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[J-229-98] IN THE SUPREME COURT OF PENNSYLVANIA MIDDLE DISTRICT

DANVILLE AREA SCHOOL DISTRICT, Appellee

v.

DANVILLE AREA EDUCATION ASSOCIATION, PSEA/NEA, Appellant

: : : : : : : : : : : : : : :

No. 22 M.D. Appeal Docket 1998 Appeal from the order of the Commonwealth Court entered June 18, 1997 at No. 2310CD96, reversing the order of the Court of Common Pleas of Montour County entered July 18, 1996 at No. 27 of 1996. 700 A.2d 549 (Pa. Cmwlth. 1997) ARGUED: November 16, 1998

OPINION

MR. JUSTICE CAPPY

DECIDED: July 19, 2000

We granted allocatur to review the Commonwealth Court's decision that vacated a labor arbitration award in favor of a retired public school teacher. For the reasons discussed below, we find that the arbitrator's award satisfies this court's circumscribed standard of review, the "essence test." Therefore, we reverse the decision of the

Commonwealth Court and reinstate the arbitrator's award. On May 13, 1992, Judith Walter, a teacher who served the Danville Area School District ("School District") for twenty-four years, notified the School District of her plan to retire, effective at the termination of the 1991-92 school year. Mrs. Walter's decision to retire was evidently motivated by the General Assembly's 1992 retirement incentive

legislation which amended section 8302 of the Public School Employees' Retirement Code ("Retirement Code"). 24 P.S.

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Pennsylvania Law