Christian v. Johnstown Police Pension Fund Ass'n

218 A.2d 746, 421 Pa. 240, 1966 Pa. LEXIS 647
Supreme Court of Pennsylvania·Decided April 19, 1966·No. Appeal, No. 74·Published·Cited by 23 cases

Opinions

Opinion by

Mr. Justice Cohen,

Six retired police officers of the City of Johnstown, including appellee, instituted an action in equity against the Johnstown Police Pension Fund Association (appellant) seeking, in addition to their retirement pay based on one-half of their earnings at retirement, certain service increments in accordance with the Third Class City Police Pension Fund Law, Act of June 23, 1931, P. L. 932, §4303, as amended January 18, 1952, P. L. (1951) 2105, §1, 53 P.S. §39303. Appellant named the City of Johnstown as additional defendant. The chancellor ordered that appellant and additional defendant pay to each plaintiff the amounts owing on service increments. The chancellor further ordered [242] that appellee be paid an additional sum representing back pension pay, which payment is separate and apart from any increment benefits. Following approval by the court en banc, appellant appealed only from the order in favor of appellee.

Appellee became a member of the Johnstown Police Force on May 18, 1927, and although below fifty years of age, became eligible for retirement on May 18, 1947, under the law then in force. He retired on January 7, 1952, earning $815 per month. On January 1, 1956 he was rehired by the police department, where he remained until his second retirement on March 15, 1959, at which time he was earning $391 per month. During the period of his first retirement (1952 through 1955), appellee received retirement pay of $157.50 per month.

During the 1951 session, the General Assembly approved an amendment to the Third Class City Police Pension Fund Law, providing in relevant part for an increment in pay for each police officer pensioned after having served the minimum number of years required for retirement allowance eligibility. The increment amounts to one-fortieth of the retirement allowance for each year the contributor has served beyond the minimum for retirement. The bill provided that it should become effective January 1, 1952. On January 18, 1952 the act was signed by the Governor of the Commonwealth.

Appellant contends that the amendment did not become effective until January 18, 1952 and that appellee, having retired prior to that date, is ineligible to receive benefits thereunder. Appellant is partially correct. The Statutory Construction Act, Act of May 28, 1937, P. L. 1019, §4, as amended, 46 P.S. §504 sets forth the effective dates of acts of the legislature. Appellant argues that the amendatory act affects the budget of the City of Johnstown and, accordingly, the [243] third paragraph of §4/ relating to laws affecting the budget of political subdivisions, should be referred to in order to determine the effective date of the amendatory act. Under the terms of that portion of §4, as it read when the amendatory act was enacted,2 the effective date of the legislation in question would be January 18, 1952. We do not agree that there is here involved any budgetory legislation within the meaning of §4. Rather, it is our opinion that the first paragraph of that section, as it read on the date of enactment of the amendatory act,3 properly establishes the [244] effective date, which likewise is January 18, 1952. That portion provided: “All laws hereafter enacted finally at a regular session of the Legislature, except laws making appropriations, and except laws affecting the budget of any political subdivision, shall he in full force and effect from and after the first day of September next following their final enactment, unless a different date is specified in the law itself, or if enacted finally after the first day of September of the year of the regular session, or after the date specified in the law, the same shall become effective immediately upon final enactment(Emphasis supplied). Accordingly, when appellee retired for the first time on January 7, 1952 he was not entitled to service increments. The amendatory act did not, by its terms apply to appellee, and even if it had, appellee would have then been disqualified on constitutional grounds from receiving the increments. See Koehnlein v. Allegheny County Employees’ Retirement System, 373 Pa. 535, 97 A. 2d 88 (1953). In Koehnlein, this Court held that an act which provided for an increased retirement allowance payable to “any beneficiary who has heretofore retired” was invalid as a violation of Article III, §11 of the Pennsylvania Constitution which prohibited any bill giving extra compensation to any public officer, servant or employee after his services had been rendered.4 However, following his second retirement on [245] March 15, 1959, appellee was entitled to both a service increment and an increased retirement allowance based on his earnings of $391 monthly at the date of his second retirement. Although the Third Class City Police Pension Fund Law, 53 P.S. §39302 prescribes a minimum period of continuous service of twenty years for retirement eligibility, there are no provisions concerning interrupted service once the minimum has been completed. In addition, there is no requirement of continuous service for eligibility for service increment benefits. We hold, therefore, that interrupted service following completion of the minimum has no effect on a member’s right to receive service increment benefits. Accordingly, appellee, having served an additional seven years is entitled to a service increment equal to seven-fortieths of his second retirement allowance after March 15, 1959. Furthermore, since he was earning $391 per month on that date, he is entitled to one-half of that amount as his second retirement allowance.

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Christian v. Johnstown Police Pension Fund Ass'n, 218 A.2d 746, 421 Pa. 240, 1966 Pa. LEXIS 647 (Pa. 1966).

218 A.2d 746 (Christian v. Johnstown Police Pension Fund Ass'n) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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