State, ex rel. Hughes v. Public Employees Retirement System

• Decision Date: 23 March 1988
• Docket Number: No. 86-927,86-927
• Citation: 36 Ohio St.3d 11,520 N.E.2d 577
• Parties: The STATE, ex rel. HUGHES, Appellee, v. PUBLIC EMPLOYEES RETIREMENT SYSTEM, Appellant.
• Court: Ohio Supreme Court

Page 11

36 Ohio St.3d 11

520 N.E.2d 577

The STATE, ex rel. HUGHES, Appellee, v. PUBLIC EMPLOYEES RETIREMENT SYSTEM, Appellant.

No. 86-927.

Supreme Court of Ohio.

March 23, 1988.

On February 25, 1958, relator-appellee, Donald Hughes, was appointed as a volunteer fire fighter by the village of McDonald. On August 1, 1966, he was appointed as a part-time fire engineer with the fire department, and on March 31, 1980, he was appointed as a full-time fire engineer.

During appellee's initial employment with the village as a volunteer fire fighter, he was not eligible for membership in the Public Employees Retirement System ("PERS"), respondent-appellant herein. However, effective January 1, 1976, Ohio Adm.Code 145-5-07 permitted volunteer fire fighters to establish membership in PERS. They were required to be members effective January 1, 1977, unless exempted. Furthermore, this administrative provision permitted volunteer fire fighters to purchase service credit for past service on an optional basis. The ramifications of this provision were fully explained in a PERS bulletin issued on January 23, 1976.

Pursuant to this provision, the village began making contributions to PERS as well as sending payroll deductions to establish appellee's membership therein. This deduction continued until appellee's appointment as full-time fire engineer on March 31, 1980, at which time he became a contributing member of the Police and Firemen's Disability and Pension Fund (hereinafter "PFDPF").

Effective October 30, 1978, Ohio Adm.Code 145-5-07 was amended to, inter alia, restrict a volunteer fire fighter's option to purchase past service credit to those years of service in which the individual worked two hundred fifty or more hours and earned $500 or more. On October 31, 1978, a PERS bulletin entitled "PERS Board Adopts Rule for Volunteer Firemen" was issued which explained the amended provisions of Ohio Adm.Code 145-5-07 and formally announced that the restrictions set forth in this amended provision would take effect on January 1, 1979.

On September 19, 1980, appellee requested information from PERS concerning the purchase of his past service credit. On December 3, 1980, appellee was informed that he was ineligible to purchase past service credit since he did not attempt to do so prior to the January 1, 1979 deadline and his past service hours did not satisfy the criteria set forth in Ohio Adm.Code 145-5-07 as amended on October 30, 1978.

Appellee continued in his efforts to purchase past service credits from PERS until December 17, 1981, at which time PERS notified appellee that he was no longer eligible to either contribute to or accrue benefits in the PERS system for the reason that he had become a participating member in the PFDPF.

On November 1, 1984, appellee instituted this action in the Court of Appeals for Franklin County seeking both a declaratory judgment and a writ of mandamus. Therein, appellee alleged that PERS not only improperly excluded him from membership on the basis of his membership in PFDPF, but also refused to allow him to purchase the past service credit he earned while serving as a volunteer fire fighter. Appellee subsequently withdrew the request for a declaratory judgment. On October 16, 1986, the appellate court granted the requested writ of mandamus and ordered PERS to reinstate appellee onto its membership rolls and to process appellee's request to purchase past service credit.

The cause is now before this court upon an appeal as a matter of right.

Jonathan J. Downes, Columbus, for appellee.

Anthony J. Celebrezze, Jr., Atty. Gen., and Nancy J. Miller, Columbus, for appellant.

PER CURIAM.

In its first proposition of law, appellant argues that R.C. 145.02 precludes a member of PFDPF from either establishing or continuing a membership in PERS.

This issue has been resolved in this court's recent judgment in Dreger v. Pub. Emp. Retirement System (1987), 34 Ohio St.3d 17, 516 N.E.2d 214. Therein, this court held in the syllabus that "R.C. 145.02 does not require the termination of the pre-existing membership in the Public Employees Retirement System of a person who begins contributing to the Police and Firemen's Disability and Pension Fund." Accordingly, this proposition is not well-taken.

In its next proposition of law, appellant challenges the appellate court's determination that appellee is entitled to purchase credit for past service as a volunteer fire fighter. Appellant contends that the option to...