The Commonwealth Court has invalidated a provision of a police officers’ pension plan that would have allowed early retirees to earn annual cost-of-living adjustments until they reached 90 percent of their final average monthly compensation.
A three-judge panel ruled that the police union’s interpretation of the provision’s COLA benefits violated the Municipal Pension Plan Funding Standard and Recovery Act, known as Act 205, because it differed from the calculation upon which the municipality relied when it enacted the provision.
