MONTGOMERY CTY., MARYLAND v. Ball

416 F. Supp. 737, 1975 U.S. Dist. LEXIS 14777
CourtDistrict Court, D. Maryland
DecidedDecember 17, 1975
DocketCiv. 73-661-H and H-74-530
StatusPublished
Cited by5 cases

This text of 416 F. Supp. 737 (MONTGOMERY CTY., MARYLAND v. Ball) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MONTGOMERY CTY., MARYLAND v. Ball, 416 F. Supp. 737, 1975 U.S. Dist. LEXIS 14777 (D. Md. 1975).

Opinion

ALEXANDER HARVEY, II, District Judge:

These two cases raise questions concerning statutory provisions which extend coverage of the Social Security Act to state and local governmental employees. By Order of this Court, these cases have been consolidated for all purposes pursuant to Rule 42(a) of the Federal Rules of Civil Procedure.

In Civil No. 73-661-H, Montgomery County, Maryland sues on behalf of its police officers, 1 while in Civil No. H-74-530, the President of the Police Association of that County brings suit on behalf of the Association and of the members of the County Police Department. 2 The consolidated amended complaint seeks a declaratory judgment providing that Montgomery County policemen are not within the coverage provided by Title II of the Social Security Act and injunctive relief compelling the Social Security Administration to terminate such coverage for the police officers retroactive to June 30, 1973. Named as defendants in such complaint are the Commissioner of Social Security, the Secretary of the Department of Health, Education and Welfare (hereinafter “the Secretary”) and the Employees Retirement System of the State of Maryland. Jurisdiction has been asserted under 28 U.S.C. § 1331(a), under 42 U.S.C. § 405(g) and under 5 U.S.C. §§ 701, et seq. 3

Section 218(a) of the Social Security Act, as amended, 42 U.S.C. § 418(a), 4 authorizes the Secretary to enter into an agreement with any state for the purpose of extending Social Security coverage to state and local governmental employees. After such an agreement has been in effect for five years, the state, pursuant to Section 218(g)(1)(B), may terminate that agreement “with respect to any coverage group designated by the State” by giving written notification two years in advance of termination.

In 1951, the State of Maryland and the Secretary’s predecessor, the Federal Security Administrator, executed an agreement under Section 218(a) “for the purpose of extending the old age and survivors’ insurance system established by Title .II of the Social Security Act ... to services *740 performed by individuals employed by political subdivisions of the State of Maryland.” By 1958, this coverage included all employees of Montgomery County except police officers and elected officials. The police officers, as members of the Montgomery County Police Relief and Retirement Fund, were excluded from Social Security coverage by Section 218(d) of the Act, which provides that an agreement with a state may not include those governmental employees covered by a retirement system. However, Section 218(d)(3) permits the extension of coverage to governmental employees covered by a retirement system provided that a referendum is held and a majority of the eligible employees vote in favor of such coverage.

On April 5, 1965, Montgomery County police officers held such a referendum and ■voted in favor of being included within the outstanding agreement with the State of Maryland. Accordingly, the Chief of the Division of Social Security, Board of Trustees of the Employees Retirement System of the State of Maryland (hereinafter “the State Administrative Officer”), who is the state official empowered to seek modification of the agreement with the Secretary, 5 was notified by Montgomery County of the referendum vote. Social Security coverage for County police officers then became effective on May 30, 1965. However, as a result of an oversight, the agreement formally extending coverage to these policemen was not reduced to writing until almost seven years later when on January 11, 1972, Modification No. 200 to the Maryland Federal-State Agreement was signed by the appropriate federal and state officials.

On April 2, 1971, approximately six years after the coverage in question had become effective, Montgomery County policemen conducted another referendum and on this occasion voted to withdraw from Social Security coverage. The Montgomery County Council then formally notified the State Administrative Officer of the County’s desire to terminate Social Security coverage for its policemen pursuant to Section 218(g)(1). The State Administrative Officer thereupon referred this request to the Regional Commissioner for the Social Security Administration.

Concluding that Montgomery County police officers did not constitute a separate “coverage group” under Section 218(g)(1)(B) of the Act, the Regional Commissioner denied this request for the termination of coverage. The State Administrative Officer thereupon filed an administrative appeal with the Social Security Administration. On February 2, 1973, the Commissioner of Social Security took action which in effect denied the State’s appeal and affirmed the previous determination that the relevant coverage group for the purposes of terminating coverage was composed of all employees of Montgomery County and not merely of policemen. This civil action was thereafter filed.

In asking this Court to order the defendants to terminate Social Security coverage for Montgomery County police officers, plaintiffs advance several different arguments. First, plaintiffs assert that no valid agreement ever existed for extending Social Security coverage to Montgomery County policemen because the 1965 referendum did not comply with the requirements of Section 218(d)(3) of the Act. Secondly, plaintiffs contend that the Secretary is es-topped from declining to terminate Social Security coverage for County policemen because the agreement between the Secretary and the State relating to such coverage was the result of material misrepresentations and should be rescinded or reformed by this Court. Thirdly, plaintiffs argue that Section 218 of the Act on its face should be construed to permit County police officers to constitute a separate coverage group for purposes of the termination of coverage. Finally, plaintiffs challenge the constitutionality of Section 218 on due process and equal protection grounds.

*741 Besides opposing these contentions on their merits, the federal defendants have renewed their objections to plaintiffs’ standing to bring this suit and to this Court’s jurisdiction. In support of their argument as to jurisdiction, the federal defendants rely on the Supreme Court’s recent opinion in Weinberger v. Salfi, 422 U.S. 749, 95 S.Ct. 2457, 45 L.Ed.2d 522, 43 U.S.L.W. 4985 (1975), which held that Section 205(h) of the Social Security Act precludes federal question jurisdiction in cases arising under Title II of the Act. However, in view of this Court’s determinations following trial concerning the merits of this case, it is not necessary to re-examine in the light of the

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Bluebook (online)
416 F. Supp. 737, 1975 U.S. Dist. LEXIS 14777, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-cty-maryland-v-ball-mdd-1975.