From flexibility to variety and simplicity, there's a long list of great reasons to participate in the MERS 457 Supplemental Retirement Program.
The MERS 457 Program is a supplemental retirement program especially for employees of counties, cities, townships, and other municipalities — people just like you — and a great way to help you prepare for life after the workplace.
Experts estimate that you’ll need as much as 90% of your working income to continue your standard of living in retirement. MERS 457 is a way to prepare for your future conveniently through payroll deductions, pre-tax or with the Roth option (after-tax).
How It Works
The MERS 457 Program is an employer-sponsored deferred compensation program, meaning with the pre-tax option, taxes on the contributions are deferred until they are withdrawn.
MERS 457 Program offers you a self-directed account in which you choose a portion of your salary to be contributed. You decide the level of contributions and how to invest the assets. There is also an available Roth contribution option employers can adopt for employees, which helps you save with post-tax dollars.
Your MERS 457 Program benefit is made up of any contributions from you and your employer, and investment interest earned. When you enroll in the program, you select from the streamlined MERS Investment Menu. For more information, please read Understanding the MERS Investment Menu.
Contributions are deposited into your individual account, and invested under your direction. At retirement, your benefits are based on the total amount of money in your account. This amount is determined by:
- your contributions
- any employer contributions
- market performance, minus fees
You must be vested at termination to withdraw your employer’s contributions.
After leaving employment, your benefit is based on the total amount of money in your account. You can also claim any available Roth savings at retirement age.