Radnor Twp. OKs Over $3.5 Million For Employee Pensions

Radnor Townships Board of Commissioners approved its municipal obligation for minimum municipal employee pension amount for 2017 at Monday's meeting, with the amount being roughly $4.17 million total.

Radnor's Finance Department Director William White said state funds will help ease the financial burden with roughly $600,000 in state money going to the township's minimum municipal obligation (MMO). Radnor effectively would pay roughly $3.5 million to the MMO.

He went on to say while the resolution needs to be passed by the end of September to submit the $4.17 million figure to the state, the MMO amount can be revised if payroll amounts shift during the township's budget process. White said the township has submitted a revised MMO almost every year for the last several years.

White said of the $4.17 million, Radnor Township Police make up $2.32, a 1.3 percent increase from 2016's amount, while civilians make up $1.85, which is just .0004 percent up from last year. Overall, the $4.17 million is up 1 percent from last year's MMO amount, which was $4.13 million.

The MMO amount has gone up roughly 100 percent since 2011, Ward 2 Commissioner Richard Booker said at the meeting. The 2011 MMO amount was $2.07 million.

"It's a huge increase," he said. Booker went on to ask White if he projects number will continue to rise.

"There's nothing that would cause that number to jump from $4 million to $6 million like it went from $2 million to $4million," White said. "The benefit levels are known and we're aware of all the different levers that impact these numbers."

White said the number will go up if payroll increases, however.

"We should be relatively stable, if not coming down a little bit, over the future years," he said of the MMO amount.

White said the MMO money is disbursed in installments throughout the year and makes up just under 10 percent of the township budget.

Watch the entire Board of Commissioners meeting below.

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