ÿWPCj …# VUNa %¯ 0(µw@Ý4 1 UP@ 0l 0Dü 0J@ 0TŠ 0^Þ 0h< 0r¤ 0| 0†’ 0 1u¨ 0dU>U6¿B)õDC AMaU*® Øv~ävÓb D35 Bh 0@… AOÅÆ 0DÚ D/ BM˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z 6Times New Roman RegularX($¡¡ DD D D D Ó€Úƒç"3|x&@FÐZ ‹8CaslonOpnface BT Regular((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman< Œ 9p`(Courier New% Line 7 d""""7Border 1dd€-#Cþÿ << Gÿÿ< Œ 9p`(Arial Ý ƒ!ÝÑ#€d#ÑÔ€ ÔÝ  ÝÔ€%ÔÔ€%ÔÓ  ÓÔ YYY ÔFILEDÔ€%XÔÌÌò òJuly€22,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€%ôÔAppellate€Court€Clerkó óPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva Ò++++'ÿÿdxd d("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ ÔÝ  ÝÑ P ÑÑ\R AØ'\ÑÑ\R AØ'\ÑÑ7€ÜéXXdðdÈ7ÑÔ€!ÔÙ€€ÙßR€$&#A1-j|` Å `€€@ÿRßÞ ÞÌà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÌÌÌALLAN€COMBS,€et€al.,à àà à€€€)€C/A€NO.€03A01„9701„CV„00022Ìà àà àà àà àà àà à€€€)Ìà àPetitioners„Appellees,à à€€€)Ìà àà àà àà àà àà à€€€)Ìà àà àà àà àà àà à€€€)Ìv.à àà àà àà àà àà à€€€)Ìà àà àà àà àà àà à€€€)Ìà àà àà àà àà àà à€€€)ÌBILLY€J.€STOKES,€Commissioner€€€€)€APPEAL€AS€OF€RIGHT€FROM€THEÌof€the€Tennessee€Department€of€€€)€SULLIVAN€COUNTY€CHANCERY€COURTÌEmployment€Security,à àà à€€€)Ìà àà àà àà àà àà à€€€)Ìà àRespondent„Appellee,à à€€€)Ìà àà àà àà àà àà à€€€)Ìandà àà àà àà àà àà à€€€)Ìà àà àà àà àà àà à€€€)ÌHOLSTON€DEFENSE€CORPORATION,à à€€€)Ìà àà àà àà àà àà à€€€)€HONORABLE€RICHARD€E.€LADD,Ìà àRespondent„Appellant.à à€€€)€CHANCELLORÌÌÌÌFor€Appellantà àà àà àà àà àFor€Appellees€Combs,€et€al.ÌÌCHERIE€S.€ADAMSà àà àà àà àD.€BRUCE€SHINEÌWilson,€Worley€&€Gamble,€P.C.à àà àDONALD€F.€MASON,€JR.ÌKingsport,€Tennesseeà àà àà àShine€&€MasonÌà àà àà àà àà àà àà àKingsport,€TennesseeÌEVERETT€H.€MECHEMÌHolston€Defense€Corporationà àà àFor€Appellee€StokesÌKingsport,€TennesseeÌà àà àà àà àà àà àà àJOHN€KNOX€WALKUPÌà àà àà àà àà àà àà àAttorney€General€&€ReporterÌÌà àà àà àà àà àà àà àSANDRA€E.€KEITHÌà àà àà àà àà àà àà àOffice€of€the€Attorney€GeneralÌà àà àà àà àà àà àà àNashville,€TennesseeÌÌÌÌÌÌÌÌÌÌÌà@ àÔ€ ÔÔ€  ÔO€P€I€N€I€O€NÔ€ XÔÔ€!ÔÌÌÌÌÌÌREVERSED€AND€REMANDEDà àà àà àà àà àà àà àSusano,€J.ÌÓÓà àà àThis€is€an€unemployment€compensation€case.€€HolstonÏDefense€Corporation€(HDC)€appeals€the€trial€courtððs€determinationÏthat€29€of€its€former€employees€(ð ðthe€Petitionersðð)€are€entitledÏto€receive€full€unemployment€benefits€with€no€offset€for€pensionÏbenefits.€€HDC€raises€one€issue€which€presents€the€followingÏquestion€for€our€review:ÌÌÓÓà àà8 àDoes€T.C.A.€ðð€50„7„303(a)(8)(1)€require€theÏoffset€of€Petitionersðð€pension€funds€againstÏtheir€unemployment€compensation€benefits,Ïwhere€petitioners€elected€to€ð ðroll€overðð€theirÏpension€funds€into€individual€retirementÏaccounts?