An Interesting note on Supervisor Compensation:
Did you know that Pennsylvania Law allows non-employee Supervisors to participate in the employee health insurance program? This has never been done in Maidencreek, but we hear there are some townships where non-employee supervisors are getting taxpayer funded heath care. All three members of the Maidencreek board feel this practice creates a conflict of interest. As a result, I introduced the following resolution (which was adopted with a 3 to 0 vote)
The actual text of the resolution:
This resolution will be sent to Dave Argall's office (our State Representative) Senator Jim Roades' Office (Sen. Roades passed away late in 2008. Mr. Argall is running for his seat in a special election to be held on 3/3/2009) In addition the Governor, Senator Mike Fulmer, and Representative Sam Rohrer will be copied.
Maidencreek Township Resolution No. ___________
Memorializing Resolution on Supervisor Compensation
Whereas: Second Class Township Supervisors are elected at the local level, and part of their responsibilities includes negotiating compensation with township employees. These employees may be full time or part time, and may or may not be covered by a collective bargaining agreement. The employee compensation often includes medical benefits.
Whereas: Second Class Township Supervisors are entrusted by the taxpayers to assure local government funds are used wisely.
Whereas: The Pennsylvania Second Class Township Code Section VI governs the compensation of Township Supervisors.
Whereas: The Pennsylvania Second Class Township Code Section 606 c states:
c) In addition to the compensation authorized under this section, supervisors while in office or while in the employ of the township may be eligible for inclusion in township-paid insurance plans, as follows:
Supervisors, whether or not they are employed by the township, and their dependents are eligible for inclusion in group life, health, hospitalization, medical service and accident insurance plans paid in whole or in part by the township. Their inclusion in those plans does not require auditor approval, but does require submission of a letter requesting participation at a regularly scheduled meeting of the board of supervisors before commencing participation. The insurance shall be uniformly applicable to those covered and shall not give eligibility preference to or improperly discriminate in favor of supervisors. No policy of group life insurance shall contain any provision for a cash surrender value, loan value or any other benefit beyond the face amount of insurance. The policy may contain a provision that when the insurance ceases because of termination of employment or term of office, the person is entitled to have issued to him by the insurer, without evidence of insurability, an individual policy of insurance on any form customarily issued by the insurer at the age and for the amount applied for if the amount is not in excess of the amount of life insurance which ceases because of the termination and the application for the individual policy is made and first premium is paid to the insurer within thirty-one days after termination.
Whereas: The value of a heath plan when section 606 c.1 was adopted may have been relatively low, the value of a health plan has increased significantly in recent years, with many plans having a value easily exceeding $12,000 per year.
Whereas: The maximum compensation allowed for non-employee township supervisors in section 606 (a) is $5,000 per year in townships exceeding 35,000 in population.
Whereas: Many employee negotiations include co-pay issues on health plans.
Whereas: Maidencreek Township has been able to work with its employees on health care to save the taxpayers money largely because of the co-pay previously negotiated.
Whereas: Townships that explicitly include (or include by reference) section 606 c. 1. in their ordinances establishing supervisor compensation create a scenario where non-employee supervisors could receive compensation with an annual value exceeding $15,000. This figure is much larger than the maximum amounts contemplated in section 606 a.
Whereas: Townships that explicitly include (or include by reference) section 606 c. 1. in their ordinances establishing supervisor compensation create a scenario where non-employee supervisors receiving health benefits have a conflict of interest when negotiating health plan features and co-pays with employees. This scenario places the supervisor's financial self-interest opposite the taxpayer's interests he/she is supposed to represent. In most cases, the conflicted supervisor is likely to experience the fruits of the negotiation before the next election cycle, contrary to the principles in our State's constitution.
Whereas: Unofficial queries by our township manager of at least one insurance provider indicate that although there are no statistics as to the percentage of non-employee supervisors receiving taxpayer funded health plans, there are “ a lot “ of non-employee supervisors receiving taxpayer funded health plans.
NOW THEREFORE BE IT RESOLVED by the board of supervisors of Maidencreek Township that we strongly request that the Pennsylvania Legislature eliminate this conflict of interest by amending section 606 c. 1 to prohibit non-employee supervisors from inclusion in group life, health, hospitalization, medical service and accident insurance plans. Section 606 c. 1 could be amended to allow non-employee supervisors to purchase inclusion in group life, health, hospitalization, medical service and accident insurance plans for the actual cost of their inclusion into the plan.
ADOPTED this _____ day of January, 2009
Attest: TOWNSHIP OF MAIDENCREEK
BY: ____________________________ _____________________________
Diane Hollenbach Claude Beaver
Township Manager/Secretary Chairman
______________________________
Roy Timpe
______________________________
Joseph Rudderow, III
Free Book Offer:
Demand has caused me to order another case of books. I have copies of the Fredrick Bastiat book “The Law” available to Maidencreek residents. Email me if you want one.
Paid for by Roy Timpe