M. Luna v. Department of Veterans Affairs

CourtMerit Systems Protection Board
DecidedApril 12, 2023
DocketDA-1221-16-0223-W-2
StatusUnpublished

This text of M. Luna v. Department of Veterans Affairs (M. Luna v. Department of Veterans Affairs) is published on Counsel Stack Legal Research, covering Merit Systems Protection Board primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M. Luna v. Department of Veterans Affairs, (Miss. 2023).

Opinion

UNITED STATES OF AMERICA MERIT SYSTEMS PROTECTION BOARD

M. CARMEN LUNA, DOCKET NUMBER Appellant, DA-1221-16-0223-W-2

v.

DEPARTMENT OF VETERANS DATE: April 12, 2023 AFFAIRS, Agency.

THIS FINAL ORDER IS NONPRECEDENTIAL 1

Anthony Rogers, San Antonio, Texas, for the appellant.

Thomas J. Herpin, Esquire, Houston, Texas, for the agency.

BEFORE

Cathy A. Harris, Vice Chairman Raymond A. Limon, Member Tristan L. Leavitt, Member 2

FINAL ORDER

¶1 The appellant has filed a petition for review of the initial decision, which dismissed her individual right of action (IRA) appeal for lack of jurisdiction .

1 A nonprecedential order is one that the Board has determined does not add significantly to the body of MSPB case law. Parties may cite nonprecedential orders, but such orders have no precedential value; the Board and administrative judges are not required to follow or distinguish them in any future decisions. In contrast, a precedential decision issued as an Opinion and Order has been identified by the Board as significantly contributing to the Board’s case law. See 5 C.F.R. § 1201.117(c). 2 Member Leavitt’s name is included in decisions on which the three -member Board completed the voting process prior to his March 1, 2023 departure. 2

Generally, we grant petitions such as this one only in the following circumstances: the initial decision contains erroneous findings of material fact; the initial decision is based on an erroneous interpretation of statute or regulation or the erroneous application of the law to the facts of the case; the administrative judge’s rulings during either the course of the appeal or the initial decision were not consistent with required procedures or involved an abuse of discretion, and the resulting error affected the outcome of the case; or new and material evidence or legal argument is available that, despite the petitioner’s due diligence, was not available when the record closed. Title 5 of the Code of Federal Regulations, section 1201.115 (5 C.F.R. § 1201.115). After fully considering the filings in this appeal, we conclude that the petitioner has not established any basis under section 1201.115 for granting the petition for review. Therefore, we DENY the petition for review. Except as expressly MODIFIED to VACATE the administrative judge’s analysis of collateral estoppel and her discussion of whether the appellant nonfrivolously alleged that she made a protected disclosure, we AFFIRM the initial decision.

BACKGROUND ¶2 The unique and unusual background of this appeal is largely set forth in the Board’s Final Order in Luna v. Department of Veterans Affairs, MSPB Docket No. DA-0752-14-0378-I-1, Final Order (Apr. 29, 2015) (0378 Final Order). In 2003, the appellant retired from her position with the Department of Health and Human Services (HHS), Food and Drug Administration (FDA), and began receiving a Civil Service Retirement System (CSRS) annuity. Id., ¶ 2. The Standard Form (SF) 50 documenting her separation classified it as an “early out” retirement. Id. The agency hired the appellant effective February 5, 2006, and she continued to receive her CSRS annuity during her reemployment. Id. Effective February 23, 2010, the agency terminated the appellant for misconduct. Id. 3

¶3 The appellant filed an appeal of her termination with the Board. Id., ¶ 3. The administrative judge dismissed the appeal for lack of jurisdiction based on her finding that the appellant was a reemployed annuitant when she was terminated and, therefore, she had no right to appeal her termination to the Board. Id., ¶ 5; see 5 U.S.C. § 3323(b)(1) (stating that reemployed annuitants serve as at-will employees and lack Board appeal rights over adverse actions). On review, the appellant argued that the Board had jurisdiction over her appeal because her 2003 separation had been pursuant to a discontinued service retirement (DSR). 0378 Final Order, ¶ 5; Colbert v. Department of the Army, 54 M.S.P.R. 492, 495 (1992) (holding that an individual’s reemployment after a DSR under the CSRS is not as a reemployed annuitant). The Board denied the appellant’s petition for review, noting that the SF-50 documenting her separation showed that she had retired under the early-out provisions of 5 U.S.C. § 8336(d)(2), not under a DSR. 0378 Final Order, ¶ 5. ¶4 Over 3 years later, HHS cancelled the SF-50 that identified the appellant’s 2003 separation as a “Retirement-Special Option” and replaced it with another SF-50, which establishes that she separated from the FDA under a DSR. Luna v. Department of Veterans Affairs, MSPB Docket No. DA-1221-16-0223-W-1, Initial Appeal File (IAF), Tab 6 at 33-34. The appellant then filed another Board appeal of her 2010 termination, contending that, because the new SF-50 shows that she retired under a DSR, she was an employee when the agency removed her and, therefore, she had the right to appeal her removal to the Board. 0378 Final Order, ¶¶ 6-7. ¶5 By Final Order dated April 29, 2015, the Board dismissed the appeal for lack of jurisdiction. Id., ¶¶ 1, 20. The Board found that, because the appellant continued to receive a retirement annuity upon reemployment, she was a reemployed annuitant regardless of whether or not she retired under a DSR and, therefore, she had no right to appeal her termination to the Board. Id., ¶ 20. The U.S. Court of Appeals for the Federal Circuit affirmed the Board’s decision in an 4

unpublished opinion. Luna v. Merit Systems Protection Board, 636 F. App’x 564 (Fed. Cir. Jan. 7, 2016). ¶6 In the meantime, the appellant sent a letter to President Obama in June 2014, stating that the Office of Personnel Management (OPM) was unresponsive to her complaint about her retirement annuity and health benefits being cancelled. 3 IAF, Tab 6 at 14. The information provided by the appellant was forwarded to the agency’s Chief Business Office (CBO) for further review. Id. at 13, 22. ¶7 In an October 22, 2014 letter, the CBO notified the appellant that she was entitled to relief under the Federal Erroneous Retirement Coverage Corrections Act (FERCCA), 5 U.S.C. § 8331 note, due to an error in her retirement plan coverage. Id. at 22. More specifically, the CBO informed the appellant that, because she retired under a DSR in 2003, the agency should have hired her as an employee rather than as a reemployed annuitant. Id. Consequently, the CBO explained that, upon the appellant being hired in 2006, her CSRS annuity receipts should have stopped, the retirement system should have become CSRS Offset (i.e., CSRS and Social Security contributions) rather than “straight CSRS,” her salary with the agency should not have been offset, and she should have been subject to Social Security contributions because she had a break in service of over 365 days, which ended after December 31, 1983. Id. The CBO also informed the appellant that, although she was entitled to relief under FERCCA, she did not have a choice of whether her retirement system would remain CSRS or change to CSRS Offset because the law requires her to be “covered under Social Security.” Id. ¶8 On the same day, the CBO directed the agency’s Human Resources Office (HR) to correct the appellant’s SF-50s to reflect that she should have been

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Bluebook (online)
M. Luna v. Department of Veterans Affairs, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-luna-v-department-of-veterans-affairs-mspb-2023.