Thursday, April 9, 2020
MERS Defined Benefit

A Benefit to Last a Lifetime

As a MERS Defined Benefit Plan member, you join nearly 90,000 public sector employees all across the state, many of them your friends and family, your neighbors and coworkers.

With the MERS Defined Benefit Plan, you have an important tool to help you reach your retirement goals, with a lifetime benefit from your employer.

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How it works

MERS Defined Benefit Handbook (download)

Your future retirement benefits are paid largely by contributions made by your employer. At many municipalities, employees are also required to contribute to their MERS Defined Benefit Plan.

With a MERS Defined Benefit Plan, your future benefit doesn’t fluctuate due to investment gains or losses in the market. Generally, your benefit is based on three factors:

  1. the number of years you’ve worked
  2. your average salary over a specific period
  3. a multiplier selected by your employer. 

To qualify for benefits when you retire, you must meet your employer’s requirements, including age and years of service, called vesting.


The Benefit Formula

The Defined Benefit formula is as follows: Benefit plan multiplier multiplied by final average compensation (FAC) multiplied by years and months of service, divided by 12 for your monthly (Straight Life) amount.

Example: .025 (B-4 multiplier of 2.5%) x $45,000 (FAC) x 25 (years) = $28,125 yearly or $2,343.75 monthly.


Retirement Eligibility

You can begin receiving retirement benefits when you reach the age and service requirements under your plan provisions. If you are vested, the standard retirement age is 60. 

Click here to learn about the Defined Benefit retirement process.


Ready to retire?

Learn how to start the retirement process, click here.

Find It Fast

Inactive Member Search

Eligible for benefits? Try our inactive member search to see.

Find MERS Employers

View a list of Act 88-participating municipalities here, to help you coordinate your service credit.

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The information contained in this Web site is being made available as a public service. The information is not intended to constitute legal or investment advice, or to replace official versions of that information. Benefit Estimates or Service Credit Purchase estimates requested through this Web site are not official descriptions of any benefits, and do not represent a promise by MERS to provide any benefit(s) to any person(s). No one can detrimentally rely upon the information provided in, or requested through this Web site. MERS reserves the right to correct any errors, and presents this information without warranties, express or implied, regarding the information?s accuracy, timeliness or completeness. If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.MERS (6377).