Tassoni v. Department of Retirement Systems

29 P.3d 63
CourtCourt of Appeals of Washington
DecidedAugust 24, 2001
Docket26160-0-II
StatusPublished
Cited by8 cases

This text of 29 P.3d 63 (Tassoni v. Department of Retirement Systems) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tassoni v. Department of Retirement Systems, 29 P.3d 63 (Wash. Ct. App. 2001).

Opinion

29 P.3d 63 (2001)

Peter TASSONI, Appellant,
v.
DEPARTMENT OF RETIREMENT SYSTEMS, State of Washington, Respondent.

No. 26160-0-II.

Court of Appeals of Washington, Division 2.

August 24, 2001.

*64 Jerome E. Westby, Assistant Attorney General, Olympia, for Respondent.

Wayne L. Williams, Rolland O'Malley Williams & Wyckoff, Olympia, for Appellant.

ARMSTRONG, C.J.

Peter Tassoni has worked for the State intermittently since 1973. A former statute required the Department of Retirement Systems (DRS) to notify the State agency employing a returning employee of the procedure to reinstate the employee's retirement benefits. When Tassoni last returned to State employment in 1991, DRS generated a notice of the amount he would have to pay to reinstate his full benefits and the date such payment would be due. But Tassoni did not receive the notice and failed to meet the payment deadline. DRS then denied Tassoni's request to restore 99 months of service credit to his Public Employees' Retirement System (PERS) account. Following a hearing, DRS Director Ceil Buddeke found that DRS properly mailed notice to Tassoni and his employer, that the time period to restore Tassoni's benefits was not tolled, and that Tassoni failed to establish the elements of equitable estoppel. The superior court affirmed DRS's final order. We hold that the evidence was insufficient to show that DRS mailed the notice to Tassoni's employer and that, as a result, the time period to reinstate his benefits was tolled. We reverse.

FACTS

Peter Tassoni is a member of the Public Employees' Retirement System (PERS), Plan I. He wants to restore 99 months of service credit that he previously withdrew.

Tassoni has worked for a number of PERS employers since 1973. He worked for the Port of Seattle from April 1973 to September 1975. When he left the Port, he withdrew all his PERS contributions, which terminated his PERS membership. He then began work at the Department of Labor & Industries (L & I), where he worked until May 1976. While at L & I, Tassoni received a notice from the Department of Retirement Systems (DRS) that he could restore service credit from the Port employment by making the necessary payment by May 1, 1976. When he left employment at L & I, Tassoni again withdrew all his PERS contributions.

Tassoni again went to work for L & I in August 1976 and worked there for 99 months, until October 1984. When he left L & I the second time, he again withdrew all his PERS contributions. It is this 99-month period of service that Tassoni now seeks to restore.

From March 1985 to May 1989 (51 months), Tassoni worked for the Department of Social and Health Services (DSHS). In August 1985, DRS sent Tassoni a notice informing him that he could restore service credit for 97 months[1] of L & I employment *65 by paying the withdrawn contributions "within 60 eligible months after being reemployed." AR at 113. Tassoni did not pay to restore his service credit. When he left DSHS in May 1989, he again withdrew all his PERS contributions.

Tassoni returned to DSHS employment in February 1991. On July 15, 1991, DRS generated two notices regarding Tassoni's previously withdrawn service credit. One notice stated that Tassoni could restore service credit for the 51 month DSHS employment by making the necessary payment by January 31, 1996. Tassoni received this notice and restored this credit on August 30, 1991. The other notice stated that he could restore service credit for the 99 month L & I employment by making payment by October 31, 1991. Tassoni did not receive this notice.

On January 12, 1993, Tassoni wrote a letter to DRS asking if he could restore any more service credit. DRS replied that the 60 month period to repay withdrawn contributions had expired, precluding Tassoni from restoring additional credit. His attorney then requested that DRS permit Tassoni to restore the 99 month L & I credit. DRS Membership Administrator Jack Bryant denied this request and Tassoni appealed to the Director of DRS on July 11, 1995. He argued that former RCW 41.40.150(2) and (4) required that he receive actual notice of his right to restore service credit, that DRS did not comply with these statutory requirements, and that DRS should be estopped to deny his request to restore service credit.

At a hearing in September 1997, a DRS employee described DRS's mail collection and distribution system. Another DRS employee, Lisa Phelps, described the agency's custom governing generation and mailing of service credit restoration notices. She testified that when the State rehired a PERS employee, DRS would print out a three-part restoration notice. DRS would mail one copy to the employee (either at the employee's home address or work address), mail one copy to the employer (here, DSHS), and place the third copy in the employee's DRS file. Phelps stated that Tassoni's DRS file contained a copy of both the 51 month notice and the 99 month notice. DRS would have mailed both restoration notices—the 99-month one and the 51-month one—in the same envelope. There was no address printed on either the 99-month notice or the 51-month notice from the DRS file. Phelps testified that DRS could have sent the notices to Tassoni at DSHS, or someone at DRS could have hand-addressed the notices.

Tassoni testified that he did not receive the 99-month notice but that he did receive the 51-month notice. He could not remember whether the 51-month notice came to his house or to his employer. He admitted that it was "possible" that the 99-month notice was in the envelope with the 51 month notice and he simply did not see it. AR at 179. Tassoni stated that he would have restored the 99 months of credit had he known about it and that he had the funds to do so. He acknowledged that he knew there was a five-year window to restore service credit, but he "didn't know when that window started or when it ended." AR at 214.

Two of Tassoni's coworkers at DSHS testified that when Tassoni returned to DSHS, he said he intended to restore as much service credit as he could. Lila Hernandez, a DSHS personnel representative, testified that she receives DRS restoration notices and places them in the employees' files. She had searched Tassoni's DSHS file and found no copy of either the 51-month notice or the 99-month notice, nor did she recall getting the notices or discussing them with Tassoni.

Presiding Officer Buddeke found that Tassoni did not receive actual notice of the right to restore service credit. But he concluded that DRS had established proof of mailing the 99-month restoration notice, so that the notice was "presumed to have been mailed to both Mr. Tassoni and his employer." AR at 270. Buddeke also concluded that even if DRS had not established proof of mailing, former RCW 41.40.150(3) did not require it to notify Tassoni, and the 60-month restoration period runs even if the employee is not properly notified. Finally, DRS rejected Tassoni's argument that DRS should be equitably *66 estopped from enforcing the 60-month restoration window.

Tassoni petitioned the superior court for review. The court found that substantial evidence supported the conclusion that DRS properly mailed the 99-month notice, which was "fatal" to Tassoni's equitable estoppel argument. RP at 52-53, 55.

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Bluebook (online)
29 P.3d 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tassoni-v-department-of-retirement-systems-washctapp-2001.