What is the name of your state (only U.S. law)? Massachusetts
Thanks in advance for your response to this complicated issue.
I signed an educational leave contract with my state employer in 2002. This contract provided that for every day I was in school and out of the office, I would be paid for that day in school. In return for this leave pay, I had to guarantee that I would not leave my employer for 2x's the number of days I was given paid leave.
I left this employer in late January, 2004. They allege that I left prior to fulfilling my obligation. My new employer was another public agency in a different Massachusetts public retirement/pension system. Here in Massachusetts, employees who change jobs and work for a new public agency (state, municipal, etc.) have their accumulated retirement funds transferred the new retirement system and also the employees years of service are counted toward their service time with the new employer. For example, I had 7 years of service with the state agency I left in 2004 and after one year with my new employer, for retirement purposes, I should have had 8 years of credible service with the new employer.
At the time of my hiring in 2004, I filled out all the proper paperwork to transfer my retirement allowance to the new employer. My former employer refused to transfer the funds due to my alleged breach of contract. Due to language in my employment contract, I was afraid to pursue the issue at the time due to the potential costs of defense, my young age, etc. After the letter that denied the transfer, I never heard another word about it - no phone calls, no letters, no communication whatsoever.
The regulation that allowed the state to withold the funds, Chapter 32, Section 11(d) states:
"If a member is entitled to a return of his accumulated total deductions and requests such a return from the board on the prescribed form, then prior to the return of such accumulated total deductions, the board shall contact the member's employer to determine whether the member owes an obligation to the employer under an employee benefit plan, including a cafeteria plan established pursuant to 26 U.S.C. section 125. If it is determined that the member owes the employer under any such plan, the board shall not return the accumulated total deductions until it has received notice from the employer that the obligation has been satisfied."
Here are my two questions:
1.) The statute of limitations on breach of contract in Massachusetts is 6 years. The alleged breach occured over 7 years ago. QUESTION: Does their witholding of my retirement allowance and refusal to transfer my retirement allowance extend the statue of limitations? QUESTION: If the statute of limitations has expired, can I sue them to release the funds without the likelyhood of a valid countersuit by them because of the statute of limitations? This is not a lien, per se, as Massachusetts Law forbids the "attachment" of retirement funds except for cases of adjudicated deriliction of duty or child support orders under Chapter 32, Section 19 which almost seems to contradict Ch 32, Sec 11.
2.) Ch. 32 Sec 11 begins with "If a member is entitled to a return of his accumulated total deductions..." and continues on with "...the board shall not return the accumulated total deductions..." In this case, since my new employer is another public retirement system regulated by this same law, I am NOT entitled to a return of the retirement allowance. I am obligated to transfer the total retirement allowance to my new employer. It's my only option. QUESTION: Does the language contained in this section give them any right to withold the transfer of funds? The application forms provided by the state make an explicit distinction between "return" and "rollover."
A few relevent facts:
- They allege I owe them 15K. My retirement allowance being witheld is 25K.
- Until this gets resolved, I have lost 7 years of credible service. Once the funds are released, those years will be restored.
Again, thanks in advance for any help you can offer.What is the name of your state (only U.S. law)?
Thanks in advance for your response to this complicated issue.
I signed an educational leave contract with my state employer in 2002. This contract provided that for every day I was in school and out of the office, I would be paid for that day in school. In return for this leave pay, I had to guarantee that I would not leave my employer for 2x's the number of days I was given paid leave.
I left this employer in late January, 2004. They allege that I left prior to fulfilling my obligation. My new employer was another public agency in a different Massachusetts public retirement/pension system. Here in Massachusetts, employees who change jobs and work for a new public agency (state, municipal, etc.) have their accumulated retirement funds transferred the new retirement system and also the employees years of service are counted toward their service time with the new employer. For example, I had 7 years of service with the state agency I left in 2004 and after one year with my new employer, for retirement purposes, I should have had 8 years of credible service with the new employer.
At the time of my hiring in 2004, I filled out all the proper paperwork to transfer my retirement allowance to the new employer. My former employer refused to transfer the funds due to my alleged breach of contract. Due to language in my employment contract, I was afraid to pursue the issue at the time due to the potential costs of defense, my young age, etc. After the letter that denied the transfer, I never heard another word about it - no phone calls, no letters, no communication whatsoever.
The regulation that allowed the state to withold the funds, Chapter 32, Section 11(d) states:
"If a member is entitled to a return of his accumulated total deductions and requests such a return from the board on the prescribed form, then prior to the return of such accumulated total deductions, the board shall contact the member's employer to determine whether the member owes an obligation to the employer under an employee benefit plan, including a cafeteria plan established pursuant to 26 U.S.C. section 125. If it is determined that the member owes the employer under any such plan, the board shall not return the accumulated total deductions until it has received notice from the employer that the obligation has been satisfied."
Here are my two questions:
1.) The statute of limitations on breach of contract in Massachusetts is 6 years. The alleged breach occured over 7 years ago. QUESTION: Does their witholding of my retirement allowance and refusal to transfer my retirement allowance extend the statue of limitations? QUESTION: If the statute of limitations has expired, can I sue them to release the funds without the likelyhood of a valid countersuit by them because of the statute of limitations? This is not a lien, per se, as Massachusetts Law forbids the "attachment" of retirement funds except for cases of adjudicated deriliction of duty or child support orders under Chapter 32, Section 19 which almost seems to contradict Ch 32, Sec 11.
2.) Ch. 32 Sec 11 begins with "If a member is entitled to a return of his accumulated total deductions..." and continues on with "...the board shall not return the accumulated total deductions..." In this case, since my new employer is another public retirement system regulated by this same law, I am NOT entitled to a return of the retirement allowance. I am obligated to transfer the total retirement allowance to my new employer. It's my only option. QUESTION: Does the language contained in this section give them any right to withold the transfer of funds? The application forms provided by the state make an explicit distinction between "return" and "rollover."
A few relevent facts:
- They allege I owe them 15K. My retirement allowance being witheld is 25K.
- Until this gets resolved, I have lost 7 years of credible service. Once the funds are released, those years will be restored.
Again, thanks in advance for any help you can offer.What is the name of your state (only U.S. law)?