PRINTER'S NO. 90
No. 80 Session of 1993
INTRODUCED BY CAPPABIANCA, PESCI, GEIST, MERRY, PRESTON AND
BEBKO-JONES, JANUARY 27, 1993
REFERRED TO COMMITTEE ON RULES, JANUARY 27, 1993
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), December 20, 1991 (P.L.408, No.49) and
13 December 16, 1992 (P.L. , No.157), is amended to read:
14 Section 515. Compensation of Supervisors.--[(a) Supervisors
15 may receive from the general township fund, as compensation, an
16 amount fixed by ordinance, not in excess of the following:
17 Township Population Annual Maximum Compensation
18 Not more than 4,999 Fifteen hundred dollars
19 5,000 to 9,999 Two thousand dollars
1 10,000 to 14,999 Twenty-six hundred dollars
2 15,000 to 24,999 Thirty-three hundred dollars
3 25,000 to 34,999 Thirty-five hundred dollars
4 35,000 or more Four thousand dollars
5 Such salaries shall be payable monthly or quarterly for the
6 duties imposed by the provisions of this act. The population
7 shall be determined by the latest available official census
8 figures, except that no township shall be required to reduce the
9 salary of a supervisor as a result of a decrease in population.
10 The compensation of supervisors, when acting as superintendents,
11 roadmasters or laborers, shall be fixed by the township auditors
12 either per hour, per day, per week, semi-monthly or monthly,
13 which compensation shall not exceed compensation paid in the
14 locality for similar services, and such other reasonable
15 compensation for the use of a passenger car, or a two-axled
16 four-wheeled motor truck having a chassis weight of less than
17 two thousand pounds and a maximum gross weight of five thousand
18 pounds, or a class 2 truck, having a maximum gross weight of
19 seven thousand pounds when required and actually used for the
20 transportation of road and bridge laborers and their hand tools
21 and for the distribution of cinders and patching material from a
22 stock pile, as the auditors shall determine and approve; but no
23 supervisor shall receive compensation as a superintendent or
24 roadmaster for any time he spends attending a meeting of
25 supervisors.
26 (b) Any benefit provided to or for the benefit of a
27 supervisor employed by the township as a superintendent,
28 roadmaster, laborer, secretary, treasurer or secretary/treasurer
29 in the form of inclusion in a pension plan paid for in whole or
30 in part by the township shall be deemed to be compensation
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1 within the meaning of this act to the extent such benefit is
2 paid for by the township and shall be fixed by the township
3 auditors; however:
4 (1) Supervisors shall be eligible for inclusion in such
5 township pension plans only if they are employed by the township
6 in the capacity of superintendent, roadmaster, laborer,
7 secretary, treasurer or secretary/treasurer. In order to be
8 eligible for inclusion in such plans, supervisor-employes must
9 meet the same requirements as other employes of the township who
10 are eligible to participate in a pension plan. Such plans shall
11 not improperly discriminate in favor of a supervisor-employe.]
12 (a) Supervisors may receive as compensation, an amount
13 established by ordinance, not in excess of the following:
14 Township Population Annual Maximum Compensation
15 Not more than 4,999 Fifteen hundred dollars
16 5,000 to 9,999 Two thousand dollars
17 10,000 to 14,999 Twenty-six hundred dollars
18 15,000 to 24,999 Thirty-three hundred dollars
19 25,000 to 34,999 Thirty-five hundred dollars
20 35,000 or more Four thousand dollars
21 Salaries are payable monthly or quarterly for the duties imposed
22 by this act. The population is determined by the latest
23 available official census figures, except that no township shall
24 be required to reduce the salary of a supervisor as a result of
25 a decrease in population. The compensation of the supervisors
26 when employed as roadmasters, laborers, secretaries, treasurers,
27 assistant secretaries, assistant treasurers or in any employe
28 capacities not otherwise prohibited by this or any other act
29 shall be determined by the board of auditors either per hour,
30 per day, per week, semi-monthly or monthly and shall be
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1 comparable to compensation paid in the locality for similar
2 services. The board of supervisors may establish a mileage
3 allowance pursuant to the act of July 20, 1979 (P.L.156, No.51),
4 entitled "An act establishing a uniform mileage fee for all
5 officials, officers and employees of the Commonwealth, its
6 political subdivisions, intermediate units, and authorities," to
7 be paid to officers and employes for the use of a personal
8 vehicle when required and actually used for authorized township
9 business. No supervisor may receive compensation as an employe
10 for attending a meeting of the board of supervisors. Supervisors
11 may continue to be compensated under prior law until such time
12 as an ordinance is enacted under this act. Any change in salary,
13 compensation or emoluments of the elected office becomes
14 effective at the beginning of the next term of the supervisor.
