Appeal from the Order of the State Employes' Retirement Board in the case of In the Matter of: Owen S. Grove, SS No. 186 14 1804, dated July 22, 1981.
Terry R. Bossert, McNees, Wallace & Nurick, for petitioner.
Marsha V. Mills, Assistant Chief Counsel, for respondent.
Judges Rogers, Williams, Jr. and Craig, sitting as a panel of three. Opinion by Judge Rogers.
[ 73 Pa. Commw. Page 441]
Section 401(1)(a) of the State Employes' Retirement Code of 1959*fn1 (Code) provides the mechanism by which benefits are computed upon the retirement at or after the attainment of the superannuation retirement age of a contributor.*fn2 The superannuation retirement allowance consists of two parts, a member's annuity and a state annuity.*fn3 The member's annuity is "the actual equivalent of his accumulated deductions" and the state annuity consists primarily of the following two components:
(i) A basic component of one one-hundredth (1/100) of his final average salary for each year of total credited service.
(ii) An equalizing component equal to the amount, if any, by which the member's annuity is less than the State annuity attributable to contributory service.*fn4
The petitioner, Owen S. Grove, has appealed from an adjudication of the State Employes' Retirement Board (board) denying his request for a computation of his annuity so as to include credit for the time he served in the United States Armed forces before he obtained employment with the state within the equalizing component of the state annuity as provided by Section 401(1)(a)(ii) above.
[ 73 Pa. Commw. Page 443]
Grove was employed by the Pennsylvania Department of Highways from August, 1946 until March 7, 1970. Before his employment with the state, he served in the United States Army from March 27, 1942 until his honorable discharge on January 28, 1946. In 1966, while in state employment, Grove was advised of his right to purchase credit for his military service by the payment of certain monies into the retirement fund pursuant to Sections 207(5)*fn5 and 302(2)(k)*fn6 of the Code. At that time Section 207(5) read as follows:
Section 207. Credit for Military Service. --
(5) Any State employe who is a contributor and who served in the armed forces of the United States subsequent to September 16, 1940, and who was not a State employe prior to such period of military service and who commenced State employment within three (3) years from date of release from active duty, shall be entitled to have full credit for each year or fraction thereof not to exceed five (5) years of the service in the armed forces of the United States upon his payment to ...