W. Va. Consolidated Public Retirement Board v. Clark (Signed Opinion)Annotate this Case
The Supreme Court reversed in part and affirmed in part the order of the circuit court concluding that a "subsistence allowance" provided by the West Virginia Division of Natural Resources (DNR) to Natural Resources Police Officers is "compensation" for purposes of the Public Employees Retirement System (PERS), holding that the allowance was not compensation.
Beginning in 1997, DNR reported the payments of the subsistence allowances to the Consolidated Public Retirement Board as part of the officers' "compensation," which is a key component in calculating the officers' retirement annuities under PERS. In 2014, the Board determined that the subsistence allowance was not compensation and that the error had led to the miscalculation of benefits paid to retired officers. Respondents - current and retired officers and their widowers and widows - appealed and requested declaratory relief with the Board, alleging that the Board's determination violated their vested pension rights. The Board denied relief, but the circuit court reversed. The Supreme Court reversed in part and affirmed in part, holding (1) the subsistence allowance was not compensation under PERS; and (2) the Board may not recover the excess retirement benefits already paid due to the error in treating the allowance as PERS compensation.