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.
How it works
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:
- the number of years you’ve worked
- your average salary over a specific period
- 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.
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.