Maine Sch. Admin. Dist. 27 v. Maine Pub. Employees Retirement Sys.

CourtSuperior Court of Maine
DecidedFebruary 19, 2009
DocketKENap-08-39
StatusUnpublished

This text of Maine Sch. Admin. Dist. 27 v. Maine Pub. Employees Retirement Sys. (Maine Sch. Admin. Dist. 27 v. Maine Pub. Employees Retirement Sys.) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maine Sch. Admin. Dist. 27 v. Maine Pub. Employees Retirement Sys., (Me. Super. Ct. 2009).

Opinion

STATE OF MAINE SUPERIOR COURT KENNEBEC, ss. CIVIL ACTION Docket No. AP-08-39 \ ~ !,\~I , _~ f\Vjt-/.1" I 1 oJ V '1 rx -,./ ! I i i , . ,-­ '~ ,­ -}

MAINE SCHOOL ADMINISTRATIVE DISTRICT # 27,

Petitioner v. DECISION AND ORDER

MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM,

Respondent

Pursuant to M.R. Civ. P. 80C, the petitioner seeks judicial review of the

respondent Maine Public Employees Retirement System (the System)'s final agency

action. The System assessed back contributions plus interest against the petitioner on

behalf of six secretaries employed by the petitioner. (R. at 37.10.) For the following

reasons, the decision of the System is affirmed.

FACTS

Between 1973 and 1987, the petitioner hired six employees as school secretaries:

Joan Michaud (July 1973); Julie Taylor (April 1982); Ina Mae St. Jean (September 1986);

Marilyn Pinette (hired in 1978, began work as a school secretary in March 1980); Marsha

Pelletier (hired in 1979, began work as a school secretary in November 1981); and Mary

Daigle (hired in 1978, began work as a school secretary in November 1981). (R. at 1.4,

1.21.-.23, 1.27, 1.34-.37, 10.4.) Although required by statute at the time, none of the

employees were initially enrolled as System members when first placed into a

secretarial position, and employee contributions to the System were not withheld from

their pay at that time. (See id.) Instead, for varying lengths of time, petitioner withheld

and submitted Social Security contributions to the Social Security Administration. (Id. at 1.27, 1.38.) Subsequently, at different points between July 1981 and March 1989, the

petitioner discontinued withholding Social Security contributions and began deducting

System contributions on behalf of each employee.!

In November of 2000, the System received an inquiry from three of the

employees regarding their credible service and the possibility of purchasing service

credit for back service with the petitioner, prior to the date they became System

members. (Id. at 1.21-.25.) On December 22, 2000, the System requested additional

information from the petitioner necessary to process the employees' requests. 2 (Id. at

1.25.) On June 23, 2003, the System advised that the petitioner owed $34,752.12 in back

contributions and interest for the periods between which employees St. Jean, Taylor,

and Michaud were first employed as secretaries and when employee contributions were

first deducted and paid to the System on their behalf. (rd. at 1.27.) The petitioner,

reserving its right to appeal, paid on July 16, 2003. (rd. at 1.29, 1.40-.41.) On December

11,2003, the System advised petitioner that $46,560.97 in back contributions and interest

on behalf of employees Daigle, Pinette, and Pelletier was due. (Id. at 1.38-.39.) The

1 The following chart summarizes the employment history of the employees, which is undisputed. (See, ~ Pet'r Br. at 2; Resp't Br. at n.1.)

EMPLOYEE HIRED/FICA I s'DESIGNATED 15 SYSTEM WITHHELD SECRETARY CONTRIBUTION Michaud July 1973 July 1973 July 1981 Daigle October 1978 November 1981 March 1989 Pinette October 1978 March 1980 (part time) December 1984 Pelletier August 1979 November 1981 December 1988 Taylor April 1982 April 1982 December 1988 St. Jean September 1986 September 1986 December 1988

(R. at 1.21.-.23, 1.27, 1.34-.37, lOA.) 2 Petitioner agues that "[t]he failure to withhold and remit Maine State Retirement contributions on behalf of the six employees was first raised by the System in or about June 2003." (Pet'r Br. at 2.) The record indicates that, on or about 1994, the System conducted at least one audit of the petitioner' because the System was "concerned about possible misclassification of clerical employees in the District." (R. at 18.1.) The audit apparently did not identify any problems or deficiencies. (Id. at 18.2.) Further, the record reveals that, while not explicitly raising the issue, the System's 12/22/2000 letter requested earnings information and job descriptions to process the three employees' inquiries. (Id. at 1.25.) Despite repeated requests for this information following the 12/22/2000 letter, the System did not receive the information from petitioner for over two years. (Id. at 1.19, 1.26, 1.30.)

2 petitioner did not pay, and requested review by the Executive Director of the staff

decisions regarding the six employees. (Id. at 1.40-.41.) The Executive Director

affirmed the staff decisions, and the System's Board of Trustees, on appeal, upheld the

decision of the Executive Director, finding that the System was authorized to assess

back contributions and interest against the petitioner on behalf of the six employees.

(Id. at 37.10.)

STANDARD OF REVIEW

When the decision of an administrative agency is appealed pursuant to M.R. Civ.

P. 80C, this court reviews the agency's decision directly for abuse of discretion, errors of

law, or findings not supported by the evidence. Centamore v. Dep't of Human Servs.,

664 A.2d 369, 370 (Me. 1995). "An administrative decision will be sustained if, on the

basis of the entire record before it, the agency could have fairly and reasonably found

the facts as it did." Seider v. Bd. of Exam'rs of Psychologists, 2000 ME 206, If[ 9,762 A.2d

551, 555 (citing CWCO, Inc. v. Superintendent of Ins., 1997 ME 226, If[ 6, 703 A.2d 1258,

1261). The court will "not attempt to second-guess the agency on matters falling within

its realm of expertise" and judicial review is limited to "determining whether the

agency's conclusions are unreasonable, unjust or unlawful in light of the record."

Imagineering, Inc. v. Superintendent of Ins., 593 A.2d 1050, 1053 (Me. 1991).

"Inconsistent evidence will not render an agency decision unsupported." Seider, 2000

ME 206, If[ 9, 762 A.2d at 555. The burden of proof rests with the party seeking to

overturn the agency's decision, and that party must prove that no competent evidence

supports the Board's decision. See Bischoff v. Bd. of Trs., 661 A.2d 167, 170 (Me. 1995).

When reviewing an agency's interpretation of a statute that is both administered

by the agency and within the agency's expertise, the first inquiry is whether the statute

is ambiguous or unambiguous. Competitive Energy Servs., LLC v. Pub. Utils. Comm'n,

3 2003 ME 12,

according to its plain language. Arsenault v. Sec'y of State, 2006 ME 111,

285, 288. If, instead, the statute is ambiguous, deference is given to the agency's

interpretation if the interpretation is reasonable. Id.

DISCUSSION

The central issue in this case is whether the System had the authority to assess

the petitioner for contributions that should have been made on behalf of the six

employees. In its decision, the System relied on two statutes,S M.R.S. §§ 172033 and

1754(9), in concluding that it was authorized to "impose assessments against the

[petitioner] for back employee contributions plus interest." (R. at 37.8.) Essentially the

same arguments are pressed by the System on appeal. The petitioner counters that: (1)

if applicable, these provisions do not authorize shifting employee contribution

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