Opinion
No. 333264
07-18-2017
Linda ESCOTT, Petitioner-Appellee, v. PUBLIC SCHOOL EMPLOYEES’ RETIREMENT BOARD, Respondent-Appellant.
Tanis Schultz, PLLC (by Steven D. Schultz and Elizabeth A. Yard ), for Linda Escott. Bill Schuette, Attorney General, Aaron D. Lindstrom, Solicitor General, Matthew Schneider, Chief Legal Counsel, James J. Kelly and Patrick Fitzgerald, Assistant Attorneys General, for the Public School Employees’ Retirement Board.
Tanis Schultz, PLLC (by Steven D. Schultz and Elizabeth A. Yard ), for Linda Escott.
Bill Schuette, Attorney General, Aaron D. Lindstrom, Solicitor General, Matthew Schneider, Chief Legal Counsel, James J. Kelly and Patrick Fitzgerald, Assistant Attorneys General, for the Public School Employees’ Retirement Board.
Before: Sawyer, P.J., and Hoekstra and Beckering, JJ.
Per Curiam.We are presented with the question whether respondent has the authority to grant a nonduty disability retirement pension in the absence of a certification by the independent medical advisor (IMA) that the applicant is totally and permanently disabled from the applicant’s position as a school teacher. Respondent rejected petitioner’s application on this basis, but the circuit court reversed. We agree with respondent, the Public School Employees’ Retirement Board, that a certification by the IMA is a prerequisite for respondent to grant the nonduty disability retirement pension.Petitioner, Linda Escott, was employed by the Pontiac School District until March 8, 2013, when she accepted a voluntary layoff. She applied for nonduty disability benefits because of her vision deficit known as bilateral optic atrophy. While she has correct central vision of 20/25 when wearing glasses, her peripheral vision is reduced to a field of between five and seven degrees, causing a type of tunnel vision. She was first diagnosed with the condition as a child. It is undisputed that the condition is not correctable, but it has been stable throughout her teaching career.
While petitioner acknowledges that her condition has been present throughout her 21-year teaching career, she maintains that changes in the classroom render her unable to continue performing her teaching duties. Specifically, she refers to technological changes, as well as pedagogical changes and anticipated increases in class size.
Although our opinion focuses on the statutory requirement of the disability certification by the IMA, we note that petitioner’s argument does reveal another flaw in her theory: she was able to work up until the day she took the voluntary layoff. That is, her argument is not so much that she is disabled and unable to perform her job duties but that she anticipates becoming so in the future.
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After petitioner applied for nonduty disability benefits, respondent designated Dr. R.S. Henderson as the IMA. Dr. Henderson sent petitioner for an independent medical examination and disability determination by Dr. Florence Thomas, an internist. Dr. Thomas’s report stated: "Bilateral optic atrophy by history. No gross abnormalities on today’s examination. Defer further evaluation to ophthalmology." Dr. Thomas concluded that, "[b]ased on findings of my exam today, I do not find limitations to prevent this examinee from being able to perform job duties." Petitioner testified in the trial court below that the only vision test she was asked to perform was reading an eye chart with and without her glasses. She additionally testified that the Office of Retirement Services (ORS) never sent her for further evaluation by an ophthalmologist as suggested by Dr. Thomas.
The IMA, who specializes in physical medicine and rehabilitation, did not conduct a physical examination and based his conclusion on a review of the medical records. Dr. Henderson prepared an official IMA Statement of Disability and stated the following in the certification section:
Although, the medical evidence shows that Ms. Escott has diagnoses of hyperthyroidism, mild hyperinflation of the lungs and a history of bilateral optic atrophy. Her condition for all symptoms and ailments are stable and controlled with medication. She also has diagnoses of chronic obstructive pulmonary disease diagnosis [sic]. However, even with her continued smoking, her recent pulmonary function test revealed mild obstructive lung disease. Ms. Escott is able to perform the duties of her past job as a teacher or any other similar position reasonably related to her education, training or experience. She is able to stand/walk six out of eight hours and lift up to twenty pounds both of which are requirements for being a teacher. Therefore, she does not have a total and permanent medical condition. Thus, she is not eligible for a non-duty disability retirement.
On the basis of this report, ORS notified petitioner that her request for nonduty disability benefits was denied. Petitioner requested a hearing, and the hearing officer concluded that petitioner was properly denied benefits. This determination was upheld by respondent.
Plaintiff appealed in the circuit court. The basis of her argument was that the eye examination was inadequate and, therefore, the determination was not supported by competent, material, and substantial evidence. She requested a remand to respondent to obtain an adequate evaluation of her vision condition. The circuit court concluded that respondent’s decision was not supported by competent, material, and substantial evidence and that it was arbitrary and capricious or constituted an abuse of discretion. The circuit court remanded the matter to respondent with directions to have petitioner "examined by a specialist with expertise in bilateral optic atrophy or a certified ophthalmologist." On reconsideration, the circuit court agreed that it could not remand for an examination by an ophthalmologist. Otherwise, the court upheld its earlier determination. Respondent now appeals.
