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Salem Township board accepts lower pension obligation, approves MMO payments for 2025
Summary
Supervisors accepted the 2025 pension reports and approved MMO payments: $31,316 for the defined‑benefit plan and $15,811 for the defined‑contribution plan; board discussion noted a marked drop in obligation compared with prior years.
The Salem Township Board of Supervisors unanimously accepted pension funding reports and approved related payments for the 2025 municipal budget at its Sept. 18 meeting.
The board accepted the Salem Township Service Employees Defined Benefit Pension Plan financial requirement and minimum municipal obligation report, which showed a Minimum Municipal Obligation (MMO) of $31,316 after funding adjustments. The motion to accept the report was made by Ken Trumbetta and seconded by Kerry Jobe; the board then approved payment of $31,316 to fund that obligation.
Separately, the supervisors approved the Defined Contribution Pension Plan MMO for 2025, calculated at 9.0% of estimated payroll and totaling $15,811, and approved payment of that amount.
Supervisor Kerry Jobe explained the MMO represents a significant drop from recent years: he noted the MMO was roughly $90,000 last year and nearer $140,000 the year before, based on the Jan. 1, 2023 valuation. Jobe said the plan’s funded status and market performance led to the reduced required contribution for 2025. All pension motions passed unanimously.
The board recorded standard Act 205 notes in the plan certification, including deadlines for depositing state aid and addressing any delinquent MMOs from prior years.
