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The original item was published from 8/5/2015 10:14:19 PM to 1/1/2016 12:00:04 AM.

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Finance

Posted on: August 5, 2015

[ARCHIVED] WHITEMARSH TOWNSHIP RECEIVES POSITIVE PENSION REVIEW

Whitemarsh Township was recently presented with their 2015 Pension Plan Actuarial Valuation and the report provided positive trends for the police pension plan. The valuation takes into account the previous two years during which time the investment returns exceeded our assumptions by 6.5% resulting in a gain of approximately $950,000 for the pension fund. This will result in a reduction of future Minimum Municipal Obligation (MMO) payments by $90,000. The underfunded amount is $2,440,000 in 2015 compared to $3,950,000 in 2013, a $1,500,000 improvement during the two year period. Maintaining the current rate there will be no unfunded liability in 7 years. The Police Pension plan was 78.4% funded in 2013 placing it in the States “minimally distressed” category. Based on the positive returns over the past two years the 2015 plan is now 87.7% funded and with the non-union plan the aggregate is over 90% funded boosting the Township’s determination to “not distressed” starting in fall of 2016.

“Whitemarsh Township’s plan is now well above the State-wide funding average of 81%. We anticipate an approximate $200,000 taxpayer savings in our MMO starting in 2016”, said Board of Supervisors Chairman Bob Hart.

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