Borough Violated “Static Status Quo” By Unilaterally Imposing Pension Contribution

Written on 06/13/2025
LRIS

The Camp Hill Borough Police Association and the Borough of Camp Hill, Pennsylvania, were subject to a collective bargaining agreement that expired on December 31, 2023, and were engaged in arbitration proceedings for a successor agreement. Prior to 2024, police officers had never been required to contribute to their pension plan. In November 2023, the Borough notified officers that, starting January 1, 2024, they would be required to contribute 5% of their post-tax income toward their pensions. The Borough implemented this change without the Association’s agreement, deducting the contributions from paychecks beginning January 5, 2024.

The Association filed an unfair labor practice charge with the Pennsylvania Labor Relations Board (PLRB), alleging that the Borough violated Section 6(1)(a) and (e) of the Pennsylvania Labor Relations Act, as read in conjunction with Act 111, by unilaterally changing a mandatory subject of bargaining during the status quo period. The Borough defended its actions, arguing that the issue of pension contributions had been discussed with the Association prior to the declaration of impasse and that it had a contractual privilege to impose the change. However, the Association maintained that it had never agreed to the imposition of the contributions and that the Borough’s actions breached its duty to maintain the status quo during negotiations.

A PLRB hearing examiner ruled in favor of the Association, finding that the Borough’s unilateral imposition of the pension contributions violated its bargaining obligations under Act 111. The hearing examiner emphasized that during a contract hiatus, an employer must maintain the “static status quo,” defined as the “last actual peaceable and lawful noncontested status which preceded the controversy.” The examiner noted that prior to January 1, 2024, bargaining unit members had never contributed to their pensions, making the Borough’s action a clear change to the status quo. The hearing examiner rejected the Borough’s argument that discussions about the pension contribu­tions satisfied its bargaining obligation. “The bargaining obligation in Section 1 of Act 111,” he wrote, “is not met by merely bringing up a topic in a meet­ing.” The examiner also dismissed the Borough’s contractual privilege defense, ruling that any such privilege or waiver of bargaining rights does not extend beyond the expiration of the CBA into the status quo period.

The hearing examiner ordered the Borough to cease and desist from inter­fering with employees’ rights, rescind the 5% pension contributions imposed after January 1, 2024, and make affect­ed employees whole with 6% interest. The Borough was also required to post a notice of the decision and provide evidence of compliance to the PLRB.

Camp Hill Borough, 56 PPER ¶ 45 (Proposed Decision and Order, 2025).