State Ex Rel. Swartzlander v. State Teachers Retirement Board

690 N.E.2d 36, 117 Ohio App. 3d 131
CourtOhio Court of Appeals
DecidedDecember 31, 1996
DocketNo. 96APE05-695.
StatusPublished
Cited by5 cases

This text of 690 N.E.2d 36 (State Ex Rel. Swartzlander v. State Teachers Retirement Board) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Swartzlander v. State Teachers Retirement Board, 690 N.E.2d 36, 117 Ohio App. 3d 131 (Ohio Ct. App. 1996).

Opinion

John C. Young, Judge.

Appellant, Harry Swartzlander, was employed by the Edison Local School District in various positions since 1956. In 1977, appellant was promoted to superintendent of the school district and served in that capacity for sixteen years. In 1991, appellant began to think seriously about retirement. Around that same time, the Edison School Board decided to give appellant a raise in salary from $54,380 to $62,962, and also decided to pay or “pick up” appellant’s personal share of retirement contributions. Because the payment of the “pick up” is considered compensation to a member of the retirement system, appellant would have been *133 required to make personal contributions on this “pick up.” Instead, the school board was also willing to pay these personal contributions on appellant’s behalf.

Because of his concern that the “pick up on the pick up” be included in the determination of his final average salary (“FAS”) for purposes of retirement benefits, appellant asked Lorraine Ramsey, the Edison treasurer, to call the retirement system to be certain that the additional compensation would be included in determining his FAS. Ramsey received a letter indicating that, in order for the “pick up” to be included in the FAS, the “pick up” must have been in effect for two full years prior to retirement. The school board proceeded with its plan to raise appellant’s salary and to pay the “pick up on the pick up.” Ramsey sent a confirmation letter to the retirement system to inform them of the school board’s action. The school board received a letter, dated August 6, 1991, from Gene Horton confirming that the “pick up” would be included in the determination of appellant’s FAS.

In November 1992, appellant contacted the State Teachers Retirement System (“STRS”) and asked for the specific annual amount of his benefits calculated as of an April, June, or August 1993 date of retirement. Appellant received an estimate from STRS by letter dated January 12, 1993. In that letter, STRS explained to appellant that R.C. 3307.013 would require the exclusion of any compensation earned in the highest two years that exceeds the highest percentage increase in the three preceding years. STRS further provided appellant with the requested estimates of benefits.

Appellant was not satisfied with the calculation of his retirement benefits and appealed to the State Teachers Retirement Board (“board”) pursuant to R.C. 3307.013(E). Under this section, if a retiree can show “good cause” to include previously excluded compensation, then the board may include that compensation up to $7,500. In the present case, the board denied the additional increase, and appellant filed a complaint in the Franklin County Court of Common Pleas against the board challenging the manner in which his pension benefits were calculated. Appellant sought a judgment declaring that he had a right to have the board use all of his 1991-1992 and 1992-1993 compensation, including June and July 1993, in the calculation of his FAS. Appellant also asked that both the STRS and the board be estopped from applying R.C. 3307.013(B) to him because they had deceived him, and he asked for a determination that the board order was arbitrary, capricious, unreasonable, and contrary to law, and that it constituted a gross abuse of discretion. Appellant also petitioned for a wit of mandamus ordering the board to recalculate his service retirement benefits.

Both parties filed motions for summary judgment. The common pleas court granted STRB’s motion for summary judgment and denied appellant’s motion. Appellant filed a notice of appeal and raises the following assignments of error:

*134 “ASSIGNMENT OF ERROR NO. 1
“The trial court committed prejudicial error in not granting Appellant Harry Swartzlander summary judgment.
“ASSIGNMENT OF ERROR NO. 2
“The trial court committed prejudicial error when it granted Appellee summary judgment.”

In its brief to this court, appellee, STRB, raises a cross-assignment of error as follows:

“The trial court erred by failing to determine that it was without jurisdiction to hear a challenge to STRB’S denial of appellant’s appeal to have additional compensation included for purposes of his fas calculation.”

In the cross-assignment of error, appellee contends that the common pleas court erred in failing to determine that it lacked jurisdiction to hear appellant’s challenge to the board’s decision regarding his appeal to have additional compensation included for purposes of his FAS calculation. In order to raise this issue, appellee should have filed a notice of appeal or notice of cross-appeal pursuant to App.R. 4. Because appellee has failed to do so, it is precluded from raising this issue on appeal and the cross-assignment of error is overruled. This same conclusion was reached by this court in State ex rel. Shumway v. State Teachers Retirement Bd. (1996), 114 Ohio App.3d 280, 683 N.E.2d 70, where, after overruling the cross-assignment of error, this court stated as follows in a footnote:

“Even assuming a proper notice of appeal had been filed, the cross-assignment of error is without merit. R.C. 3307.013(E) provides:
“ ‘Any applicant for retirement who has had any amount excluded from his compensation * * * may request a hearing on this exclusion. Upon receiving such a request, the board shall determine in accordance with its criteria and procedures whether, for good cause as determined by the board, all or any portion of any amount excluded from the applicant’s compensation * * * is to be included in the determination of final average, salary under division (C) of this section. Any determination of the board under this division shall be final. ’ (Emphasis added.)
“Appellee argues that, since the legislature has declared that the determination of the board shall be final, appellant has no right to challenge the Board’s determination in the common pleas court. This court determined in Carney v. School Emp. Retirement System Bd. (1987), 39 Ohio App.3d 71, 72, 528 N.E.2d 1322, 1323-1324, that decisions of administrative agencies are always subject to *135 review, although not necessarily to an appeal, since to provide otherwise would deprive a litigant his due process rights. Also, mandamus is available to correct any abuse of discretion in the administrative proceedings. See, also, State ex rel. McMaster v. School Emp. Retirement Sys. (1994), 69 Ohio St.3d 130, 133 [630 N.E.2d 701, 704-705].” 114 Ohio App.3d at 284, 683 N.E.2d at 72, fn. 1.

Appellant’s assignments of error are interrelated and will be addressed together. Service retirement benefits for members of STRS are calculated using the amount of service credit the member accrued over the employment period, age, final average salary (“FAS”), and the benefit plan selected. R.C. 3307.38. R.C.

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Bluebook (online)
690 N.E.2d 36, 117 Ohio App. 3d 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-swartzlander-v-state-teachers-retirement-board-ohioctapp-1996.