Judy A. Tinnin v. MODOT & Patrol Employees' Retirement System

Missouri Court of Appeals·Decided May 31, 2022·No. WD84636·Published

Opinion

In the

Missouri Court of Appeals Western District

JUDY A. TINNIN, )

)

Respondent, ) WD84636 )

v. ) OPINION FILED: May 31, 2022 )

MODOT & PATROL EMPLOYEES' ) RETIREMENT SYSTEM, )

)

Appellant. )

Appeal from the Circuit Court of Cole County, Missouri The Honorable Cotton Walker, Judge

Before Division Four: Cynthia L. Martin, Chief Judge, Presiding, Anthony Rex Gabbert , Judge and Janet Sutton, Judge

The Missouri Department of Transportation and Highway Patrol Employees'

Retirement System ("MPERS") appeals from the trial court's entry of judgment rejecting MPERS's board of trustees' decision to correct a calculation error as to reduce the amount of future monthly benefits to be paid to Judy A. Tinnin ("Tinnin"). MPERS claims that the trial court's judgment erroneously declared and applied the law, was not supported by substantial evidence, and was against the weight of the evidence. Because MPERS was required by statute to correct its error in calculating the monthly benefit amount to be paid

to Tinnin, we reverse the trial court's judgment, and, pursuant to Rule 84.14,1 enter judgment in favor of MPERS.

Factual and Procedural Background2 Tinnin married Timothy Tinnin ("ex-husband") on June 25, 1983. Ex-husband began working for the Missouri State Highway Patrol ("Highway Patrol") on August 1, 1986. As an employee of the Highway Patrol, ex-husband was a member of MPERS, entitling him to receive a monthly pension benefit upon his retirement.

On February 1, 2008, Tinnin filed a petition for the dissolution of her marriage to ex-husband. On February 14, 2008, MPERS sent Tinnin and ex-husband a written estimate indicating that the monthly retirement benefit ex-husband accrued during the marriage was estimated to be $2,747.59, and noting that the maximum amount a court could award3 Tinnin was estimated to be $1,373.79 per month, with payment commencing upon ex- husband's retirement. A certified public accountant later determined in a pension valuation report dated October 28, 2008, that the present value of the marital portion of ex-husband's MPERS retirement benefits was $541,527.68.

The parties entered into a separation agreement dividing their marital property. The separation agreement provided that upon ex-husband's retirement, Tinnin would receive

1 All rule references are to the Missouri Court Rules, Volume I - State (2021), unless otherwise indicated.

2 In an appeal from a non-contested case pursuant to section 536.150, we view the evidence and all reasonable inferences drawn therefrom in the light most favorable to the trial court's judgment and disregard all contrary evidence and inferences. BBCB, LLC v. City of Independence, 201 S.W.3d 520, 531 (Mo. App. W.D. 2006).

All statutory references are to RSMo 2016, as supplemented through February 2019, except as otherwise noted.

3

Applicable to this case, the maximum amount the dissolution court could have awarded Tinnin from ex-

husband's MPERS's retirement benefit was "fifty percent of the amount of the member's annuity accrued during all or part of the time while the member and alternate payee were married." Section 104.312.1(3).

40.77 percent of ex-husband's MPERS retirement benefits that accrued during the marriage. On December 30, 2008, the Circuit Court of Callaway County entered a decree of dissolution ("Dissolution Decree"), which incorporated the terms of the separation agreement. As such, the Dissolution Decree did not award Tinnin a specific amount to be paid each month from ex-husband's MPRES's retirement benefits, and instead awarded Tinnin a monthly benefit upon ex-husband's retirement that equates to 40.77 percent of ex- husband's retirement benefits that accrued during the marriage.

On March 19, 2009, the Circuit Court of Callaway County entered a division of benefits order that directed MPERS to "pay directly to [Tinnin] 40.77% of the monthly benefit accrued during the marriage, otherwise payable to [ex-husband]." Mariel Hale ("Hale"), a senior benefit specialist for MPERS, sent a letter to Tinnin dated July 27, 2009, that stated:

The monthly retirement benefit accrued from August 1, 1986 (date of employment) to December 30, 2008 (date of divorce), was $6,994.01. The [division of benefits order] indicates Ms. Judy Tinnin was awarded 40.77% of the benefit; therefore, she will receive a monthly benefit in the amount of $2,831.07 at the time [ex-husband] retires.

Hale's letter was in error, as it inadvertently overstated the amount of ex-husband's monthly retirement benefit by using the amount of ex-husband's monthly final average pay at the time. Ex-husband's monthly retirement benefit that accrued during the marriage was actually $3,320.77.

After receiving the July 27, 2009 letter, Tinnin met with a financial advisor to plan for retirement using the assumption that, upon ex-husband's retirement, she would begin receiving $2,831.07 in monthly benefits from MPERS. The financial advisor adjusted

Tinnin's retirement investments in reliance on this assumption, and advised Tinnin that she would be able to retire while maintaining a similar standard of living. Tinnin met with the same financial advisor regularly over the years to revisit her retirement strategy, and each time, Tinnin and the financial advisor relied on the assumption that Tinnin would begin receiving $2,831.07 in monthly benefits from MPERS upon ex-husband's retirement.

On July 11, 2018, MPERS sent Tinnin a letter to inform her that ex-husband had applied to retire effective September 1, 2018. The July 11, 2018 letter advised Tinnin that upon ex-husband's retirement, and pursuant to the division of benefits order, Tinnin would begin receiving a monthly payment of $1,353.88.

After receiving the July 11, 2018 letter, Tinnin contacted MPERS and advised that she had been relying on the amount stated in MPERS's July 27, 2009 letter for nine years. MPERS's staff denied Tinnin's request to adjust the amount of the monthly benefit that would be paid to Tinnin upon ex-husband's retirement.

On August 29, 2018, Tinnin's attorney requested a review of staff's decision by MPERS's board of trustees. MPERS's board of trustees reviewed Tinnin's claim on February 21, 2019. The following day, MPERS's general counsel advised Tinnin in writing that the board of trustees agreed with staff's determination that Tinnin's monthly benefit should be $1,353.88. The letter advised Tinnin that, if she wished to pursue the matter further, she would need to seek review in the Circuit Court of Cole County.

Tinnin filed suit against MPERS in the Circuit Court of Cole County on March 19, 2019. Tinnin's petition ("Petition") alleged that the hearing before MPERS's board of trustees was a non-contested case, and sought judicial review of the board's decision

pursuant to section 536.150.4 In Count I, the Petition asked the trial court to conclude that MPERS's refusal to honor the monthly benefit calculation set forth in the July 27, 2009 letter "should be overturned as being unconstitutional, unlawful, unreasonable, arbitrary and capricious, and involving an abuse of discretion." Count II of the Petition asked the trial court to equitably estop MPERS from reducing Tinnin's monthly benefit amount from $2,831.07 to $1,353.88, because MPERS's July 27, 2009 letter constituted affirmative misconduct, Tinnin had reasonably relied on the July 27, 2009 letter for nine years in planning for retirement, and Tinnin suffered damages as a result of that reliance.

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