FROM: Barbara Hannah, Chief Counsel
SUBJECT: Procedures for Benefit Administrative Appeal Hearings
RECOMMENDATION:
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Recommend that the Board approve and adopt Procedures for SBCERA Administrative Appeal Hearings.
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BACKGROUND:
Staff recommends the adoption and implementation of the Procedures for Benefit Administrative Appeal Hearings. The Procedures are designed to promote fairness, efficiency, and accessibility in the administrative appeals process. In alignment with Benefits Policy No. 025 (Requests and Appeals for Pension Benefits), the Procedures prescribe procedural requirements for adjudicating an appeal that is referred to an administrative hearing under Benefits Policy No. 025.
The Procedures accomplish the following objectives:
• Clarity and Standardization - The Procedures clearly define timeliness, submission requirements, and procedural responsibilities. The process reduces ambiguity and potential disputes.
• Efficiency in Case Processing - The Procedures streamline hearing management and reducing delays by outlining the time requirements for the prehearing statement; scheduling of the hearing; and evidence deadlines, including requesting subpoenas for witness testimony or production of documents.
• Support for Self-Represented Parties - Recognizing that many appellants appear without legal representation, the Rules accommodates pro per appellants with clear participation guidelines.
Below are few key procedural requirements detailed in the Procedures:
1. Hearing Officer Appointment (Rules 3 and 5)
The selection of the hearing officer will be based on the complexity and technical requirements, and other factors pertinent to the adjudication of the appeal. In addition, the hearing officer’s subject matter expertise in the relevant matter will also be taken into consideration. The hearing officer will have the authority to rule on procedural matters, maintain order, impose time limits, and decide evidentiary issues.
2. Group Representation (Rules 6)
The Procedures provide for group representation protocols and consolidated hearing mechanisms, which provide vital efficiencies and improve access for self-represented appellants. When five or more appellants are involved in an appeal sharing legal or factual issues, the Procedures would permit the hearings to be consolidated. This approach avoids duplicative proceedings, reduces inconsistent outcomes, and conserves administrative resources. Within a consolidated hearing, appellants may voluntarily appoint a Group Representative to present evidence and conduct witness examinations. Importantly, any appellant not represented by the Group Representative retains the right to present individual arguments or supplement the record in writing to ensure that their perspectives are heard. The hearing officer has the discretion to implement time limits, structured hearing segments, written testimony, and pre-screened examination questions - all which support orderly, inclusive, and equitable proceedings.
3. Prehearing and Evidence Management (Rules 8, 9, and 11)
The Procedures provide for defined deadlines for submission of prehearing statements - SBCERA - 90 days and Appellants - 60 days prior to the scheduled hearing. Within the prehearing statement, each party is required to detail the issues, evidence lists, including expected witnesses with a brief synopsis of the testimony. These Rules support better case preparation, reduces surprises, and promote procedural fairness.
4. Default and Non-Appearance Procedures (Rule 14)
Where an appellant fails to appear at a scheduled hearing, a default may be entered, with an opportunity for explanation or rescheduling under valid circumstances. If a matter results in a default, the Board will make a final determination on whether to adopt the dismissal or take other action.
5. Objections and Post Hearing Clarifications (Rule 15, 16, and 17)
The Procedures permits either party to object to the proposed decision. In addition, the Chief Counsel, in consultation with the Chief Executive Officer, may identify areas requiring further clarification or further elaboration to ensure the recommendation is sufficiently clear and addresses all relevant legal or factual issues. This ensures the Board receives a well-supported record for decision making.
6. Prohibited Ex-Parte Communications (Rule 18)
The Procedures prohibit ex-parte communications between any party and the hearing officers. The prohibition does not apply to any communication necessary for scheduling, administration, emergencies, or otherwise unrelated to the substance of the case. This reinforces due process and transparency.
7. Final Board Action and Judicial Review (Rules 19, 20, and 21)
When a recommendation is returned by the hearing officer, the Procedures prescribe the actions the Board may take regarding the recommendation. In addition, there is a defined format for oral arguments before the Board.
Overall, the Procedures reflect a commitment to a transparent, fair, and accessible appeals process. Therefore, staff recommends the adoption and implementation of the Procedures for Benefit Administrative Appeal Hearings.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Operational Excellence & Efficiency
STAFF CONTACT:
Barbara Hannah
ATTACHMENTS:
Exhibit A: Procedures for Benefit Administrative Appeal Hearings