-13 applies when no limitation period is proscribed by statute. Thus, SDCL 15-2-13(2)2 sets forth the applicable [350]*350statute of limitations, which is six years after the cause of action accrued. The crucial issue here is when Jiricek’s cause of action accrued.

Jiricek contends that his cause of action does not accrue until he retires. He argues that SDCL 3-12-83 illustrates the legislature’s intent that a member be able to “buy back” into the system until he retires or is no longer a contributing member. We disagree with his contention because SDCL 3-12-83 is totally irrelevant to the question of when Jiricek’s cause of action accrued. SDCL 3-12-83 provides:

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Jiricek v. WOONSOCKET SCHOOL DIST. NO. 55-4
489 N.W.2d 348 (South Dakota Supreme Court, 1992)

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Bluebook (online)
489 N.W.2d 348, 1992 S.D. LEXIS 100, 1992 WL 171398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jiricek-v-woonsocket-school-dist-no-55-4-sd-1992.