J.C. Gondek v. PA Municipal Retirement Board
J.C. Gondek v. PA Municipal Retirement Board - 1594 C.D. 2016
Pa. Commw. Ct.Mar 30, 2017Background
- Gondek was hired by Antrim Township as Township Manager on December 3, 1985, and participated in the township’s pre-1989 pension plan.
- The Township enacted an ordinance and entered into a Pennsylvania Municipal Retirement System (PMRS) Agreement effective January 1, 1989; membership was mandatory and the prior pension plan was terminated as of that date.
- The PMRS Agreement defined credited service as accruing from the member’s date of hire and required five years of credited service to vest retirement annuity rights; prior service is measured by actual time employed.
- Gondek left township employment on May 22, 1990, having worked 4 years and 171 days from his original hire date, and later applied for PMRS retirement benefits in 2014.
- PMRS denied benefits because Gondek had less than five years of credited service (4.575342 years); the Board granted PMRS summary judgment and Gondek appealed to this Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Gondek had five years of credited service for PMRS vesting | Gondek argued each calendar year he worked (1985–1990) counted as a full year, giving him five years | PMRS argued credited service is measured by actual days worked from date of hire; partial years count only pro rata | Court held credited service is limited to actual time worked; Gondek had ~4.575 years and did not vest |
| Whether equitable relief or estoppel can alter PMRS benefit rules | Gondek argued he was led to believe pre-PMRS credit would carry over and equitably should receive a full year for 1985 | PMRS argued neither it nor the Board can change statutory/contractual benefit rules on equitable grounds | Court held equitable relief/estoppel cannot be used to change PMRS benefit entitlements and denied relief |
| Whether Gondek reasonably relied on alleged representations about service credit | Gondek claimed assurances he would retain prior plan credit | PMRS noted no evidence of specific misrepresentations and that agreement language was clear; Gondek knew he worked only 28 days in 1985 | Court found no evidence of reasonable reliance and refused to apply estoppel |
Key Cases Cited
- Hoerner v. Public School Employees' Retirement Board, 684 A.2d 112 (Pa. 1996) (credited service limited to time employee actually worked for employer)
- Barringer v. State Employees' Retirement Board, 987 A.2d 163 (Pa. Cmwlth. 2009) (equitable relief cannot alter pension statutory/contractual rights)
- Martorano v. Philadelphia Board of Pensions and Retirement, 940 A.2d 598 (Pa. Cmwlth. 2008) (same)
- Finnegan v. Public School Employes' Retirement Board, 560 A.2d 848 (Pa. Cmwlth. 1989) (same)
- Hughes v. Public School Employes' Retirement Board, 662 A.2d 701 (Pa. Cmwlth. 1995) (estoppel requires reasonable reliance where employee knew actual service time)
- Paupst v. Pennsylvania Municipal Retirement Board, 788 A.2d 1067 (Pa. Cmwlth. 2001) (scope of appellate review of Board decisions)
