Citation Numbers: 74 Op. Att'y Gen. 193
Judges: BRONSON C. La FOLLETTE, Attorney General
Filed Date: 9/3/1985
Status: Precedential
Modified Date: 7/6/2016
GARY I. GATES, Secretary Department of Employe Trust Funds
You request my opinion regarding the authority of the Claims Board to determine a claim relating to the Wisconsin Retirement System (WRS) and to award payment from WRS trust funds.
The facts upon which your questions are based are summarized in this excerpt from the January 31, 1985, findings and recommendations of the Claims Board:
Ken Corbett of Oshkosh, Wisconsin, claims $728.25 as the amount he paid in December, 1983, prior to his retirement, to purchase the six-month qualifying period of state service pursuant to s.
40.02 (17)(b), Stats., to increase his monthly retirement annuity. 1983 Wisconsin Act 141, effective March 9, 1984, changed the maximum annuity benefit permitted to be paid from the retirement system. As a result, claimant received no additional annuity benefit for the purchase of the six-month qualifying period of state service from the Department of Employe Trust Funds. Laws under which the state retirement system is administered do not provide for the refund claimant is requesting. The Board concludes the claim should be paid based on equitable principles. The Board further concludes under authority of s.16.007 (6m), Stats., payment of this claim should be made from the Department of Employe Trust Funds appropriation s.20.515 (1)(r), Stats.
Section
Section
I now answer your questions based upon the facts as set forth above with the additional assumptions you request in certain of the questions.
Your first question asks:
Do the specific appeal procedures provided for the Public Employe Trust Funds . . . take precedence over the general grant of authority to the Claims Board to review and dispose of claims against the . . . state?
The answer to this question is no, since I find no such limitation in the authority granted to the Claims Board. Nothing in the grant of authority to the Claims Board limits it to considering only those claims which have been turned down under other specified methods of review.
Generally, a claim against a state agency would be handled under a specific statutorily designated procedure or the general procedure of chapter 227. In section
It must be further noted that the basis for the award (equity) is not within the area of authority granted to the ETF Board and the board thus lacked any basis to consider this requested relief. The Department of Employe Trust Fund's (DETF) refusal to pay the claim was stated as follows in a letter from administrator Patricia F. Weigert to Mr. Corbett, dated March 23, 1984:
*Page 195. . . . the statutes contain no provision for refunding payments which were made to purchase qualifying service.
I'm sorry to have to deny your request, but as I stated earlier, the law does not permit refunds of this kind under circumstances where you were properly advised at the time you took action.
Mr. Corbett did not proceed under the administrative procedure to appeal the DETF denial to the ETF Board but instead filed his claim with the Claims Board. alleging in part:
Briefly, I again would like to state the provision to purchase the six months qualifying period was designed to be of benefit to the employe.
If it wasn't of benefit, morally it should be returned — it wasn't meant to be a tax or penalty.
After hearing Mr. Corbett's claim, the Claims Board recognized that "[l]aws under which the state retirement system is administered do not provide for the refund claimant is requesting." The Claims Board then concluded that "the claim should be paid on equitable principles." While the Claims Board has specific authority to pay a claim on equitable grounds, the ETF Board lacks such authority. It is thus clear that a hearing before the ETF Board requesting equitable relief would be futile since the ETF Board could not grant the relief.
The Wisconsin Supreme Court has generally held that "where a statute relating to an administrative agency provides a direct method of judicial review of agency action, such method of review is generally regarded as exclusive, especially where the statutory remedy is plain. speedy, and adequate." Kegonsa Jt.Sanit. Dist. v. City of Stoughton,
Mr. Corbett filed his claim with the Claims Board without appealing to the ETF Board. You ask whether the result would be different if Mr. Corbett appealed the department's determination to the ETF Board. the board's decision was against the claimant. and the claimant then filed a claim with the Claims Board, rather than *Page 196 appealing the ETF Board's decision via certiorari. I see no different result.
As previously stated, the grant of authority to the Claims Board "to receive, investigate and make recommendations on all claims" presented to it, is not limited to those claims that have gone through other specified administrative procedures. Even if the grant of authority were construed to be so limited, the limitation would not apply to claims solely in equity such as the instant situation. The ETF Board lacked the authority to grant Mr. Corbett's claim on equity grounds. Thus, the statutorily provided administrative procedure, including review by the circuit court of the ETF Board denial, provided no remedy. since the ETF Board could not grant the equity claim, recourse to the board and review by certiorari of the decision of the board would have been a futile act and one not required by the doctrine of exhaustion of remedies. Kaiser,
You next question whether the Claims Board is authorized to pay the claim from the Public Employe Trust Fund. In my opinion, the authority to pay from the trust fund is solely granted to the ETF Board, and the Claims Board, therefore, lacks authority to order payment from the fund.
Section
The public employe trust fund is a public trust and shall be managed, administered, invested and otherwise dealt with solely for the purpose of ensuring the fulfillment at the lowest possible cost of the benefit commitments to participants, as set forth in this chapter, and shall not be used for any other purpose. Revenues collected for and balances in the accounts of a specific benefit plan shall be used only for the purposes of that benefit plan, including amounts allocated under s.
40.04 (2), and shall not be used for the purposes of any other benefit plan. Each member of the employe trust funds board shall be a trustee of the fund and the fund shall be administered by the department of employe trust funds. All statutes relating to the fund shall be construed liberally in furtherance of the purposes set forth in this section.
The appropriations that establish and maintain the trust fund are specific as to both the source and usage of the fund. That usage *Page 197
does not include equitable claims such as we are concerned with in this opinion. In contrast, section
(5) . . . If the claims board determines to pay or recommends that a claim be paid from a specific appropriation or appropriations, it shall include that determination or recommendation in its conclusions.
(6m) The claims board, . . . may specify that a claim shall be paid from a specific appropriation or appropriations. If a claim requires legislative action, the board may recommend that the claim be paid from a specified appropriation or appropriations. If no determination is made as to the appropriation or appropriations from which a claim shall be paid, the claim shall be paid from the appropriation under s.
20.505 (4)(d).
"[W]here a general statute conflicts with a specific statute, the specific statute prevails." State ex rel. S.M.O.,
When confronted with a statutory inconsistency of this nature, the statutes should be harmonized to give effect to all of the provisions. Glinski v. Sheldon,
Harmonizing these two statutes in that manner also dispels any doubt about the constitutionality of section
Section
The Claims Board concluded that the refund payment should be made from section
BCL:WMS
Glinski v. Sheldon , 88 Wis. 2d 509 ( 1979 )
Kegonsa Joint Sanitary District v. City of Stoughton , 87 Wis. 2d 131 ( 1979 )
Nodell Investment Corp. v. City of Glendale , 78 Wis. 2d 416 ( 1977 )
Kaiser v. City of Mauston , 99 Wis. 2d 345 ( 1980 )
Wipperfurth v. U-Haul Co. of Western Wisconsin, Inc. , 98 Wis. 2d 516 ( 1980 )
State Teachers' Retirement Board v. Giessel , 12 Wis. 2d 5 ( 1960 )