Burello v. Commonwealth, State Employes' Retirement System

411 A.2d 852, 49 Pa. Commw. 364, 1980 Pa. Commw. LEXIS 1155
CourtCommonwealth Court of Pennsylvania
DecidedFebruary 20, 1980
DocketAppeal, No. 2480 C.D. 1978
StatusPublished
Cited by26 cases

This text of 411 A.2d 852 (Burello v. Commonwealth, State Employes' Retirement System) 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
Burello v. Commonwealth, State Employes' Retirement System, 411 A.2d 852, 49 Pa. Commw. 364, 1980 Pa. Commw. LEXIS 1155 (Pa. Ct. App. 1980).

Opinions

Opinion by

Judge Craig,

The question in this case is whether a statute violates constitutional prohibitions against impairment of obligation of contract or bills of attainder where it provides retroactively that pension benefits being received by a retired Commonwealth employee shall be forfeited if the employee is convicted or pleads no defense to a crime related to public office or public employment.

This question has been raised by petition for review on behalf of petitioner (now deceased) from an action of the State Employes’ Retirement Board (board) discontinuing the pension benefits which petitioner had been receiving in retirement.

The wholly documentary record certified to us by the board reveals that petitioner, as a retired Commonwealth employee, had qualified for, and was re[366]*366ceiving, state pension benefits when, on July 12, 1978, he pleaded nolo contendere in the United States District Court for the Western District of Pennsylvania to four counts of federal extortion charges under 18 U.S.C. §1951 and received a penalty of fine and probation.

On July 8, 1978 the Public Employee Pension Forfeiture Act1 (Act) was enacted and became effective, providing in pertinent part as follows:

Section 3. Disqualification and forfeiture of benefits.
(a) Notwithstanding any other provision of law, no public official or public employee nor any beneficiary designated by such public official or public employee shall be entitled to receive any retirement or other benefit or payment of any kind except a return of the contribution paid into any pension fund without interest, if such public official or public employee is convicted or pleads guilty or no defense to any crime related to public office or public employment.
(b) . . . Such conviction or plea shall be deemed to be a breach of a public officer’s or public employee’s contract with his employer.
(c) Each time a public officer or public employee is elected, appointed, promoted, or otherwise changes a job classification, there is a termination and renewal of the contract for purposes of this act.
Section 7. Retroactively [sic]
The provisions of this act shall be retroactive to December 1,1972.
[367]*367Section 8. Effective date.
This act shall take effect immediately.

The act was approved July 8,1978.

On September 6, 1978 the board, by letter, informed petitioner that it had been provided with a certified copy of the action taken in the United States District Court for the Western District of Pennsylvania and that:

Accordingly, pursuant to Act No. 140, effective July 8, 1978, known as the Public Employee Pension Forfeiture Act, upon advice of Counsel, the Board is discontinuing pension benefit payments to you, effective immediately.

This proceeding attacks that action and the law on which it is based.

Before we reach the merits, we have the Commonwealth’s claim that the petition should be dismissed because it seeks review of ministerial action rather than an adjudication and therefore involves a matter not suitable for an appeal but which should be presented to us in the form of an original jurisdiction action in mandamus.

The Commonwealth cites Fricchione v. Department of Education, 4 Pa. Commonwealth Ct. 288, 287 A.2d 442 (1972), but that case involved a proceeding to seek issuance of a teaching certificate pursuant to the terms of an uncontested statute, so that we held mandamus to be appropriate, while the present proceeding does not seek to enforce public agency action in accordance with statute but instead attacks the validity of a law, for which mandamus is never appropriate. Unger v. Hampton Township, 437 Pa. 399, 263 A.2d 385 (1970).

The Commonwealth also argues that an original proceeding is necessary here to create a record of facts against which the administrative action can be [368]*368judged, but that view is notably inconsistent with the Commonwealth’s own view that the Act calls only for agency action which is so automatic as to be ministerial. See 42 Pa. C.S. §708(b), providing against dismissal on such a theory. Moreover, the board has certified a sufficient record to us.

Certainly, within the terms of 2 Pa. C.S. §101, the order of the board here was an adjudication in that it was a “final order ... by an agency affecting personal or property rights . . . duties, liabilities or obligations” of the parties, so that an appeal is available under 2 Pa. C.S. §702. The Commonwealth does not claim that there is any further administrative remedy which petitioner has not exhausted.

The Commonwealth also argues that an appeal is not appropriate because 2 Pa. C.S. §504 provides that no agency adjudication shall be valid unless the party ‘ ‘ shall have been afforded reasonable notice of a hearing and an opportunity to be heard.” However, because petitioner was plainly willing to forego the hearing opportunity which the Commonwealth heretofore has failed to provide, it ill behooves the Commonwealth now to insist upon it.

We therefore decline to dismiss the appeal.

We turn to the constitutional merits. In support of the constitutional attack under Pennsylvania Constitution art. 1, §17 and Unitéd States Constitution art. 1, §9, cl. 3, both forbidding laws impairing the obligation of contracts and the latter also forbidding bills of attainder, petitioner cites Harvey v. Allegheny County Retirement Board, 392 Pa. 421, 141 A.2d 197 (1958) in which the Pennsylvania Supreme Court, as to the rights of a public employee in a retirement system, stated:

An employe who has complied with all conditions necessary to receive a retirement allow[369]*369anee cannot be affected adversely by subsequent legislation which changes the terms of the retirement contract.

392 Pa. at 431, 141 A.2d at 203.

The court also pointed out that an employee who has not attained eligibility to receive a retirement allowance is subject to subsequent legislation changing the terms of the retirement contract only if the change reasonably enhances the actuarial soundness of the retirement fund, a qualification not applicable here because it is undisputed that petitioner had attained eligibility to receive a retirement allowance.

In Retirement Board of Allegheny County v. McGovern, 316 Pa. 161, 174 A. 400 (1934), the Pennsylvania Supreme Court held that, when the conditions of retirement eligibility have been satisfied, retirement pay has ripened into a full contractual obligation and become a vested right. McBride v. Allegheny Retirement Board, 330 Pa. 402, 199 A. 130 (1938) also held that such a vested right cannot be disturbed by subsequent legislation.

Baker v.

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411 A.2d 852, 49 Pa. Commw. 364, 1980 Pa. Commw. LEXIS 1155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burello-v-commonwealth-state-employes-retirement-system-pacommwct-1980.