PRIOR PRINTER'S NO. 1536 PRINTER'S NO. 1717
No. 1295 Session of 1985
INTRODUCED BY FRYER, FOSTER, SHOWERS, DUFFY, YANDRISEVITS,
DeLUCA, SCHEETZ, NAHILL, BELFANTI, JAROLIN, DISTLER,
D. W. SNYDER, WOZNIAK, BALDWIN, TELEK, RAYMOND AND BARLEY,
MAY 29, 1985
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 12, 1985
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 the compensation of
5 supervisors and the purchase of insurance.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 515 of the act of May 1, 1933 (P.L.103,
9 No.69), known as The Second Class Township Code, reenacted and
10 amended July 10, 1947 (P.L.1481, No.567) and amended November 2,
11 1973 (P.L.324, No.105), is amended to read:
12 Section 515. Compensation of Supervisors.--[Supervisors may
13 receive from the general township fund, as compensation, twenty-
14 five dollars for each meeting which they attend. The
15 compensation of supervisors, when acting as superintendents,
16 roadmasters or laborers, shall be fixed by the township auditors
17 either per hour, per day, per week, semi-monthly or monthly,
18 which compensation shall not exceed compensation paid in the
1 locality for similar services, and such other reasonable
2 compensation for the use of a passenger car, or a two-axled
3 four-wheeled motor truck having a chassis weight of less than
4 two thousand pounds and a maximum gross weight of five thousand
5 pounds, or a class 2 truck, having a maximum gross weight of
6 seven thousand pounds when required and actually used for the
7 transportation of road and bridge laborers and their hand tools
8 and for the distribution of cinders and patching material from a
9 stock pile, as the auditors shall determine and approve; but no
10 supervisor shall receive compensation as a superintendent or
11 roadmaster for any day he receives compensation for attending a
12 meeting of supervisors, unless such meeting is held after
13 regular working hours.] (a) Supervisors may receive from the
14 general township fund compensation at the rate of twenty-five
15 dollars per meeting for each advertised general or special
16 meeting of the board of supervisors that they attend; but no
17 supervisor shall receive compensation as a superintendent or
18 roadmaster for any day he receives compensation for attending a
19 meeting of supervisors, unless such meeting is held after
20 regular working hours.
21 (b) The compensation of supervisors employed by the township
22 as superintendent, roadmaster, laborer, secretary, treasurer or
23 secretary/treasurer shall be fixed by the township auditors and
24 shall not exceed compensation paid in the locality for similar
25 services.
26 (c) A supervisor may contract with the township for use by
27 the township of a vehicle and/or equipment owned by such
28 supervisor. The compensation to be paid to the supervisor by the
29 township for such use shall be fixed by the township auditor.
30 (d) Supervisors may be reimbursed for mileage driven on <--
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1 township business, other than attendance at regular or special
2 meetings of the board of supervisors. Such reimbursement shall
3 not be deemed to be compensation within the meaning of this act
4 and shall be fixed by the supervisors in accordance with the act
5 of July 20, 1979 (P.L.156, No.51), entitled "An act establishing
6 a uniform mileage fee for all officials, officers and employees
7 of the Commonwealth, its political subdivisions, intermediate
8 units, and authorities."
