THOMAS LANZA VS. BOARD OF TRUSTEES, PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PUBLIC EMPLOYEES' RETIREMENT SYSTEM)

CourtNew Jersey Superior Court Appellate Division
DecidedMarch 5, 2019
DocketA-2685-16T2
StatusUnpublished

This text of THOMAS LANZA VS. BOARD OF TRUSTEES, PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PUBLIC EMPLOYEES' RETIREMENT SYSTEM) (THOMAS LANZA VS. BOARD OF TRUSTEES, PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PUBLIC EMPLOYEES' RETIREMENT SYSTEM)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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THOMAS LANZA VS. BOARD OF TRUSTEES, PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PUBLIC EMPLOYEES' RETIREMENT SYSTEM), (N.J. Ct. App. 2019).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is post ed on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-2685-16T2

THOMAS LANZA,

Petitioner-Appellant,

v.

BOARD OF TRUSTEES, PUBLIC EMPLOYEES' RETIREMENT SYSTEM,

Respondent-Respondent. _____________________________

Submitted January 14, 2019 – Decided March 5, 2019

Before Judges Fasciale and Gooden Brown.

On appeal from the Board of Trustees of the Public Employees' Retirement System, Department of Treasury, PERS No. 2-955720.

Lanza Law Firm, LLP, attorneys for appellant (Kenneth W. Thomas, on the briefs).

Gurbir S. Grewal, Attorney General, attorney for respondent (Melissa H. Raksa, Assistant Attorney General, of counsel; Jeff S. Ignatowitz, Deputy Attorney General, on the brief). PER CURIAM

Thomas Lanza appeals from the February 16, 2017 final agency decision

of the Board of Trustees (Board) of the Public Employees' Retirement System

(PERS), adopting the initial decision of the administrative law judge (ALJ). The

ALJ affirmed the Board's determination that Lanza was ineligible for

membership in PERS, effective January 1, 2008, following the adoption of

N.J.S.A. 43:15A-7.2.

N.J.S.A. 43:15A-7.2(a) prohibits membership in PERS as of January 1,

2008, for individuals engaged by a municipality under a professional services

contract awarded in accordance with the Local Public Contracts Law (LPCL),

N.J.S.A. 40A:11-1 to -52. N.J.S.A. 43:15A-7.2(b) imposes the same prohibition

on independent contractors performing professional services for a municipality.

The Board adopted the ALJ's decision that, in accordance with N.J.S.A. 43:15A-

7.2(a) and (b), Lanza was ineligible for membership in PERS for his service as

a municipal prosecutor in the Borough of South Plainfield and the Township of

Piscataway after December 31, 2007. We affirm.

Lanza is an attorney who was admitted to the New Jersey bar in 1988. He

has been in private practice for over twenty-five years and is a partner in the law

firm, Lanza & Lanza, LLP. Lanza first enrolled in PERS on January 1, 1994,

A-2685-16T2 2 when he was appointed as the municipal prosecutor for South Plainfield, and has

served continuously since. Lanza also served as the municipal prosecutor in

Piscataway continuously since January 1, 2008,1 and continued PERS

participation based on these appointments.

In 2012, the New Jersey Office of the State Comptroller released a report 2

identifying numerous local government entities that failed to comply with

N.J.S.A. 43:15A-7.2's prohibition against pension participation by individuals

serving in certain government positions pursuant to professional service

contracts or as independent contractors. As a result, the Division of Pensions

and Benefits (Division), Pension Fraud and Abuse Unit (Unit) commenced an

investigation. Based upon information received from South Plainfield and

Piscataway, on December 29, 2014, the Unit notified Lanza that the Division

determined that he was ineligible for continued participation in PERS after

December 31, 2007.

1 Lanza also served as the municipal prosecutor for the Borough of Dunellen and the City of South Amboy. Neither of those appointments is part of this appeal. 2 State of N.J. Office of the State Comptroller, Investigative Report: Improper Participation by Professional Service Providers in the State Pension System (2012), http://nj.gov/comptroller/news/docs/pensions_report.pdf. A-2685-16T2 3 Lanza appealed the determination to the Board and on May 26, 2015, the

Board agreed and advised Lanza that "[t]here [were] no 'grandfathering'

provisions under [N.J.S.A.] 43:15A-7.2 to permit individuals who were already

enrolled in . . . PERS to remain as members after January 1, 2008." Lanza again

appealed, and the matter was transmitted to the Office of Administrative Law

(OAL) for review as a contested case. See N.J.S.A. 52:14F-1 (establishing the

OAL for independent review of contested administrative matters); see also

N.J.S.A. 52:14B-10 (establishing procedures for review by ALJs).

During the ensuing OAL hearing, conducted on March 30, 2016, Lanza

testified on his own behalf, and Marc Seth Greenfield, the Unit investigator who

authored the December 29, 2014 letter notifying Lanza of his ineligibility,

testified on behalf of the Division. Following the hearing, on December 1, 2016,

the ALJ issued an initial decision, affirming the Board's determination. First,

the ALJ determined it was "incontrovertible" that Lanza "served as the

municipal prosecutor in South Plainfield since 1994[,]" when "[h]e initially

enrolled in PERS," and "in Piscataway . . . since 2008." Further, Lanza's "duties

include[d] prosecuting criminal matters, zoning complaints, and health

department complaints[,]" and he was "responsible for representing the

[respective] municipalit[ies] in all phases of the criminal process, to include

A-2685-16T2 4 discovery, motions, and other pre-trial proceedings." Additionally, Lanza was

provided by the municipality with "tools and equipment[,]" including "an

office," "a desk," "a computer, " "a phone," and "office supplies." Further, "with

the exception of State Police discovery, . . . which [was] mailed by his law office

staff[,]" municipal employees "organize[d] and process[ed] discovery for

pending prosecutions, using municipal letterhead and envelopes."

The ALJ then posited that "[t]he issue to be decided . . . [was] whether

Lanza's service as a municipal prosecutor in both South Plainfield and

Piscataway qualifie[d] him for continued membership in PERS . . . under either

[N.J.S.A.] 43:15A-7.2(a) or (b)." Regarding N.J.S.A. 43:15A-7.2(a)'s

ineligibility for individuals engaged by a municipality under a professional

services contract awarded in accordance with the LPCL, as to South Plainfield,

the ALJ found "that each year since 2008, South Plainfield issued a public notice

soliciting proposals for professional services. Starting in 2012, the notices

stated that the services sought, including those of a municipal prosecutor, were

not subject to bidding, per [N.J.S.A.] 40A:11-5." In response, "Lanza submitted

comprehensive packets of information annually," indicating "that his law firm

'staff [was] very equipped and knowledgeable in dealing with the processing of

state's discovery[,] utilizing the internet, scanning of documents[,] and [their]

A-2685-16T2 5 office just down the street [was] very convenient to meet officers to discuss

cases.'"

According to the ALJ, as a result of Lanza's submissions, "from 2008 until

the present, and pursuant to [N.J.S.A.] 2B:25-4,[3] Lanza was appointed annually

via a formal resolution" generally stating:

Now therefore be it resolved by the Governing Body of the Borough of South Plainfield as follows:

1. The Mayor and Municipal Clerk are hereby authorized to execute agreements with . . . Thomas Lanza, Esq.[]

2. This contract is awarded pursuant to a fair and open process in accordance with [N.J.S.A.] 19:44A- 20.4 . . . [.]

3. Salary for this position is commensurate with the current salary ordinance . . .

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