15 (b) Any benefit provided to or for the benefit of a
16 supervisor employed by the township in any employe capacity
17 under this act in the form of inclusion in a pension plan paid
18 for in whole or in part by the township is compensation within
19 the meaning of this act to the extent that the benefit is paid
20 for by the township and is determined by the board of auditors;
21 however:
22 (1) Supervisors are eligible for inclusion in township
23 pension plans only if they are employed by the township in any
24 employe capacity under this act. In order to be eligible for
25 inclusion in the plans, supervisor-employes must meet the same
26 requirements as other employes of the township who are eligible
27 to participate in a pension plan. Pension plans shall not
28 improperly discriminate in favor of a supervisor-employe.
29 (2) Once given, auditor approval for inclusion of
30 supervisor-employes shall not be rescinded in any subsequent
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1 years so long as the pension plan remains in effect and said
2 supervisors remain employed by the township and continue to meet
3 the same requirements as other employes of the township who are
4 eligible to participate in a pension plan; nor shall the
5 auditors be empowered to act in any way that would cause the
6 disqualification of all or any portion of the pension plan under
7 the applicable Federal law.
8 (3) No change in the nature or rate of the contributions in
9 the case of a defined contribution plan and no change in the
10 benefit formula in the case of a defined benefit plan shall be
11 initiated by the board of supervisors with respect to a
12 supervisor-employe without auditor approval.
13 (4) A pension or annuity contract entered into by a township
14 between January 1, 1959, and March 31, 1985, that includes or
15 provides for benefits for supervisor-employes or retired
16 supervisor-employes at township expense shall not be void or
17 unlawful solely because such inclusion of supervisor-employes or
18 retired supervisor-employes was not previously approved by the
19 township auditors. No penalty, assessment, surcharge, forfeiture
20 or disciplinary action of any kind may occur as a result of such
21 participation by supervisor-employes.
22 (5) All premium, contribution or similar payments made by a
23 township on pension or annuity contracts on behalf of
24 supervisor-employes between January 1, 1959, and March 31, 1985,
25 which would have been proper but for the absence of auditor
26 approval, are hereby deemed ratified and approved. Any benefits
27 payable to any such supervisor-employe or his beneficiaries on
28 account of such premium, contribution or similar payments made
29 by a township during the aforementioned period shall continue.
30 Any such premium, contribution or similar payments made by a
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1 township subsequent to March 31, 1985, shall require auditor
2 approval as provided in this subsection.
3 (6) If a supervisor-employe personally contributed toward a
4 township-sponsored pension plan or annuity that is not approved
5 by the township auditors or not deemed approved hereunder, he
6 shall receive a refund of his total contributions thereto, plus
7 any interest accumulated thereon. In lieu of a refund of
8 contributions plus accumulated interest, a supervisor-employe
9 who personally contributed toward a pension or annuity plan in
10 which he participated may elect to purchase that portion of his
11 pension or annuity funded by the township. The appropriate
12 compensation to be paid to the township by the supervisor-
13 employe shall be determined by a qualified actuary who shall
14 report his determination in accordance with the act of December
15 18, 1984 (P.L.1005, No.205), known as the "Municipal Pension
16 Plan Funding Standard and Recovery Act."
17 (7) Township supervisors who are not employes of the
18 township shall not be eligible for participation in any pension
19 or annuity contract paid in whole or in part by the township. No
20 township supervisor who was not an employe of the township but
21 was included in a township-paid pension or annuity plan entered
22 into by a township between January 1, 1959, and March 31, 1985,
23 shall be subject to any penalty, assessment, surcharge,
24 forfeiture or disciplinary action of any kind as a result of
25 said participation. Any residual interest, value, refund of
26 premium or benefits payable on or after March 31, 1985, arising
27 out of the township-paid interest of a non-employe supervisor
28 shall become the exclusive property of the township.
29 (c) In addition to the compensation authorized under this
30 section, supervisors while in office or while in the employ of
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1 the township may be eligible for inclusion in township-paid
2 insurance plans, as follows:
3 (1) Supervisors and their dependents shall be eligible for
4 inclusion in group life, health, hospitalization, medical
5 service and accident insurance plans paid in whole or in part by
6 the township. No policy of group life insurance shall contain
7 any provision for the accrual or deferral of a cash surrender
8 value, loan value or any other nonforfeitable benefit, in
9 addition to or beyond the face amount of insurance, that shall
10 inure to the benefit of the supervisor, any beneficiary or any
11 other individual having an insurable interest in the life of a
12 supervisor. Such insurance, however, may contain a provision
13 that when the insurance, or any portion of it, on a person
14 covered under the policy ceases because of termination of
15 employment or the termination of the insured's term of office,
16 such person shall be entitled to have issued to him by the
17 insurer, without evidence of insurability, an individual policy
18 of insurance on any form customarily issued by the insurer at
19 the age and for the amount applied for if: (i) such amount is
20 not in excess of the amount of life insurance which ceases
21 because of such termination; and (ii) the application for the
22 individual policy is made and first premium is paid to the
23 insurer within thirty-one days after such termination.
24 Participation by supervisors shall not require auditor approval.
25 Such insurance shall be uniformly applicable to those covered
26 and shall not improperly discriminate in favor of supervisors.
