Harper v. State Employees' Retirement System

649 A.2d 643, 538 Pa. 520, 1994 Pa. LEXIS 587
CourtSupreme Court of Pennsylvania
DecidedOctober 31, 1994
StatusPublished
Cited by8 cases

This text of 649 A.2d 643 (Harper v. State Employees' Retirement System) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harper v. State Employees' Retirement System, 649 A.2d 643, 538 Pa. 520, 1994 Pa. LEXIS 587 (Pa. 1994).

Opinion

OPINION

PER CURIAM.

This is a direct appeal from an order of the Commonwealth Court which denied Class D-3 membership status in the State Employees’ Retirement System (SERS) for the appellants, Ruth B. Harper and Nicholas B. Moehlmann, 154 Pa.Cmwlth. 573, 624 A.2d 279. Appellants are Pennsylvania legislators who initially took office after the March 1, 1974 effective date of the 1974 State Employees’ Retirement Code, 71 Pa.C.S. §§ 5101-5956, which eliminated as to all who took office after that date an option to receive Class D-3 pension benefits.

Class D-3 benefits substantially exceed those of the standard Class A benefit package available to most state employees, but require contributions to the pension fund at a rate three and three-quarters times the standard rate. Also, Class D-3 members can obtain early retirement benefits after only six years of service, instead of ten years as required for Class A members.

The 1974 Code did not eliminate Class D-3 benefits for those who took office before March 1, 1974. Although appellants did not take office before that date, they nevertheless filed the present action seeking a summary judgment that they were entitled to Class D-3 membership. Upon a motion for summary judgment by SERS, however, the Commonwealth Court) dismissed the action.

Appellants contend that the two-tiered pension system of the 1974 Code unconstitutionally denies legislators uniform and equal treatment with regard to their pension benefits. We do not agree.

Appellants rely heavily upon this Court’s decision in Klein v. State Employees’ Retirement System, 521 Pa. 330, *523 555 A.2d 1216 (1989), aff'd on reconsideration sub nom. Goodheart v. Casey, 523 Pa. 188, 565 A.2d 757 (1989), wherein we held unconstitutional the 1974 Code’s two-tiered pension system for the judiciary. In reaching that result we were sharply divided as to rationale. The various rationales employed, as reviewed at length in our opinion upon reconsideration, were that the two-tiered system violated: 1) the express requirement in Article V, § 1 of the Pennsylvania Constitution that there be a unified judicial system; 1 2) the equal protection guarantees of the Pennsylvania constitution; and 3) a constitutionally-based requirement, see Goodheart v. Casey, 521 Pa. 316, 555 A.2d 1210 (1989), that judges be paid adequate compensation. 2 Of these rationales, the first two were advanced by three members of the Court in the opinion announcing the judgment of the court. The third was advanced by Mr. Chief Justice Nix in his concurring opinion, which was joined by two other justices. No single rationale was supported by a majority of the Court.

As applied to the present case involving legislators, two of the three rationales advanced in Klein are plainly inapposite, to wit, the requirement of a unified judicial system and the requirement that judges be paid adequate compensation. These rested on constitutional provisions which assured uniformity and independence for the judiciary, and have no application in the context of a pension scheme that applies to legislators.

Although appellants argue that the Pennsylvania legislative system is, in effect, a unified one, 3 there is no explicit “unified legislature” provision in the Pennsylvania Constitution comparable to the “unified judiciary” provision cited by the opinion announcing the judgment of the court in Klein as imposing a *524 requirement of uniform compensation. Also, when the legislature has adopted a pension scheme for the judiciary, concerns relating to judicial independence and separation of powers may arise, but where, as here, the issue is whether the legislature has adopted a valid pension plan for itself, similar concerns do not apply. See Pa. Const, art. II, § 8 (legislature establishes compensation for its own members).

With regard to the equal protection rationale, the opinion announcing the judgment of the court stated that “[ejlected public officials similarly situated cannot be paid different compensation when they perform the same functions and exercise the same authority.” 521 Pa. at 349, 555 A.2d at 1226. Accordingly, appellants argue that compensation, such as pension benefits, paid to legislators cannot be differentiated in the manner established by the 1974 Code.

Again, it must be noted that the equal protection rationale was followed by only three members of the Court. It was expressly rejected by three justices via Mr. Chief Justice Nix’s concurring opinion, and it was implicitly rejected by Mr. Justice McDermott, who dissented. Further, it expressly rested on what were characterized as fundamental interests in the independence and integrity of the judiciary, these being concerns which, as heretofore discussed, do not arise in the present case. In addition, it was merely an alternate rationale for the opinion announcing the judgment of the court, which opinion first rested on a view that the two-tiered pension system violated the constitutional requirement of a unified judicial system.

Thus, the equal protection analysis advanced by appellants has never, in the context of compensation for elected officials, been adopted by a majority of this Court. We believe that the issue was properly addressed in the concurring opinion of Mr. Chief Justice Nix, wherein he stated:
In an Equal Protection analysis, the issue is not a question of the adequacy of the compensation, but rather the legitimacy of the classification. The focus is therefore upon whether the classification is appropriate. The accepted test *525 is whether or not there is a rational basis for that classification, City of Cleburne, Texas v. Cleburne Living Center, 473 U.S. 432, 440, 105 S.Ct. 3249, 3254, 87 L.Ed.2d 313 (1985) ...; James v. Southeastern Pennsylvania Transportation Authority, 505 Pa. 137, 145, 477 A.2d 1302, 1306 (1984), unless the classification affects a suspect group or impinges upon a fundamental right. San Antonio School District v. Rodriguez, 411 U.S. 1, 93 S.Ct. 1278, 36 L.Ed.2d 16 (1973). Clearly, in this case the appropriate standard is rationality.
The right involved here is the right of employment. Specifically it concerns the compensation to be paid for that employment.

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649 A.2d 643, 538 Pa. 520, 1994 Pa. LEXIS 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harper-v-state-employees-retirement-system-pa-1994.