This case involves interpretation of the Public School Employees Retirement Act (PSERA), MCL 38.1301 et seq. We review de novo questions of statutory interpretation. Nason v. State Employees’ Retirement Sys. , 290 Mich.App. 416, 424, 801 N.W.2d 889 (2010).
In pertinent part, MCL 38.1386, § 86 of PSERA, states:
(1) A member whom the retirement board finds to have become totally and permanently disabled for purposes of employment by his or her reporting unit by reason of personal injury or mental or physical illness before termination of reporting unit service and employment shall receive a disability allowance if all of the following requirements are met:
(a) The member has not met age and service requirements of section 81(1)(a) or (b) or, if the member first became a member on or after July 1, 2010, the member has not met age and service requirements of section 81c(1).
(b) The member has at least 10 years of credited service in effect before termination of employment.
(c) The member or reporting unit makes written application to the retirement board not more than 12 months after the date the member terminated public school employment.
(d) The person undergoes an examination by 1 or more practicing physicians or medical officers designated by the retirement board who certify to the retirement board that the member is totally and permanently disabled for performing the duties for the member’s position or similar position for which the member is qualified by reason of training, experience, or both.
There is no dispute that petitioner met the age and service requirements and that she had filed her application within the correct 12-month period after she left public school employment. The only requirement at issue is Subsection (1)(d).
While this presents a question of first impression with respect to PSERA, this Court has considered a similar provision in the State Employees’ Retirement Act, MCL 38.1 et seq ., in Polania v. State Employees’ Retirement Sys. , 299 Mich.App. 322, 830 N.W.2d 773 (2013). Although the language at issue in Polania is slightly different than that in this case, it nevertheless creates the same requirement: specifically, certification of total and permanent disability by an IMA is required to receive a nonduty disability retirement benefit.
In Polania , this Court concluded that, in the absence of that certification, the retirement board had no authority to grant the nonduty disability retirement benefits and the circuit court was obligated to affirm that determination. This court reasoned:
The Board correctly understood that under the plain meaning of MCL 38.24(1)(b), Polania had to have such a certification before the Board could retire her. Because the record showed that both the medical advisors—one who evaluated her mental health and one who evaluated her
physical health—refused to certify that Polania was totally and permanently disabled, the Board properly determined that it did not have the authority to grant Polania’s request for retirement benefits and, on that basis, denied her claim. The Board did not have to examine the competing medical evidence to determine whether it should exercise its discretion—under the facts of this case, it had no discretion to grant Polania’s request for benefits. For these reasons, the trial court erred when it determined that the Board’s interpretation of MCL 38.24(1)(b) was incorrect. Moreover, there was no dispute that the medical advisors did not certify that Polania was totally and permanently disabled. As such, there was competent, material, and substantial evidence to support the Board’s decision and the trial court erred when it determined otherwise. Consequently, the trial court had to affirm the Board’s decision to deny Polania’s request for benefits. [ Id. at 333, 830 N.W.2d 773.]
We must reach the same conclusion here. Because there is no dispute regarding the lack of certification by the IMA, respondent was obligated to deny petitioner’s application for nonduty disability retirement benefits. And, therefore, the circuit court was obligated to affirm that determination because there was competent, substantial, and material evidence of the lack of certification.
In conclusion, we reiterate the following observation made in Polania , 299 Mich.App. at 334, 830 N.W.2d 773, regarding the statutory scheme:
This is not to say that we are unsympathetic to the trial court’s concerns; there may be powerful incentives—whether conscious or subconscious—for a medical advisor in the Board’s employ to refuse to certify employees with a total and permanent disability. And it seems inequitable that an employee who has substantial evidence that he or she is totally and permanently disabled is nevertheless precluded under MCL 38.24(1)(b) from seeking review of a medical advisor’s refusal to certify his or her disability.
This is especially true when, as here, the employee’s evidence is founded on his or her long-time treating physicians’ opinions and the Board’s decision is dictated by the opinion of a medical advisor who had never examined the employee. But this Court—like the Board itself—is not at liberty to ignore the Legislature’s policy choices simply because we might find them to be unjust or unwise. Johnson v. Recca, 492 Mich. 169, 187, 821 N.W.2d 520 (2012).
Reversed and remanded to the circuit court for entry of an order affirming respondent’s decision. Respondent may tax costs. MCR 7.219(A). We do not retain jurisdiction.
Sawyer, P.J., and Hoekstra, J., concurred.
Beckering, J. (concurring).
I concur in the result only.