Borough of Jefferson Hills v. Jefferson Hills Police Department Wage and Policy Committee

904 A.2d 61, 182 L.R.R.M. (BNA) 2569, 2006 Pa. Commw. LEXIS 437
CourtCommonwealth Court of Pennsylvania
DecidedAugust 4, 2006
StatusPublished
Cited by5 cases

This text of 904 A.2d 61 (Borough of Jefferson Hills v. Jefferson Hills Police Department Wage and Policy Committee) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Borough of Jefferson Hills v. Jefferson Hills Police Department Wage and Policy Committee, 904 A.2d 61, 182 L.R.R.M. (BNA) 2569, 2006 Pa. Commw. LEXIS 437 (Pa. Ct. App. 2006).

Opinion

OPINION BY

Senior Judge KELLEY.

The Borough of Jefferson Hills (Borough) appeals from an order of the Court of Common Pleas of Allegheny County (trial court), which vacated part of an arbitrator’s award and affirmed the award in all other respects. We reverse in part.

On December 27, 2001, the Borough and the Jefferson Hills Police Department Wage and Policy Committee (Committee) entered into a Collective Bargaining Agreement (CBA), effective January 1, 2002 to December 31, 2005. On February 13, 2003, the Committee filed a grievance contending that the Borough violated the terms of the CBA by failing to reduce the retirement age for Borough police officers from age 55 to 50, and by failing to eliminate contributions to the Police Pension Plan by police officers following the enactment of Act 30 of 2002 (Act 30), 1 which took effect on April 17, 2002.

Following arbitration proceedings, the arbitrator found in favor of the Committee in both respects. With regard to the contribution issue, the arbitrator found the CBA provides that both parties recognized that all pension matters are subject to and governed by Act 600. The CBA further provides that individual officers will not be required to make a contribution in any amount from their salary to the Police Pension Fund for calendar years 2001, 2002, 2003, 2004, and 2005. The arbitrator found that the police officers have been *63 contributing 5% of their monthly compensation as required by Section 6 of Act 600, 58 P.S. § 772. Significantly, the arbitrator determined that as a result of the passage of Act 30, the only way police officer contributions would be “necessary” is if an agreement or award dictated that police officers must contribute to their plan. In the CBA, the parties agreed that no contributions were necessary. Thus, the arbitrator concluded that due to the passage of Act 30 and the express terms of the CBA, police officers are no longer required to contribute to the plan.

On appeal, the trial court determined that the arbitrator’s award went too far and effectively removed from the CBA the requirement agreed to by the parties that a police officer could retire at age 50, provided the plan is actuarially sound; no evidence was presented that the plan is actuarially sound. With regard to the contributions, the trial court determined that the arbitrator correctly determined that the police officers were no longer required to contribute to the pension fund based upon the passage of Act 30. The trial court reasoned that the arbitrator did not retroactively apply the law, but rather applied the law in effect when the grievance was filed, February 13, 2003. By order dated September 7, 2005, the trial court vacated the portion of the award pertaining to the age of retirement and affirmed the award in all other respects. This appeal now follows.

The Borough raises the issue of whether, based upon the applicable scope of review of narrow certiorari, the trial court erred as a matter of law in affirming the arbitrator’s award which determined that the Borough violated the CBA by failing to eliminate police pension contributions after the enactment of Act 30, even though the Borough’s pension plan was not actuarially sound and Act 30 was enacted into law on April 17, 2002, which was subsequent to the parties existing CBA.

Judicial review of a grievance arbitration award arising under the Act of June 24, 1968, P.L. 237, as amended, 43 P.S. §§ 217.1 — 217.10, commonly referred to as “Act 111,” is in the nature of narrow certiorari. Narrow certiorari requires the court to review only the question of jurisdiction, the regularity of the proceedings, questions of excess in the exercise of powers and constitutional questions. Pennsylvania State Police v. Pennsylvania State Troopers’ Association, 540 Pa. 66, 71, 656 A.2d 83, 85 (1995).

The CBA, which was entered into by the parties on December 27, 2001, provides in pertinent part:

2. Individual Officers will not be required to make a contribution in any amount from their salary to the Police Pension Fund for calendar years 2001, 2002, 2003, 2004 and 2005, only, unless otherwise required by the Auditor General or applicable law.
[5]. Both parties recoynize that all pension related matters are subject to and yoverned by Act 600 of the Commonwealth of Pennsylvania, the Auditor General findings pertaining thereto and case law interpreting the same, and that Act 600 supersedes the terms of this contract.

Article XXI of the CBA — Pension Plan, Reproduced Record (R.R.) at 87 (emphasis added).

Section 6(a) of Act 600, 53 P.S. § 772(a), provides that “[mjembers shall pay into the fund, monthly, an amount equal to not less than five per centum nor more than eight per centum of monthly compensation.” When the parties entered into the CBA, Section 6(c) of Act 600, 53 P.S. § 772(c), provided:

*64 If an aduanal study shows that the condition of the police pension fund of any borough, town, township or regional police department is such that payments into the fund by members may be reduced below the minimum percentages hereinbefore prescribed, or eliminated, and that if such payments are reduced or eliminated contributions by the borough, town, township or regional police department will not be required to keep the fund actuarially sound, the-governing body of the borough, town, township or regional police department may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members.

(Emphasis added). This language permitted a governing body to reduce or eliminate pension contributions by police officers only if the governing body would not thereafter be required to make contributions to keep the fund actuarially sound. Prior contributions were based upon the funding requirements of the plan. Officers had to contribute at least 5% of their salaries to meet actuarial funding requirements before the Borough would be required to contribute to the plan. Thus, a request to eliminate or reduce officer pension contributions could not legally be granted if it resulted in the Borough being required to make contributions in order to keep the plan actuarially sound.

On April 17, 2002, Act 600 was amended by Act 30, effective immediately. Act 30 deleted the first part of Section 6(c) (as italicized above) to provide:

The governing body of the borough, town, township or regional police department may, on an annual basis, by ordinance or resolution, reduce or eliminate payments into the fund by members. Except as otherwise provided in this subsection, reduction or elimination of member contributions shall not permit the return of contributions or any interest or fund earnings to be made to members while actively employed as a police officer by any borough, town or township subject to this act.

The passage of Act 30 eliminated the statutory requirement that a police officer contribute to the pension fund of which he or she is a member before municipal contributions are required to keep the fund actu-arially sound.

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904 A.2d 61, 182 L.R.R.M. (BNA) 2569, 2006 Pa. Commw. LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borough-of-jefferson-hills-v-jefferson-hills-police-department-wage-and-pacommwct-2006.