Thorpe v. Public School Employees' Retirement Board

879 A.2d 341, 2005 Pa. Commw. LEXIS 353
CourtCommonwealth Court of Pennsylvania
DecidedJuly 12, 2005
StatusPublished
Cited by1 cases

This text of 879 A.2d 341 (Thorpe v. Public School 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.

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Thorpe v. Public School Employees' Retirement Board, 879 A.2d 341, 2005 Pa. Commw. LEXIS 353 (Pa. Ct. App. 2005).

Opinion

OPINION BY

Judge LEADBETTER.

Jean Pinto Thorpe petitions for review of an order of the Public School Employees’ Retirement Board denying her requests to receive retirement credit for auxiliary services she performed for nonpublic school students while working for two not-for-profit corporations, the Program of Auxiliary Services for Students (PASS) and Elwyn, Inc.

Thorpe filed two applications with the Public School Employees’ Retirement System (PSERS) seeking retirement credit for service with PASS and Elwyn, both of which provided educational services to nonpublic school students within the service area of the Philadelphia Intermediate Unit.1 Thorpe’s applications were denied, and she requested administrative hearings with respect to the denials: On July 9, 2003, Board Hearing Examiner Michael L. Bangs conducted a hearing on the appeals. By decision dated February 12, 2004, he recommended that both of Thorpe’s applications to purchase credit for prior service be denied.

The hearing examiner’s pertinent findings of fact, which the Board adopted, included that Thorpe is an active member of PSERS through her present employment as an Upper Merion School District schoolteacher. From 1977 through 1989, Thorpe worked with nonpublic school students as a remedial reading and math teacher and as a curriculum coordinator in the City of Philadelphia (City), and PASS paid Thorpe for providing these services. From 1989 through 1992, Thorpe continued to work as a coordinator,2 and Elwyn paid Thorpe for this service.3 Thorpe was never a direct employee of the school district’s intermediate unit, and the school district has never made any contribution to PSERS on Thorpe’s behalf.

At all relevant times, the intermediate unit supplied auxiliary services to nonpublic school students in order to comply with [345]*345Act 89.4 Since 1975, when Act 89 became effective, auxiliary services were supplied through contracts with external vendors, including PASS and Elwyn, but never through school district employees. The only exception is for hearing services, which are not relevant here. The intermediate unit enters into these contracts through a competitive bidding process whereby it seeks requests for proposals from independent contractors, and the intermediate unit can reject bids based on the quality of the submissions. PASS and Elwyn were responsible for the development and delivery of their programs, and they invoiced the school district or the intermediate unit on a monthly basis for their services. They received a monthly payment based on a review of the invoices against the contract amount. The school district did not directly pay the salaries of persons working for PASS or Elwyn. In fact, proposed contracts between PASS and the school district and between Elwyn and an unnamed person, both of which were PSERS exhibits, respectively indicated that PASS was an independent contractor and that Elwyn was the unnamed person’s employer.

The school district entered into contracts with PASS and Elwyn to provide auxiliary services to students of nonpublic schools pursuant to Act 89. Employees of PASS and, thereafter, employees of Elwyn hired and supervised Thorpe. Although the intermediate unit kept a personnel file on Thorpe as well as the other teachers working for PASS and Elwyn, PASS and Elwyn had the responsibility to ensure that all of the teachers who worked for [346]*346them had the required certifications. Thorpe met with intermediate unit supervisors on a regular basis in order to satisfy the intermediate unit that the contract terms between the intermediate unit and PASS or Elwyn were being fulfilled. Thorpe received all requisite teaching materials from either PASS or Elwyn. PASS and Elwyn set her work hours, evaluated her performance, and offered their employees various benefits, such as sick leave, retirement programs, and health insurance. Thorpe did not receive employer-provided benefits from the school district, and she was not enrolled in PSERS while she worked for PASS and Elwyn. Hearing Examiner’s Decision, In re Account of Thorpe (Nos. 2002-04, 2003-09, dated February 12, 2004), Findings of Fact Nos. 1-27, slip op. at 1-4.

The hearing examiner also concluded, inter alia, that neither PASS nor Elwyn were public schools or governmental entities for purposes of the Public School Employees’ Retirement Code (Retirement Code), 24 Pa.C.S. §§ 8101 — 8535, and its attendant regulations. See 22 Pa.Code § 211.2. Therefore, Thorpe was not entitled to purchase credit for her prior service pursuant to the statute. Id., Conclusions of Law Nos. 7 and 11, slip op. at 7, 8. Thorpe filed exceptions to the hearing examiner’s order. By order dated June 22, 2004, the Board denied Thorpe’s requests to receive retirement credit. In doing so, it explained that it had conducted an independent review of the record and then adopted the findings of fact, conclusions of law, discussion, and recommendation of the hearing examiner as if they were its own. See In re Appeal of Thorpe (Nos. 2002-04, 2003-09, dated June 22, 2004), slip op. at 1.

On appeal here, Thorpe raises the following questions: (1) whether the Board’s decision denying her applications to purchase service credit for the years 1977-78 through 1991-92 is unsupported by substantial record evidence; and (2) whether the Board’s decision denying her application to purchase service credit for those same years is an error of law.5

We begin by noting:

Section 8303(c) of the Retirement Code[, 24 Pa.C.S. § 8303(c)] provides for the purchase of credit and receipt of eligibility points for “previous school service or creditable nonschool service.” Eligibility points are based upon length of service and determine both the vesting of pension rights and the amount of pension to which an employee is entitled.

Pennsylvania Sch. Bds. Ass’n, Inc. v. Pub. Sch. Employees’ Ret. Sys., 804 A.2d 737, 742 (Pa.Cmwlth.2002), aff'd, 580 Pa. 610, 863 A.2d 432 (2004).6

[347]*347Section 8102 of the Retirement Code, 24 Pa.C.S. § 8102, defines “previous school service” as “[sjervice rendered as a school employee including service in any summer school conducted by a school district of the Commonwealth prior to the member’s most recent entrance in the system.” Section 8102 defines “school employee” as “[a]ny person engaged in work relating to a public school for any governmental entity and for which work he is receiving regular remuneration as an officer, administrator or employee excluding, however, any independent contractor or a person compensated on a fee basis.” Further, Section 8102 defines “public school” as

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879 A.2d 341, 2005 Pa. Commw. LEXIS 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thorpe-v-public-school-employees-retirement-board-pacommwct-2005.