McDivitt v. PERA

CourtColorado Court of Appeals
DecidedMay 24, 2018
Docket17CA0833
StatusUnknown

This text of McDivitt v. PERA (McDivitt v. PERA) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDivitt v. PERA, (Colo. Ct. App. 2018).

Opinion

17CA0833 McDivitt v PERA 05-24-2018

COLORADO COURT OF APPEALS

Court of Appeals No. 17CA0833 City and County of Denver District Court Nos. 15CV713 & 15CV34501 Honorable Edward D. Bronfin, Judge

Patrick J. McDivitt,

Plaintiff-Appellant,

v.

Public Employees’ Retirement Association of Colorado; Public Employees’ Retirement Association of Colorado Board of Trustees in their official capacity; and Office of the Colorado State Court Administrator,

Defendants-Appellees.

JUDGMENT AFFIRMED

Division I Opinion by JUDGE HARRIS Taubman and Nieto*, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced May 24, 2018

Patrick J. McDivitt, Colorado Springs, Colorado, for Plaintiff-Appellant

Rollin Braswell Fisher LLC, Eric Fisher, Caleb Durling, Corey Longhurst, Greenwood Village, Colorado, for Defendants-Appellees Public Employees’ Retirement Association of Colorado and Public Employees’ Retirement Association of Colorado Board of Trustees in their official capacity

Cynthia H. Coffman, Attorney General, Leann Morrill, First Assistant Attorney General, Denver, Colorado, for Defendant-Appellee Office of the Colorado State Court Administrator *Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2017. ¶1 Plaintiff, Patrick J. McDivitt, a recently retired city employee,

appeals a decision by the defendant, Public Employees’ Retirement

Association of Colorado (PERA), denying him service credit for a

prior one-year term of employment that ended in 1980.

¶2 At that time, McDivitt was a law clerk for the Colorado Court

of Appeals. During the term of his clerkship, McDivitt was not a

member of PERA. He has never claimed that he applied for

membership, intended to be a member, or that he mistakenly opted

out of membership. To the contrary, he has acknowledged that he

elected not to make contributions to PERA and that he understood

that the court of appeals was not making contributions on his

behalf.

¶3 Nevertheless, in 2001, when McDivitt returned to

PERA-covered employment, he sought service credit for the term of

his clerkship. Though he does not dispute that he intended to forgo

membership in PERA, he says that he does not recall completing a

waiver form, the court of appeals has not produced such a form,

and there is no evidence that PERA approved his waiver. Therefore,

he insists, he did not satisfy the statutory criteria for opting out of

1 membership and so he is entitled to PERA credit for his clerkship

term.

¶4 The PERA Board of Trustees (the Board) determined that

McDivitt failed to establish his entitlement to service credit and, in

any event, his claim was barred by laches.

¶5 We conclude that the record supports the Board’s

determination that McDivitt is not entitled to credit. Accordingly,

without addressing the applicability of the doctrine of laches, we

affirm.

I. Background

A. Factual Background

¶6 In August 1979, McDivitt was hired as a temporary law clerk

at the court of appeals. The court of appeals is a PERA employer.1

1 As PERA members, the judges on this division may have a

financial stake in the outcome of the case. Generally, a judge must recuse herself from any proceeding in which she has a financial interest. See Zoline v. Telluride Lodge Ass’n, 732 P.2d 635, 639-40 (Colo. 1987). But where every judge on the court has a common interest in the outcome of a case, recusal would prevent the case from being decided and no judge is required to recuse herself. Pomerantz v. Microsoft Corp., 50 P.3d 929, 931-32 (Colo. App. 2002). See also C.J.E.A.B. Advisory Op. 2013-03 (July 9, 2013) (concluding that the rule of necessity overrides a judge’s potential conflict in deciding a case involving PERA). Therefore, despite our

2 ¶7 Under then-existing rules, law clerks, like all temporary or

part-time employees, could either apply for “optional membership”

in PERA or could choose to “be excluded from membership.” See

PERA Rules 10.2012, 10.202, 8 Code Colo. Regs. 1502-1 (effective

Dec. 11, 1967-Dec. 30, 1979). The PERA rules required that a

decision to opt out of membership be documented on a form signed

by the employee and employer and forwarded to PERA for approval.

PERA Rule 10.2012(b), (e), 8 Code Colo. Regs. 1502-1 (effective Dec.

11, 1967-Dec. 30, 1979). If the temporary employee’s term

ultimately exceeded one year, he or she was required to be “covered

thereafter.” PERA Rule 10.2012(2), 8 Code Colo. Regs. 1502-1

(effective Dec. 11, 1967-Dec. 30, 1979).

¶8 McDivitt did not produce a membership application. His

personnel forms indicated that neither he nor the court of appeals

contributed to PERA during the term of his employment at the

court.

¶9 About twenty years later, in 2001, McDivitt was hired by the

City of Colorado Springs. The City of Colorado Springs is a PERA

possible financial stake in the outcome of this case, we need not recuse ourselves.

3 employer. When McDivitt determined that he might retire from his

job with the City, he realized that service credit from his clerkship

would “do wonders” for his retirement benefits. For example, he

could purchase up to ten years of service credit (that would be

converted into a 29% increase in retirement benefits), rather than

five, if he could establish membership in PERA prior to 1999. His

only claim to pre-1999 membership was his employment as a law

clerk.

¶ 10 In December 2001, McDivitt contacted PERA seeking service

credit for his clerkship term. He explained that he “need[ed] the

year of credit not only for years of service, but also to be able to

purchase additional years of credit not subject to the 5-year limit.”

McDivitt did not claim that he had been a member of PERA or that

he had intended to apply for membership, but only that “there [wa]s

not a waiver of PERA benefits” included in his attached personnel

records.

¶ 11 In January 2002, PERA sent letters to McDivitt and defendant,

the State Court Administrators Office (SCAO), the entity responsible

for the court of appeals’ contributions to PERA. The letters to

McDivitt form the basis of his primary argument on appeal.

4 ¶ 12 As relevant here, on January 25, 2002, PERA sent SCAO an

“unpaid contribution agreement” purportedly showing the amount

of SCAO’s contribution owed from November 1, 1979, to August 12,

1980. The contribution agreement was based on PERA’s mistaken

belief that McDivitt had been a part-time employee with the court of

appeals who had exceeded the maximum allowable hours for a

part-time employee beginning in November 1979.

¶ 13 On that same date, PERA sent McDivitt a letter (the January

2002 letter).2 The January 2002 letter included a copy of the

unpaid contribution agreement sent to SCAO and explained the

employee’s process for obtaining service credit which, as the letter

outlined, was contingent on the employer paying its share. The

January 2002 letter advised McDivitt that it constituted “initial

notice” under section 24-51-402(4), C.R.S. 2017.

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