On certification to the Superior Court, Appellate Division, whose opinion is reported at 182 N.J. Super. 50 (1981).
For reversal and remandment -- Chief Justice Wilentz and Justices Clifford, Schreiber, Handler, Pollock and O'Hern. For affirmance -- None.
Petitioner, Kathryn B. Zigmont, sought to purchase pension retirement credit for a period of time during which she was on an approved maternity leave of absence without pay. The Board of Trustees of the Teachers' Pension and Annuity Fund (TPAF) rejected her request. The Appellate Division reversed the determination of the board. We granted the petition for certification of the Attorney General on behalf of TPAF and now reverse and remand.
The essential facts in this controversy are amply set forth in the opinion of the Appellate Division, which is reported at 182 N.J. Super. 50. Mrs. Zigmont was continuously employed as a school teacher by the Union County Regional High School District from 1966 until her retirement. She was a member of the Teachers' Pension and Annuity Fund since 1965. With official approval, Mrs. Zigmont left on a maternity leave of absence on January 1, 1975 and returned to service September 1, 1976. At the end of June 1979, nearly three years after her return to service, Mrs. Zigmont requested permission to purchase pension credit for the leave.
In December of 1974, just prior to taking her maternity leave, Mrs. Zigmont inquired of the school district payroll clerk whether she could purchase the pension credit attributable to such a leave of absence. The payroll clerk, who apparently had assumed responsibilities for the school district relating to the Teachers Pension and Annuity Fund, gave Mrs. Zigmont erroneous information by advising her that such credit could not be purchased.
In April 1979, approximately two and one-half years after her return to active teaching, Mrs. Zigmont learned at a teachers' meeting that pension service credit for time absent due to maternity leave could be purchased for pension credit. She was so informed by the speaker at the meeting who was a representative of the Division of Pensions. After the meeting, Mrs. Zigmont discussed her situation with the speaker, who suggested
that she file an application to purchase pension credit. Mrs. Zigmont completed her request at the end of June 1979. The Division of Pensions denied Mrs. Zigmont's request on July 10, 1979 for failure to make it within one year after her return to active employment (which would have been September 1, 1977) and reiterated the denial on October 26, 1979. The board of trustees of TPAF affirmed the denial but, nevertheless, granted Mrs. Zigmont an administrative hearing.
Mrs. Zigmont was the sole witness at the hearing (the payroll clerk was deceased), and she testified to the foregoing facts. She also was permitted to introduce a letter from the school district's secretary, who wrote that he had personally witnessed the payroll clerk say that maternity leave could not be bought back for pension credit, and he "sheepishly admit[ted]" that until Mrs. Zigmont raised the issue, he thought the payroll clerk was correct. As noted in the decision of the Appellate Division, the Administrative Law Judge recommended that Mrs. Zigmont's request to purchase pension credit should be denied and the board of trustees of TPAF affirmed their initial decision to deny Mrs. Zigmont's request to purchase pension credit.
In reversing the board's determination, the Appellate Division found that the one-year period contained in N.J.S.A. 18A:66-8 within which a member must purchase pension credit for an authorized leave of absence without pay is "one which lies within the power of the Board to relax in appropriate circumstances where there are overriding considerations of equity." Id. at 55, 57.
The particular statutory provision that governs Mrs. Zigmont's entitlement in this case, N.J.S.A. 18A:66-8, presents interpretive difficulties. In pertinent part, it states that
"In computing service, time during which such teacher was absent on an official leave without pay shall be credited if such absence was for a period of * * * up to a maximum of 2 years if the leave was due to the member's personal * * * maternity and the period of leave is allowed for retirement purposes within 1 year ...