Trakes v. Public School Employes' Retirement System

768 A.2d 357, 2001 Pa. Commw. LEXIS 3
CourtCommonwealth Court of Pennsylvania
DecidedJanuary 8, 2001
StatusPublished
Cited by7 cases

This text of 768 A.2d 357 (Trakes 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
Trakes v. Public School Employes' Retirement System, 768 A.2d 357, 2001 Pa. Commw. LEXIS 3 (Pa. Ct. App. 2001).

Opinion

NARICK, Senior Judge.

Francis- M. Trakes (Trakes), Gertrude Zebraski (Zebraski), Phyllis M. Strawn (Strawn), and Earl M. Stidard (Stidard), (collectively, Claimants) appeal from an order of the Pennsylvania Public School Employes’ Retirement Board (Board) denying their respective applications for disability annuity benefits pursuant to § 8307 of the Public School Employee’s Retirement Code (Retirement Code). 24 Pa.C.S. § 8307. Given that Claimants in the above captioned matters raise a common issue, this Court consolidated these appeals by order dated September 20, 1999 for collective disposition. The mutual question presented by Claimants is whether 22 Pa. Code § 211.2 (regulation § 211.2), issued pursuant to the Retirement Code, provides active member status in the Pennsylvania Public School Employes’ Retirement System (PSERS) to public school employees that are off work while receiving workers’ compensation benefits. For the reasons set forth herein, we affirm.

In the interests of clarity, we shall first review the facts relevant to each Claimant followed by a review of the relevant provisions of the Retirement Code and discussion of the common issue pertaining to regulation § 211.2. Thereafter, we shall address the additional arguments presented by each Claimant.

PSERS is a statutory program that requires both employers and employees make contributions toward each participating employee’s account to establish a re *360 tirement annuity upon which the employee may draw benefits once retired or disabled. 24 Pa.C.S. §§ 8101-8584. Claimants were PSERS participants at the time they sustained their respective work-related injuries for which they received workers’ compensation benefits.

Claimant Trakes became a PSERS member on October 19, 1971 when he accepted a position with the Schuylkill County Area Vocational and Technical School. On February 10, 1992, Trakes sustained a work-related foot injury for which he began receiving workers’ compensation benefits. Trakes’ last day of service in PSERS was March 30, 1993 the date on which he began an unpaid leave of absence and last made contributions to his account. Trakes seeks service credit for the time period that he was on leave from March 30, 1993 through February 1998. Trakes filed an application for disability retirement benefits on July 25, 1996 and also made a request to purchase military service credit. By letter dated April 21, 1997, PSERS denied Trakes’ disability retirement benefit requests. The Board then granted Trakes’ request for an administrative hearing.

Claimant Zebraski became a PSERS member in February 1976 when she accepted a position with the Norristown Area School District. In 1988, Zebraski sustained a work-related injury for which she began receiving workers’ compensation benefits. Pursuant to the collective bargaining agreement between the school district and Zebraski’s' union representative, the school district paid Zebraski her full salary in exchange for her workers’ compensation disability check. During the entire period Zebraski was off work due to injury, the school district reported to PSERS that she was on full paid leave and made its and Zebraski’s contributions to her PSERS account. In March 1995 the school district inquired whether PSERS limits service credit for absence due to injury. By letter dated November 15, 1995, PSERS responded that workers’ compensation can only be reported if it is paid leave and qualifies under PSERS’ special sick leave policy. PSERS determined that 5.5 years of Zebraski’s leave did not qualify for service credit, reduced her credited service from 19.5 years to 14.0 accordingly, and remitted the school district’s corresponding pickup contributions from her account. 1 Zebraski applied for disability retirement benefits in April 1997, which PSERS subsequently denied. The Board then granted Zebraski’s administrative hearing request.

Claimant Strawn became a PSERS member in September 1976 after accepting a position with the Bedford Area School District. On September 10, 1981, Strawn sustained a work-related back injury for which she began receiving workers’ compensation benefits. In January 1983 the school district reported Strawn on unpaid leave for several weeks and after a short return to active service she again reported on unpaid leave in February 1983. Strawn remained off work on workers’ compensation disability until her benefits were commuted and a stipulation of settlement was entered on November 9,1986. In January 1985, while still on workers’ compensation disability, Strawn met with a PSERS representative regarding her retirement benefits. Strawn asserts, and PSERS denies, that this representative instructed Strawn that she would receive a larger benefit if she waited until age sixty-two (62) or sixty-five (65) to draw on her retirement account. In February 1985, two years after her last contribution as an active member, the Board designated Strawn as a nonmember following the expiration of her two-year classification as an inactive member. Thereafter, in April 1997, Strawn applied for disability retirement benefits. By letter dated April 15, 1997, PSERS *361 denied Strawn’s retirement benefit request. The Board then granted Strawn’s administrative hearing request.

Clamant Stidard became a PSERS member in September 1974 when he accepted a position with the Elizabeth Forward School District. Stidard was on a brief unpaid leave of absence from January 1988 through June 1988 for which he received service credit under the special sick leave policy. Stidard returned to active service in July 1988, which continued until he sustained a work-related injury on March 15, 1991. Stidard remained on workers’ compensation disability through 1997 when the workers’ compensation authorities classified him as permanently disabled. PSERS records reflect that Sti-dard’s last reported salary occurred in June 1991, which resulted in his two-year disability eligibility period as an inactive member ending on June 30, 1993. During the years 1993 and 1994 Stidard received vacation pay resulting in his employer classifying him as an active employee for this period. Stidard applied for disability benefits on August 16, 1995 while still receiving workers’ compensation benefits. By letter dated December 27, 1995, the Appeals Committee of the Board denied Sti-dard’s request, which prompted his application for an administrative hearing. By letter dated December 27, 1995, PSERS denied Stidard’s retirement benefit request. The Board then granted Stidard’s administrative hearing request.

The Board consolidated these administrative appeals for hearing. After the parties presented their respective cases, the Board’s hearing examiner issued a recommended opinion and order dated April 21, 1999 in favor of PSERS. The hearing examiner reasoned that Claimants did not satisfy the definitions of either an active member or an inactive member, and thus did not qualify for disability benefits under the Retirement Code. Following timely exceptions filed by Claimants and PSERS, the Board issued its order in conjunction with a majority and minority opinion on July 21, 1999, which denied the exceptions and found in favor of PSERS’ position. Claimants now bring the instant appeal. 2

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Bluebook (online)
768 A.2d 357, 2001 Pa. Commw. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trakes-v-public-school-employes-retirement-system-pacommwct-2001.