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NOVEMBER 2003 - Final Word: Full Vets Benefit Allowed - For veterans, who retired with an Option C regular pension, they now have the final word on whether they should receive the full amount of their vets benefit, and the answer is yes. "Our patience has paid off," reports Legislative Chairman Bill Hill who is himself a Korean War veteran receiving an Option C pension.

"Believe it or not, it was over nine months ago - January of this year, to be exact - that we reported on the initial decision handed down by DALA (Division of Administrative Law Appeals), which found that the veteran was entitled to his full benefit. And now we have a ruling by CRAB (Contributory Retirement Appeal Board) upholding that favorable decision," comments Hill.

To remind our members, veterans, who receive a regular (superannuation) retirement, are entitled to receive a vets benefit, which amounts to an extra $15 for each year of creditable service up to a maximum of $300 annually. It had been the policy, set forth by the Public Employee Retirement Administration Commission (PERAC), that if a veteran chose to receive an Option C pension (leaving two-thirds of their pension to a surviving spouse) then his vets benefit would also be reduced by the same percentage factor that was applied to reduce his pension, usually between 15% to 25%.

[Editor's Note: The Association filed legislation (HB 227) to extend the vets benefit to eligible disability retirees.]

Controversy Resolved

That was the policy in place until two years ago when PERAC reversed itself and issued its opinion that the veteran, who chose an Option C superannuation retirement, was entitled to receive the full vets benefit. (See January 2002 Voice.) Upon reviewing PERAC's opinion, some retirement boards, like Barnstable and Hampshire Counties, decided to pay Option C veterans their full benefit. (See July 2002 Voice.)

Included among the boards, that acted on PERAC's new opinion, was the Commonwealth's largest - the State Retirement Board. What this board did was to pay the full benefit, with no reduction, to all eligible veterans who retired on regular pension after PERAC issued its opinion in September 2001.

With the CRAB decision, the State Board will now review its records and adjust the vets benefit for those who retired before PERAC's opinion. According to Board officials, the decision will result in the state paying out some $3.6 million in retroactive veteran benefits, with future vet benefits increasing approximately $300,000 annually.

But not all boards chose to adopt PERAC's opinion, with some questioning whether the pension law authorized payment in full to these veterans. In order to resolve the controversy, an appeal by the Teachers' Retirement Board, challenging PERAC's opinion, became the test case before CRAB.

First, we had a favorable decision handed down by DALA, which initially heard the case on behalf of CRAB. (See January 2003 Voice.) While DALA decided that the veteran was entitled to his full vets benefit, it also ruled that the surviving spouse would not receive two-thirds of the vets benefit.

Both parties then proceeded to the next step and filed objections to the DALA decision with CRAB itself. (See May 2003 Voice.) PERAC took exception to that part of the decision, which did not allow any payment to the surviving spouse, and the Teachers' Board objected to the finding that the vets' benefit should be paid in full.

Late this summer, CRAB issued its decision, which went even further than the DALA decision and accepted PERAC's position entirely. It found not only that the Option C veteran was entitled to his full benefit, but also their surviving spouse should receive two-thirds of that amount.

Then came the waiting game on whether the Teachers' Board would exercise its rights under the pension law and appeal the CRAB decision further to the state courts. By statute, the Teachers' Board had 30 days to make such an appeal.

As it turns out, the Board decided not to appeal. What this means is that the CRAB decision resolves the controversy and stands as the final word in favor of Option C veterans, on regular pensions, receiving their full benefit, with two-thirds to be paid to their surviving spouses.

Veterans React

As news of the decision filtered out to the membership by way of the Association's telephone hotline and website, members called and wrote the office. Here's a sampling of what some veterans had to say:

Paul Cook landed on Utah Beach in WWII and, after coming home, began a 42-year career with Boston Fire. Recently, Paul published a book chronicling his life as a firefighter, Ready to Roll and Ready to Die.

"I realize that it will take some time for them (Boston Retirement Board) to make the necessary adjustments. But I'm a patient man and will wait for them to pay me the extra amount I would have gotten over the 15 years since I retired in '88," stated Cook.

"That money will come in handy. I can use it to buy copies of my book," he added jokingly.

Another Boston retiree and WWII Army veteran, Jerry Colella, was also pleased to hear the news. Having worked for the Boston Retirement Board for 38 years, Colella is able to bring an "insider's" perspective on the issue.

According to Colella, "We can't forget that our pension law is very complex and because of that, disputes over its meaning can take time, like it did here. I've been reading about this issue in the bulletin over the past year and a half.

"From the earlier stories, I read that Bob Tierney had a lot to do with getting the vets this extra benefit, and I also read where Tierney now heads-up my old stomping grounds - the Boston (Retirement) Board. I'm really happy to see that a man, like Tierney, who fought for vets, is now its director.

"It's been 20 years since I retired back in '83. It's been this long and I can certainly wait a bit longer to get my full benefit."

Another WWII vet, Joe Morrissey served with the US Navy. Before the war, he married his wife of over 60 years, Lillian, and they now live in West Roxbury. Joe retired in '90 after some 19 years as a court officer.

"I was listening to the Association's hotline and couldn't believe that the vets had finally won. I was glad to tell Lillian that not only would we be getting a nice retro check for about $600, but also that she would still get two-thirds after I'm gone.

"She had to put up with a lot, especially when I was away in the Navy, and as far as I'm concerned it's only right she should get something. We both will appreciate getting the check which should come in handy, particularly if we have another bad winter like last year."

Like Morrissey, John Nangle of Norfolk also joined the Navy. But he served his country years later during the Korean War.

"Fortunately, my wife Pat saw the (Association's) website after they had posted the news, according to Nangle. "She couldn't wait to tell me and I had to call the Association just to make sure."

Nangle's career spanned 31 years at MCI Norfolk. He retired in 1986 as a lieutenant.

"There's no question we're looking forward to the check, which will make up the difference for the 17 years that I've been out. That's particularly true these days when the cost of things, like healthcare, only seems to go up." Nangle's retroactive check will be for over $1,000.

After serving in the Air Force as a member of the Presidential Honor Guard, Gayle Sullivan went back to school where he met his wife, Virginia. They not only completed their training as nurses together, but both entered into public service with the Commonwealth.

After 31 years, Gayle retired in 1995, as a manager for Public Health. Not surprisingly, Virginia Sullivan joined her husband, retiring at that time from Public Health.

"I thought when I retired that it didn't seem fair to subtract from such a small benefit to begin with, but I figured what can you do about it," recalls Sullivan. "There are men and women, who put on the uniform and made sacrifices much greater than me, and it's only right they should get the full benefit, however small. For them, I say thank you to those who pushed to get this done."

Harvey Malin of Canton heard the good news another way - by being persistent. "I've been calling the (Association) office every so often to get the latest. It just so happened I called right after Ralph White had gotten the word that the Teachers' Board decided not to appeal to the state court.

"I signed up with the Army during the Korean War and after my discharge went back to college, under the GI Bill, and completed my post graduate degrees." Malin put his degrees to excellent use, teaching for 34 years and eventually retiring from the Brockton school system in '91.

"Being a member of the Teachers' system, I'm certainly pleased to learn that my board decided to drop any further appeals. In my mind, there's no question that the vets deserve this money."

And, Harvey, we agree.

 
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