Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Marango v. Kentucky Retirement Systems

Court of Appeals of Kentucky

October 13, 2017

ROBERT MARANGO APPELLANT
v.
KENTUCKY RETIREMENT SYSTEMS AND BOARD OF TRUSTEES OF KENTUCKY RETIREMENT SYSTEMS APPELLEES

         APPEAL FROM FRANKLIN CIRCUIT COURT HONORABLE PHILLIP SHEPHERD, JUDGE ACTION NO. 11-CI-001758

          Kirk Hoskins BRIEFS FOR APPELLANT

          Katherine Rupinen Frankfort, Kentucky BRIEF FOR APPELLEE:

          BEFORE: J. LAMBERT, STUMBO, AND TAYLOR, JUDGES.

          OPINION AFFIRMING

          LAMBERT, J., JUDGE

         Robert Marango appeals from the Franklin Circuit Court order denying his request for interest on the judgment awarded to him for an improper reduction in his retirement benefits. We affirm.

          The factual and procedural history of Marango's conflict with the Kentucky Retirement Systems is best summed up by this Court in Marango's first appeal:

Marango was a hazardous member of the Kentucky Employees Retirement System (KERS), administered by KRS pursuant to his employment with the Department of Fish and Wildlife Resources. While employed, Marango filed an action in Meade Circuit Court against his employer for failure to pay him overtime during fiscal years 1998-1999 through 2003-2004. Prior to trial, the parties entered into a negotiated settlement agreement, which was memorialized through a court order entered on July 8, 2008.
The order specified the Department of Fish and Wildlife would pay $40, 000 to Marango through two $20, 000 payments, which would "be treated as unpaid overtime compensation subject to applicable state and federal withholdings [.]" The Commonwealth of Kentucky was ordered to credit the first $20, 000 payment "as though made in the fiscal year ending June 30, 2008[, ] for purposes of retirement calculation." The remaining $20, 000 was to be paid within twenty days of Marango's resignation, so long as he retired by August 1, 2009, as required by the settlement agreement.
Both parties abided by the terms of the settlement agreement. The Department of Fish and Wildlife Resources paid Marango his regular salary and lump sum payments through regular payroll in 2008 and 2009. During the time Marango received both his salary and a lump sum payment, the Department of Fish and Wildlife Resources reported to KRS the total amount paid to Marango each payroll period as part of Marango's creditable compensation earned during that month in accordance with the then current 105 KAR [Kentucky Administrative Regulation] 1:140 § 1(1) (2009). The Department of Fish and Wildlife Resources treated these payments as creditable compensation by deducting Marango's employment contributions for retirement from these payments as required by KRS [Kentucky Revised Statute] 61.543(1) and KRS 61.560(2). It also reported these payments as wages on Marango's 2008 and 2009 W-2 forms.
Pursuant to KRS 61.510(14)(c), as a hazardous member of KERS, Marango's final compensation was calculated based on his three highest paid years of service. Because the Department of Fish and Wildlife Resources reported the lump sum payments to KRS when paid, two of Marango's highest years were the years in which he received the lump sum payments.
Initially, KRS advised Marango the lump sum payments would be included in the calculation of his compensation for the final three years of employment. Marango began receiving retirement benefits accordingly. Later, KRS decided the payments should be treated as severance/lump sum bonus payments which would be creditable compensation averaged over Marango's total years of qualifying service pursuant to KRS 61.510(13).
Marango sought to clarify that the Meade Circuit Court order entering the negotiated settlement agreement was awarding him back pay and moved for CR 60.02(f) relief. In granting this relief, the Meade Circuit Court clarified and amended its settlement order to specify the payments were compensation for unpaid overtime and not severance pay or a lump sum bonus, and were wages reportable as earnings to Marango for years 2008 and 2009.
KRS ultimately reclassified the payments as "unpaid overtime" then calculated the percentage of unpaid overtime compensation claimed for each calendar year and applied those percentages to the monies actually received to determine "Marango's creditable compensation for the fiscal years 1998-1999 through 2003-2004[.]" Recalculating Marango's creditable compensation from the lump sum payments to credit them when earned rather than ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.