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Facts

  • Plaintiff Michael Gzaskow, after retiring and receiving pension benefits, named Francoise Becker as his survivor beneficiary. They married after his retirement. Before a trip, Gzaskow mistakenly submitted a form to the Public Employees Retirement Association (PERA), changing his survivor beneficiary from Becker to his daughter. Upon realizing the mistake, Gzaskow sought to reverse the change, but PERA deemed the action irrevocable. Gzaskow and Becker sued the Public Employees Retirement Board (PERB) for declaratory, injunctive, and equitable relief to cancel the beneficiary change (paras 1, 8-11).

Procedural History

  • District Court of Santa Fe County: Granted PERB's motion to dismiss the complaint for lack of subject matter jurisdiction, based on plaintiffs' failure to exhaust administrative remedies (para 17).

Parties' Submissions

  • Plaintiffs: Argued that the deselection of Becker as the survivor beneficiary was a mistake and sought to have it voided, claiming PERA's refusal violated their rights and breached a pre-nuptial agreement. They contended that the court should declare the deselection void due to lack of Becker's consent and missing documentation required for the deselection process. Additionally, they argued for equitable relief due to the mistake causing severe prejudice (paras 12-14).
  • Defendants (PERB): Contended that plaintiffs failed to exhaust administrative remedies available under the Act. They disputed plaintiffs' factual allegations, including the claim of mistake in the deselection process, and argued that the administrative process provided a sufficient avenue for resolving the dispute. They also argued that the spousal consent requirement did not apply to post-retirement spouses and that the administrative agency had no authority to grant the equitable relief sought by plaintiffs (paras 13-16).

Legal Issues

  • Whether plaintiffs must exhaust administrative remedies before seeking judicial intervention in a dispute over the deselection of a pension plan survivor beneficiary.
  • Whether the deselection of a survivor beneficiary, claimed to be made by mistake, can be voided or reversed through judicial intervention.

Disposition

  • The Court of Appeals affirmed the district court's decision to dismiss the complaint, requiring plaintiffs to exhaust administrative remedies (para 45).

Reasons

  • The Court of Appeals held that plaintiffs must exhaust administrative remedies under Section 10-11-120 of the Act before seeking judicial review. The court found that the administrative remedy was comprehensive, provided for judicial review, and was complete, thus making it exclusive and precluding direct access to judicial intervention. The court also noted that disputed factual issues present in the case made it appropriate for administrative resolution. The court rejected plaintiffs' arguments for equitable relief, stating that if the Act does not authorize the reversal of a deselection, neither the administrative body nor the courts have the authority to reverse it. The court emphasized the principle that equity follows the law and cannot act against statutory provisions (paras 21-42).
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