HOUSE AMENDED
PRIOR PRINTER'S NOS. 1989, 2134, 2284, PRINTER'S NO. 2372
2316
No. 1385 Session of 1984
INTRODUCED BY CORMAN, STOUT, SHAFFER, FISHER, LEWIS, HOWARD,
STAPLETON, KELLEY, KUSSE, ROSS, LINCOLN, MOORE, SINGEL,
WENGER, RHOADES AND REIBMAN, MAY 14, 1984
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
SEPTEMBER 26, 1984
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,
1 which compensation shall not exceed compensation paid in the
2 locality for similar services, and such other reasonable
3 compensation for the use of a passenger car, or a two-axled
4 four-wheeled motor truck having a chassis weight of less than
5 two thousand pounds and a maximum gross weight of five thousand
6 pounds, or a class 2 truck, having a maximum gross weight of
7 seven thousand pounds when required and actually used for the
8 transportation of road and bridge laborers and their hand tools
9 and for the distribution of cinders and patching material from a
10 stock pile, as the auditors shall determine and approve; but no
11 supervisor shall receive compensation as a superintendent or
12 roadmaster for any day he receives compensation for attending a
13 meeting of supervisors, unless such meeting is held after
14 regular working hours.]
15 (a) Supervisors shall receive from the general township fund
16 compensation at the rate of twenty-five dollars ($25.00) per
17 meeting for each advertised general or special meeting of the
18 board of supervisors that they attend.
19 (b) The compensation of supervisors employed by the township
20 as superintendent, roadmaster, laborer, secretary, treasurer or
21 secretary/treasurer shall be fixed by the township auditors,
22 which compensation shall not exceed compensation paid in the
23 locality for similar services.
24 (c) A supervisor may contract with the township for use by
25 the township of a vehicle and/or equipment owned by such
26 supervisor. The compensation to be paid to the supervisor by the
27 township for such use shall be fixed by the township auditor.
28 (d) Supervisors may be reimbursed for mileage driven on
29 township business, other than attendance at regular or special
30 meetings of the board of supervisors. Such reimbursement shall
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1 not be deemed to be compensation within the meaning of this act
2 and shall be fixed by the supervisors in accordance with the act
3 of July 20, 1979 (P.L.156, No.51), entitled "An act establishing
4 a uniform mileage fee for all officials, officers and employees
5 of the Commonwealth, its political subdivisions, intermediate
6 units, and authorities."
7 (e) Any benefit provided to or for the benefit of a
8 supervisor employed by the township as a superintendent,
9 roadmaster, laborer, secretary, treasurer or secretary/treasurer
10 in the form of inclusion in a township-paid pension or annuity <--
11 plan PAID FOR IN WHOLE OR IN PART BY THE TOWNSHIP shall be <--
12 deemed to be compensation and shall be fixed by the township
13 auditors; however:
14 (1) The ON OR BEFORE DECEMBER 31, 1984, THE township <--
15 auditors may ratify payments previously made BETWEEN JANUARY 1, <--
16 1959, AND AUGUST 31, 1984, to a pension or annuity program PLAN, <--
17 without auditor approval, for or on behalf of such a supervisor-
18 employe.
19 (2) Supervisors shall be eligible for inclusion in such
20 township pension or annuity programs only PLANS ONLY IF THEY ARE <--
21 EMPLOYED ON A FULL-TIME BASIS in their capacity as
22 superintendent, roadmaster, laborer, secretary, treasurer or
23 secretary/treasurer employed by the township. "FULL TIME," AS <--
24 USED IN THIS SECTION, MEANS WORKING THE SAME NUMBER OF HOURS AS
25 ARE REQUIRED OF OTHER TOWNSHIP EMPLOYES DESIGNATED AS FULL TIME.
26 THE TOWNSHIP AUDITORS SHALL BE RESPONSIBLE FOR VERIFYING THE
27 NUMBER OF HOURS ACTUALLY WORKED BY SUCH SUPERVISORS.
28 (3) Auditor approval for inclusion of a supervisor-employe
29 once given shall not be rescinded in any subsequent years so
30 long as the pension or annuity plan remains in effect and said
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1 supervisor remains employed ON A FULL-TIME BASIS by the township <--
2 as superintendent, roadmaster, laborer, secretary, treasurer or
3 secretary/treasurer; nor shall the auditors be empowered to take
4 or refrain from any action that would cause the disqualification
5 of all or any portion of the pension or annuity program under
6 the applicable Federal law. However, any substantial change in <--
7 the nature or amount of the BENEFIT COVERAGE APPLICABLE TO, OR <--
8 THE AMOUNT OF, THE PENSION PLAN OR ANNUITY contributions made by
9 the township with respect to a supervisor-employe shall require
10 auditor approval.
