Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions topic
No spam. Unsubscribe anytime.
Salem Township adopts 2026 pension obligations; MMO payments authorized
Summary
Board accepted 2026 pension reports for both the defined‑benefit and defined‑contribution plans and authorized payments: DB MMO $31,406 and DC MMO $16,127. The DB plan financial requirement was reported at $43,049.
Supervisors accepted the Salem Township Service Employees Defined Benefit Pension Plan calculations for the 2026 municipal budget and approved the Minimum Municipal Obligation (MMO) payment consistent with the report.
The board recorded a Normal Cost for the defined‑benefit plan of 10.256% of payroll, an estimated 2024 payroll of $319,923, a Normal Cost dollar amount of $32,811, and a Financial Requirement of $43,049 leading to a Minimum Municipal Obligation of $31,406. The supervisors voted unanimously to accept the report and to pay $31,406 for the Township's MMO.
The board also approved the defined‑contribution (DC) plan MMO for 2026. The employer DC rate was listed at 9.0% and the estimated 2026 payroll for eligible participants was $179,192, producing a total employer contribution obligation of $16,127. Supervisors authorized payment of $16,127 consistent with the approved report.
