State Retirement & Pension System v. Thompson

792 A.2d 277, 368 Md. 53, 2002 Md. LEXIS 87
CourtCourt of Appeals of Maryland
DecidedMarch 4, 2002
Docket74, Sept. Term, 2001
StatusPublished
Cited by21 cases

This text of 792 A.2d 277 (State Retirement & Pension System v. Thompson) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Retirement & Pension System v. Thompson, 792 A.2d 277, 368 Md. 53, 2002 Md. LEXIS 87 (Md. 2002).

Opinion

*55 WILNER, J.

The Circuit Court for Prince George’s County, through a writ of mandamus, effectively enjoined the State Retirement and Pension System of Maryland (SRPS) from complying with a statutory mandate to reduce disability retirement benefits payable to respondent, Patrick Thompson, by amounts equivalent to workers’ compensation benefits that Thompson is receiving by reason of the same work-related disability that served as the basis for his retirement. Two issues are presented here: (1) whether the court should have dismissed Thompson’s complaint for failure to exhaust an available administrative remedy before resorting to court, and (2) whether the court’s ruling was substantively incorrect. We shall answer both issues in the affirmative and, as a result, reverse the judgment and direct that the complaint be dismissed.

BACKGROUND

Regrettably, the record in this case is convoluted and confusing, in part because the issues arise from the interrelationship of two parallel proceedings — a workers’ compensation claim and proceedings involving SRPS — and in part because the record itself is deficient in a number of respects.

Maryland law precludes a government employee from collecting duplicative benefits for the same work-related disability under both the workers’ compensation law and the employer’s retirement system. If the employee is covered by SRPS, the basic disability benefits payable by SRPS are reduced by the amount of workers’ compensation benefits received by the employee. Maryland Code, § 29 — 118(b)(1) of the State Personnel and Pensions Article (SPP) requires the Board of Trustees of SRPS to reduce disability retirement benefits otherwise payable to the former employee by the amount of any related workers’ compensation benefits paid or payable after the effective date of retirement. If the employee is covered by some other public employment plan that provides disability benefits, it is the workers’ compensation benefits that get reduced. Section 9-601 (a) of the Labor & Employ *56 ment Article (LE) provides, in that situation, that payment of the disability retirement benefit satisfies, to the extent of the payment, the employer’s liability for workers’ compensation benefits. Because Mr. Thompson was covered by SRPS, we are concerned here with the reduction required by SPP § 29-118(b)(1).

Thompson was a maintenance employee of the University of Maryland. On December 5, 1989, while removing topsoil from a flower bed, he slipped, fell, and injured his back. Although he sought immediate medical attention, he was able to continue working until March, 1990. In June, 1990, he filed a workers’ compensation claim and, commencing January 8, 1991, began receiving temporary total disability benefits of $204/week, which, on a monthly basis, amounted to $884 [ ($204 x 52) -r- 12]. That continued until May, 1996.

At some point, which is not clear from the record, Thompson retired on disability and was awarded disability retirement benefits that, at various places in the record, have been asserted to be $980/month, $960/month, $908/month, $920/ month, and $l,045/month. The record reveals that the retirement was deemed “effective” as of May 1,1994, but there is no evidence of when that decision was made, and there is some indication that there may have been a considerable delay, of up to two years. It appears to be the case that, notwithstanding that the disability retirement benefits, whatever they were, exceeded the $884/month that Mr. Thompson was collecting in workers’ compensation benefits, no disability retirement benefits at all were paid to Mr. Thompson until some time in 1996. That, too, is not entirely clear, however.

In August, 1996, following a hearing, the Workers’ Compensation Commission determined that Thompson was permanently and totally disabled and, accordingly, it terminated the temporary total benefits and replaced them, retroactive to May, 1996, with permanent total disability payments, in the same amount of $204/week ($884/month). That sum was then reduced temporarily by $24/week in order to reimburse the *57 employer’s insurer, Injured Workers’ Insurance Fund (IWIF), for a lump sum attorneys’ fee payment of $7,500.

The University and IWIF sought judicial review of that award. In July, 1997, while that matter was pending in the Circuit Court for Prince George’s County, Thompson filed, in the judicial review action, a petition for temporary ex parte injunctive relief. Though acknowledging several times that SRPS had the right to set off any workers’ compensation benefits received by him, Thompson complained that, if it was allowed to do so, he would be destitute and unable to meet his obligations, and he therefore asked that the court enjoin SRPS from setting off the workers’ compensation benefits. As best we can tell from some of the statements made at the hearing on the motion, Thompson was hoping to arrange a lump sum settlement of the workers’ compensation case, and he wanted SRPS to continue paying the full amount of retirement benefits, without setoff, until such a settlement could be effected, at which point he might be able to reimburse SRPS for any funds that, due to the statutory right of setoff, he was not entitled to receive. In essence, he was looking for an interest-free loan from SRPS, although he Rid not articulate his request in that manner. He estimated his chance of effecting such a settlement as no better than even. 1

*58 The court granted the requested injunctive relief. In an order entered September 10, 1997, it made a number of findings regarding what Thompson had received in workers’ compensation benefits and what, in the court’s view, he was entitled to receive in disability retirement benefits, and, upon those findings, the court, (1) enjoined SRPS from exercising a setoff against monies that represented pension benefits due Thompson until January 21, 1998 (later extended to April 30, 1998), but (2) directed that Thompson fully reimburse SRPS “so as to reduce [Thompson’s] disability retirement benefit ‘by any related workers’ compensation benefits paid or payable after’ May 1, 1994, including any and all duplicative benefit payments that [SRPS] may make to [Thompson] in accordance with this Order after August 1, 1997.” The apparent basis of the order was entirely one of sympathy — that if SRPS were allowed to effect the credit mandated by the statute, the net amount payable to Thompson would be insufficient to meet his needs.

Several things occurred in relatively short order thereafter. SRPS appealed the injunctive order entered by the Circuit Court. On January 21, 1998, the Circuit Court affirmed the order of the Workers’ Compensation Commission. SRPS moved to dissolve the injunctive order, which, on January 26, 1998, the court denied. SRPS then filed an answer to the August petition and noted an appeal from the court’s refusal to dissolve the injunctive order. It requested the Circuit Court to stay the injunction pending a decision by the Court of Special Appeals. After a hearing, the Circuit Court said that it would enter a stay of the injunctive order until April 30, 1998, which was the date it was due to expire, although the record does not reveal that any such order was ever signed or docketed.

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Bluebook (online)
792 A.2d 277, 368 Md. 53, 2002 Md. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-retirement-pension-system-v-thompson-md-2002.