PRINTER'S NO. 2518
No. 2016 Session of 1991
INTRODUCED BY CAPPABIANCA, BOYES, TIGUE, BELFANTI, KRUSZEWSKI,
TRELLO, BILLOW AND BELARDI, OCTOBER 16, 1991
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, OCTOBER 16, 1991
AN ACT
1 Amending the act of May 1, 1933 (P.L.103, No.69), entitled "An
2 act concerning townships of the second class; and amending,
3 revising, consolidating, and changing the law relating
4 thereto," further providing for compensation of supervisors
5 and for meetings, duties, quorum, surcharges and compensation
6 of township auditors.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 515 of the act of May 1, 1933 (P.L.103,
10 No.69), known as The Second Class Township Code, reenacted and
11 amended July 10, 1947 (P.L.1481, No.567) and amended March 30,
12 1988 (P.L.312, No.41), is amended to read:
13 Section 515. Compensation of Supervisors.--[(a) Supervisors
14 may receive from the general township fund, as compensation, an
15 amount fixed by ordinance, not in excess of the following:
16 Township Population Annual Maximum Compensation
17 Not more than 4,999 Fifteen hundred dollars
18 5,000 to 9,999 Two thousand dollars
19 10,000 to 14,999 Twenty-six hundred dollars
1 15,000 to 24,999 Thirty-three hundred dollars
2 25,000 to 34,999 Thirty-five hundred dollars
3 35,000 or more Four thousand dollars
4 Such salaries shall be payable monthly or quarterly for the
5 duties imposed by the provisions of this act. The population
6 shall be determined by the latest available official census
7 figures. The compensation of supervisors, when acting as
8 superintendents, roadmasters or laborers, shall be fixed by the
9 township auditors either per hour, per day, per week, semi-
10 monthly or monthly, which compensation shall not exceed
11 compensation paid in the locality for similar services, and such
12 other reasonable compensation for the use of a passenger car, or
13 a two-axled four-wheeled motor truck having a chassis weight of
14 less than two thousand pounds and a maximum gross weight of five
15 thousand pounds, or a class 2 truck, having a maximum gross
16 weight of seven thousand pounds when required and actually used
17 for the transportation of road and bridge laborers and their
18 hand tools and for the distribution of cinders and patching
19 material from a stock pile, as the auditors shall determine and
20 approve; but no supervisor shall receive compensation as a
21 superintendent or roadmaster for any time he spends attending a
22 meeting of supervisors.
23 (b) Any benefit provided to or for the benefit of a
24 supervisor employed by the township as a superintendent,
25 roadmaster, laborer, secretary, treasurer or secretary/treasurer
26 in the form of inclusion in a pension plan paid for in whole or
27 in part by the township shall be deemed to be compensation
28 within the meaning of this act to the extent such benefit is
29 paid for by the township and shall be fixed by the township
30 auditors; however:
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1 (1) Supervisors shall be eligible for inclusion in such
2 township pension plans only if they are employed by the township
3 in the capacity of superintendent, roadmaster, laborer,
4 secretary, treasurer or secretary/treasurer. In order to be
5 eligible for inclusion in such plans, supervisor-employes must
6 meet the same requirements as other employes of the township who
7 are eligible to participate in a pension plan. Such plans shall
8 not improperly discriminate in favor of a supervisor-employe.]
9 (a) Supervisors may receive as compensation, an amount
10 established by ordinance, not in excess of the following:
11 Township Population Annual Maximum Compensation
12 Not more than 4,999 Fifteen hundred dollars
13 5,000 to 9,999 Two thousand dollars
14 10,000 to 14,999 Twenty-six hundred dollars
15 15,000 to 24,999 Thirty-three hundred dollars
16 25,000 to 34,999 Thirty-five hundred dollars
17 35,000 or more Four thousand dollars
18 Salaries are payable monthly or quarterly for the duties imposed
19 by this act. The population is determined by the latest
20 available official census figures. The compensation of the
21 supervisors when employed as roadmasters, laborers, secretaries,
22 treasurers, assistant secretaries, assistant treasurers or in
23 any employe capacities not otherwise prohibited by this or any
24 other act shall be determined by the board of auditors either
25 per hour, per day, per week, semi-monthly or monthly and shall
26 be comparable to compensation paid in the locality for similar
27 services. The board of supervisors may establish a mileage
28 allowance pursuant to the act of July 20, 1979 (P.L.156, No.51),
29 entitled "An act establishing a uniform mileage fee for all
30 officials, officers and employees of the Commonwealth, its
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1 political subdivisions, intermediate units, and authorities," to
2 be paid to officers and employes for the use of a personal
3 vehicle when required and actually used for authorized township
4 business. No supervisor may receive compensation as an employe
5 for attending a meeting of the board of supervisors. Supervisors
6 may continue to be compensated under prior law until such time
7 as an ordinance is enacted under this act. Any change in salary,
8 compensation or emoluments of the elected office becomes
9 effective at the beginning of the next term of the supervisor.
