Goodson v. PERS

PERB does not have the statutory authority to promise “Window Retirees” benefits based on a 20% earning credit for 1999, because there was neither a contractual obligation, nor a law entitling them to interest in such a credit such as to claim an impairment of contract or deprivation of due process when PERB acts to recover excess benefits.

Goodson is a “Window Retiree” (employee that retired between certain dates) that received excess benefits due to an error by PERB crediting their accounts. PERB issued an order to recover the excess benefits, and petitioners challenged it assigning three errors: that it unconstitutionally impaired the obligation of contract, that it violated procedural due process, and that they were entitled to interest on the portion of their payments delayed by a 2003 legislative act. The Court found that there was no contractual obligation made to promise the petitioners the benefits at the rate they received them, that there was no law creating the interest they claimed they were deprived, and that the laws that govern the Public Employees Retirement Fund do not allow interest to be paid from it. Affirmed.