M.J. Schneider v. PA PSERB
146 A.3d 802
Pa. Commw. Ct.2016Background
- Schneider taught in Pennsylvania (1976–1980; 1993–2011) and seeks to purchase 1.94 years of prior out-of-state service for time she taught at Meigs Local School District (MLSD), Pomeroy, Ohio (1974–1976).
- Her MLSD work was performed as a Teacher Corps "teacher-intern" while she was a graduate student at Ohio University pursuing a master’s in reading; program required coursework, in-class teaching, and community service.
- Compensation was statutorily set and paid from federal Teacher Corps grant funds via MLSD; she had no employment contract with MLSD and received limited benefits (sick/vacation only).
- PSERS denied her application to purchase the out-of-state service; an administrative hearing examiner recommended approval, but the Public School Employees’ Retirement Board reversed and denied purchase.
- The Board concluded the Teacher Corps placement was educational (student/intern) rather than a bargained-for employment relationship; the Commonwealth Court affirmed the Board.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether time teaching in the Teacher Corps at MLSD qualifies as "school service" purchasable under 24 Pa.C.S. §8303 | Schneider: she was a certified teacher doing substantive classroom teaching; being enrolled in graduate classes doesn’t negate employee status | PSERS/Board: the Teacher Corps placement was part of an educational program for graduate students; compensation and requirements show intern/student status, not an employment bargain | Court held: not purchasable — program primarily educational; no bargained-for employment relationship |
| Whether Simmonds and Donovan require a different outcome here | Schneider: factual differences (night classes, certification not strictly required, paid market rate, intended to teach) distinguish her case from Simmonds/Donovan | PSERS/Board: facts align with Simmonds/Donovan — dual purpose (public benefit and trainee education) and statutory/ grant payment indicate lack of employment exchange | Court held: Simmonds and Donovan control; Board correctly applied them and concluded service was educational |
| Whether PSERS Business Rule POS-2008-01 should apply and was properly applied | Schneider: Business Rule inapplicable or misapplied; even if applied, she qualifies as an employee under it | PSERS/Board: Rule applies to student wage positions; her service was tied to student status and thus falls under denial criteria (part of curriculum, only available to students) | Court held: Business Rule applies and its application was not clearly erroneous; supports conclusion that service is not purchasable |
Key Cases Cited
- Simmonds v. State Employes’ Retirement System, 696 A.2d 801 (Pa. 1997) (medical residency was educational training, not employment for retirement credit)
- Donovan v. State Employes’ Retirement System, 701 A.2d 310 (Pa. Cmwlth. 1997) (West Point cadet service served an educational purpose and was not purchasable credit)
- Kirsch v. Public School Employees’ Retirement Board, 929 A.2d 663 (Pa. Cmwlth. 2007) (agency construction of retirement statute and business rules entitled to great weight)