Solie v. Employee Trust Funds Board

1 The Employee Trust Funds Board (Board) appeals from the circuit court's order that reversed the Board's order and reinstated Joan Solie's and Ann Baxter's years of creditable service earned while in the combined group plan. The court of appeals certified the appeal to us to determine whether our decision in Schmidt v. Wisconsin Employe Trust Funds Board, 153 Wis. 2d 35, 449 N.W.2d 268 (1990), should be construed to provide continued State Teacher's Retirement System (STRS) combined group membership to teachers who withdrew their deposits in the retirement deposit fund and then returned to teaching after creation of the formula group. 2 We answer the question in the affirmative. We conclude that Solie and Baxter retained their STRS membership rights when they returned to teaching after they departed from teaching service and took separation benefits prior to the formula group's creation. As such, Solie and Baxter were improperly placed in the formula group retirement plan without their having elected to do so. We further conclude, however, that Solie and Baxter are not entitled to costs and reasonable attorney fees pursuant to Wis. Stat. § 814.245 (2001-02). Therefore, we affirm in part and reverse in part the circuit court's order.