Polania v. State Employees' Retirement System
299 Mich. App. 322
| Mich. Ct. App. | 2013Background
- Polania applied in 2009 for nonduty disability retirement benefits under MCL 38.24 after leaving DHS in March 2009.
- Retirement Services’ medical advisors concluded Polania was not permanently disabled for both mental and physical conditions.
- Retirement Services denied nonduty disability benefits on November 18, 2009.
- Polania appealed in 2010; a September 2010 hearing, November 2010 proposed decision, and April 2011 Board decision denied benefits.
- The circuit court reversed in January 2012, but the Court of Appeals held the Board correctly applied MCL 38.24(1)(b) and reinstated the Board’s denial, remanding for entry of an order affirming the Board’s denial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MCL 38.24(1)(b) requires certification of total disability before Board retirement authority. | Polania argues Board lacks authority without certification. | Board must rely on medical advisor certification to retire. | Certification is required; Board correctly denied. |
| Whether the Board can retire without the medical advisor’s certification given statutory language. | Polania contends Board can retire despite no certification. | Legislature conditioned retirement on certification. | Board interpretation correct; retirement contingent on certification. |
| Whether the circuit court erred in reversing based on a misapplication of evidence standards. | Polania contends record supports disability despite lack of certification. | Record shows no certification and thus no retirement authority. | No error; Board’s decision supported by competent, material, substantial evidence. |
Key Cases Cited
- Gersbacher v State Employees’ Retirement Sys, 145 Mich App 36 (1985) (Board may retire without medical advisor’s upfront certification)
- VanZandt v State Employees’ Retirement System, 266 Mich App 579 (2005) (certification as a statutory limit on Board authority)
- Monroe v State Employees’ Retirement Sys, 293 Mich App 594 (2011) (medical examination can be based on records)
- Dykstra v Dep’t of Labor & Economic Growth / Unemployment Ins Agency, 283 Mich App 212 (2009) (standard of review: competent, material, substantial evidence on whole record)
- Granger Land Dev Co v Dep’t of Treasury, 286 Mich App 601 (2009) (de novo statutory interpretation applicable)
- Johnson v Recca, 492 Mich 169 (2012) (courts may not override legislature’s policy choices)