ÌÌÓÓÌHaving€determined€that€T.C.A.€ðð€50„7„303(a)(8)(1)€does€require€theÏoffset€of€company„funded€pension€benefits€against€a€claimantððsÏunemployment€compensation€under€such€circumstances,€we€reverse.ÌÌà@ àIÌÌà àà àThe€material€facts€are€not€in€dispute.€€In€1993,€HDCÏimplemented€a€program€to€reduce€its€work€force,€in€which€itÏoffered€all€of€its€employees€the€opportunity€to€voluntarilyÏterminate€their€employment€in€exchange€for€various€incentives.€ÏHDC€announced€that€if€fewer€than€the€required€number€of€employeesÏopted€for€voluntary€termination,€some€employees€would€beÏterminated€involuntarily.€€Each€of€the€Petitioners€chose€voluntaryÏtermination.ÌÌà àà àUpon€termination€of€their€employment,€the€PetitionersÏreceived€incentive€pay€and€other€benefits,€including€a€choiceÏbetween€either€a€lifetime€annuity€payment€or€the€distribution€ofÏtheir€accrued€pension€funds,€which€had€been€furnished€entirely€byÏHDC.€€If€they€elected€a€present€distribution€of€those€funds,€asÏopposed€to€an€annuity,€they€had€the€further€choice€of€a€lump„sumÏpayment€that€they€could€do€with€as€they€pleased,€or€a€ð ðroll€overððÏof€those€funds€into€an€individual€retirement€account€(IRA).€€EachÏpetitioner€chose€the€latter€option,€primarily€to€avoid€the€taxÏconsequences€of€the€former.ÌÌà àà àThe€Petitioners€subsequently€applied€to€the€TennesseeÏDepartment€of€Employment€Security€(the€Agency)€for€unemploymentÏcompensation€benefits.€€The€Agencyððs€subsequent€award€of€benefitsÏto€the€petitioners€was€upheld€by€its€Appeals€Tribunal.€€HDC€thenÏappealed€the€Appeals€Tribunalððs€decision€to€the€Agencyððs€Board€ofÏReview,€which€held€that,€although€the€Petitioners€were€otherwiseÏeligible€for€unemployment€compensation€benefits,€T.C.A.€ðð€50„7„303(a)(8)(1)€required€that€those€benefits€be€offset€by€theÏprorated€weekly€amounts€of€their€employer„funded€pensions.€€ThatÏdecision,€however,€was€reversed€by€the€trial€court,€which€heldÏthat€the€Petitioners€were€entitled€to€full€unemploymentÏcompensation€without€any€deductions.ÌÌà@ àIIÌÌà àà àThe€relevant€Tennessee€statute,€T.C.A.€ðð€50„7„303(a),Ïprovides,€in€pertinent€part:ÌÌÓÓà àà8 àDISQUALIFYING€EVENTS.€€A€claimant€shall€beÏdisqualified€for€benefits:ÌÌà@ à*€€€€€€€€*€€€€€€€€*ÌÌà àà8 à(8)(1)€For€any€week€with€respect€to€which€aÍclaimant€is€receiving€or€is€entitled€toÏreceive€a€pension...€under€a€plan€maintainedÏor€contributed€to€by€a€base€period€orÏchargeable€employer€as€follows:€The€weeklyÏbenefit€amount€payable€to€such€claimant€forÏsuch€week€shall€be€reduced€(but€not€belowÏzero):ÌÌà àà8 à(A)€By€the€entire€pro„rated€weekly€amount€ofÏthe€pension€if€one€hundred€percent€(100%)€ofÏthe€contributions€to€the€plan€were€provided€byÏa€base€period€or€chargeable€employer;€andÌÌà àà8 à(B)€By€no€part€of€the€pension€if€anyÏcontributions€to€the€plan€were€provided€byÏsuch€claimant.