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Council delays vote after police pension board recommends COLA; solicitor warns of litigation risk
Summary
Council members discussed an ordinance tied to a police pension COLA after a 3' police pension board vote; the solicitor said rejecting the board's recommendation could expose the borough to litigation tied to the collective bargaining framework; council agreed to revisit the matter next week.
The borough council discussed Ordinance 2026-01 concerning the police pension after the police pension board voted 3 1 in favor of a cost-of-living adjustment. The solicitor advised that the pension board has fiduciary authority under the administration framework and that refusing the board's recommendation could open the borough to legal action under the collective bargaining agreement.
A council member pressed for clarity on whether the council was obliged to follow the pension board's recommendation and asked whether the finance committee had been consulted on longer-term budget impacts, including the municipal minimum obligation (MMO). The solicitor said the board administers the fund and that the council's options are constrained: either accept the board's recommendation or risk litigation and additional financial exposure.
Council did not take a final vote at the Feb. 25 meeting and agreed to take up the item next week. Members asked staff for the most recent collective bargaining agreement, actuarial estimates and any MMO projections to inform a future vote.
What happens next: council asked staff to provide the collective bargaining agreement and pension fund financial projections so members can consider fiscal implications before voting.
