State, Public Employees' Retirement Board v. Morton

OPINION

FABE, Justice.

I. INTRODUCTION

The ■ Alaska Division of Retirement and Benefits terminated the occupational disability benefits of a former public employee who did not recover from his injury and did not return to public employment but who managed to earn more than his former salary. Benefits were terminated pursuant to a Division policy that was unwritten but had been enforced since before the employee’s date of hire. Under that policy, known as the “75% rule,” an employee is no longer eligible for benefits if he earns outside income of more than 75% of his former salary. The Public…