ÓÓÌà@ à*€€€€€€€€*€€€€€€€€*ÌÓÓà àà8 à(5)€For€purposes€of€this€subdivision€(a)(8),Ïan€individual€shall€be€deemed€entitled€toÏreceive€a€pension€if€a€determination€has€beenÏmade€by€appropriate€officials€of€suchÏindividualððs€vested€right€to€a€pension€for€anyÏweek€in€which€such€individual€is€entitled€toÏreceive€benefits€under€this€chapter;...ÌÌÓÓÌT.C.A.€ðð€50„7„303(a).ÌÌà àà à€In€order€for€a€state€to€receive€federal€certificationÏand€funding€for€its€unemployment€compensation€program,€it€mustÏfirst€meet€certain€minimum€standards€set€forth€in€the€FederalÏUnemployment€Tax€Act€(FUTA),€26€U.S.C.A.€ðð€3301,€òòet€seq.óó€€òòSeeò òÏWatkins€v.€Cantrellóóó ó,€736€F.2d€933,€937€(4th€Cir.€1984);€òòò òCabaisÏv.€Eggeró óóó,€690€F.2d€234,€235„36€(D.C.€Cir.€1982).€€For€example,Íthe€FUTA€requires€that€any€pension€funds€òòreceivedóó€by€a€claimant€beÏoffset€against€his€or€her€unemployment€compensation€benefits.€€26ÏU.S.C.A.€ðð€3304(a)(15).€€Tennesseeððs€corresponding€offsetÏprovision,€quoted€above,€is€broader€than€that€of€the€federalÏstatute.€€òòSeeóó€T.C.A.€ðð€50„7„303(a).€€However,€it€has€been€widelyÏheld€that€the€FUTA€establishes€only€the€òòminimumóó€requirements€forÏthe€offset€of€pension€benefits;€€for€instance,€the€ò òòòCabaisóóó ó€courtÏstated:ÌÌÓÓà àà8 àSection€3304(a)(15)...€reflects€only€theÏminimum€conditions€under€which€deduction€mustÏbe€required€by€State€law€for€certificationÏunder€FUTA.€€Although€a€State€may€broaden€theÏscope€of€its€deduction€of€pension€paymentsÏbeyond€the€conditions€in€which€deduction€isÏrequired€under€the€Federal€law,€it€may€notÏadopt€less€stringent€conditions€which€fallÏshort€of€the€Federal€requirement.ÌÌÌÌÓÓò òòòCabaisó óóó,€690€F.2d€at€242„43.€€òòSee€alsoóó€ò òòòWatkinsó óóó,€736€F.2d€at€939Ï(states€can€enact€broader€offset€provisions€than€those€mandated€byÏ26€U.S.C.A.€ðð€3304(a)(15));€ò òòòBleau€v.€Hackettóóó ó,€598€F.Supp.€727,Ï733€(U.S.D.C.€R.I.€1984)€(ð ð...€the€Secretary€of€Labor€hasÏconsistently€interpreted€ðð€3304(a)(15)€as€setting€only€minimumÏoffset€requirements.ðð)€€We€hold€that€T.C.A.€ðð€50„7„303(a)(8)(1)€isÏnot€in€conflict€with€the€federal€statute.ÌÌà àà àWe€are€required€to€employ€the€same€standard€of€reviewÏused€by€the€trial€court€when€it€examined€the€Board€of€ReviewððsÏdecision.€€ò òòòArmstrong€v.€Neelóóó ó,€725€S.W.2d€953,€955€n.1€(Tenn.App.Ï1986).