11 (f) Supervisors shall be eligible for inclusion in township- <--
12 paid group life, health, hospitalization, medical service and
13 accident insurance plans. Eligibility of a supervisor for <--
14 inclusion in such plans and any benefit derived therefrom shall
15 not be conditional upon such supervisor's employment by the
16 township PAID FOR IN WHOLE OR IN PART BY THE TOWNSHIP ONLY IF <--
17 THEY ARE EMPLOYED ON A FULL-TIME BASIS IN THEIR CAPACITY as a
18 superintendent, roadmaster, laborer, secretary, treasurer or
19 secretary/treasurer. OTHER SUPERVISORS SHALL BE ELIGIBLE FOR <--
20 INCLUSION IN SUCH PLANS ONLY IF THEY PAY THEIR PRO RATA SHARE OF
21 THE PREMIUMS. Such insurance shall not require auditor approval.
22 Section 2. Clause XIII of section 702 of the act, amended
23 June 26, 1975 (P.L.34, No.17), is amended to read:
24 Section 702. Supervisors to Exercise Powers.--The corporate
25 powers of townships of the second class shall be exercised by
26 the township supervisors. Where no specific authority is given
27 for the expenditures incident to the exercise of any power
28 hereinafter conferred, or where no specific fund is designated
29 from which such expenditures shall be made, appropriations for
30 such expenditures shall be made only from the general township
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1 fund. In addition to the duties imposed upon them by section 516
2 hereof, they shall have power--
3 * * *
4 XIII. Insurance.--To expend out of the general township fund
5 such amount as may be necessary to secure workmen's compensation
6 insurance for its employes, including volunteer firemen of
7 companies duly recognized by the township by motion or
8 resolution, killed or injured while going to, returning from, or
9 attending fires in said township or territory adjacent thereto,
10 or while performing any other duties authorized by the township;
11 to make contracts of insurance with any fire insurance company,
12 duly authorized by law to transact business in the Commonwealth
13 of Pennsylvania, on any building or property owned by such
14 township, to make contracts with any insurance company, so
15 authorized, insuring any public liability of the township,
16 including insurance on every township officer, official, and
17 employe for liability arising from errors and omissions in the
18 performance of their duties in the course of their employment,
19 except that liability of elected or appointed officials or
20 officers for surcharge in accordance with law shall not be
21 affected hereby; and to make contracts of insurance with any
22 insurance company, or nonprofit hospitalization corporation, or
23 nonprofit medical service corporation, authorized to transact
24 business within the Commonwealth, insuring its township
25 supervisors and nonelected and appointed officials, including <--
26 AND/OR THEIR DEPENDENTS, IF THE SUPERVISOR WORKS ON A FULL-TIME <--
27 BASIS, AS DEFINED IN SECTION 515(E)(2), IN HIS CAPACITY AS
28 SUPERINTENDENT, ROADMASTER, LABORER, SECRETARY, TREASURER OR
29 SECRETARY/TREASURER EMPLOYED BY THE TOWNSHIP, AND INSURING ITS
30 employes, and/or their dependents, or any class or classes
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1 thereof, under a policy or policies of group insurance covering
2 life, health, hospitalization, medical service, or accident
3 insurance, and may contract with any such company, granting
4 annuities or pensions, for the pensioning of [such] employes, <--
5 and for such purposes, may agree to pay part or all of the
6 premiums or charges for carrying such contracts, and may
7 appropriate out of its treasury any money necessary to pay such
8 premiums, or charges, or portions thereof. IN NO CASE, HOWEVER, <--
9 SHALL THE BENEFIT COVERAGE PROVIDED TO SUPERVISOR-EMPLOYES
10 EXCEED THOSE PROVIDED TO OTHER FULL-TIME EMPLOYES. THE
11 SUPERVISORS ARE HEREBY AUTHORIZED TO PURCHASE INSURANCE AT THE
12 TOWNSHIP'S EXPENSE TO COVER ANY TOWNSHIP OFFICIAL OR EMPLOYE FOR
13 ANY ILLNESS OR INJURY INCURRED WITHIN THE SCOPE, AND AS A DIRECT
14 AND PROXIMATE RESULT, OF HIS OFFICIAL DUTIES OR EMPLOYMENT. The
15 supervisors are hereby authorized, enabled and permitted to
16 deduct from the employe's pay, salary or compensation such part
17 of the premium, or charge, as is payable by the employe, and as
18 may be so authorized by the employe in writing. Any such
19 contract entered into on or after BETWEEN January 1, 1959 AND <--
20 AUGUST 31, 1984, shall not be void or unlawful, solely because
21 of the inclusion therein of ANNUITIES, PENSIONS, life, health, <--
22 hospitalization, medical service or accident insurance coverage
23 for any elected or appointed township official or any class or
24 classes thereof, nor shall the participation of such elected or
25 appointed officials in such plans be unlawful; nor shall any
26 penalty of any kind, assessment, surcharge or disciplinary
27 proceeding occur as a result of said participation.
