Office of Admin. v. State Employees’ Retirement Bd.

Bruce Edwards, Joseph Sarkis and Joseph Kovel (collectively, “Claimants”) were Pennsylvania State Police (“PSP”) officers and members of the Pennsylvania State Troopers Association (“PSTA”). The Commonwealth of Pennsylvania (“Commonwealth”) and PSTA were parties to a collective bargaining agreement, which expired on June 30, 2008. During negotiations for a successor agreement, the Commonwealth and PSTA reached an impasse regarding, inter alia, union officer leave. An Act 111 interest arbitration panel was convened, and it issued an award on December 24, 2008 (“December Award”) that included, in relevant part, compensation for officers on leave while working on union duties. The Office of Administration (“OA”) and PSP (collectively, “Appellants”) appealed the December Award to the Commonwealth Court, arguing that the arbitration award violated the creditable leave provision found in section 5302(b)(2) of the Retirement Code, 71 Pa.C.S. section 5302(b)(2), as, in their view, that section obligated the Commonwealth to pay troopers on leave only the compensation she or he would receive as if in full-time active duty. The issue this case presented for the Pennsylvania Supreme Court’s review centered on whether compensation paid at higher amounts to those employees on leave had to be considered when computing that employee’s retirement benefit under the Retirement Code. To that end, the Court had to decide whether Kirsch v. Pub. Sch. Emp.’ Ret. Bd., 985 A.2d 671 (Pa. 2009), in which the Court decided the same issue under the companion Public School Employees Retirement Code, 24 Pa.C.S. sections 8101–9102 (“PSERC”), also applied here. After review, the Supreme Court concluded the relevant statutory provisions of the Retirement Code and PSERC differed significantly and thus compelled a contrary result. Accordingly, the Court affirmed the Commonwealth Court. View "Office of Admin. v. State Employees' Retirement Bd." on Justia Law