DiMasi v. State Board of Retirement
474 Mass. 194
Mass.2016Background
- Salvatore F. DiMasi, former Speaker of the Massachusetts House, retired and began receiving a state pension in February 2009; his annuity savings contained $127,010.05 in employee contributions.
- A federal indictment (2009) and subsequent trial (2011) resulted in convictions on several counts; DiMasi was sentenced on September 9, 2011, to 96 months.
- The State Board of Retirement suspended DiMasi’s pension payments after his sentence, invoking G. L. c. 32, § 15(4) (forfeiture after “final conviction”).
- DiMasi challenged the suspension and the board’s continued withholding of his accumulated total deductions ($127,010.05), arguing a “final conviction” occurs only after appellate review is exhausted.
- Administrative and lower court proceedings held the board’s interpretation (finality = sentencing date) was correct and that DiMasi was entitled to return of his accumulated deductions, but the board nonetheless continued to withhold those funds.
- Supreme Judicial Court held (1) “final conviction” for § 15(4) means conviction becomes final at sentencing, and (2) DiMasi must be paid his accumulated total deductions, plus interest calculated by the board’s actuary from September 2011 until payment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Meaning of “final conviction” in G. L. c. 32, § 15(4) | DiMasi: final conviction occurs only after appellate process is exhausted | Board: final conviction occurs when sentence is imposed | Held: final conviction = imposition of sentence (sentencing date) |
| Timing of pension forfeiture | DiMasi: forfeiture should await exhaustion of direct appeals | Board: forfeiture should begin at sentencing to prevent continued payments | Held: forfeiture automatic at sentencing; appellate pendency does not delay forfeiture |
| Return of accumulated total deductions | DiMasi: board must promptly return employee contributions withheld since Sept 2011 | Board: had withheld funds; argued various administrative positions (but hearing officer and board accepted return) | Held: DiMasi entitled to return of accumulated total deductions ($127,010.05) |
| Interest on withheld deductions | DiMasi: entitled to interest on unlawfully withheld contributions from Sept 2011 | Board: no statutory interest on accumulated deductions under §15(4) | Held: member not entitled to regular interest as part of accumulated deductions, but entitled to interest for unlawful withholding; actuary to set rate under G. L. c. 32, § 20(5)(c)(2) to provide actuarial equivalent |
Key Cases Cited
- State Bd. of Retirement v. Bulger, 446 Mass. 169 (discusses §15 forfeiture framework)
- State Bd. of Retirement v. Woodward, 446 Mass. 698 (forfeiture is automatic consequence of conviction; footnote treating final conviction as sentencing)
- Retirement Bd. of Somerville v. Buonomo, 467 Mass. 662 (statutory interpretation principles; §15 forfeiture context)
- MacLean v. State Bd. of Retirement, 432 Mass. 339 (§15 forfeiture triggered at sentencing to probation)
- Doe, Sex Offender Registry Bd. No. 10800 v. Sex Offender Registry Bd., 459 Mass. 603 (final judgment in criminal case is the sentence)
- Commonwealth v. Brown, 466 Mass. 676 (conviction not final until sentence imposed)
- Herrick v. Essex Regional Retirement Bd., 465 Mass. 801 (§20(5)(c)(2) remedies and actuary-determined interest for board errors)
- Conway v. Electro Switch Corp., 402 Mass. 385 (interest compensates for loss of use/unlawful detention of money)