Salem Township adopts sharply lower 2025 pension obligations, authorizes payments

The Salem Township Board of Supervisors on Sept. 18 accepted the township’s 2025 Minimum Municipal Obligations (MMOs) for its employee pension plans and authorized payment. Supervisors approved a $31,316 payment for the defined‑benefit plan and $15,811 for the defined‑contribution plan.

The board voted unanimously to accept the defined‑benefit pension report showing a financial requirement of $42,959 and an MMO of $31,316 after a funding adjustment. The defined‑contribution calculation reflects an employer rate of 9.0% on estimated payroll, yielding an estimated employer contribution of $15,811 for 2025; the board also authorized that payment.

Supervisor Kerry Jobe told the meeting the MMO for the defined‑benefit plan represents a significant decline from recent years — roughly $90,000 last year and about $140,000 the year before — and attributed the change to the Jan. 1, 2023, actuarial valuation and the plan’s funded status. Jobe said the fund was about 105% funded on that valuation and that, absent unusual market shifts, the township can ‘‘ride out’’ current projections without increasing taxes to subsidize the pension.

All pension calculations and required payment deadlines noted in the reports were read into the record; the reports referenced Act 205 (Chapter 3) calculations and warned that state aid must be deposited within 30 days of receipt and any plan deposits must be made by Dec. 31, 2025, to avoid penalties.

Next steps: the board directed payment consistent with the accepted MMO figures and recorded the motions as passed unanimously.