Judges rule to cap Mt. Lebanon police pension plan

In July 2006, thirteen Mt. Lebanon retired police officers and several active police officers went to their pension plan administrator over a grievance with the COLA cap, but the administrator denied the petition. It then went to the Commissioners, and then to the Allegheny County Court of Common Pleas, and finally to Commonwealth Court.

Commonwealth Court ruled the Mt. Lebanon police union's interpretation of COLA benefits violate Act 205, the Municipal Pension Plan Funding Standard and Recovery Act.

According to Judge Jubelirer, Mt. Lebanon's actuary, G. Herbert Loomis, testified that his cost estimate was based on a 15 percent COLA cap and that an analysis of a 90 percent COLA cap would have significantly increased the projected financial impact of the plan modification.

This ruling will save the municipality thousands of dollars a year.

Court disallows higher benefit for Mt. Lebanon police retirees