THE ESTATE OF WILLIAM J. HAMILTON, JR. VS. BOARD OF TRUSTEES (PUBLIC EMPLOYEES' RETIREMENT SYSTEM)

**What Happened** William Hamilton, a retired city employee from New Brunswick, received approval from the Public Employees' Retirement System (PERS) Board to work part-time after retirement while continuing to collect his pension benefits. This arrangement allowed retirees to earn additional income without losing their retirement payments. However, years later, the same Board changed its mind and demanded that Hamilton's estate pay back over $500,000 in retirement benefits he had already received and spent. **Court's Decision** The appellate court sided with Hamilton's estate and overturned the Board's demand for repayment. The court found that the Board acted "arbitrary and capricious" - meaning unreasonable and unfair - because it had already approved Hamilton's post-retirement work arrangement. The Board couldn't simply reverse its previous approval and demand money back after the retiree had relied on their decision. **Why This Matters for Workers** This ruling protects public employees from having their retirement benefits taken away after the fact. When a retirement board officially approves your post-retirement work arrangement, they cannot later change their minds and demand repayment simply because they decide differently. Workers can rely on official approvals from their pension systems.