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Salem Township accepts sharply reduced pension MMO, approves $31,316 payment
Summary
Board accepted the 2025 Minimum Municipal Obligation for the Defined Benefit plan at $31,316 and the Defined Contribution MMO at $15,811; supervisors approved payments consistent with those reports.
The Salem Township Board of Supervisors accepted pension funding reports for the township’s defined benefit and defined contribution employee plans and approved payments consistent with those reports at its Sept. 18 meeting.
The Defined Benefit plan report — prepared using the Jan. 1, 2023 valuation — showed a Normal Cost equal to 10.256% of payroll and an estimated 2024 payroll of $319,256, producing a Normal Cost of $32,743 and a Financial Requirement of $42,959. After an $11,643 funding adjustment, the Minimum Municipal Obligation was listed as $31,316; the board voted to pay $31,316 for the 2025 MMO. The board also approved a Defined Contribution employer obligation of 9.0% of payroll on an estimated 2025 payroll of $175,674, producing a $15,811 MMO and authorized payment.
Supervisor Kerry Jobe framed the change as a meaningful reduction compared with prior years, saying, “Last year the MMO was approximately $90K and the year before was closer to $140K.” The motions to accept the reports and make the payments were unanimous.
