Ordered that the judgment is reversed, on the law, with costs, the petition is denied, and the proceeding is dismissed on the merits.
Because the hearing which preceded the determination under review was not held pursuant to direction by law (see, Retirement and Social Security Law § 803 [b] [3]), the issue presented on this appeal is whether the determination was affected by error of law, arbitrary and capricious, or an abuse of discretion (see,
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