Steve Paschall v. Pension Board of the Memphis Light Gas and Water Division Retirement and Pension System, et al.

The petitioner was employed at the Light, Gas, and Water Division of the City of Memphis (“MLGW”). During his employment, the employee participated in a pension plan. The employee was terminated in July 2016 but did not apply for his pension benefits. In 2022, the employee filed two retirement applications that were rejected. Both applications sought the payment of pension benefits retroactive to the 2016 termination date. The employee appealed to MLGW’s pension board. The pension board accepted the second application and instituted the payment of benefits as of its filing date. However, the board declined to award benefits retroactive to 2016. The employee sought judicial review in the Shelby County Chancery Court. The court held that the decision to deny the first application was arbitrary and capricious and ordered the payment of benefits to be deemed effective as of the date it was filed. However, it found that the decision to deny the claim for retroactive benefits stemming from the date of termination was not arbitrary and capricious as it was in accordance with the pension system’s plan. The employee appeals. We affirm.