Opinion · New York Court of Appeals

Kranker v. Levitt

Kranker v. Levitt, 30 N.Y.2d 574 (New York Court of Appeals 1972)

Type
Opinion
Court
New York Court of Appeals
Jurisdiction
New York
Date
1972-02-18
Topic
employee-benefits-and-executive-compensation

Per Curiam. The 1957 decision of the Comptroller—in accordance with section 23.1 of the Rules and Regulations of the Department of Civil Service (4 NYCRR 23.1) — to include cash payments for accumulated vacation credits in determining the salary base for the computation of retirement benefits constitutes a valid contract between the State Employees’ Retirement System and its members. In addition, such payments represent compensation for services actually rendered and are, therefore, properly includable in the computation of a member’s final average salary. Accordingly, the plaintiff and all others similarly situated have acquired a vested right to the aforesaid benefit, and that benefit may not now be constitutionally impaired. This being so, it follows that subdivision 1 of section 431 of the Retirement and Social Security Law (as added by L. 1971, ch. 503), which eliminates inclusion of cash payments for accumulated vacation credits, violates section 7 of article V of our State Constitution if retroactively applied to the plaintiff and others similarly situated.

Citator

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Cited by
37 opinions
Per Curiam.

The 1957 decision of the Comptroller—in accordance with section 23.1 of the Rules and Regulations of the Department of Civil Service (4 NYCRR 23.1) — to include cash payments for accumulated vacation credits in determining the salary base for the computation of retirement benefits constitutes a valid contract between the State Employees’ Retirement System and its members. In addition, such payments represent compensation for services actually rendered and are, therefore, properly includable in the computation of a member’s final average salary. Accordingly, the plaintiff and all others similarly situated have acquired a vested right to the aforesaid benefit, and that benefit may not now be constitutionally impaired. This being so, it follows that subdivision 1 of section 431 of the Retirement and Social Security Law (as added by L. 1971, ch. 503), which eliminates inclusion of cash payments for accumulated vacation credits, violates section 7 of article V of our State Constitution if retroactively applied to the plaintiff and others similarly situated.

The judgment appealed from should be affirmed, without costs.