American Federation of State, County & Municipal Employees v. Commonwealth

533 A.2d 785, 111 Pa. Commw. 81, 1987 Pa. Commw. LEXIS 2614
CourtCommonwealth Court of Pennsylvania
DecidedNovember 12, 1987
DocketNos. 2064 C.D. 1983, 2133 C.D. 1983 and 2160 C.D. 1983
StatusPublished
Cited by6 cases

This text of 533 A.2d 785 (American Federation of State, County & Municipal Employees v. Commonwealth) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Federation of State, County & Municipal Employees v. Commonwealth, 533 A.2d 785, 111 Pa. Commw. 81, 1987 Pa. Commw. LEXIS 2614 (Pa. Ct. App. 1987).

Opinion

Opinion by

President Judge Crumlish, Jr.,

Petitioners1 and respondent State Employees’ Retirement Board (Board) in these three consolidated [85]*85matters cross-motion for summary judgment on a motion for enforcement of our March 7, 1984 Order in AFSCME v. Commonwealth, 80 Pa. Commonwealth Ct. 611, 472 A.2d 746 (1984), aff'd sub nom. Association of Pennsylvania State College and University Faculties v. State System of Higher Education, 505 Pa. 369, 479 A.2d 962 (1984), directing in part that:

Respondents, jointly and severally, together with their agents and representatives, are hereby permanently enjoined from collecting pension contributions from employees who were members of the State Employes’ Retirement System prior to the enactment of Act 31 of 1983, in excess of the five (5%) percent basic contribution rate. . . .

80 Pa. Commonwealth Ct. at 618, 472 A.2d at 749 (emphasis in original).

We held in that opinion that Section 7 of Act 31 of 1983, 71 Pa. C. S. §5505.12 (Act 31), which requires active members in the State Employes’ Retirement System (SERS) to contribute an additional 114% of their salary to the SER Fund, was an unconstitutional impairment of the right to contract for both vested3 and nonvested4 members.

[86]*86In implementing our Order, however, the Board issued a management directive5 which mandated the collection of pension contributions at the 6lA% rate from employees who were members of the SERS prior to the enactment of Act 31 but who were separated from their employment for more than fourteen days and who were later reinstated or re-employed. The Board collects the additional member contributions from these formerly “separated” members regardless of whether they maintained their contributions in the SER Fund or withdrew their money during their break in service. Dissatisfied with this practice, AFSCME filed the enforcement motion in which it alleged that the Board was improperly applying the higher employee contribution rate to the following SERS members:

(1) Employees who have been suspended, terminated or discharged from employment and have subsequently been returned to employment because of an arbitration award, civil service order, court order, lawsuit, or settlement of a claim for reinstatement;
(2) Employees who have been separated from their employment and subsequently returned to work pursuant to statutory or contractual provisions such as recall rights;
(3) Employees who have been on extended authorized leaves of absence with or without pay;
(4) Employees who have been separated from employment either voluntarily or involuntarily and who subsequently returned in a manner or method reinstating their accrued seniority rights including credit for prior service; and
[87]*87(5) Employees who have been separated either voluntarily or involuntarily from their employment and who have subsequently returned to active pay status but who maintained their members status throughout the separation period.

Petitioners seek summary judgment to compel the Board to comply with our prior Order as it pertains to all employees who were members of the retirement system prior to the enactment of Act 31. The Board moves for summary judgment because it contends that our March 7, 1984 Order applied to only active members who had never experienced a break in their employment with the Commonwealth. We grant Petitioners partial summary judgment and partial summary judgment to the Board.

In ruling on a motion for summary judgment, a court must consider not only the pleadings but other documents of record, such as exhibits. Council 13, AFSCME, by its Trustee Ad Litem, Edward J. Keller v. Commonwealth, 108 Pa. Commonwealth Ct. 155, 529 A.2d 1188 (1987). However, for summary judgment to be entered, the moving party must establish that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. McKenna v. State Employees' Retirement Board, 54 Pa. Commonwealth Ct. 338, 421 A.2d 1236 (1980) aff'd, 495 Pa. 324, 433 A.2d 871 (1981). Because we find no material issue of fact in dispute, it is appropriate to enter summary judgment herein.

Petitioners principally contend that the retirement contract is controlled by the State Employees’ Retirement Code, 71 Pa. C. S. §5101—5956, which dictates that membership not be linked to continuous employment.

The Board counters that members whose employment terminates are no longer in the class covered in [88]*88our Order; that after a fourteen-day break in service, the “rehired” employee forms a new employment contract which includes the obligation to pay additional pension contributions. It reasons, therefore, that the contractual right to accrue retirement benefits formed at the start of employment is dependent upon continuous state employment. We disagree.

The Retirement Code defines the term “member”6 to include “active member, inactive member, annuitant, or vestee.” 71 Pa. C. S. §5102. The Code specifically defines each group of members as follows:

‘Active member/ A State employee, or a member on leave without pay, for whom pickup contributions are being made to the fund.
‘Inactive member/ A member for whom no pickup contributions are being made but who has accumulated deductions standing to his credit in the fund and who is not eligible to become or has not elected to become a vestee or has not filed an application for an annuity.
‘Annuitant/ Any member on or after the effective date of retirement until his annuity is terminated.
‘Vestee/ A member with ten or more eligibility points who has terminated State service and has elected to leave his total accumulated deductions in the fund and to defer receipt of an annuity.

Further, the Code provides that an employee who terminates employment may discontinue membership in the SERS by withdrawing total accumulated deductions in lieu of other benefits, 71 Pa. C. S. §5701, or may elect to become a “full coverage member” by pay[89]*89ing the lump sum required, 71 Pa. C. S. §5907(f) (emphasis added). Thus, membership in the SERS does not necessarily terminate with a cessation of employment.

Where words of the statute are clear and unambiguous, the Commonwealth Court is not empowered to disregard the letter of the statute under the pretext of pursuing its spirit; rather, the statute must be given its plain and obvious meaning. Wilderness Industries of Maryland, Inc. v. State Board of Motor Vehicle Manufacturers, Dealers and Salesmen, 58 Pa. Commonwealth Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
533 A.2d 785, 111 Pa. Commw. 81, 1987 Pa. Commw. LEXIS 2614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-federation-of-state-county-municipal-employees-v-commonwealth-pacommwct-1987.