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City of Butler v. City of Butler Police Dept.

Denial of petition to vacate sections of an Act 111 interest arbitration award eliminating contributions by police officers to police pension fund reversed because arbitration panel exceeded its authority and directed the City to undertake an illegal act.

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Argued: May 7, 2001

The City of Butler (City) appeals from the order of the Court of Common Pleas of Butler County, which denied a petition to vacate specific sections of an Act 111 *fn1 interest arbitration award that eliminated contributions by the City of Butler police officers to the City’s police pension fund. The sole issue on appeal is whether an Act 111 arbitration panel may eliminate the obligation of police officers to contribute to their pension plan if that plan has a substantial unfunded actuarial liability.*fn2

The relevant facts are not at issue. The police officers and the City were parties to a collective bargaining agreement (CBA) that expired on December 31, 1999. Throughout 1999, the City and the Fraternal Order of Police, Lodge #32 (FOP), the exclusive collective bargaining unit for the police officers, bargained for a new CBA. The parties reached an impasse and an Act 111 interest arbitration ensued. *fn3

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