Winston-Dillard Firefighters Ass'n, Local 2091 v. Public Employes' Retirement Board

592 P.2d 1070, 39 Or. App. 545, 1979 Ore. App. LEXIS 2172
Court of Appeals of Oregon·Decided April 2, 1979·No. No. 69-0921413, CA 9822·Published

Opinion

JOSEPH, J.

This matter arises on a petition for judicial review of an order made by the Public Employes Retirement Board (PERB), which denied petitioners’ request for termination and withdrawal from the federal Social Security System. Because we find the dispositive issue not cognizable in this proceeding, we dismiss the petition on our own motion.

There are no fact disputes. The Federal Security Administrator (now the Secretary of Health, Education and Welfare), and PERB, as the authorized representative of the State of Oregon, entered into an agreement on September 28,1951, extending the benefits of the Social Security System to public employees of political subdivisions of the state, pursuant to provisions contained in 42 USCA § 418. There have been two amendments to the original agreement on April 8, 1955, and November 29, 1956.

On August 19, 1957, the Secretary of Health, Education and Welfare (HEW) and PERB executed an agreement to provide social security benefits to employees of the petitioner district. On October 1, 1974, the petitioner district’s board of directors sent PERB a letter informing the agency that the employees of the district had requested withdrawal from Social Security and asked advice on the proper procedures to follow to effectuate withdrawal. There followed correspondence between the district and PERB concerning those procedures. On July 28, 1975, the district’s directors submitted a resolution to PERB requesting that their employees, who are members of the petitioner association, be permitted to withdraw, effective December 31, 1977.

On August 11, 1975, PERB informed the district and the association of the next step in the procedure for withdrawal, which consisted of an election among the full-time employees of the district to determine their desires in the matter. In the same letter PERB informed petitioners that it would deny termination [548]*548"[i]f they feel that it would not be in the public interest to allow this withdrawal.” Petitioners complied with all PERB instructions to ascertain whether the district and the individual members of the association supported the request for voluntary termination, and a majority of the eligible employees voted in favor of termination. On December 8, 1975, PERB notified HEW that the district had submitted a resolution requesting termination of coverage effective December 31, 1977. PERB’s letter of notification also asked HEW to "consider this letter to be the official 2-year notice as required under Section 218(g)(1) [42 USCA § 418(g)(1)] of the Act.” PERB informed petitioners of the submission of the letter. The record does not disclose any HEW response.

There was no contact between petitioners and PERB until October 26, 1977, when PERB informed petitioners of a meeting date when PERB would take action on the request for termination. At that meeting, the request was first tabled. Then, on advice of its counsel, PERB reviewed its action in tabling the request, and that resulted in another vote being taken which unanimously denied the request. By letter dated December 14, 1977, PERB notified the Secretary of HEW that the notice of voluntary termination of December 8, 1975, was withdrawn. On the same date PERB notified petitioners of its action.

On March 30, 1978, PERB withdrew the order of December 7, 1977, and scheduled another hearing to take evidence regarding the petitioners’ proposed termination. The hearing officer entered a single conclusion of law:

"1. The Board failed to give timely notice to the Secretary of Health, Education and Welfare of its withdrawal of the December 8,1975, Notice of Termination within two years, coupled with the withdrawal of the order of December 7,1977, pending reconsideration, establish that Petitioners have been legally and effectively terminated from the Social Security System. The Petitioners have complied with [549]*549all applicable statutes, rules, and regulations which were in existence necessary to accomplish Termination.”

On August 28, 1978, the matter was submitted to PERB, which found that the public policy of the State of Oregon and the best interests of the parties required that termination be denied. The petition for judicial review followed.

42 USCA § 418 authorizes HEW to enter into an agreement with any state for the purpose of including employees of the state, or any political subdivision, within the Social Security System. ORS 237.414(1)1 and .4202 authorize PERB to enter into an agreement or modification of any agreement with the Federal Security Administrator on behalf of the state. The agreement between PERB and the administrator, as amended, provides for termination as follows:

"(1) In accordance with the terms and conditions of [42 USCA § 418(g)], the State may terminate this agreement in its entirety, or may terminate this agreement with respect to any coverage group designated by the State.”

[550]*55042 USCA § 418(g) provides in pertinent part as follows:

"(1) Upon giving at least two years’ advance notice in writing to the Secretary, a State may terminate, effective at the end of a calendar year specified in the notice, its agreement with the Secretary either—
"(A) ***; or
"(B) with respect to any coverage group designated by the State, but only if the agreement has been in effect with respect to such coverage group for not less than five years prior to the receipt of such notice.
"(2) *****
"(3) If any agreement entered into under this section is terminated in its entirety, the Secretary and the State may not again enter into an agreement pursuant to this section. If any such agreement is terminated with respect to any coverage group, the Secretary and the State may not thereafter modify such agreement so as to again make the agreement applicable with respect to such coverage group.”

The district’s employees constitute a separate coverage group for the purposes of voluntary termination from the Social Security System. See Montgomery County Maryland v. Ball, 416 F Supp 737 (DC Md., 1975). The petitioners complied with every procedural requirement imposed by PERB, and a majority of the eligible employees voted in favor of termination. Petitioners met every procedural requirement imposed by federal statute, the federal regulations (20 CFR 404.1201-.1290; 422.1-.527) and Oregon statutory provisions for withdrawal from the system. Neither the federal statute nor the Oregon statutes contain any standards to establish a basis for a state refusing termination. The federal regulations cited above are also silent. ORS 237.470 provides:

"The Public Employes’ Retirement Board shall promulgate regulations, not inconsistent with ORS 237.410 to 237.520, necessary to provide proper procedure to assure conformity with [42 USCA § 418], and federal regulations adopted pursuant thereto. Such [551]

Free access — add to your briefcase to read the full text and ask questions with AI

Winston-Dillard Firefighters Ass'n, Local 2091 v. Public Employes' Retirement Board, 592 P.2d 1070, 39 Or. App. 545, 1979 Ore. App. LEXIS 2172 (Or. Ct. App. 1979).

592 P.2d 1070 (Winston-Dillard Firefighters Ass'n, Local 2091 v. Public Employes' Retirement Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

MONTGOMERY CTY., MARYLAND v. Ball
416 F. Supp. 737 (D. Maryland, 1975)