Lovely-Belyea v. Maine State Retirement System

2002 ME 138, 804 A.2d 359, 2002 Me. 138, 2002 Me. LEXIS 150, 89 Fair Empl. Prac. Cas. (BNA) 1121
CourtSupreme Judicial Court of Maine
DecidedAugust 16, 2002
StatusPublished
Cited by3 cases

This text of 2002 ME 138 (Lovely-Belyea v. Maine State Retirement System) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lovely-Belyea v. Maine State Retirement System, 2002 ME 138, 804 A.2d 359, 2002 Me. 138, 2002 Me. LEXIS 150, 89 Fair Empl. Prac. Cas. (BNA) 1121 (Me. 2002).

Opinions

RUDMAN, J.

[¶ 1] Carole Lovely-Belyea appeals from the judgment entered in the Superior Court (Cumberland County, Crowley, J.), affirming the decision of the Board of Trustees of the Maine State Retirement System denying her application for disability retirement benefits. Lovely-Belyea asserts that the Board erred in finding that it had complied with federal requirements for notice and the length of the election period when it implemented a federally mandated non-age discriminatory [361]*361disability retirement plan. We disagree and affirm the judgment.

I. CASE HISTORY

[¶ 2] On October 16, 1990, Congress passed the Older Workers Benefit Protection Act to insure that state employees had the opportunity to enroll in non-age discriminatory benefit plans that met the requirements of the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621-634 (1999) (ADEA). Older Workers Benefit Protection Act, Pub.L. No. 101-433, 104 Stat. 978 (1990) [hereinafter OWBPA] (codified in part at 29 U.S.C. § 626(f)(1)). The OWBPA provided a two-year period within which states could elect a safe harbor provision that allowed a state to offer its existing public employees the opportunity to choose either a new non-age discriminatory disability retirement plan or to remain in an existing age-discriminatory disability retirement benefits plan. Id. § 105(c)(1). The OWBPA provided that states seeking the “safe harbor” had to make an offer of a non-age discriminatory disability retirement benefit plan to member state employees and provide reasonable notice “no later than the date that is two years after enactment of the this Act.” Id. § 105(c)(2)(A)(ii)(I). The OWB-PA’s safe harbor provisions also required that the employee be “given up to 180 days after the offer in which to make the election.” Id. § 105(c)(2)(A)(ii)(II). The OWBPA defined “reasonable notice” as requiring employers to provide employees “sufficiently accurate and comprehensive” notice of whether they were immediately eligible for disability benefit. Id. § 105(c)(4) (C) (i).

[¶ 3] In anticipation of the Maine Legislature adopting a plan that would place the state retirement system in the “safe harbor,” the Maine State Retirement System (MSRS) distributed notices of a “no-age-limit disability plan” to state employers on October 15, 1992 for distribution to employees the next day. This notice indicated that “[p]ersons who are employees on October 16, 1992 are entitled to elect to move to the NO-AGE-LIMIT DISABILITY PLAN.”1 The notice contrasted the current age-limited plan with the new no-age limit plan, noting the different levels of benefit compensation and the maximum periods of disability benefit payments. The notice also provided a list of factors the employee should consider when deciding which plan to elect: age, health, and number of years of service. The notice did not include an election form.

[¶ 4] On October 16, 1992, the Maine Legislature passed legislation, codified at 5 M.R.S.A. § 17941, which provided a nonage discrimination disability retirement benefit plan and included a provision for employees to elect to remain in the existing plan. P.L.1991, ch. 887, § 10 (repealed by P.L.1995, ch. 643, § 16). The State’s enabling act provided that state agencies and school districts were to give “the information and election form to each member entitled to the election not later than October 16, 1992,” that a member may not make an election “later than 180 days after October 16, 1992[,] and [that] the election is irrevocable.”2 5 M.R.S.A. § 17941(1)(C) & (E) (repealed by P.L.1995, ch. 643, § 16). MSRS sent out a second notice to employees on March 1, 1993. This notice included an election form and was substantially [362]*362similar to the notice sent in October 1992.3 The notice indicated that the employee must make an election “no later than April 14,1993.”

[¶ 5] On October 15, 1992, the MSRS distributed the October 1992 notice to state agencies and school districts, including the Lewiston School District, Lovely-Belyea’s employer, for distribution the next day. The school district distributed these notices through the school principals for placement in school employee mailboxes. When the school district distributed the March notices and election forms, it set a return date of April 1,1993.

[¶ 6] Until 1998, Lovely-Belyea taught special education at one of the Lewiston School District’s elementary schools. She had returned a benefits plan election form on March 31, 1993, indicating that she chose to remain in the existing age-limited disability retirement plan. Five years after electing a benefit plan, Lovely-Belyea, then sixty-one years old, applied for disability retirement benefits. The MSRS Executive Director denied her application for disability benefits because Lovely-Be-lyea was eligible for service retirement and had elected to remain in the age-limited plan. She appealed to the Board of Trustees, which affirmed the administrative decision denying benefits on the basis of Lovely-Belyea’s age. Lovely-Belyea appealed to the Superior Court, which affirmed the decision of the Board of Trustees. Lovely-Belyea, thereafter, brought this appeal.

II. DISCUSSION

[¶ 7] Lovely-Belyea argues that MSRS failed to provide her with the 180-day notice period she says the OWBPA mandates for electing a disability retirement plan, and she contends that, as a result, her prior election is void. We review directly the decisions of the Board of Trustees of the MSRS “for errors of law, abuse of discretion or findings of fact unsupported by competent and substantial evidence in the record.” Richardson v. Bd. of Trs., Maine State Ret. Sys., 1998 ME 171, ¶ 4, 714 A.2d 154,156.

[¶ 8] The OWBPA requires that states provide “up to 180 days” for electing either an age-limited benefits plan or a non-age limited one. OWBPA, § 105(c)(2)(A)(ii)(II). The United States Supreme Court has strictly interpreted the OWBPA’s procedural requirements for waivers of ADEA claims, holding that they take precedence over common-law contract precepts.4 Oubre v. Entergy Operations, Inc., 522 U.S. 422, 427, 118 S.Ct. 838, 139 L.Ed.2d 849 (1998) (interpreting the waiver provisions found in OWBPA, § 201 codified at 29 U.S.C. § 626(f)). Other federal courts have also strictly interpreted OWBPA provisions. See, e.g., Erie County Retirees Ass’n v. County of Erie, Pa., 220 F.3d 193, 214-215 (3rd Cir.2000) (state employer may not provide inferior health care benefits to Medicare eligible retirees, under a safe harbor provision allowing for age discrimination for “reasonable factors other than age.”), cert. denied, 532 U.S. 913, 121 S.Ct. 1247, 149 L.Ed.2d 153 (2001).

[¶ 9] Strictly interpreted, “up to” provides a time for the close of an election [363]*363period.

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2002 ME 138, 804 A.2d 359, 2002 Me. 138, 2002 Me. LEXIS 150, 89 Fair Empl. Prac. Cas. (BNA) 1121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lovely-belyea-v-maine-state-retirement-system-me-2002.