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Salem Township approves 2025 pension obligations, health‑insurance renewal and fire department funding
Summary
Supervisors unanimously accepted 2025 Minimum Municipal Obligations for both defined‑benefit ($31,316) and defined‑contribution ($15,811) pension plans, approved payment of those amounts, renewed UPMC coverage with an 8.4% premium increase and authorized fire department and LST/state‑aid distributions.
The Salem Township Board of Supervisors on Sept. 18 approved the township's 2025 pension obligations and a set of budgetary items, voting unanimously to fund both the defined‑benefit and defined‑contribution employee pension plans and to renew the township's health plan.
Supervisors accepted the Salem Township Service Employees Defined Benefit Pension Plan Minimum Municipal Obligation (MMO) of $31,316 for 2025 and approved payment consistent with the report. They also approved the Defined Contribution plan MMO for 2025 totaling $15,811 and authorized payment. The board approved a UPMC Health Plan contract renewal effective Oct. 30, 2024, noting an 8.4% premium increase from a current monthly premium of $12,174.07 to an estimated $13,199.96 per month.
"This is a significant drop in the Minimum Municipal Obligation," Supervisor Kerry Jobe said, noting the figures were based on the Jan. 1, 2023 valuation. He told the board the township was roughly 105% funded at that valuation and said, "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." Jobe said if the market remains stable, the township can "ride it out as it is."
The supervisors also authorized fire‑tax contributions of $35,000 each to the Slickville and Forbes Road Volunteer Fire Departments. The board approved distribution of 25% of the 2023 Local Services Tax (LST), allocating $16,961.87 to each department, and split Commonwealth State Aid received in 2024 equally ($20,507.80 each).
All motions on pension MMOs, the health plan renewal and the fire‑fund distributions passed unanimously with Supervisors Bob Zundel, Ken Trumbetta and Kerry Jobe voting in favor. The board noted state pension aid may be used to fund part or all of MMO obligations but that any remaining balance must be paid from municipal funds by Dec. 31, 2025 to avoid penalties.
Next steps: payments authorized at the Sept. 18 meeting will be processed consistent with the adopted amounts and the township will monitor market conditions and state aid as the 2025 budget is finalized.
