Nuzzi v. The Board of Trustees of the Teachers' Retirement System of the State of Illinois

2015 IL App (4th) 140401, 27 N.E.3d 1054
CourtAppellate Court of Illinois
DecidedMarch 5, 2015
Docket4-14-0401 NREL
StatusPublished
Cited by1 cases

This text of 2015 IL App (4th) 140401 (Nuzzi v. The Board of Trustees of the Teachers' Retirement System of the State of Illinois) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nuzzi v. The Board of Trustees of the Teachers' Retirement System of the State of Illinois, 2015 IL App (4th) 140401, 27 N.E.3d 1054 (Ill. Ct. App. 2015).

Opinion

2015 IL App (4th) 140401 FILED March 5, 2015 Carla Bender NO. 4-14-0401 4th District Appellate Court, IL IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

THOMAS NUZZI and DEBORAH NUZZI, ) Appeal from Plaintiffs-Appellants, ) Circuit Court of v. ) Sangamon County THE BOARD OF TRUSTEES OF THE TEACHERS' ) No. 12MR824 RETIREMENT SYSTEM OF THE STATE OF ) ILLINOIS and THE TEACHERS' RETIREMENT ) ) Honorable SYSTEM OF THE STATE OF ILLINOIS, ) John P. Schmidt, Defendants-Appellees. ) Judge Presiding.

JUSTICE KNECHT delivered the judgment of the court, with opinion. Presiding Justice Pope and Justice Holder White concurred in the judgment and opinion.

OPINION ¶1 Plaintiffs, Thomas Nuzzi and Deborah Nuzzi, are married to each other and are

the former superintendent and former principal, respectively, at St. George Community

Consolidated School District (St. George). In August and September 2008, Deborah and

Thomas, respectively, were awarded disability benefits by the Teachers' Retirement System

(TRS) based on their post-traumatic stress disorder. In March 2010, TRS began investigating

plaintiffs' employment as adjunct web-based instructors at Olivet Nazarene University. In March

2010, TRS notified Thomas his right to receive disability benefits terminated on January 28,

2009, due to his employment and sought reimbursement of $46,959.91. In May 2010, TRS

informed Deborah her right to receive disability benefits terminated February 2, 2009, due to her employment and demanded reimbursement of $37,218.61. Plaintiffs appealed the TRS staff

determination.

¶2 In April 2012, a TRS claims-hearing committee (Hearing Committee) issued a

written recommended decision upholding the TRS staff's determination plaintiffs were required

to reimburse TRS. The Hearing Committee, quoting the statute, found plaintiffs lost their

eligibility to continue receiving disability benefits because they "were both 'employed… in an

equivalent capacity as a teacher in a … private … university' in derogation of [section] 16-

149.2(a)" of the Illinois Pension Code (Pension Code) (40 ILCS 5/16-149.2(a) (West 2008)). In

August 2012, the TRS Board of Trustees (TRS Board) voted to uphold the recommended

decision of the Hearing Committee. Plaintiffs sought administrative review. In April 2013, the

circuit court affirmed the TRS Board's decision.

¶3 Plaintiffs appeal, asserting (1) the pertinent sections of the Pension Code are

ambiguous and inconsistent; (2) section 16-149, not section 16-149.2, applies to this case; and

(3) their employment at Olivet Nazarene University does not violate section 16-149(c).

¶4 We affirm.

¶5 I. BACKGROUND

¶6 The facts in the underlying administrative matter are not in dispute. Plaintiffs are

the former superintendent and former principal of St. George. In May 2004, Thomas signed a

four-year employment contract, which ran from June 10, 2004, to June 30, 2008. Deborah

entered into a written contract for the 2006-07 school year and in August 2007, she renewed her

annual contract, which began on July 1, 2007, and ended June 30, 2008. As a result of their

employment, plaintiffs participated in TRS.

-2- ¶7 In February 2007, the Board of Education of St. George (School Board) became

aware Thomas was paying Deborah more than the salary stated in her contract and was moving

money between accounts to avoid detection. It also learned Thomas was submitting duplicate

requests for reimbursement and submitted false attendance records to the Illinois State Board of

Education. The Federal Bureau of Investigation and Illinois State Police conducted an

investigation but a criminal prosecution had not been initiated against plaintiffs.

¶8 In August 2007, the School Board decided to hire an auditor to conduct a full

audit of St. George's finances. Several School Board members were concerned because Thomas

had not been able to provide adequate financial information. In September 2007, Thomas

installed a key card security system, rendering the School Board members' old keys useless and

cutting off their access to the school building when the building was closed. The School Board

asked Thomas to provide key cards so School Board members could get into the building, but

Thomas refused.

¶9 Thomas had an ongoing dispute with the School Board regarding Thomas's

request for the School Board to negotiate a new contract for him because his four-year contract

expired on June 30, 2008. The School Board refused to include this item on the agenda until it

understood the results of the audit. Ultimately, the findings in the audit report confirmed the

School Board's belief Thomas was not competent to perform his duties as a superintendent.

¶ 10 In January 2008, Thomas and the School Board agreed Thomas should go on paid

administrative leave because the School Board had serious concerns about his performance. On

January 7, 2008, Deborah attended a School Board meeting and suffered a "panic attack." On

January 8, 2008, Deborah's doctor signed a letter stating Deborah was suffering from an

-3- "overwhelming stress reaction" and she should not return to the workplace for at least four

weeks.

¶ 11 In a letter dated January 31, 2008, the School Board notified Thomas of its

decision to not renew his contract. On April 3, 2008, the School Board notified Deborah of its

decision to not renew her contract. Plaintiffs' contracts were due to expire June 30, 2008.

¶ 12 During May and June 2008, plaintiffs filed applications to obtain nonoccupational

disability benefits. Deborah's application stated she suffered from "severe anxiety," "panic

attacks, migraines, inability to sleep, [and] inability to concentrate." Thomas claimed

"psychological injury" as the nature of his disability. Dr. William Clark and Dr. Stuart

Greenfield diagnosed Deborah and Thomas, respectively, as suffering from "clinical depression,

generalized anxiety, and post[-]traumatic stress disorder." In a letter to TRS, Dr. Clark stated

Thomas's symptoms "are acutely worsened by contact with teaching settings."

¶ 13 In August 2008, TRS notified Deborah by letter she would begin receiving

nonoccupational disability benefits under section 16-149 of the Pension Code (40 ILCS 5/16-149

(West 2008)) in the amount of $3,127.20 per month retroactive to February 16, 2008. In

September 2008, TRS also granted Thomas nonoccupational disability benefits in the amount of

$3,879.13 per month retroactive to July 1, 2008. TRS enclosed a pamphlet, "Brochure 36 Your

Nonoccupational Disability Benefit," which described section 16-149's provisions. Brochure 36

states, in pertinent part, as follows:

"You may not teach for any employers not covered by TRS

or [the State University Retirement System of Illinois (SURS)].

This includes tutoring and substitute work.

***

-4- If you wish to return to teaching on a limited basis, you

must contact TRS to request a Limited Return to Work Program

form. This form must be completed and returned to TRS prior to

your return to teaching. TRS will acknowledge receipt of the form

and confirm your eligibility."

¶ 14 In August 2008, TRS sent a letter to Deborah, apparently in response to her

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Related

Nuzzi v. Board of Trustees of the Teachers' Retirement System
2015 IL App (4th) 140401 (Appellate Court of Illinois, 2015)

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