The New York City Board of Education Retirement System [Retirement
System] initially placed the Plaintiff in its "Age 57 Early Retirement
Program". Plaintiff retired on
The Retirement System subsequently notified Plaintiff that it had determined that placing Plaintiff in the 57/5 program was an error, and that she should have been placed in the "25-Year Early Retirement Program". As Plaintiff was not yet eligible to retire, Retirement System gave the Plaintiff several options to address her premature retirement. Plaintiff elected to return to service for approximately 10 months until she was credited with 25 years of service and then file for retirement under the 55/25 program.
In October 2021, Plaintiff commenced an action seeking a judgment declaring that Retirement System was estopped from denying the Plaintiff's entitlement to retirement benefits "for the period from April 21, 2019, to the date that she returned to service or, in the alternative, to recover damages for breach of fiduciary duty, negligent misrepresentation, and negligence." Supreme Court granted Retirement Systems motion to dismiss Plaintiff's action as "time barred" and Plaintiff appealed Supreme Court's ruling.
Citing Walton v New York State Dept. of Correctional Servs., 8 NY3d 186, the Appellate Division sustained the Supreme Court's decision, noting "where [the] proceeding could have been brought pursuant to CPLR Article 78, the four-month statute of limitations applicable to such proceedings applies". In the words of the Appellate Division, "although the complaint sought declaratory relief or monetary damages, the gravamen of the complaint concerned [Plaintiff's] challenge to the Retirement System's determination dated August 7, 2019, that her retirement as of April 21, 2019, was premature due to her erroneous placement in the 57/5 program...."
As the damages sought by Plaintiff concerning her unpaid retirement benefits for the period from her retirement on April 21, 2019, to the date that she returned to service arose from and were incidental to the Retirement System's determination dated August 7, 2019, Plaintiff could have commenced a CPLR Article 78 proceeding to challenge the Retirement System's determination dated August 7, 2019, and "the four-month statute of limitations applicable to such proceedings applies".
Click HERE to access the Appellate Division's decision posted on the Internet.