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Board cites improved pension funding, approves $31,316 MMO payment for defined-benefit plan
Summary
Salem Township accepted 2025 pension calculations showing a lower Minimum Municipal Obligation (MMO) and approved a $31,316 payment for the defined‑benefit plan; supervisors also approved a $15,811 MMO for the defined‑contribution plan.
The Salem Township Board accepted the Service Employees Defined Benefit Pension Plan report for the 2025 budget and certified a Minimum Municipal Obligation (MMO) of $31,316 after applying a funding adjustment of $11,643. The board voted unanimously to pay $31,316 toward the defined‑benefit plan; the report used a January 1, 2023 valuation and listed an estimated active payroll of $319,256 and a normal cost percentage of 10.256%.
Supervisor Kerry Jobe noted the MMO represents a substantial drop from roughly $90,000 the previous year and emphasized improved funding: "We are finally out of the point where the taxpayers are subsidizing the pension system by putting more money into it than we are gaining." The board separately approved the defined‑contribution plan obligation of $15,811 (9.0% of estimated payroll $175,674) and authorized payment of that amount; both motions passed unanimously.
