State Ex Rel. Lambert v. County Commission of Boone County

452 S.E.2d 906, 192 W. Va. 448, 1994 W. Va. LEXIS 208
CourtWest Virginia Supreme Court
DecidedDecember 9, 1994
Docket22371
StatusPublished
Cited by13 cases

This text of 452 S.E.2d 906 (State Ex Rel. Lambert v. County Commission of Boone County) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Lambert v. County Commission of Boone County, 452 S.E.2d 906, 192 W. Va. 448, 1994 W. Va. LEXIS 208 (W. Va. 1994).

Opinion

McHUGH, Justice:

The petitioner, David Lambert, who is the Director of the Public Employees Insurance Agency (hereinafter “PEIA”), is seeking a writ of mandamus to compel the respondents, who are various city or county government authorities or non-profit corporations, who have elected to not participate in PEIA, 1 to contribute to the cost of coverage for their retired employees who have elected PEIA coverage. For reasons stated below, we grant a writ of mandamus.

I

The question arises as to whether the respondents, who have employees who received PEIA benefits, should contribute to PEIA In order to resolve this issue it is necessary to understand the relationship of the respondents to the Public Employees Retirement System (hereinafter “PERS”) and PEIA

All of the respondents have elected not to participate in PEIA pursuant to W.Va.Code, 5-16-22 [1992] which states, in relevant part:

The provisions of this article shall not be mandatory upon any employee or employer who is not an employee of or is not the state of West Virginia, its boards, agencies, commissions, departments, institutions or spending units or a county board of education, and nothing contained in this article shall be construed so as to compel any employee or employer to enroll in or subscribe to any insurance plan authorized by the provisions of this article.

However, all of the respondents, regardless of whether they are city or county government authorities or non-profit corporations, have elected to participate in PERS, which is set forth in the West Virginia Public Employees Retirement Act found in W.Va.Code, 5-10-1, et seq. As the petitioner points out, the respondents’ participation in PERS is a voluntary act. See W.Va.Code, 5-10-2(4) [1988] and 5-10-16 [1961].

One of the benefits accorded to the respondents, because of their participation in PERS, is that the respondents’ employees are eligible to elect PEIA coverage upon their retirement. The authorization for this benefit is in The West Virginia Public Employees Insurance Act found in W.Va.Code, 5-16-1, et seq. Specifically, W.Va.Code, 5-16-10 [1992], in relevant part, authorizes PEIA to provide coverage for retired employees and their spouses and dependents:

Any contract or contracts entered into hereunder may provide for group hospital and surgical, group major medical, group prescription drug and group life and accidental death insurance for retired employees and their spouses and dependents as defined by rules and regulations of the public employees insurance agency, and on such terms as the director may deem appropriate.

Additionally, W.Va.Code, 5-16-24 [1992] states, in relevant part, that the director of *454 PEIA shall promulgate rules and regulations which are necessary for the administration of the West Virginia Public Employees Insurance Act and that

[s]uch regulations shall provide that any employee of the state who has been compelled or required by law to retire before reaching the age of sixty-five years shall be eligible to participate in the public employees’ health insurance program.... Any employee who voluntarily retires, as provided by law, shall be eligible to participate in the public employees’ health insurance program[.]

Finally, the legislature defined retired employees under the West Virginia Public Employees Insurance Act to include employees who are eligible for the state retirement system:

‘Retired employee’ shall mean an employee of the state who retired after the twenty-ninth day of April, one thousand nine hundred seventy-one, and an employee of the university of West Virginia board of trustees or the board of directors of the state college system or a county board of education who retired on or after the twenty-first day of April, one thousand nine hundred seventy-two, and all additional eligible employees who retire on or after the effective date of this article and meet the minimum eligibility requirements for their respective state retirement system[.]

W.Va.Code, 6-16-2(7) [1990], in relevant part (emphasis added).

All of the above statutes may have been enacted without much thought being given as to how these benefits were to be paid. It is obvious from the record that some retired employees, whose employers were not contributing to PEIA, were electing to participate in PEIA. Therefore, the employers, who elected to participate and were paying for PEIA coverage, were having to bear the costs of medical coverage for these retired employees as well as their own. As medical costs have increased, the employers paying for the retired employees’ PEIA coverage would be carrying more than their fair share. In order to rectify this problem the legislature amended W.Va.Code, 5-16-22 in 1992 to state, in relevant part, that employers of retired employees who elect PEIA coverage must make a contribution to PEIA whether or not the employer participates in PEIA:

Any employer, whether such employer participates in the public employees insurance agency insurance program as a group or not, which has retired employees, their dependents, or surviving dependents of deceased retired employees who participate in the public employees insurance agency insurance program as authorized by this article, shall pay to the agency the same contribution toward the cost of coverage for its retired employees, their dependents, or surviving dependents of deceased retired employees as the state of West Virginia, its boards, agencies, commissions, departments, institutions, spending units, or a county board of education pay for their retired employees, their dependents, and surviving dependents of deceased retired employees, as determined by the finance board. Each employer is hereby authorized and required to budget for and make such payments.

(emphasis added).

Pursuant to W.Va.Code, 5-16-22 [1992], Sally K. Richardson, the director of PEIA, advised the respondents by a letter dated January 7, 1993, that PEIA would begin billing them monthly in July of 1993 for their contributions for their retired employees and/or eligible dependents who elected PEIA coverage. Each of the respondents has at least one retired employee and/or eligible dependent who elected PEIA coverage. The respondents have failed to make any contributions to PEIA stating that they chose not to participate in PELA The petitioner requests that this Court issue a writ of mandamus to compel the respondents to make the contributions required under W.Va.Code, 5-16-22 [1992], since it is the respondents’ participation in PERS which makes their retired employee eligible for PEIA benefits. Therefore, this Court must reconcile the benefits provided to the respondents under the two programs: PEIA and PERS.

II

There are six issues which the parties raise. The first issue is whether the statutes *455 governing PERS should be read

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Bluebook (online)
452 S.E.2d 906, 192 W. Va. 448, 1994 W. Va. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-lambert-v-county-commission-of-boone-county-wva-1994.