School board appeals in hope to avoid another lengthy lawsuit

Written By: Daniel Beauregard
2/2/12
Categorized in: DeKalb News, Education

The DeKalb County Board of Education is trying to dismiss a lawsuit that, if it goes to trial, could cost the DeKalb County School System millions of dollars.

In 2011, two DeKalb County teachers filed a lawsuit against the board alleging it owes them, and thousands of other teachers, money that has been withheld from a tax-sheltered annuity (TSA) fund since 2009.

Plaintiffs Elaine Gold and Amy Shaye, both teachers in the DeKalb County School System, filed the complaint on March 16, 2011.

“When they made this decision they were trying to plug a hole in the budget and their estimation for this line item was $26 million for the 2009-10 school year,” attorney John Salter said of the board’s decision to stop contributing to the fund. “It’s our belief that the termination and suspension is invalid and they should catch up and continue to pay. Now we’re getting into the second and third year of those benefits not being paid.”

In 1979, the DeKalb County School Board began seeking alternatives to Social Security and according to the lawsuit, passed a resolution authorizing an alternative plan and also requiring, “the board of education shall give a two-year notice to employees before reducing the funding provisions of the alternative plan to Social Security.”

However, in 2009 the school board, facing budget cuts and financial strain, voted to freeze contributions to the TSA plan.

“The view of the board is that they acted appropriately given the economic conditions of the time,” schools spokesman Walter Woods said.

Late in 2011, DeKalb County Judge Clarence Seeliger rejected a motion made by school board lawyers to have the case dismissed. The school system appealed that decision and oral arguments are scheduled to begin in April.

The plaintiffs filed the suit on behalf of “themselves and all others similarly situated.” They are seeking to have the suit elevated to a class-action suit but before a judge can make that decision the case must first make its way out of the appellate court.

“This motion and this appeal need to be resolved before we can turn it into a class-action suit,” Salter said.

The lawsuit also alleges the board realized the mistake and tried to “paper over” it by waiving the policy that required two-year notification.

This suit comes on the heels of another lengthy lawsuit the board is involved in against construction firm Heery/Mitchell, which has already cost it more than $15 million in legal fees.

Comments (7)

Ella Smith

Said this on 3/15/12 At 06:30 am

In reply to #2

This does have something to do with benefits but only in the sense that the school system agreed to give a two year noticed before reducing payment when they originally decided to stop paying social security.

However, they need to at least be paying social security payments if they are not paying the same money into a retirement play. This is the issue. All employers have to pay social security on their employees. DeKalb County School System are not paying social security benifits for retirement into the system nor this money instead of paying social security. This is actually much more complicanted that just a benefit item. I am sure you would be upset if your employee just decided not to pay into social security which would mean you are not eligible to draw social security. This was agreed upon instead of social security benefits.

Ella Smith

Said this on 2/11/12 At 11:31 am

In reply to #2

Respectfully, you are wrong. Teachers have a right for their employer to pay into social security or either put this money into another alternative fund. I feel sure that if the the company you work for took would take the money that your company pays into social security and to put it intot their own pocket when times are tough it would not go over very well with you. It is the law for your company to pay social security payments. DeKalb County Schools does not do this. The teachers also are excluded from drawaing on their spouses social security benefits upon their death. I understand how you may think this is just another benefit to the teachers but it is not. It is a benefit that every American has the right to and that is being denied by the DeKalb County School Board.

Ella Smith

Said this on 2/11/12 At 11:25 am

I understand the frustration of these teachers and many more in the DeKalb County School System. I agree that the school board should have done the right thing to start with as it appears that the teachers should have had a two year notice according to the school boards own records. I was at the school board meeting when they assured the teachers that they would be re-inbursed when the funds were available again. I would hope that the school board continued to allow the teachers to put their own money into the plan as the issue is that the school system is not taking out social security taxes so these individuals will not be able to receive social security due to the DeKalb County School Board not paying into social security. Instead of paying into social security the same money was being put into the alternative fund along with additional funds of teachers if they wanted. Now the school system is not doing either which does appear to to harmful to the teachers. A teacher also is not eligible to draw on their husband's or wife's social security on their husband's or wife's death due to the decision made by the school board many years ago. This is a much bigger deal to retired teachers than the public at large may be aware of because most of the public at large will qualify for social security and social security benefits of their spouse. Teachers in DeKalb will not qualify nor can they qualify for their spouses social security upon their spouses death.

Arnold Butler, Sr

Said this on 2/6/12 At 03:59 pm

This is a case where the school board did not follow proper procedures and got caught in an obvious cover-up. As a recently retired teacher, I am very concerned about the outcome of this litigation.

Arnold Butler, Sr

Said this on 2/6/12 At 03:55 pm

This is a case where the school board did not follow proper procedures and got catch in an obvious cover-up. As a recently retired teacher, I am very concerned about the outcome of this litigation.

trevor

Said this on 2/5/12 At 11:25 pm

Just another case of teachers wanting "benefits" they are not entitled to without regard to financial conditions. The School Board really needs to fight this to shut down teachers who are not there to teach, but to get what they can get.

Ned

Said this on 2/4/12 At 07:22 pm

Call me crazy, but wouldn't the most obvious way of avoiding a lawsuit be to honor the agreement with teachers?

Generally one can avoid legal trouble by, you know, not doing things that are not legal.

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