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Township of Lower Merion v. Workers' Compensation Appeal Board

No portion of municipal police pension attributable to contributions from Commonwealth of Pennsylvania may be considered "funded by the employer" for purposes of calculating offset against workers' compensation benefits under Workers' Compensation Act Section 204(a).

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Submitted: August 3, 2001

The Township of Lower Merion (Employer) petitions for review of the November 9, 2000 order of the Workers’ Compensation Appeal Board (Board) that affirmed the decision of the Workers’ Compensation Judge (WCJ) to grant Michael Tansey’s (Claimant’s) review petition and to dismiss his penalty petition as moot. *fn1 The sole issue is whether the Board erred in determining that any portion of a municipal police pension attributable to contributions from the Commonwealth of Pennsylvania should not be considered “funded by the employer” for purposes of calculating a pension offset against workers’ compensation benefits under Section 204(a) of the Workers’ Compensation Act (Act). *fn2 Because we agree that the funds provided by the Commonwealth should not be included in the calculation for the pension offset, we affirm.

Claimant was a police officer for Lower Merion Township. On September 30, 1996, Claimant filed a claim petition alleging that he sustained a work-related injury in the nature of a stroke on July 3, 1996. When Employer subsequently accepted the claim in a December 18, 1996 Notice of Compensation Payable, Claimant received total disability benefits at $527.00 per week, retroactive to the date of injury. *fn3

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