Kodish v. Public Employees Retirement Board

341 N.E.2d 320, 45 Ohio App. 2d 147, 74 Ohio Op. 2d 167, 1975 WL 181619, 1975 Ohio App. LEXIS 5801
CourtOhio Court of Appeals
DecidedAugust 5, 1975
Docket75AP-111
StatusPublished
Cited by6 cases

This text of 341 N.E.2d 320 (Kodish v. Public Employees Retirement Board) 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
Kodish v. Public Employees Retirement Board, 341 N.E.2d 320, 45 Ohio App. 2d 147, 74 Ohio Op. 2d 167, 1975 WL 181619, 1975 Ohio App. LEXIS 5801 (Ohio Ct. App. 1975).

Opinion

McCormac, J.

Plaintiffs have appealed a decision of the Franklin County Court of Common Pleas dismissing their amended. complaint for failure to state a claim upon which relief can be granted.

The substance of the amended complaint is that plaintiffs are present and former unclassified employees of the state who have or are contributing to the Public Employees Retirement System (hereafter, referred to as pers), and whose pay is or was withheld and deposited in the pers of Ohio, subject to law. The basic complaint is that when employees leave public service prior to retirement or death, only their contributions are returned without interest for the time pers had the use of their money. They further allege that the pers board has failed to provide standards or guidelines for administering the fund, and that their property has been taken without due process of law, as it has been used without payment of interest. The trial court granted defendant’s motion to dismiss for failure to state a claim, stating as follows:

“Central to the constitutional infringements claimed in the Complaint is Ohio Revised Code Section 145.40. This section provides, in relevant part, that when a member of the public employees’ retirement system ceases to be a public employee for any cause other than death or retirement, he shall, upon application, receive the amount of his accumulated contributions to the fund provided three months have elapsed since his public employment was terminated.
*149 “The underlying basis for the Complaint appears to be that a member who terminates state employment before death or retirement is deprived of constitutional rights by not receiving interest on the sum of his contributions.
“This Court views Section 145.40 as a part of the contractual (sic) agreement between the state and the employee and, as such, finds no constitutional right to interest on the contributions referred' to in that section. This term of the employment contractus clear and is a part of the consideration exchanged between the parties. If' it should confer greater benefits, this is not a matter of constitutional right tó due process or equal protection of the law.-' ■ '
“The terms- of Section 145.40 seem to leave no issue for which notice, hearing and appeal are required to insure protection of coristitutional rights. Further, no facts are set forth in the -Complaint which indicate that the rights of these Plaintiffs have been violated by a lack of notice, hearing and appeal.
“The Court also finds that no denial of equal protection of the law is stated in the Complaint for a lack- of rules and regulations to provide definitions and procedures, pursuant to Section 145.40 as to these Plaintiffs. -.
“Defendant shall prepare and submit a Judgment Entry in-accordance with Court Rule 39.01.”

From the trial court’s ruling -the' plaintiffs have set forth the--following assignments of error:

1. The trial court’ erred in dismissing appellants’, complaint and amended complaint for failure to state-a claim upon! which relief can be granted. - ■ - 2. The trial court erred in dismissing the appellants’ complaint and amended-complaint by an interpretation of section 145.40 R. C. without the aid of further pleadings and an opportunity to obtain and present'evidence.- - : 3.’The trial court' erred in its determination that there were no 'constitutional infringements in the failure of the appellee to pro vide'fules and regulations. " ■

The assigned errors'will be considered together-as they are interrelated. 'Plaintiffs first complain -that the’trial *150 court interpreted the law concerning the requirement of crediting an employee who withdraws from the system with interest without permitting them to proceed with the evidence or to go through other pleading stages.

The test to be utilized by the trial court in granting a motion to dismiss for failure to state a claim is whether it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief. Conley v. Gibson (1957), 355 U. S. 41. That does not mean, however, that the court may not dismiss a case for failure to state a claim upon which relief can be granted because the issues involved are debatable legal issues. Plaintiffs have pointed to no additional facts that might be produced to enable a court to arrive at a conclusion factually different from that which it has already reached; The issue which plaintiffs have presented, which appears to be the sole issue from the pleadings construed most favorably for plaintiffs, is that plaintiffs were or presently are unclassified public employees, and that as part of their employment they were required to contribute to pers, and that, therefore, they have an unequivocal constitutional right to receive interest on their contributions at the time such employment is terminated. These facts were all taken into account by the court in rendering its decision dismissing the amended complaint for a failure to state a claim upon which relief can be granted. The fact that the decision is debatable legally does not invalidate the trial court’s judgment as, under its construction of law, no possible relief was available.

Plaintiffs further complain that the trial court erred in its determination that there were no constitutional infringements in the failure of the defendant to provide rules and regulations. It is true that R. C. 145.09 provides that the pers board may make all rules and regulations necessary to perform their business. This authority is designed to give the board discretion to implement, if it deems necessary, rules and regulations to provide for the effective administration of their business. Furthermore, R. C. 145.-40 delegates authority to the board to promulgate rules to *151 implement the orderly refund of contributions. However, nowhere in that grant of authority did the General Assembly confer on the pees board the responsibility to decide substantive rights, such as crediting interest at the time of refund. The crediting of interest to contributions and the amount to be returned to a former employee are matters concerning the interpretation of legislation, rather than the promulgation of rules and regulations. There is ample procedure for a litigant to challenge the interpretation which the board has placed on the legislation, as has been done in this action. The existence or nonexistence of procedural rules and regulations does not affect that right. The allegations contained in the pleadings do not indicate that the lack of rules and regulations has resulted in unfair treatment of one person who is similarly situated as opposed to another person. Unfair treatment, if it exists, exists solely because of the language used by the General Assembly in the applicable statutes.

The crucial matter in this appeal is the question of whether a proper interpretation of E. 0. Chapter 145 is that no interest is to be credited to an employee’s refundable contributions during the period that they are retained by the pees, including the ninety-day period after a request is made for a refund and the period prior to it.

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Cite This Page — Counsel Stack

Bluebook (online)
341 N.E.2d 320, 45 Ohio App. 2d 147, 74 Ohio Op. 2d 167, 1975 WL 181619, 1975 Ohio App. LEXIS 5801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kodish-v-public-employees-retirement-board-ohioctapp-1975.