CopyCited 3 times | Published | Supreme Court of Georgia | Jul 5, 2000 | 272 Ga. 535, 24 Employee Benefits Cas. (BNA) 2817, 2000 Fulton County D. Rep. 2484
...In 1982, however, the General Assembly enacted OCGA §
47-2-334, which precluded the former employees, as new members of the ERS, from purchasing prior service credit. [1] In an apparent attempt to remedy this situation, the General Assembly in 1990 enacted OCGA §
47-2-298, which gave the former employees who became ERS members the option of purchasing creditable service under the ERS for their DFCS service....
...[3] Subsection (c) of the statute also provided that "[u]pon receiving the payments provided for by subsection (b) of this Code section, the board of trustees [of the ERS] shall enter the creditable service provided for by said subsection (b) upon the records of the employees." After §
47-2-298 was enacted, the ERS notified the former employees of their right to purchase service under §
47-2-298, and each of them in turn notified the ERS that they elected to purchase service credit under that Code section, and remitted his or her required contribution. The ERS subsequently notified the plaintiffs that it had received their payments under §
47-2-298. The ERS also notified the plaintiffs of the amount of creditable service they had obtained as a result of the payment. Fulton County, however, subsequently contended that §
47-2-298 was unconstitutional and declined to make the contributions required of it....
...ounty to compel the required payments. The ERS then sent the plaintiffs a letter notifying them that Fulton County had not *70 sent the required payments; that the dispute was in litigation; and that the option provided to the former employees under §
47-2-298 was conditioned upon Fulton County making the payments required by it under §
47-2-298(b). In 1994, the General Assembly amended §
47-2-298 by diminishing the payments that Fulton County was required to remit to the ERS. [4] Under the amended version of §
47-2-298, the former employees would receive significantly less creditable service than under the 1990 version of §
47-2-298. In 1994, ERS notified the plaintiffs of the changes to §
47-2-298, and in August 1994, the ERS voluntarily dismissed its mandamus petition against Fulton County. Furthermore, in November 1994, the ERS notified the former employees that the ERS's lawsuit against Fulton County was dismissed after the 1994 amendment to §
47-2-298, and that, because Fulton County did not remit the funds required of it under the 1990 version of §
47-2-298, there was no authority under the 1990 version of §
47-2-298 for the ERS to credit the former employees' membership account with the ERS with their Fulton DFCS service....
...The former employees also asserted an alternative claim, based upon impairment of contract and estoppel, by which they sought credit for their years of service with Fulton DFCS. As for impairment of contract, the former employees contended that the 1990 version of §
47-2-298 became a part of their contract of employment with the State, and that the 1994 version of §
47-2-298 diminished their benefits and therefore improperly impaired their employment contract. The former employees also claimed that, because the ERS accepted the former employees' contribution under the 1990 version of §
47-2-298; because the ERS notified the former employees that they had received creditable service under that Code section; and because the former employees had reasonably relied on those assurances in continuing their state employment, the ERS was estopped to deny the employees benefits under the 1990 version of §
47-2-298....
...Because we have resolved the direct appeal in favor of the former employees, their defensive cross-appeal is moot and must be dismissed. [10] Judgment affirmed in Case No. S00A0140. Appeal dismissed in Case No. S00X0141. All the Justices concur. NOTES [1] See OCGA §
47-2-334(f)(2). [2] Former OCGA §
47-2-298(d) (Ga.L.1990, pp. 993, 996). [3] Former OCGA §
47-2-298(b)(1-3) (Ga.L.1990, pp....