Nichols v. Chicago Transit Authority Hardship Committee

State: Illinois

Court: 1st District Appellate

Docket No: 1-02-0210 Rel

Case Date: 02/25/2003

SECOND DIVISION
February 25, 2003

No. 1-02-0210

BRIAN G. NICHOLS,

Plaintiff-Appellant,

CHICAGO TRANSIT AUTHORITY
HARDSHIP COMMITTEE,

Defendant-Appellee.

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Appeal from the
Circuit Court of
Cook County.

No. 00 M1 152584

Honorable
Ronald S. Davis,
Judge Presiding.

PRESIDING JUSTICE McBRIDE delivered the opinion of the court:

Plaintiff Brian G. Nichols, a Chicago Transit Authority (CTA) employee, requested awithdrawal of his funds from the CTA Employees' Deferred Compensation Plan (Plan). Nichols'applications were denied by the committee (Committee) that administers the Plan and he appealedto the circuit court. The circuit court found that the Committee did not abuse its discretion indenying Nichols' request for funds. Nichols appeals to this court, pro se, contending that theCommittee erred in failing to acknowledge his status as an eligible participant for the Plan'semergency hardship withdrawal.

At the time of the hearing, Nichols had been employed as a bus operator with the CTA forover 20 years. He participated in the Plan from 1987 or 1988 through January 1999. Nicholstestified that in addition to his employment with the CTA, he held a second job with the Beverly BusFederal Credit Union as an assistant treasurer. Nichols held this job with the credit union startingin 1990. He was not rehired by the credit union in March of 1999. Nichols testified that histermination by the credit union caught him by surprise as he expected to be employed with it untilhe eventually became the treasurer. At the time his employment from the credit union wasterminated, Nichols' monthly net salary with the credit union was approximately $1,100.

Nichols' first application to withdraw funds from the Plan was February 17, 1999. Nichols characterized the loss of his second job with the credit union as an "unforeseeable emergency." Thisapplication was denied by the Committee on February 24, 1999. The Committee noted that "[n]ospecific event which was extraordinary, unforeseeable and beyond the control of the Participant wasidentified." Nichols appealed the denial of his application. On March 30, 1999, his appeal to theCommittee was denied on the basis that his application failed to identify a "correct hardship reason." Nichols made additional application for distribution of funds on June 23, 1999, and August 24, 1999. Both additional applications were subsequently denied.

The CTA's Employees' Deferred Compensation Plan is intended to qualify as an eligible"State Deferred Compensation Plan" under section 457(b) of the Internal Revenue Code of 1986. 26 U.S.C.