Kelley v. State Employees' Retirement Board

890 A.2d 1173
CourtCommonwealth Court of Pennsylvania
DecidedFebruary 16, 2006
StatusPublished
Cited by1 cases

This text of 890 A.2d 1173 (Kelley v. State Employees' Retirement Board) 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
Kelley v. State Employees' Retirement Board, 890 A.2d 1173 (Pa. Ct. App. 2006).

Opinions

OPINION BY

Judge FRIEDMAN.

James R. Kelley (Claimant) petitions for review of the April 7, 2005, order of the State Employees’ Retirement Board (SERB), which denied Claimant’s request to convert his 14.5250 years of service credit earned as a Pennsylvania State Senator from Class A to either Class D-4 or Class AA. We affirm SERB’S denial of Claimant’s request to convert his Class A service to Class D^l service; however, we reverse SERB’S denial of Claimant’s request to convert his Class A service to Class AA service.

Claimant first became an active member of the State Employees Retirement System (SERS) on May 22, 1974, when he took office as an elected member of the Pennsylvania General Assembly. Claimant served in the Senate until November 30, 1988. During that time, Claimant accrued benefits as a Class A member and was credited with 14.5250 years of state service. When Claimant terminated his Senate service, he was vested in SERS retirement benefits, but he did not withdraw his accumulated deductions and did not apply for an annuity. (Findings of Fact, Nos. 2-4, 7.)

From June 21, 1990, to December 31, 2001, Claimant served as a judge of the Commonwealth Court of Pennsylvania. While a judge, Claimant was an active member of SERS and was credited with 11.5278 years of Class A service. However, under Goodheart v. Casey, 521 Pa. 316, 555 A.2d 1210, aff'd on reconsideration, 523 Pa. 188, 565 A.2d 757 (1989),1 Claimant [1177]*1177elected to become a Class E-l member of SERS; thus, Claimant’s service as a judge is credited as Class E-l. (Findings of Fact, Nos. 8-9,11,13.)

The Act of May 17, 2001, P.L. 26, (hereinafter, Act 9) amended the State Employees’ Retirement Code (Retirement Code), 71 Pa.C.S. §§ 5101-5956, by creating two new classes of state service, viz. Class AA and Class D-4. On October 26, 2001, Claimant requested information from SERS regarding the classes of service available to him for his Class A service in the Senate. On December 17, 2001, SERS informed Claimant that Class A service was the only class available and that Claimant could not convert his Class A service in the Senate to Class AA or Class D-4 service.2 On December 27, 2001, Claimant sought review of the decision with the SERS Appeals Committee. (Findings of Fact, Nos. 22, 39-41.)

On December 31, 2001, Claimant reached mandatory retirement age, and his service as an active judge ended. Claimant applied for an annuity from SERS with an effective date of January 1, 2002. Claimant’s application was subject to a reservation of his claim for Class AA or Class D-4 service credit for his Senate service. SERS calculated Claimant’s annuity based on 14.5250 years of Class A service and 11.5278 years of Class E-l service. (Findings of Fact, Nos. 14-16, 44.)

On February 1, 2002, SERS informed Claimant that the Appeals Committee denied his request to convert his Class A service as a Senator to Class AA or Class D-4 service. On February 20, 2002, Claimant filed a timely appeal. (Findings of Fact, Nos. 42-43.)

In lieu of a hearing, the parties submitted Stipulations and Exhibits to the Hearing Examiner. Claimant argued, inter alia, that: (1) Act 9 violated his equal protection rights by excluding judges with prior Class A legislative service from that class of state employees who were entitled to convert their prior Class A service to Class D-4 or Class AA service; and (2) Act 9 impaired his contract for pension benefits. After considering the matter, the Hearing Examiner ruled that Claimant’s request for Class D-4 service credit was time-barred because Claimant did not make a request by June 30, 2001, as required by section 5306.2(a) of the Retirement Code, 71 Pa.C.S. § 5306.2(a). With respect to Claimant’s request for Class AA credit, the Hearing Examiner concluded that Act 9 did not violate Claimant’s equal protection rights or impair his contract for pension benefits. Claimant filed exceptions with SERB, which, on April 7, 2005, denied Claimant’s request to convert his prior Class A service to Class AA or Class [1178]*1178service. Claimant now petitions this court for review.3

I. Timeliness of Class D-4 Request

Claimant first argues that SERB erred in concluding that Claimant’s request to convert his Class A service to Class D-4 service was untimely under section 5306.2(a) of the Retirement Code. We agree.

Section 5306.2(a) of the Retirement Code, which became effective on May 17, 2001, states:

A member of the General Assembly who on the effective date of this section is eligible for Class D-4 membership may elect to become a member of Class D-4 ... by filing written notice with [SERB] before July 1, 2001, or before the member terminates State service as a member of the General Assembly, whichever occurs first.

71 Pa.C.S. § 5306.2(a) (emphasis added). Because Claimant was not a member of the General Assembly between May 17, 2001, and July 1, 2001, this provision did not apply to him.

In fact, on December 17, 2001, when SERS initially advised Claimant that he could not convert his Class A service to Class D-4 service, SERS stated, “because you are a former member of the General Assembly, and not a current member of the General Assembly ... § 5306.2 [is] not applicable to you.” (R.R. at A-72) (emphasis added). Notably, SERS did not inform Claimant that his request to convert Class A service to Class D-4 service was denied because Claimant failed to file a timely notice under section 5306.2(a) of the Retirement Code.

Moreover, in concluding that Claimant’s request for Class D-4 service credit was untimely under section 5306.2(a) of the Retirement Code, SERB failed to realize that Claimant’s equal protection challenge extends to section 5306.2(a) of the Retirement Code because that provision limits the election of Class D-4 membership to current members of the General Assembly. If Claimant were to prevail on his equal protection argument, so that Class E-l members with prior Class A service in the General Assembly would be eligible for Class D-4 service credit, it would be necessary for SERS to provide notice of this change in the Class D-4 eligibility requirements and an opportunity for newly eligible individuals to elect Class D-4 membership.

II. Equal Protection

The next question is whether Act 9 violates Claimant’s equal protection rights by excluding him from those allowed to convert their prior Class A service to Class AA or Class D-4 service. In performing an equal protection analysis, we are guided by the principle that a strong presumption exists that all legislation promulgated by the General Assembly is constitutional. Curtis v. Kline, 542 Pa. 249, 666 A.2d 265 (1995).

The essence of equal protection under the law is that like persons in like circumstances will be treated similarly. Id. However, equal protection does not require that all persons under all circumstances enjoy identical protection under the law. Id.

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Related

Kelley v. State Employees' Retirement Board
890 A.2d 1173 (Commonwealth Court of Pennsylvania, 2006)

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890 A.2d 1173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelley-v-state-employees-retirement-board-pacommwct-2006.