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Salem Township approves reduced 2025 pension obligations, health-plan renewal and budget disbursements
Summary
The Salem Township Board approved sharply lower 2025 pension obligations, renewed the township's UPMC health plan with an 8.4% premium increase and authorized several budget disbursements, including payments to local volunteer fire departments.
The Salem Township Board of Supervisors on Sept. 18 approved the township's 2025 minimum municipal obligations for its defined benefit and defined contribution employee pension plans and authorized related payments, along with an employee health-plan renewal and several discretionary disbursements.
The Board voted unanimously to accept the Defined Benefit Pension Plan Financial Requirement and Minimum Municipal Obligation (MMO) for 2025 and to pay $31,316 consistent with that calculation. The Board separately approved a $15,811 MMO payment for the township's Defined Contribution plan.
Why it matters: the MMO for the defined benefit plan fell sharply from prior years (Supervisor Kerry Jobe said recent valuations mean the township no longer is "subsidizing the pension system" to the same degree). The calculations used a Jan. 1, 2023 valuation and list a 10.256% normal-cost percentage and a $319,256 estimated payroll for active participants.
Board action also included renewal of the township's UPMC health insurance effective Oct. 30, 2024, with an estimated monthly premium increase of 8.4% (from $12,174.07 to about $13,199.96). The Board approved disbursements from the Fire Protection Account of $35,000 each to the Slickville and Forbes Road Volunteer Fire Departments and authorized distributions of local services tax and Commonwealth state aid totals to the same departments ($33,923.75 total LST; $41,015.61 state aid).
What officials said: Supervisor Kerry Jobe said the pension numbers reflect a return toward full funding and that "if the market stays where it is supposed to be we can ride it out as it is." Resident questions about specific invoices and transparency were raised during the public-comment portion and referred to the appropriate agenda item.
Next steps: the payments authorized at the meeting are to be made from the township budget as recorded; the board did not schedule additional action on pension policy at this meeting.
