Pension rights action dismissed.
We successfully handled a pension rights action before the Commonwealth Court on behalf of a municipality. A police chief in small municipality alleged that a scrivener’s error in his employment contract erroneously referencing Act 600 entitled him to an Act 600 pension plan upon retirement when his existing pension plan had been organized many years pursuant to Act 15. The police chief had never contributed to an Act 600 pension plan, which would have provided for much higher benefits and for which the municipality had no funds set aside to pay because it had never established an Act 600 plan. The Commonwealth Court held that the police chief’s pension rights existed only under Act 15 because the municipal pension ordinance was established under Act 15, not Act 600. Pennsylvania law requires an ordinance to establish pension rights. Pension rights cannot be conferred only by agreement, without an ordinance. This decision was very important to the municipality we represented, and the opinion affirms well-established law that a municipality cannot contract for benefits if there is no enabling law for the benefits.