9 (e) (D) Any benefit provided to or for the benefit of a <--
10 supervisor employed by the township as a superintendent,
11 roadmaster, laborer, secretary, treasurer or secretary/treasurer
12 in the form of inclusion in a pension or annuity plan paid for
13 in whole or in part by the township shall be deemed not to be <--
14 compensation within the meaning of this act TO THE EXTENT SUCH <--
15 BENEFIT IS PAID FOR BY THE TOWNSHIP and shall not require the <--
16 approval of the township auditors; however, supervisors shall be
17 eligible for inclusion in such township pension or annuity plans
18 only if they are employed by the township on a full-time basis
19 in their capacity as superintendent, roadmaster, laborer,
20 secretary, treasurer or secretary/treasurer. Supervisors
21 eligible for inclusion in such plans must meet the same
22 requirements, INCLUDING HOURS OF EMPLOYMENT, as other full-time <--
23 employes of the township who are eligible to participate in a
24 pension or annuity plan. Such plans shall not give eligibility
25 preference to, or improperly discriminate in favor of,
26 supervisor-employes. On or before December 31, 1985, the
27 township auditors may ratify payments made without auditor
28 approval between January 1, 1959, and the effective date of this
29 act, to a pension or annuity plan, for or on behalf of such
30 supervisor-employes. IF THE AUDITORS FAIL, NEGLECT OR REFUSE TO <--
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1 RATIFY SUCH PAYMENTS BY SAID DATE, THEN ANYONE ENTITLED TO
2 BENEFIT COVERAGE UNDER A PENSION PLAN PAID FOR IN WHOLE OR IN
3 PART BY ANY TOWNSHIP WITHOUT LAWFUL AUTHORITY BECAUSE OF THE
4 LACK OF APPROVAL BY THE TOWNSHIP AUDITORS SHALL DELIVER,
5 SURRENDER AND ASSIGN TO THE TOWNSHIP ALL BENEFITS PAID
6 THEREUNDER AFTER DECEMBER 31, 1984, AND THE PROVISIONS OF
7 SUBCLAUSE (E)(3) OF CLAUSE XIII OF SECTION 702 SHALL BE
8 APPLICABLE.
9 (E) AUDITOR APPROVAL FOR INCLUSION OF A SUPERVISOR-EMPLOYE
10 SHALL NOT BE RESCINDED, ONCE GIVEN, IN ANY SUBSEQUENT YEARS AS
11 LONG AS THE PENSION OR ANNUITY PLAN REMAINS IN EFFECT AND SAID
12 SUPERVISOR REMAINS EMPLOYED BY THE TOWNSHIP ON A FULL-TIME BASIS
13 AS SUPERINTENDENT, ROADMASTER, LABORER, SECRETARY, TREASURER OR
14 SECRETARY/TREASURER; NOR SHALL THE AUDITORS BE EMPOWERED TO TAKE
15 OR REFRAIN FROM ANY ACTION THAT WOULD CAUSE THE DISQUALIFICATION
16 OF ALL OR ANY PORTION OF THE PENSION OR ANNUITY PLAN UNDER THE
17 APPLICABLE FEDERAL LAW. HOWEVER, NO CHANGE IN THE NATURE OR
18 AMOUNT OF THE CONTRIBUTIONS SHALL BE INITIATED BY THE BOARD OF
19 SUPERVISORS WITH RESPECT TO A SUPERVISOR-EMPLOYE WITHOUT AUDITOR
20 APPROVAL.
21 (f) Supervisors shall be eligible for inclusion in group
22 life, health, hospitalization, medical service and accident
23 insurance plans paid for in whole or in part by the township
24 only if they are employed on a full-time basis in their capacity
25 as a superintendent, roadmaster, laborer, secretary, treasurer
26 or secretary/treasurer. Supervisors eligible for inclusion in
27 such plans must meet the same requirements, INCLUDING HOURS OF <--
28 EMPLOYMENT, as other full-time employes of the township who are
29 eligible for inclusion in such plans, AND THEIR INCLUSION SHALL <--
30 NOT REQUIRE AUDITOR APPROVAL. Other supervisors shall be
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1 eligible for inclusion in such plans only if they pay their pro
2 rata share of the premiums, and their inclusion shall not
3 require auditor approval. Such insurance shall be uniformly
4 applicable to those covered and shall not give eligibility
5 preference to, or improperly discriminate in favor of,
6 supervisors.
7 Section 2. Clause XIII of section 702 of the act, amended
8 June 26, 1975 (P.L.34, No.17), is amended to read:
9 Section 702. Supervisors to Exercise Powers.--The corporate
10 powers of townships of the second class shall be exercised by
11 the township supervisors. Where no specific authority is given
12 for the expenditures incident to the exercise of any power
13 hereinafter conferred, or where no specific fund is designated
14 from which such expenditures shall be made, appropriations for
15 such expenditures shall be made only from the general township
16 fund. In addition to the duties imposed upon them by section 516
17 hereof, they shall have power--
18 * * *
19 XIII. Insurance.--(A) To expend out of the general township
20 fund such amount as may be necessary to secure workmen's
21 compensation insurance for its employes, including volunteer
22 firemen of companies duly recognized by the township by motion
23 or resolution, killed or injured while going to, returning from,
24 or attending fires in said township or territory adjacent
25 thereto, or while performing any other duties authorized by the
26 township[; to].
27 (B) To make contracts of insurance with any fire insurance
28 company, duly authorized by law to transact business in the
29 Commonwealth of Pennsylvania, on any building or property owned
30 by such township[, to].
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1 (C) To make contracts with any insurance company, so
2 authorized, insuring any public liability of the township,
3 including insurance on every township officer, official, and
4 employe for liability arising from errors and omissions in the
5 performance of their duties in the course of their employment,
6 except that liability of elected or appointed officials or
7 officers for surcharge in accordance with law shall not be
8 affected hereby[; and to].
9 (D) (1) To make contracts of insurance with any insurance
10 company, or nonprofit hospitalization corporation, or nonprofit
11 medical service corporation, authorized to transact business
12 within the Commonwealth, insuring its township supervisors
13 and/or their dependents, if the supervisor works on a full-time
14 basis in his capacity as superintendent, roadmaster, laborer,
15 secretary, treasurer or secretary/treasurer for the township,
16 and insuring its employes, and/or their dependents, or any class
17 or classes thereof, under a policy or policies of group
18 insurance covering life, health, hospitalization, medical
19 service, or accident insurance[, and may contract with any such
20 company, granting annuities or pensions, for the pensioning of
21 such employes, and for such purposes, may agree to pay part or
22 all of the premiums or charges for carrying such contracts, and
23 may appropriate out of its treasury any money necessary to pay
24 such premiums, or charges, or portions thereof. The supervisors
25 are hereby authorized, enabled and permitted to deduct from the
26 employe's pay, salary or compensation such part of the premium,
27 or charge, as is payable by the employe, and as may be so
28 authorized by the employe in writing]. Supervisors eligible for
29 inclusion in such plans must meet the same requirements, <--
30 INCLUDING HOURS OF EMPLOYMENT, as other full-time employes of
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1 the township who are eligible for inclusion in such plans. In no
2 case shall the benefit coverage provided to supervisor-employes
3 exceed those provided to other full-time employes. The
4 supervisors are hereby authorized to purchase insurance at the
5 township's expense to cover any township official or employe for
6 any illness or injury incurred within the scope, and as a direct
7 and proximate result, of his official duties or employment. As
8 used in this subclause (D)(1), "employes" excludes independent
9 contractors and all township engineers and solicitors.
