Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions topic
No spam. Unsubscribe anytime.
Board accepts 2026 pension MMOs; approves required township payments
Summary
Salem Township accepted financial requirement reports for its defined-benefit and defined-contribution employee pension plans and approved MMO payments: $31,406 for the DB plan and $16,127 for the DC plan, consistent with the certified calculations for the 2026 municipal budget.
The Salem Township Board approved the Minimum Municipal Obligation (MMO) reports and payments for both its defined-benefit and defined-contribution service-employee pension plans for the 2026 budget year.
The certified DB plan calculations listed a normal cost rate of 10.256% and an estimated payroll of $319,923, producing a financial requirement of $43,049 and a minimum municipal obligation of $31,406 after a funding adjustment. The Board then voted to pay $31,406 consistent with the certified report. The Board also accepted the defined-contribution plan report showing an employer contribution rate of 9.0% on an estimated 2026 payroll of $179,192, for a DC MMO of $16,127, and approved payment of that amount.
Board votes on both the DB and DC reports and payments were unanimous. The certification language accompanying the DB report (prepared using a January 1, 2023 valuation) was entered into the record; the certifier's statement read in part, "I hereby certify that the above calculations, to the best of my knowledge, are true, accurate, and conform with the provisions of Chapter 3 of Act 205 of 1984." These approvals commit the amounts to the 2026 municipal budget and note that state pension aid may be used to offset the obligation when received.
