Higgins v. Public School Employes' Retirement System

736 A.2d 745
CourtCommonwealth Court of Pennsylvania
DecidedAugust 18, 1999
StatusPublished
Cited by15 cases

This text of 736 A.2d 745 (Higgins v. Public School 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
Higgins v. Public School Employes' Retirement System, 736 A.2d 745 (Pa. Ct. App. 1999).

Opinion

FLAHERTY, Judge.

Montgomery Area School District (School District) teacher, Elizabeth Higgins (Claimant), petitions this Court to re-. view a decision of the Pennsylvania Public School Employes’ Retirement Board (Board) which rejected the findings and recommendation of a hearing examiner (Hearing Examiner) to grant her multiple service. We reverse and order Board to grant her multiple service membership.

Here, Claimant is seeking an opportunity to elect “multiple service” under the Pennsylvania Public School Employees Re *747 tirement Code 1 (Retirement Code) which, if permitted, will enable her to receive credit in her retirement account for over two years of previous employment with the Pennsylvania Department of Education (DOE). Her previous DOE service combined with twenty-three years of service and membership in the Pennsylvania Public School Employes’ Retirement System (PSERS), will give her a sufficient amount of service (twenty-five years) to retire in 1999.

Claimant was a member of Pennsylvania State Employes’ Retirement System (SERS or System) while employed by DOE from June 18, 1962 through July 22, 1964 (over two years). Claimant later became a member of PSERS on September 1, 1976, when she became a professional employee of School District where she has had continual service to date. As a PSERS member with past state service, under the definitions in 24 Pa.C.S. § 8102, Claimant qualifies to apply for multiple service, under which she could combine her credited service in both systems. 2

School District’s Business Manager (Business Manager) was involved in the hiring of Claimant, and testified that at the time Claimant was hired, and at no time since (until Claimant’s present appeal) did he or School District know of School District’s duty to provide notice of the right to elect multiple service. Consequently, School District did not inform Claimant of her right to elect multiple service membership, either upon her employment or at any time since.

Business Manager further testified that upon the hiring of Claimant in 1976, that Business Manager submitted Claimant’s completed single-sided enrollment application to PSERS and it is highly relevant that the particular application provided by PSERS at that time did not provide any notice to Claimant of any 30-day provision to elect multiple service. 3

*748 Retirement Code specifies that eligible members must elect multiple service within thirty days of their entry into the System (election provision). 4 It is undisputed that PSERS did not enforce this election provision between 1976 and 1983. Between 1983 and June 30, 1985, PSERS implemented two successive grace periods that allowed all members to elect multiple service, despite having failed to do so within the first 30 days of entry into the System, regardless of whether or not the employer had notified the participant of the election provision. 5 PSERS published news of this grace period through one article in each of two newsletters. 6

Thereafter, in the summer of 1995, while contemplating retirement, Claimant contacted PSERS’ office in Williamsport by phone, and was informed that her past state service could be combined with her school service in order to provide an earlier retirement date. Claimant sent a letter, dated January 8, 1996 to PSERS, requesting information regarding purchasing credit for her past state service.

PSERS treated this letter as a request to elect multiple service, and denied the request on the grounds that the request was made more than 30 days following Claimant’s entry into the System. Claimant requested review by the Appeals Committee of PSERS which informed Claimant that it had denied her request. Claimant then requested an administrative hearing, which was held before an independent Hearing Examiner on December 11, 1996.

After receiving testimony and evidence, Hearing Examiner made findings of facts and conclusions of law and, based upon the still-valid holdings in Lincoln v. Wright, 23 Pa. 76 (1854), wrote a lengthy, detailed opinion which recommended to Board that Claimant’s request for multiple service be granted. PSERS filed exceptions to Hearing Examiner’s recommendation and report, distinguishing the facts in Lincoln from the present case, proposing that the Lincoln decision (based upon the burden of a person to read every article in a daily newspaper) is substantially different from the burden of reading the ten-page PSERS newsletter mailed only periodical- *749 iy. 7

On review, Board reversed the decision of Hearing Examiner and denied Claimant’s request for multiple service. 8 From that decision of Board, Claimant’s petition for review and the amicus brief followed. 9

Claimant has specifically brought two issues before the court, to wit:

1) Where a statute mandates notice of an important legal economic benefit (here, it is an economic retirement benefit), but does not provide for a specific method of notice, is publication of one article in a ten-page member organization publication or newsletter, distributed periodically by bulk mail to each member or in bulk through employee mailboxes sufficient constructive notice to constitute constitutional due process; and
2) Did Board err in denying Claimant’s request to become a multiple service member, when the request was made more than 30 days after Claimant became a public school employee, considering that both PSERS and School District initially failed to provide timely statutory notice and later attempted to provide notice only via articles in a newsletter? 10

There are no cases recorded in the Commonwealth which address whether a mandatory notice provision which is silent as to the form of notice is satisfied by the modern-day “newsletter.” The Supreme Court of Pennsylvania has held that mere publication of an article in a daily newspaper violates due process and is insufficient legal notice because requiring individuals to read every article in a newspaper in order to protect their individual interests places too great a burden on citizens, who are entitled to statutory notice of procedures which impact their individual legal, economic, or property rights or interests. Lincoln. Since 1854, Lincoln has been the standard for notice provisions. Now, we must once again revisit the issue in light of the modern-day newsletter. 11

I. Retirement Code Notice Requirements

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Bluebook (online)
736 A.2d 745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/higgins-v-public-school-employes-retirement-system-pacommwct-1999.