Kranker v. Levitt

68 Misc. 2d 224, 327 N.Y.S.2d 259, 1971 N.Y. Misc. LEXIS 1042
New York Supreme Court·Decided December 14, 1971·Published·Cited by 8 cases

Opinion

John H. Pennock, J.

This is a motion by the plaintiffs for summary judgment in this declaratory judgment action on the ground that there are no triable issues of fact. The defendant cross-moves concomitantly for summary judgment on the ground that there is no issue of fact.

The complaint avers that the plaintiff, Abraham Kranker, is 68 years of age and has been a member of the Employees Retirement System of the State of New York since February, 1941, and has over 30 years’ membership in the Employees Retirement System; that he is eligible for retirement at any time; that he has 25 days of unused vacation credits as of September 23, 1971; (Parenthetically, pursuant to section 23.1 of the Rules and Regulations of the Department of Civil Service [4 NYCRR 23.1] State employees are compensated in cash for vacation credits up to 30 days accrued but unused as- of the date of retirement. Currently this unused vacation pay is added to the final average annual salary for computation of retirement benefits.) That section 431 of the Retirement and Social Security Law was enacted (L. 1971, ch. 503, § 19) effective April 1,1972, which excludes any vacation pay for retirement purposes.

It reads as follows: 1 ‘ 431. Salary based for computing retirement benefits. In any retirement or pension plan to which the state or municipality thereof contributes, the salary base for the computation of retirement benefits shall in no event include any of the following earned or received, on or after April first, nineteen hundred seventy-two:

‘ ‘ 1. lump sum payments for deferred compensation, sick leave, accumulated vacation or other credits for time not worked.

‘ ‘ 2. any form of termination pay,

[226] ‘1 3. any additional compensation paid in anticipation of retirement, or

‘1 4. that portion of compensation earned during any twelve months included in such salary base period which exceeds that of the preceding twelve months by more than twenty per centum.” (Retirement and Social Security Law, § 431.)

The defendant moves for summary judgment urging that the constitutional prohibition against impairment of retirement benefits relates only to those benefits in force on July 1, 1940 the effective date of the constitutional provision. (N. Y. Const., art. V, •§ 7.) This provision of the Constitution reads as follows : After July first, nineteen hundred forty, membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired.” He avers that, 1 Inclusion of the cash value of unused vacation credits in computing ‘ final average salary ’ is not mandated in law, nor is it specifically authorized by statute. He further avers reliance on section 41 of the Retirement and Social Security Law. (This section deals with sick leave and has no probative value on this motion dealing with unused vacation.)

In view of the fact that both parties move for summary judgment the court is hard pressed to find an issue of fact that would require a plenary trial. In fact each party seems to rely basically on the interpretation of the related statutes and administrative procedures. At this point the court has nothing in the record which pin-points the date unused vacation pay was first used in computing retirement. Certainly a conclusory averment that " the inclusion of cash value of unused vacation credits in computing final average salary in recent years, subsequent to 1940 by administrative action ’ ’ is not very decisive but is sufficient to constitute an interpretive administrative procedure of long standing. (City of New York v. New York City Ry. Co., 193 N. Y. 543.)

The defendant admits that the administrative act of the Comptroller motivated the inclusion of a period of unused vacation time and parenthetically admits that this was an administrative act of the Comptroller. There has been no question raised in respect to the legality of this administrative act. This discretionary administrative act on his part (the Comptroller) is within those powers granted to him by the Legislature. (Retirement and Social Security Law, § 11, Duties of Comptroller; the actuary.) Inter alia this section provides that, “ The Comptroller shall be the administrative head of the retirement system” and that Subject to the limitations of [227] [the Retirement and Social Security Law], he shall adopt and may amend from time to time, rules and regulations for the administration * * * of the retirement system and for the custody and control of its funds.”

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Kranker v. Levitt, 68 Misc. 2d 224, 327 N.Y.S.2d 259, 1971 N.Y. Misc. LEXIS 1042 (N.Y. Super. Ct. 1971).

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