Posting Date: November 26, 2018
Action required: No
What: Effective January 1, 2019, MERS is reducing the operational cost on participant directed accounts by two basis points ($0.20 per $1,000 invested) and removing the $24/year administrative fee currently accessed to HCSP participant accounts.
Key Date(s): January 1, 2019
Impacted audiences: All participants with a participant directed account (Defined Contribution, including DC PLUS and the DC portion of Hybrid, Health Care Savings Program, 457 Program and MERS IRA)
In an effort to provide our customers with superior value and plan transparency, MERS conducts an annual pricing review for all of the plans we offer. Through operational efficiencies and continued growth, MERS has been able to consistently reduce our costs. Since 2012 costs have been reduced seven times.
Effective January 1, 2019, MERS is once again reducing the operational cost on participant directed accounts by two basis points ($0.20 per $1,000 invested). Additionally, due to cost savings as a result of partnering with a new claims administrator, we are able to remove the $24/year administrative fee currently accessed to Health Care Savings Program participant accounts.
What does this mean for you? Reduced costs means more money in your employee's accounts – increasing the amount they're saving for retirement and harnessing the power of compounding.
For more information, contact: MERS Service Center – 800.767.MERS (6377)