10 (b) Any benefit provided to or for the benefit of a
11 supervisor employed by the township in any employe capacity
12 under this act in the form of inclusion in a pension plan paid
13 for in whole or in part by the township is compensation within
14 the meaning of this act to the extent that the benefit is paid
15 for by the township and is determined by the board of auditors;
16 however:
17 (1) Supervisors are eligible for inclusion in township
18 pension plans only if they are employed by the township in any
19 employe capacity under this act. In order to be eligible for
20 inclusion in the plans, supervisor-employes must meet the same
21 requirements as other employes of the township who are eligible
22 to participate in a pension plan. Pension plans shall not
23 improperly discriminate in favor of a supervisor-employe.
24 (2) Once given, auditor approval for inclusion of
25 supervisor-employes shall not be rescinded in any subsequent
26 years so long as the pension plan remains in effect and said
27 supervisors remain employed by the township and continue to meet
28 the same requirements as other employes of the township who are
29 eligible to participate in a pension plan; nor shall the
30 auditors be empowered to act in any way that would cause the
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1 disqualification of all or any portion of the pension plan under
2 the applicable Federal law.
3 (3) No change in the nature or rate of the contributions in
4 the case of a defined contribution plan and no change in the
5 benefit formula in the case of a defined benefit plan shall be
6 initiated by the board of supervisors with respect to a
7 supervisor-employe without auditor approval.
8 (4) A pension or annuity contract entered into by a township
9 between January 1, 1959, and March 31, 1985, that includes or
10 provides for benefits for supervisor-employes or retired
11 supervisor-employes at township expense shall not be void or
12 unlawful solely because such inclusion of supervisor-employes or
13 retired supervisor-employes was not previously approved by the
14 township auditors. No penalty, assessment, surcharge, forfeiture
15 or disciplinary action of any kind may occur as a result of such
16 participation by supervisor-employes.
17 (5) All premium, contribution or similar payments made by a
18 township on pension or annuity contracts on behalf of
19 supervisor-employes between January 1, 1959, and March 31, 1985,
20 which would have been proper but for the absence of auditor
21 approval, are hereby deemed ratified and approved. Any benefits
22 payable to any such supervisor-employe or his beneficiaries on
23 account of such premium, contribution or similar payments made
24 by a township during the aforementioned period shall continue.
25 Any such premium, contribution or similar payments made by a
26 township subsequent to March 31, 1985, shall require auditor
27 approval as provided in this subsection.
28 (6) If a supervisor-employe personally contributed toward a
29 township-sponsored pension plan or annuity that is not approved
30 by the township auditors or not deemed approved hereunder, he
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1 shall receive a refund of his total contributions thereto, plus
2 any interest accumulated thereon. In lieu of a refund of
3 contributions plus accumulated interest, a supervisor-employe
4 who personally contributed toward a pension or annuity plan in
5 which he participated may elect to purchase that portion of his
6 pension or annuity funded by the township. The appropriate
7 compensation to be paid to the township by the supervisor-
8 employe shall be determined by a qualified actuary who shall
9 report his determination in accordance with the act of December
10 18, 1984 (P.L.1005, No.205), known as the "Municipal Pension
11 Plan Funding Standard and Recovery Act."
12 (7) Township supervisors who are not employes of the
13 township shall not be eligible for participation in any pension
14 or annuity contract paid in whole or in part by the township. No
15 township supervisor who was not an employe of the township but
16 was included in a township-paid pension or annuity plan entered
17 into by a township between January 1, 1959, and March 31, 1985,
18 shall be subject to any penalty, assessment, surcharge,
19 forfeiture or disciplinary action of any kind as a result of
20 said participation. Any residual interest, value, refund of
21 premium or benefits payable on or after March 31, 1985, arising
22 out of the township-paid interest of a non-employe supervisor
23 shall become the exclusive property of the township.
24 (c) In addition to the compensation authorized under this
25 section, supervisors while in office or while in the employ of
26 the township may be eligible for inclusion in township-paid
27 insurance plans, as follows:
28 (1) Supervisor-employes and their dependents shall be
29 eligible for inclusion in group life, health, hospitalization,
30 medical service and accident insurance plans paid in whole or in
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1 part by the township. No policy of group life insurance shall
2 contain any provision for the accrual or deferral of a cash
3 surrender value, loan value or any other nonforfeitable benefit,
4 in addition to or beyond the face amount of insurance, that
5 shall inure to the benefit of the supervisor, any beneficiary or
6 any other individual having an insurable interest in the life of
7 a supervisor. Such insurance, however, may contain a provision
8 that when the insurance, or any portion of it, on a person
9 covered under the policy ceases because of termination of
10 employment or the termination of the insured's term of office,
11 such person shall be entitled to have issued to him by the
12 insurer, without evidence of insurability, an individual policy
13 of insurance on any form customarily issued by the insurer at
14 the age and for the amount applied for if: (i) such amount is
15 not in excess of the amount of life insurance which ceases
16 because of such termination; and (ii) the application for the
17 individual policy is made and first premium is paid to the
18 insurer within thirty-one days after such termination.
