| Mass. | Nov 14, 1995
At issue is whether salary earned out of State is “regular compensation” within the meaning of G. L. c. 32, § 5 (2) (a) (1994 ed.). An administrative magistrate ruled in favor of the plaintiff, William J. Leary, but the Contributory Retirement Appeal Board (CRAB), relying on the defi
1. Facts. William J. Leary served first as a teacher and then as a superintendent in the Boston public schools from 1954 through 1975. From 1978 through 1988, Leary worked as a superintendent in New York and Florida. He returned to Massachusetts in 1989 and began employment as superintendent of the Gloucester public schools. On his return to Massachusetts, Leary requested information regarding the purchase of credit for his out of State service in New York and Florida. TRB notified Leary that pursuant to G. L. c. 32, § 3 (4) (1994 ed.), he could purchase up to ten years of creditable service for services performed out of State. Leary then inquired whether his Florida salary figures, which were considerably higher than his in-State salary figures, could be used in calculating the amount of his retirement allowance.
2. The statute. “[Sjtatutory language itself is the principal source of insight into the legislative purpose.” Hoffman v. Howmedica, Inc., 373 Mass. 32" court="Mass." date_filed="1977-07-06" href="https://app.midpage.ai/document/hoffman-v-howmedica-inc-2046691?utm_source=webapp" opinion_id="2046691">373 Mass. 32, 37 (1977). “[W]e need not look beyond the words of the statute where the language is plain and unambiguous.” State Bd. of Retirement v. Boston
“Regular compensation” is defined in G. L. c. 32, § 1, as “the full salary, wages or other compensation in whatever form, lawfully determined for the individual service of the employee by the employing authority . . .” (emphasis added). The meaning of “regular compensation,” therefore, depends on the meaning of the term “employee.” “Employee” is defined “as applied to persons whose regular compensation ... is paid by any political subdivision of the commonwealth . . . [as] any person who is regularly employed in the service of any such political subdivision.” Because Leary was neither regularly employed in the service of a political subdivision of the Commonwealth nor paid by any political
The words “regular compensation” are modified in G. L. c. 32, § 5 (2) (a), by the clause “received by such member during any period of three consecutive years of creditable service.” That does not imply, as argued by Leary, that all compensation received for creditable service must be treated as regular compensation. This clause ensures that only years of creditable service are considered in determining the highest three-year average annual rate of regular compensation.
Our construction of § 5 (2) (a) is consistent with a reading of the entire statute. See Williams v. Contributory Retirement Appeal Bd., 304 Mass. 601" court="Mass." date_filed="1939-12-28" href="https://app.midpage.ai/document/williams-v-contributory-retirement-appeal-board-6443430?utm_source=webapp" opinion_id="6443430">304 Mass. 601, 605 (1939) (statute ought to be construed, whenever possible, as a whole). See also Negron v. Gordon, 373 Mass. 199" court="Mass." date_filed="1977-08-12" href="https://app.midpage.ai/document/negron-v-gordon-2130112?utm_source=webapp" opinion_id="2130112">373 Mass. 199, 201 (1977), quoting Holbrook v. Holbrook, 1 Pick. 248, 250 (1823) (“When the meaning of any particular section or clause of a statute is questioned, it is proper, no doubt, to look into the other parts of the statute: otherwise the different sections of the same statute might be so construed as to be repugnant, and the intention of the legislature might be defeated”). Our reading is further supported by G. L. c. 32, § 3 (4) (1994 ed.), which provides for the purchase of credit for out-of-State service.
Leary argues that our reading of the statute frustrates his reasonable expectations.
We conclude that Leary was not an employee of a political subdivision of the Commonwealth while employed by Florida and that, therefore, his Florida salary was not “regular compensation” within the meaning of G. L. c. 32, § 5 (2) (a). The Superior Court judge correctly determined that Leary’s three-year highest average annual rate of compensation should be based only on Leary’s salary figures while employed by a political subdivision of the Commonwealth.
Judgment affirmed.
Leary’s highest three-year average annual salary from out-of-State service was $105,239 while his highest three-year average annual salary in Massachusetts was $76,440.
On March 17, 1992, Leary paid $57,479.42 to the TRB for the purchase of ten years of out-of-State service. This figure was based on six years of salary in New York (which was considerably lower than Leary’s Massachusetts salary) and four years of salary in Florida (which was considerably higher than Leary’s Massachusetts salary).
Leary does not dispute the amount he was assessed. Indeed, in his brief, Leary acknowledges that the amount due “occurred pursuant to the clear and unambiguous provisions of [G. L. c.] 32, [§§] 1 and 3 (4).”
General Laws c. 32, § 5 (2) (a) (1994 ed.), provides: “The normal yearly amount of the retirement allowance for any member . . . shall . . . be based on the average annual rate of regular compensation received by such member during any period of three consecutive years of creditable service for which such rate of compensation was the highest. . . and shall be computed according to the [table in the statute] based on the age of such member and his number of years and full months of creditable service at the time of his retirement.”
The purchase of creditable service increased Leary’s annual retirement benefit by increasing the number of years of creditable service. According to calculations made by the TRB and accepted by the Superior Court judge, if Leary retired at age sixty, he would receive $45,252.48 annually as a result of his purchase of out-of-State creditable service. Had he not purchased credit for the out-of-State service, he would receive an annual retirement allowance of only $29,964.48. On appeal, Leary does not dispute these figures.
Under the retirement scheme of G. L. c. 32 (1994 ed.) it is possible to earn regular compensation while not earning creditable service. For example, where an employee is employed by the Commonwealth or a political subdivision thereof but not a member of the retirement system, the employee is not able to count those years of service nor include the compensation then earned in determining her retirement benefits. See G. L. c. 32, § 1 (definition of creditable service).
General Laws c. 32, § 3 (4) (1994 ed.), provides in pertinent part: “Any member in service . . . may, before the date any retirement allowance becomes effective for him, pay into the annuity savings fund of the system in one sum, or in instalments, upon such terms and conditions as the board may prescribe, an amount equal to that which would have been withheld as regular deductions from his regular compensation for such previous period . . . had such service been rendered in a public school of the commonwealth and had he been a member of the teachers’ retirement
We reject Leary’s argument that there is unfairness in including his Florida compensation in calculating the price of purchasing the out-of-State creditable service but not in calculating his retirement benefits. The ability to purchase credit for out-of-State service affords teachers and superintendents a substantial benefit that is not afforded to other public employees. Further, purchase of out-of-State creditable service is voluntary.