Miller v. Teachers' Pension & Annuity Fund

In Miller v. Teachers' Pension & Annuity Fund, 179 N.J.Super. 473, 474-75, 432 A.2d 560 (App.Div.), certif. denied, 88 N.J. 502, 443 A.2d 714 (1981), the petitioners were eight retired teachers who had been receiving pension benefits from the Teachers' Pension & Annuity Fund (TPAF) from dates ranging from July 1971 to July 1977. Two were just under sixty years old when they retired; the others were well into their sixties at retirement. Id. at 475, 432 A.2d 560. All eight received an order from TPAF that their salary credits, and therefore their retirement allowances, were being reduced prospectively because they had been improperly increased under early retirement packages of the sort voided in Fair Lawn, supra, 79 N.J. 574, 401 A.2d 681. Ibid. The Appellate Division reversed the TPAF's order, finding that "all of the petitioners herein having irrevocably changed their positions in reliance on TPAF approval granted almost two years before Fair Lawn for some and up to eight years earlier for others, the interest of justice mandates application of the doctrine of equitable estoppel." Id. at 476, 432 A.2d 560. The court found that if the TPAF had not approved the retirement packages, the petitioners "could have remained in their tenured positions and thus amassed additional pension benefits. It was this opportunity which they relinquished permanently and irrevocably by their retirement." Id. at 479, 432 A.2d 560.