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[W] Public Employees' Retirement System v. Howard

2/7/2002

DATE OF JUDGMENT: 8/31/2000


TRIAL JUDGE: HON. TOMIE T. GREEN


COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT


NATURE OF THE CASE: CIVIL-STATE BOARDS AND AGENCIES


DISPOSITION: REVERSED AND RENDERED - 02/07/2002


. On August 26, 1997, the Public Employees' Retirement System (PERS) received an application for "line of duty" disability benefits from Marcia F. Howard (Howard). Howard's application was denied by the PERS Medical Board (Medical Board) because there was insufficient objective evidence that her medical condition prevented her from performing her duties as a teacher. Howard appealed and received a hearing before the PERS Disability Appeals Committee (Appeals Committee) in May of 1999. Three months later, the Appeals Committee recommended that Howard be found not permanently and totally disabled. The PERS Board of Trustees approved and adopted this recommendation by order dated October 26, 1999. Howard appealed to the Circuit Court of the First Judicial District of Hinds County, which held that PERS's decision was against the weight of substantial evidence, was arbitrary and capricious, and reversed.


. PERS appeals that judgment and raises three issues for review:


I. THE CIRCUIT COURT ERRED IN REWEIGHING THE FACTS AND SUBSTITUTING ITS JUDGMENT FOR THAT OF THE ADMINISTRATIVE AGENCY IN FINDING THE (SIC) MS. HOWARD IS ENTITLED TO THE RECEIPT OF DISABILITY BENEFITS.


II. THE CIRCUIT COURT ERRED IN DETERMINING THAT MS. HOWARD PRESENTED SUBSTANTIAL EVIDENCE OF DISABILITY AND THAT THE DECISION OF THE BOARD OF TRUSTEES IS ARBITRARY AND CAPRICIOUS.


III. THE CIRCUIT COURT ERR IN AWARDING DISABILITY STATUS TO MS. HOWARD RETROACTIVE TO JANUARY 1997, AS SUCH VIOLATES THE DICTATES OF THE STATUTORY LAW GOVERNING THE RETIREMENT SYSTEM.


. Concluding that PERS's appeal is well taken, we reverse and render.


FACTS


. Marcia F. Howard was a teacher in the Hancock County School District with 12.25 years of PERS service. Her application for disability retirement indicates that she was last employed on January 28, 1997; however, she did not terminate her employment until July. Howard's application was not received by PERS until August 26 of that same year.


. There are two categories of disability benefits available to PERS members. On her application, Howard had a choice of applying for "regular" or "hurt on the job " disability; she checked the box for the latter. In the statute, "hurt on the job" disability is called "disability in line of duty."


Regardless of the number of years of creditable service upon the application of a member or employer, any active member who becomes disabled as a direct result of an accident or traumatic event resulting in a physical injury occurring in the line of performance of duty, provided the medical board or other designated governmental agency after a medical examination certifies that the member is mentally or physically incapacitated for the further performance of duty and such incapacity it likely to be permanent, may be retired by the board of trustees . . . . Miss. Code Ann. ยง 25-11-114(6) (Supp. 2001). Regular disability is the term used for disabilities not caused in the line of duty.


Upon the application of a member or his employer, any active member in state service who has at least four (4) years of membership service credit may be retired by the board of trustees . . ., provided that the medical board, after a medical examination, shall certify that the member is mentally or physically incapacitated for the further performance of duty, that such incapacity is likely to b

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