27 (2) Any life, health, hospitalization, medical service or
28 accident insurance coverage contract entered into by a township
29 between January 1, 1959, and March 31, 1985, that includes or
30 provides coverage for non-employe supervisors shall not be void
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1 or unlawful solely because such inclusion of non-employe
2 supervisors was subsequently found to be without lawful
3 authority. No penalty, assessment, surcharge, forfeiture or
4 disciplinary action of any kind may occur as a result of
5 participation by non-employe supervisors. Insurance benefits
6 payable to insureds or their beneficiaries arising out of or on
7 account of deaths, injuries, accidents or illnesses occurring
8 prior to the effective date of this amendatory act shall remain
9 the property of the insureds or their beneficiaries.
10 (3) All payments made by a township on any group life,
11 health, hospitalization, medical service or accident insurance
12 coverage contracts on behalf of non-employe supervisors between
13 January 1, 1959, and March 31, 1985, which would have been
14 proper but for the absence of auditor approval, are hereby
15 deemed ratified and approved. Any benefits payable to any such
16 non-employe supervisor or his beneficiaries on account of such
17 payments made by a township during the aforementioned period
18 shall continue.
19 (4) Supervisors and their dependents, whether or not they
20 are employed by the township, shall also be eligible for
21 inclusion in township group life, health, hospitalization,
22 medical service and accident insurance plans if they pay their
23 pro rata share of the premium. Their inclusion in such plans
24 shall not require auditor approval, but shall require the
25 submission of a letter requesting such participation at a
26 regularly scheduled meeting of the board of township supervisors
27 prior to commencing such participation. Such insurance shall be
28 uniformly applicable to those covered and shall not give
29 eligibility preference to, or improperly discriminate in favor
30 of, supervisors.
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1 (5) The township is hereby authorized and enabled to deduct
2 from any compensation payable to a supervisor such part of any
3 insurance premium or charge which is payable by the supervisor
4 within the terms of the particular township's insurance plan.
5 Section 2. Section 545 of the act, amended October 16, 1981
6 (P.L.291, No.100) and April 8, 1982 (P.L.256, No.77), is amended
7 to read:
8 Section 545. Meetings; Duties; Quorum; Surcharges;
9 Compensation.--(a) The auditors of townships shall meet
10 annually, at the place of meeting of the supervisors, on the day
11 following the day which is fixed by this act for organization of
12 the township supervisors; and shall organize by the election of
13 a chairman and secretary[, and shall audit, settle, and adjust
14 the accounts of the supervisors, superintendents, roadmasters,
15 treasurer, and tax collector of the township, and fix the
16 compensations for the current year authorized in section 515
17 hereof]. The board of auditors shall audit, settle and adjust
18 the accounts of all elected or appointed officials of the
19 township and its boards or agencies that received or disbursed
20 funds of or owing to the townships during the immediately
21 preceding calendar year. The board of auditors shall determine
22 the compensations for the current year for supervisors employed
23 by the township. Two auditors shall constitute a quorum. The
24 auditors shall also make an audit of the dockets, transcripts,
25 and other official records of the justices of the peace to
26 determine the amounts of fines and costs paid over or due the
27 township, and the dockets and records of the justices of the
28 peace shall be open to inspection by the auditors for such
29 purpose. Unless otherwise agreed to by the board of auditors and
30 the officer being audited, the audit shall be conducted at the
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1 place the records of the officer are normally kept.
2 [Upon the death or resignation of any of the above officers
3 the auditor, upon call of the chairman, shall meet and audit the
4 accounts of the former incumbent, and at that time fix the
5 compensation of his successor if authorized by this act to fix
6 the compensation for such office.]
7 (b) Upon the death or resignation of any of the officials
8 designated in this section to be audited, the board of auditors,
9 upon call of the chairman, shall meet and audit the accounts of
10 the former incumbent, and determine the compensation of the
11 successor if authorized by this act.
12 (c) Any elected or appointed officer, whose act, error or
13 omission has contributed to the financial loss of any township,
14 shall be surcharged by the auditors with the amount of such
15 loss, and the surcharge of any such officer shall take into
16 consideration as its basis, the results of such act, error or
17 omission and the results had the procedure been strictly
18 according to law. The provisions hereof limiting the amount of
19 any surcharge shall not apply to cases involving fraud or
20 collusion on the part of such officers, nor to any penalty
21 ensuing to the benefit of or payable to the Commonwealth.
22 (d) Each auditor shall receive thirty dollars per diem for
23 each day necessarily employed in the duties of his office, to be
24 paid out of the funds of the township. In no event shall any
25 auditor in a township having a population of ten thousand
26 (10,000) or less be entitled to receive more than six hundred
27 dollars ($600) for any calendar year. In no event shall any
28 auditor in a township having a population in excess of ten
29 thousand (10,000) be entitled to receive more than twelve
30 hundred dollars ($1,200) for any calendar year. A day shall
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1 consist of not less than five hours in the aggregate.
2 Section 3. This act shall take effect in 60 days.
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