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PATRICK J. MCMAHON v. COMMONWEALTH PENNSYLVANIA (05/28/86)

decided: May 28, 1986.

PATRICK J. MCMAHON, AND OTHER SIMILARLY SITUATED CLAIMANT EMPLOYEES OF MESTA MACHINE COMPANY, MEMBERS OF UNITED STEELWORKERS OF AMERICA, AFL-CIO-CLC, LOCAL UNION NO. 7174, PETITIONERS
v.
COMMONWEALTH OF PENNSYLVANIA, UNEMPLOYMENT COMPENSATION BOARD OF REVIEW, RESPONDENT



Appeal from the Order of the Unemployment Compensation Board of Review in the case of In Re: Claim of Token Claimant Patrick J. McMahon, Nos. B-233861 through B-234042, dated August 30, 1984.

COUNSEL

Richard E. Gordon, with him, Howard Grossinger, for petitioners.

Donna M. Stanek, Associate Counsel, with her, Charles G. Hasson, Acting Deputy Chief Counsel, for respondent.

President Judge Crumlish, Jr., and Judges Rogers, Craig, MacPhail, Barry, Colins and Palladino. Opinion by Judge Palladino.

Author: Palladino

[ 97 Pa. Commw. Page 481]

This is an appeal by Patrick J. McMahon (Claimant) and similarly situated employees of Mesta Machine Company (Mesta)*fn1 from an order of the Unemployment Compensation Board of Review (Board) affirming a referee's decision which held that a special initial payment made to Mesta employees pursuant to the provisions of the Mesta Employee Retirement Plan must offset unemployment compensation benefits pursuant to Section 404(d)(iii) of the Unemployment Compensation Law (Law).*fn2 We affirm in part and reverse in part.

[ 97 Pa. Commw. Page 482]

Claimant was last employed by Mesta on May 27, 1983. In February of 1983, Mesta instituted bankruptcy proceedings and, in May of 1983, Mesta advised eligible employees that if they applied for a "70/80" pension Mesta would pay each eligible employee three hundred dollars per month in addition to the regular monthly pension amount. The "70/80" pension plan provides for an initial lump sum payment to be made to retiring employees for the first thirteen weeks of retirement. The initial payment is calculated as follows:

The amount of special payment for a participant who was entitled to receive a vacation in the year of retirement or who would have been entitled to receive a vacation in the year of retirement except for such retirement shall be calculated as follows:

(1) The number of weeks of vacation to which the participant was or would have been entitled will be determined.

(2) The number determined in (1) above shall be subtracted from 13.

(3) The number determined in (1) above shall be multiplied by the ...


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