19 Participation by supervisor-employes shall not require auditor
20 approval. Supervisor-employes eligible for inclusion in such
21 plans must meet the same requirements as other employes of the
22 township who are eligible to participate in an insurance plan.
23 Such plans shall not improperly discriminate in favor of a
24 supervisor-employe.
25 (2) Any life, health, hospitalization, medical service or
26 accident insurance coverage contract entered into by a township
27 between January 1, 1959, and March 31, 1985, that includes or
28 provides coverage for non-employe supervisors shall not be void
29 or unlawful solely because such inclusion of non-employe
30 supervisors was subsequently found to be without lawful
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1 authority. No penalty, assessment, surcharge, forfeiture or
2 disciplinary action of any kind may occur as a result of
3 participation by non-employe supervisors. Insurance benefits
4 payable to insureds or their beneficiaries arising out of or on
5 account of deaths, injuries, accidents or illnesses occurring
6 prior to the effective date of this amendatory act shall remain
7 the property of the insureds or their beneficiaries.
8 (3) All payments made by a township on any group life,
9 health, hospitalization, medical service or accident insurance
10 coverage contracts on behalf of non-employe supervisors between
11 January 1, 1959, and March 31, 1985, which would have been
12 proper but for the absence of auditor approval, are hereby
13 deemed ratified and approved. Any benefits payable to any such
14 non-employe supervisor or his beneficiaries on account of such
15 payments made by a township during the aforementioned period
16 shall continue.
17 (4) Supervisors and their dependents, whether or not they
18 are employed by the township, shall also be eligible for
19 inclusion in township group life, health, hospitalization,
20 medical service and accident insurance plans if they pay their
21 pro rata share of the premium. Their inclusion in such plans
22 shall not require auditor approval, but shall require the
23 submission of a letter requesting such participation at a
24 regularly scheduled meeting of the board of township supervisors
25 prior to commencing such participation. Such insurance shall be
26 uniformly applicable to those covered and shall not give
27 eligibility preference to, or improperly discriminate in favor
28 of, supervisors.
29 Section 2. Section 545 of the act, amended October 16, 1981
30 (P.L.291, No.100) and April 8, 1982 (P.L.256, No.77), is amended
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1 to read:
2 Section 545. Meetings; Duties; Quorum; Surcharges;
3 Compensation.--(a) The auditors of townships shall meet
4 annually, at the place of meeting of the supervisors, on the day
5 following the day which is fixed by this act for organization of
6 the township supervisors; and shall organize by the election of
7 a chairman and secretary[, and shall audit, settle, and adjust
8 the accounts of the supervisors, superintendents, roadmasters,
9 treasurer, and tax collector of the township, and fix the
10 compensations for the current year authorized in section 515
11 hereof]. The board of auditors shall audit, settle and adjust
12 the accounts of all elected or appointed officials of the
13 township and its boards or agencies that received or disbursed
14 funds of or owing to the townships during the immediately
15 preceding calendar year. The board of auditors shall determine
16 the compensations for the current year for supervisors employed
17 by the township. Two auditors shall constitute a quorum. The
18 auditors shall also make an audit of the dockets, transcripts,
19 and other official records of the justices of the peace to
20 determine the amounts of fines and costs paid over or due the
21 township, and the dockets and records of the justices of the
22 peace shall be open to inspection by the auditors for such
23 purpose. Unless otherwise agreed to by the board of auditors and
24 the officer being audited, the audit shall he conducted at the
25 place the records of the officer are normally kept.
26 [Upon the death or resignation of any of the above officers
27 the auditor, upon call of the chairman, shall meet and audit the
28 accounts of the former incumbent, and at that time fix the
29 compensation of his successor if authorized by this act to fix
30 the compensation for such office.]
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1 (b) Upon the death or resignation of any of the officials
2 designated in this section to be audited, the board of auditors,
3 upon call of the chairman, shall meet and audit the accounts of
4 the former incumbent, and determine the compensation of the
5 successor if authorized by this act.
6 (c) Any elected or appointed officer, whose act, error or
7 omission has contributed to the financial loss of any township,
8 shall be surcharged by the auditors with the amount of such
9 loss, and the surcharge of any such officer shall take into
10 consideration as its basis, the results of such act, error or
11 omission and the results had the procedure been strictly
12 according to law. The provisions hereof limiting the amount of
13 any surcharge shall not apply to cases involving fraud or
14 collusion on the part of such officers, nor to any penalty
15 ensuing to the benefit of or payable to the Commonwealth.
16 (d) Each auditor shall receive thirty dollars per diem for
17 each day necessarily employed in the duties of his office, to be
18 paid out of the funds of the township. In no event shall any
19 auditor in a township having a population of ten thousand
20 (10,000) or less be entitled to receive more than six hundred
21 dollars ($600) for any calendar year. In no event shall any
22 auditor in a township having a population in excess of ten
23 thousand (10,000) be entitled to receive more than twelve
24 hundred dollars ($1,200) for any calendar year. A day shall
25 consist of not less than five hours in the aggregate.
26 Section 3. This act shall take effect in 60 days.
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