€€Under€that€standard,€we€may€ÌÌÓÓà àà8 à...reverse,€remand€or€modify€the€decision€ifÏthe€rights€of€the€petitioner[s]€have€beenÏprejudiced€because€the€[trial€courtððs]Ïfindings,€inferences,€conclusions€or€decisionsÏare:ÌÌà àà8 à(A)€In€violation€of€constitutional€orÏstatutory€provisions;ÌÌà àà8 à(B)€In€excess€of€the€statutory€authority€ofÏthe€agency;ÌÌà àà8 à(C)€Made€upon€unlawful€procedure;ÌÌà àà8 à(D)€Arbitrary€or€capricious€or€characterizedÏby€abuse€of€discretion€or€clearly€unwarrantedÏexercise€of€discretion;€orÌÌà àà8 à(E)€Unsupported€by€evidence€which€is€bothÏsubstantial€and€material€in€the€light€of€theÏentire€record.ÌÌÓÓÌT.C.A.€ðð€50„7„304(i)(2)(Supp.€1996).ÌÌà@ àIIIÌÌà àà àHDC€and€the€Agency€argue€that€the€language€of€T.C.A.€ððÏ50„7„303(a)(8)(1)€clearly€requires€that€the€PetitionersððÏunemployment€compensation€be€reduced€by€the€prorated€amount€ofÏtheir€pension€funds.€€They€contend€that€the€Petitioners€fellÏwithin€the€statuteððs€definition€of€entitlement€to€receive€pensionÏfunds,€and€that€the€legislature€anticipated€this€type€of€delayedÏreceipt€of€pension€benefits€when€it€included€the€languageÏð ðreceiving€or...òò€entitled€to€receiveóóðð€in€the€statute.€€T.C.A.€ððÏ50„7„303(a)(8)(1)€(emphasis€added).€€HDC€and€the€Agency€point€outÏthat€the€legislature€provided€no€special€exemption€for€anyÏparticular€disposition€of€pension€funds€made€by€a€claimantÏentitled€to€such€funds.ÌÌà àà àThe€Petititoners,€on€the€other€hand,€argue€that€they€didÏnot€ð ðreceiveðð€the€pension€benefits,€but€instead€merely€transferredÏthe€funds€while€maintaining€their€ð ðstatus€quoðð.€€They€point€toÏlanguage€in€the€Agencyððs€manual,€which€states€that€a€pension€roll„over€into€an€IRA€is€considered€a€ð ðdelay€of€pension,ðð€and€thatÏbenefits€may€not€be€reduced€where€a€claimant€is€merely€ð ðeligibleÏforðð€pension€benefits€(as€opposed€to€ð ðentitled€to€receiveðð€them).€ÏWe€find€these€contentions€to€be€without€merit.€€In€the€firstÏplace,€the€Petitioners€were€entitled€to€their€pension€benefits,Íwhen€they€elected€to€transfer€them€into€IRAs.€€Secondly,€to€theÏextent€that€the€Agency€manual€contradicts€the€clear€language€ofÏthe€statute,€it€carries€no€authority,€and€the€statute€mustÏcontrol.ÌÌà àà àThe€Petitioners€also€cite€various€documents€issued€byÏthe€United€States€Department€of€Labor€to€support€their€position.€ÏOne€such€document,€entitled€ð ðUnemployment€Insurance€Program€LetterÏNo.€22„87,"€draws€a€distinction,€as€does€the€Agency€manual,Ïbetween€ð ðeligibility€forðð€and€ð ðentitlement€toðð€pension€benefits.€ÏAs€previously€noted,€we€believe€that€the€Petitioners€òòwereóó€entitledÏto€their€pension€benefits;€this€distinction,€therefore,€is€of€noÏconsequence€under€these€circumstances.€€The€document€also€refersÏto€situations€in€which€pension€benefits,€having€been€deemedÏð ðconstructivelyðð€received,€are€offset€against€unemploymentÏbenefits,€but€are€never€actually€received.€€This€language€does€notÏapply€to€the€facts€of€our€case.€€The€benefits€were,€in€fact,Ïreceived€when€they€were€rolled€over€into€IRAs.