10 (2) Any life, health, hospitalization, medical service or
11 accident insurance coverage contract entered into by a township
12 between January 1, 1959, and December 31, 1984, that includes or
13 provides coverage for supervisors shall not be void or unlawful
14 solely because such inclusion of supervisors was not previously
15 approved by the township auditors, nor shall any penalty,
16 assessment, surcharge or disciplinary action of any kind occur
17 as a result of such participation by such supervisors; and
18 insurance benefits payable to insureds or their beneficiaries
19 arising out of or on account of deaths, injuries, accidents or
20 illnesses occurring prior to the effective date of this
21 amendatory act shall remain the property of the insureds or
22 their beneficiaries.
23 (E) (1) To contract with any such company or otherwise
24 provide for the granting of annuities or pensions, for the
25 pensioning of employes, and for such purposes, to pay part or
26 all of the premiums or charges for carrying such contracts, and
27 to appropriate out of its treasury any money necessary to pay
28 such premiums, charges or costs or portions thereof. In no case,
29 however, shall the benefit coverage provided to supervisor-
30 employes be unfairly disproportionate to that provided to other
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1 employes of the township. The supervisors are hereby authorized,
2 enabled and permitted to deduct from the employe's pay, salary
3 or compensation such part of the premium or charge as is payable
4 by the employe, and as may be so authorized by the employe in
5 writing. As used in this subclause (E)(1), the term "employes"
6 excludes independent contractors and all township engineers and
7 solicitors.
8 (2) Any pension or annuity contract entered into by a
9 township between January 1, 1959, and December 31, 1984, that
10 includes or provides for benefits for supervisor-employes at
11 township expense shall not be void or unlawful solely because
12 such inclusion of supervisor-employes was not previously
13 approved by the township auditors; nor shall any penalty,
14 assessment, surcharge or disciplinary action of any kind occur
15 as a result of such participation by supervisor-employes:
16 Provided, however, That anyone entitled to benefit coverage
17 under a pension paid for in whole or in part by any township
18 without lawful authority, other than solely the lack of approval
19 by the township auditors, shall deliver, surrender and assign to
20 the township all benefits paid thereunder after December 31,
21 1984.
22 (3) Where any official personally contributed toward such a
23 pension plan or a purchase of such an annuity, he shall be
24 refunded his total contributions thereto, plus any interest
25 accumulated thereon, less any amount already paid to him under
26 the annuity or pension plan, when the annuity or pension
27 benefits are delivered, surrendered or assigned to the township,
28 or when the annuity becomes the property of the township by
29 operation of this section. In lieu of a refund of total
30 contributions plus accumulated interest, an official who
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1 personally contributed toward the pension plan or toward the
2 purchase of the annuity may elect to purchase from the township
3 its interest in that pension plan or annuity program. The
4 election option shall be exercised within sixty days of the
5 effective date of this act. The value of the interest of the
6 township in the pension plan or annuity program with respect to
7 the official shall be determined by the actuary who prepared the
8 1983 municipal pension report for the township pension plan or
9 annuity program pursuant to the act December 6, 1972 (P.L.1383,
10 No.293), entitled "An act requiring municipal pension systems
11 to have an actuarial investigation of the fund made by an
12 actuary who shall report his findings to the Department of
13 Community Affairs," using the same applicable actuarial
14 assumptions as used in that report or, if no actuary was
15 retained for the 1983 report or no 1983 report was filed, by an
16 actuary retained for the purpose of valuing the township
17 interest. The cost of the actuarial valuation of the township
18 interest and any future administrative costs of the pension plan
19 or the annuity program attributable to the official shall be
20 payable by the official in a manner to be established by
21 agreement with the township auditors.
22 (4) No elected or appointed township official included in a
23 township-paid pension or annuity plan entered into prior to
24 December 31, 1984, shall be subject to any penalty, assessment,
25 surcharge or disciplinary action of any kind as a result of said
26 participation. Any residual interest, value, refund of premium
27 or benefits payable on or after December 31, 1984, arising out
28 of the township-paid interest of the elected or appointed
29 township officials shall become the exclusive property of the
30 township.
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1 * * *
2 Section 3. This act shall take effect immediately.
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