McCrain v. Metropolitan Transp. Auth.

2025 NY Slip Op 31394(U)
New York Supreme Court, New York County·Decided April 21, 2025·No. Index No. 160051/2019·Unpublished

Opinion

McCrain v Metropolitan Transp. Auth.

2025 NY Slip Op 31394(U)

April 21, 2025

Supreme Court, New York County Docket Number: Index No. 160051/2019 Judge: Nicholas W. Moyne

Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication.

NYSCEF DOC. NO. 47 RECEIVED NYSCEF: 04/21/2025

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY

PRESENT: HON. NICHOLAS W. MOYNE PART 41M Justice

---------------------------------------------------------------------------------X INDEX NO. 160051/2019 SCOTT MCCRAIN,

MOTION DATE 06/24/2022 Plaintiff,

MOTION SEQ. NO. 002 -v-

METROPOLITAN TRANSPORTATION AUTHORITY, METROPOLITAN TRANSPORTATION AUTHORITY DECISION + ORDER ON DEFINED BENEFIT PENSION PLAN MOTION Defendant.

---------------------------------------------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 002) 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46 were read on this motion to/for ARTICLE 78 (BODY OR OFFICER) .

PROCEDURAL HISTORY

Petitioner commenced the instant proceeding on October 16, 2019, seeking a declaratory judgment directing respondents to credit his three years and eight months of service as a custodian with the Metro-North Commuter Railroad Company (Metro-North) toward his pension, which he subsequently earned as a police officer for the Metropolitan Transportation Authority’s Police Department (MTA PD). After this court granted respondents’ prior motion to the extent of converting this action to an Article 78 proceeding, petitioner filed the instant petition challenging defendants’ determination that his time employed as a custodian would not apply toward his pensionable service credit time. BACKGROUND FACTS

Respondent Metropolitan Transportation Authority (MTA) is a state public benefit corporation (NYSCEF DOC No. 36, Meehan aff at 1, ¶ 2) created by the Public Authorities Law § 1263 (1) (a). The MTA “maintains and operates a Police Department (MTA PD) [which]

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employs Police Officers” (NYSCEF Doc No. 33, petition ¶ 10) as authorized by Public Authorities Law § 1266-h (1). Metro-North is “a state public benefit corporation that was organized by the MTA pursuant to its statutory powers . . . [and] is a subsidiary of MTA” (NYSCEF DOC No. 36, Meehan aff at 1, ¶ 2). Respondent Metropolitan Transportation Authority Defined Benefit Pension Plan (the pension plan or the plan) is a pension plan the MTA provides pursuant to the Public Authorities Law § 1266-h (4), (5) (see NYSCEF DOC No. 36, Meehan aff at 1, ¶ 2). The Board of Managers (the Board) administers the plan (NYSCEF Doc 36, Meehan aff at 3, ¶ 8; NYSCEF Doc No. 37, exhibit A at 40, § 6.02).

On January 10, 1994, petitioner began working as a custodian with Metro-North (NYSCEF Doc No. 33, petition ¶ 10; NYSCEF DOC No. 36, Meehan aff at 1, ¶ 4). While employed as a Metro-North custodian, petitioner participated in the Metro-North Commuter Railroad Company Defined Contribution Pension Plan (the Vanguard plan1 or the contribution plan) (NYSCEF Doc No. 33, petition ¶ 13; NYSCEF Doc No. 36, Meehan aff at 2, ¶ 4). Under this plan, Metro-North contributed 3% of employees’ salaries to their individual participant accounts, which the employees could opt to match (NYSCEF Doc No. 33, petition at ¶ 13; NYSCEF Doc No. 36, Meehan aff at 2, ¶ 4). Regardless of whether an employee elected to match, Metro-North placed its contributions into the Vanguard plan for the employee’s benefit (id.) and “the balance in the account [was] distributed . . . at retirement or upon death” (NYSCEF Doc No. 36, Meehan aff at 2, ¶ 4).

On August 27, 1997 or August 28, 1997, without a break in service, petitioner became a police officer in the Metro-North Police Department (NYSCEF Doc No. 33, petition at ¶ 14; NYSCEF Doc No 36, Meehan aff at 2, ¶ 5). As a Metro-North police officer, petitioner

1

Employees referred to the contribution plan as the Vanguard plan “because its assets were held at one time in trust at The Vanguard Group” (NYSCEF Doc No. 36, Meehan aff at 2, ¶ 4).

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remained enrolled in the Vanguard plan (NYSCEF Doc No. 33, petition at ¶ 14; NYSCEF Doc No 36, Meehan aff at 2, ¶ 5). As such, his contributions did not change, and his other employment benefits allegedly remained undisturbed (NYSCEF Doc No. 33, petition at ¶¶ 14- 15; NYSCEF Doc No 36, Meehan aff at 2, ¶ 5).

In January 1998, the Metro-North Police Department and the Long Island Rail Road (LIRR) Police Department merged and formed the MTA PD (NYSCEF Doc No. 33, petition at ¶ 16; NYSCEF Doc No 36, Meehan aff at 2, ¶ 5). Public Authorities Law § 1266-h, which authorized the merger, required the MTA to provide its own twenty-year retirement program to MTA PD’s police force or to join the New York State Police and Fire Retirement System (id.; NYSCEF Doc No 36, Meehan aff at 2, ¶ 6). The MTA elected to create its own twenty-year retirement program, which required MTA PD police officers to contribute to the plan “for the equivalent of twenty (20) years of credited police service” (NYSCEF Doc No. 33, petition ¶ 19; see NYSCEF Doc No. 36, Meehan aff at 3, ¶ 7). Under the pension plan, the benefit at retirement was calculated according to a formula based on police officers’ final average salaries and years of credited police service (NYSCEF Doc No. 36, Meehan aff. at 3, ¶ 7).

After the merger, the MTA PD continued to employ petitioner as a police officer until he retired on June 26, 2019 (NYSCEF Doc No. 33, petition at 6, ¶ 20). Petitioner contends that although respondents transferred the funds in his Vanguard plan into the pension plan after the merger, they failed to credit his time employed as a custodian in contravention of Public Authorities Law § 1266-h (7), which, according to petitioner, provided that service members “would not lose any of the rights, privileges and status previously earned within a pension or retirement system” (NYSCEF Doc No. 33, petition at 6, ¶ 16). According to petitioner, he has lost approximately $10,000 per year as the result of respondents’ alleged miscalculation of his

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pensionable service credit time (NYSCEF Doc No. 33, petition at ¶ 28).

Respondents object that they were under no obligation to credit petitioner’s non-

uniformed service with Metro-North and that they informed petitioner in writing on at least two occasions that his credited service began when he became a police officer in 1997 (NYSCEF Doc No. 36, Meehan aff at 7-9, ¶¶ 14-19). Respondents oppose the petition because their determination not to credit petitioner’s time employed as a custodian was not arbitrary and capricious; petitioner improperly interposed an estoppel claim against a municipality; petitioner has failed to exhaust administrative remedies; and this Article 78 proceeding is time-barred (NYSCEF Doc No. 35, affirmation of respondents’ counsel at 1-2).

DISCUSSION

Article 78 Standard

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McCrain v. Metropolitan Transp. Auth., 2025 NY Slip Op 31394(U) (N.Y. Super. Ct. 2025).

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