Horsley v. PHILA. BD. OF PEN. & RET.

510 A.2d 841, 97 Pa. Commw. 558
CourtCommonwealth Court of Pennsylvania
DecidedMay 30, 1986
Docket3591 C.D. 1984
StatusPublished

This text of 510 A.2d 841 (Horsley v. PHILA. BD. OF PEN. & RET.) 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
Horsley v. PHILA. BD. OF PEN. & RET., 510 A.2d 841, 97 Pa. Commw. 558 (Pa. Ct. App. 1986).

Opinion

97 Pa. Commonwealth Ct. 558 (1986)
510 A.2d 841

Benjamin B. Horsley, Appellant
v.
Philadelphia Board of Pensions and Retirement and City of Philadelphia, Appellees.

No. 3591 C.D. 1984.

Commonwealth Court of Pennsylvania.

Argued April 8, 1986.
May 30, 1986.

*559 Argued April 8, 1986, before Judges CRAIG, DOYLE and COLINS, sitting as a panel of three.

Thomas S. McNamara, with him, Philip L. Blackman, Abramson, Cogan, Kogan, Freedman & Blackman, P.C., for appellant.

*560 Kenneth Smukler, Assistant City Solicitor, with him, Ralph J. Teti, Divisional Deputy City Solicitor, and Barbara W. Mather, City Solicitor, for appellees.

OPINION BY JUDGE CRAIG, May 30, 1986:

Benjamin B. Horsley appeals from an order of the Court of Common Pleas of Philadelphia County affirming a decision of the Philadelphia Board of Pensions and Retirement terminating his pension benefits. We affirm.

The employee worked for the City of Philadelphia from July 14, 1958 through September 30, 1978. Effective October 1, 1978, the employee began to receive pension benefits. On April 10, 1979, a federal grand jury indicted the employee on charges that he had conspired, while employed by the city, to violate the Hobbs Act, 18 U.S.C. §1951. On November 2, 1979, the employee entered a guilty plea to two of the six counts in the indictment. Those two counts of extortion involved building contractors doing business or wishing to do business with the City of Philadelphia while the employee had held the position of Housing Rehabilitation Specialist with the Urban Homestead Program.

In August 1983, the executive director of the board asked the city law department for "some guidance with regard to our continuance of payments" to the employee. A deputy city solicitor responded by memorandum and advised the board that the employee's guilty plea fell within section 217 of the Municipal Retirement System Ordinance and that the board therefore should immediately terminate his benefits. By letter dated September 1, 1983, the executive director of the board notified the employee that the board was suspending his pension benefits. The director stated that the board's decision was premised on an opinion from the city solicitor's office, indicating that the employee's guilty plea fell within the scope of the section 217 disqualification provisions.

*561 The employee requested a hearing in accordance with the Local Agency Law, 2 Pa. C. S. §553, which was held on February 23, 1984. By letter dated February 28, 1984, the employee inquired whether the board considered itself bound by opinions of the city solicitor's office. By letter dated March 30, 1984, the director of the board indicated to the employee that, under section 8-410 of the Home Rule Charter,[1] the board was bound by the city solicitor's opinions.

By letter dated June 22, 1984, the board notified the employee of its adjudication[2] to sustain the suspension of his pension benefits under section 217 of the pension ordinance.

The employee challenges the trial court's affirmance of the board's decision on numerous grounds. The employee's two major contentions are (1) that the board unlawfully terminated the employee's pension benefits *562 under section 217 of the pension ordinance and, (2) that the board's adjudication, in the form of a letter dated June 22, 1984, violated the Local Agency Law.

Pension Benefits Termination under Section 217 of the Municipal Retirement System Ordinance

The city solicitor's office advised the board that the employee's guilty plea fell within the scope of section 217(a)(2), (3), (5), (6) of the Municipal Retirement System Ordinance, which provides:

Section 217. Disqualification
217.1. Notwithstanding any other provision of this Article, no employee nor any beneficiary designated by or for any employee shall be entitled to receive any retirement or other benefit or payment of any kind except a return of contribution paid into the Retirement System, without interest, if such employee
(a) pleads or is finally found guilty, or pleads no defense, in any court, to any of the following:
. . . .
(2) Acceptance of a bribe for the performance, or affecting the performance or for the non-performance of his official duties, or the offering or giving of a bribe to any other City employee or employee of the Commonwealth of Pennsylvania or of the United States for the performance or for the non-performance of his official duties;
(3) Engaging in graft or corruption incident to or in connection with his office or employment constituting a violation of the laws of the Commonwealth of Pennsylvania or the United States;
. . . .
(5) Malfeasance in his office or employment;
*563 (6) Engaging in a conspiracy to commit any of the foregoing; . . . .

The employee argues that he was not subject to the disqualification provisions because he was not an employee at the time of his guilty plea and subsequent conviction. Rather, because he was already receiving pension benefits under the pension ordinance, his status was that of a retired member, not an employee. The definition section of that ordinance provides, in part:

Section 201. Definitions. Unless a different meaning is plainly required by the context, the following words and phrases used in this article shall have the following meanings:
(a) Employee. Any elected or appointed officer or employee who is paid out of the Treasury of the City. . . .
. . . .
(g) Retired Member. Any retired employee of the City who is receiving or entitled to receive retirement benefits from any division of the Municipal Retirement System.

The employee argues that the language of the definitions section of the ordinance establishing those distinctions is plain and unambiguous and therefore must be given its plain and obvious meaning. However, the inclusion of the word employee as part of the definition of "Retired Member" is also plain and unambiguous.

The trial court deferred to the board's determination that the disqualification provisions applied to former employees, regardless of their retirement status, who committed disqualifying offenses in the course of their employment with the city. The trial court further applied this court's reasoning in Chappell v. Pennsylvania Utility Commission, 57 Pa. Commonwealth Ct. 17, 425 A.2d 873 (1981), that the legislature is not presumed to *564 have intended the absurd or unreasonable result of permitting a corrupt employee to resign and receive pension benefits before pleading guilty to a disqualifying offense.

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Madeja v. Whitehall Township
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Philadelphia Board of Pensions & Retirement v. Amanto
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Horsley v. Philadelphia Board of Pensions & Retirement
510 A.2d 841 (Commonwealth Court of Pennsylvania, 1986)

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Bluebook (online)
510 A.2d 841, 97 Pa. Commw. 558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horsley-v-phila-bd-of-pen-ret-pacommwct-1986.