92 Pa. Commw. 502 | Pa. Commw. Ct. | 1985
Opinion by
' This is an appeal by Anthony T. Rebo (Claimant) from an order of the Unemployment Compensation Board of Review (Board) affirming a referee’s deci
The referee found that Claimant had last been employed by Allegheny County Community College as a teacher at an hourly rate of eighteen dollars. Claimant filed an application for benefits with an effective date of April 22, 1984 thereby establishing as his base year the first, second, third and fourth quarters of 1983. Claimant’s total base year earnings were $5,185.00 and his highest quarterly earnings were $3,825.00 which were reported during the fourth quarter of 1983. Figured into the $3,825.00 total was $1,125.00 which Claimant received in November 1983 as severance pay from a former employer. Proper computation of this severance pay is the subject of the present dispute.
Under Section 404(a) of the Unemployment Compensation Law,
.On appeal Claimant contends that although he actually received his severance pay from a former employer in a lump sum payment of $1,125.00 during the fourth quarter of 1983, he was entitled to the payment as of December 17, 1982 under a plant closing agreement. Claimant thus maintains that the relevant date for determining when he was paid pursuant to ■Section 404(b) is 'the daJte upon which the severance ■payment was assignable to him, not the date on which he actually received the money. Claimant further alleges error in the Board’s failure to prorate the severance payment “to the weeks immediately following the date, that payment was definitely assignable to a payroll period.” Claimant’s brief, p. 19. Under Claimant’s theory, his highest quarterly earnings would be reduced, although his base year earnings would not be substantially reduced and, hence, he would qualify for some benefits.
In Hock v. Unemployment Compensation Board of Review, 50 Pa. Commonwealth Ct. 517, 413 A.2d 444 (1980) this Court held that an employee who receives severance pay can also receive unemployment compensation benefits. Hoch opined that severance payments ■are in recognition of past services to an employer, id. at 523, 413 A.2d at 447, and also determined that such payments are remuneration. Id. at 524, 413 A.2d at 447.
■Section 4(x) of the Law, 43 P.S. §753(x), defines wages as “all remuneration . . . paid by an employer to an individual with respect to his employment. . . .” It is clear from Hock that severance pay falls within
Wages must be included in the quarter in which they were received, not reallocated to the quarter in which they were earned. ‘Paid’ can not mean ‘earned.’ Had the legislature intended wages to include income earned but not received, that language would have been used.
Id. at 164, 454 A.2d at 225. We adhere to the position stated in Wooley.
Claimant, arguing in support of his proposition that paid means assignable to, cites 34 Pa. Code §61.3. This Bureau of Employment Security Regulation provides as follows:
Wages
(a) Date of payment. Wages shall be deemed to be paid on the day on which amounts definitely assignable to a payroll period are generally paid by the employer, even though the wages have not actually been reduced to the possession of employes.
This regulation, however, pertains to an employer’s reporting of wages for purposes of the collection of the fund and is not relevant to the issue presented here. We are in agreement with the Board that different policy considerations apply in determining when payment occurs under Regulation 61.3 as opposed to Section 404(b) of the Law.
'Claimant’s other contention, that his severance pay should be pro-rated, must fall as well. Claimant relies
The decision of the Board is affirmed.
Order
Now, October 30, 1985, the order of the Unemployment Compensation Board of Review, No. B-233610, dated August 21, 1984 is affirmed.
Act of December 5, 1936, Second Ex. Sess., P.L. (1937), 2897, as amended.
The referee actually stepped down four steps in the Benefits Tables rather than three (as the statute directs). Claimant was