The Petitioner in this action appealed the denial of his application for Retirement and Social Security Law Article 15 service retirement benefits by the New York State and Local Retirement System [ERS].
Petitioner worked as a correction officer for the Department of Corrections and Community Supervision for over 34 years, resigning from that position in April 2021. Petitioner, however, had commenced working for the Granville Central School District as a school bus monitor in March 2021.
On May 13, 2021, Petitioner filed an application with ERS seeking service retirement benefits with the school district pursuant to Retirement and Social Security Law Article 15, indicating an effective retirement date of May 15, 2021. Petitioner also advised the school district that he was retiring on May 15 "with the intent of continuing [his] employment" with the school district.
Ultimately Petitioner resigned from his position as a bus monitor on October 15, 2021, for health reasons, but continued to work for the school district as a consultant.
In May 2019, the New York State's Retirement System's Pension Integrity Bureau [Bureau] commenced investigating retirement applications submitted by individuals who had predominantly worked as correction officers but were seeking benefits under Retirement and Social Security Law Article 15. In a letter dated February 2, 2022, the Bureau informed Petitioner that, after reviewing his application, he was "not eligible to retire under the article 15 plan as of the effective date of [his] retirement (i.e., May 15, 2021) because [he] did not have a bona fide termination from employment."
Following a hearing, the Hearing Officer denied Petitioner's application, finding, among other things, that Petitioner had not demonstrated that he had a bona fide termination of his employment. The Comptroller affirmed the Hearing Officer's findings and decision. Petitioner then initiated the instant CPLR Article 78 proceeding challenging the Comptroller's decision.
The Appellate Division, noting that:
1. "The Comptroller has exclusive authority to determine all applications for retirement benefits and the determination must be upheld if the interpretation of the controlling retirement statute is reasonable and the underlying factual findings are supported by substantial evidence"; and
2. The Retirement and Social Security Law Article 15 does not define the term "retirement,"; explained it employed the commonly understood meaning of the term, which is "to withdraw from one's position or occupation" or to "conclude one's working or professional career", quoting Merriam-Webster Dictionary's definition of "retirement".
Sustaining the Comptroller's interpretation that an applicant for Retirement and Social Security Law Article 15 benefits "must demonstrate that he or she actually retired from public service employment in the first instance" and concluding "that it is entirely rational and reasonable for [the Comptroller] to require that such retirement be genuine, i.e., the applicant must demonstrate that there has been a legitimate cessation or termination of employment.
Opining that "... the Comptroller's reasonable interpretation that applicants for Retirement and Social Security Law article 15 benefits demonstrate a legitimate cessation or termination of employment prior to re-employment does not constitute fraud, misrepresentation, deception or similar misconduct in order to implicate the exception allowing the doctrine of estoppel to be invoked against a state agency, held that "substantial evidence supports the Comptroller's determination that [Petitioner] was ineligible for benefits because he did not actually retire from service on May 15, 2021".
Click HERE to access the Appellate Division's decision posted on the Internet.