ÌÌà àà àThe€other€Department€of€Labor€documents€cited€by€theÏPetitioners€include€a€letter€to€the€Agencyððs€Commissioner€and€aÏsubsequent€Unemployment€Insurance€Program€Letter,€each€of€whichÍindicate€that€a€state€is€not€required€to€offset,€againstÏunemployment€compensation,€pension€funds€that€are€ð ðrolled€overððÏinto€an€IRA.€€These€documents,€however,€beg€the€question,€for€asÏnoted€earlier,€the€FUTA€sets€forth€only€òòminimumóó€conditions€underÏwhich€a€state€must€require€such€deductions.€€States€are€free€toÏrequire€the€offset€of€pension€funds€under€much€broaderÏcircumstances€„„€including€where€such€funds€are€ð ðrolled€overðð€intoÏan€IRA€„„€than€those€mandated€by€the€federal€act.€€Therefore,€ourÏstatuteððs€mandatory€deduction€of€pension€payments€from€aÏclaimantððs€unemployment€benefits€is€not€inconsistent€with€theÏfederal€law.€€Accordingly,€we€find€the€Petitionersðð€contentions€toÏbe€without€merit.ÌÌà àà àWe€are€therefore€left€with€a€straightforward€question€ofÏstatutory€interpretation.€€Where,€as€in€this€instance,€the€subjectÏstatute€is€unambiguous,€ð ðwe€need€only€enforce€the€statute€asÏwritten.ðð€€ò òòòIn€re€Conservatorship€of€Claytonóóó ó,€914€S.W.2d€84,€90Ï(Tenn.App.€1995).€€The€statute€clearly€states€that€a€claimantððsÏbenefits€shall€be€reduced€for€any€week€in€which€he€or€she€isÏreceiving€or€is€entitled€to€receive€a€pension.€€T.C.A.€ðð€50„7„303(a)(8)(1).€€The€Petitioners€fell€squarely€within€thisÏprovision.€€They€were€ð ðentitled€to€receiveðð€their€pension€benefitsÍwhen€they€made€the€decision€to€take€a€lump„sum€distribution€ratherÏthan€an€annuity.€€Furthermore,€they,€in€effect,€received€thoseÏfunds€when€they€were€rolled€over€into€their€own€retirementÏaccounts.€€The€Petitioners€cannot€circumvent€the€statute€by€meansÏof€this€voluntary€choice;€nor€can€they€rely€upon€a€statutoryÏexception€that€does€not€exist.€€We€therefore€hold,€under€theÏstandard€of€T.C.A.€ðð€50„7„304(i)(2)(A),€that€the€trial€courtððsÏdecision€is€contrary€to€the€offset€provisions€contained€in€ourÏstatute.€€Under€the€facts€before€us,€T.C.A.€ðð€50„7„303(a)(8)(1)Ïdoes€require€the€offset€of€Petitionersðð€pension€funds€againstÏtheir€unemployment€compensation.ÌÌà àà àThe€judgment€of€the€trial€court€is€reversed€and€theÏpetitions€dismissed€at€the€petitionersðð€cost.€€Costs€on€appeal€areÏassessed€against€the€Petitioners.€€This€case€is€remanded€to€theÏtrial€court€for€the€collection€of€costs€on€the€proceedings€below,Ïpursuant€to€applicable€law.ÌÌÌÓÓà àà àà àà àà àà àà à__________________________Ìà àà àà àà àà àà àà àCharles€D.€Susano,€Jr.,€J.ÌÌÌÌCONCUR:ÌÌÌ_________________________ÌHouston€M.€Goddard,€P.J.ÌÌÌ_________________________ÌWilliam€H.€Inman,€Sr.J.