28 NOTWITHSTANDING THE FOREGOING, ANY ANNUITIES OR PENSIONS <--
29 PURCHASED IN WHOLE OR IN PART BY ANY TOWNSHIP WITHOUT LAWFUL
30 AUTHORITY AND NOT RATIFIED BY THE TOWNSHIP AUDITORS PURSUANT TO
19840S1385B2372 - 6 -
1 SECTION 515(E)(1) SHALL BECOME THE EXCLUSIVE PROPERTY OF SAID
2 TOWNSHIP AS OF AUGUST 31, 1984, TOGETHER WITH ANY PAYMENTS MADE
3 THEREON TO THE ANNUITANT AFTER THAT DATE AND ANY PROCEEDS FROM
4 THE SALE THEREOF BY THE ANNUITANT AFTER THAT DATE; AND ANYONE
5 ENTITLED TO BENEFIT COVERAGE UNDER A PENSION PAID FOR IN WHOLE
6 OR IN PART BY ANY TOWNSHIP WITHOUT LAWFUL AUTHORITY AND NOT
7 RATIFIED BY THE TOWNSHIP AUDITORS PURSUANT TO SECTION 515(E)(1)
8 SHALL DELIVER, SURRENDER AND ASSIGN TO THE TOWNSHIP ALL BENEFITS
9 PAID THEREUNDER AFTER AUGUST 31, 1984. WHERE ANY OFFICIAL
10 PERSONALLY CONTRIBUTED TOWARD SUCH A PENSION PLAN OR A PURCHASE
11 OF SUCH AN ANNUITY, HE SHALL BE REFUNDED HIS TOTAL CONTRIBUTIONS
12 THERETO, PLUS ANY INTEREST ACCUMULATED THEREON, LESS ANY AMOUNT
13 ALREADY PAID TO HIM UNDER THE ANNUITY OR PENSION PLAN, WHEN THE
14 ANNUITY OR PENSION BENEFITS ARE DELIVERED, SURRENDERED OR
15 ASSIGNED TO THE TOWNSHIP, OR WHEN THE ANNUITY BECOMES THE
16 PROPERTY OF THE TOWNSHIP BY OPERATION OF THIS SECTION. IN LIEU <--
17 OF A REFUND OF TOTAL CONTRIBUTIONS PLUS ACCUMULATED INTEREST, AN
18 OFFICIAL WHO PERSONALLY CONTRIBUTED TOWARD THE PENSION PLAN OR
19 TOWARD THE PURCHASE OF THE ANNUITY MAY ELECT TO PURCHASE FROM
20 THE TOWNSHIP ITS INTEREST IN THAT PENSION PLAN OR ANNUITY
21 PROGRAM. THE ELECTION OPTION SHALL BE EXERCISED WITHIN ONE YEAR
22 OF THE EFFECTIVE DATE OF THIS ACT. THE VALUE OF THE INTEREST OF
23 THE TOWNSHIP IN THE PENSION PLAN OR ANNUITY PROGRAM WITH RESPECT
24 TO THE OFFICIAL SHALL BE DETERMINED BY THE ACTUARY WHO PREPARED
25 THE 1982 MUNICIPAL PENSION REPORT FOR THE TOWNSHIP PENSION PLAN
26 OR ANNUITY PROGRAM PURSUANT TO THE ACT OF DECEMBER 6, 1972
27 (P.L.1383, NO.293), ENTITLED "AN ACT REQUIRING MUNICIPAL PENSION
28 SYSTEMS TO HAVE AN ACTUARIAL INVESTIGATION OF THE FUND MADE BY
29 AN ACTUARY WHO SHALL REPORT HIS FINDINGS TO THE DEPARTMENT OF
30 COMMUNITY AFFAIRS," USING THE SAME APPLICABLE ACTUARIAL
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1 ASSUMPTIONS AS USED IN THAT REPORT OR, IF NO ACTUARY WAS
2 RETAINED FOR THE 1982 REPORT OR NO 1982 REPORT WAS FILED, BY AN
3 ACTUARY RETAINED FOR THE PURPOSE OF VALUING THE TOWNSHIP
4 INTEREST. THE COST OF THE ACTUARIAL VALUATION OF THE TOWNSHIP
5 INTEREST AND ANY FUTURE ADMINISTRATIVE COSTS OF THE PENSION PLAN
6 OR THE ANNUITY PROGRAM ATTRIBUTABLE TO THE OFFICIAL SHALL BE
7 PAYABLE BY THE OFFICIAL IN A MANNER TO BE ESTABLISHED BY
8 AGREEMENT WITH THE TOWNSHIP AUDITORS.
9 * * *
10 Section 3. This act shall take effect immediately.
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