The road to retirement is paved with preparation, and the MERS Defined Contribution Plan helps you do just that — by taking an active role in planning for the future.
MERS Defined Contribution Plan provides you with an account to which contributions are made and assets are invested. When you retire, your benefits are based on the total amount of money in your account. As a qualified plan, you are not taxed on your employer contributions or earnings until you withdraw your assets.
How It Works
MERS Defined Contribution Handbook (download)
Your MERS Defined Contribution Plan benefit is made up of any contributions from you and your employer, and investment interest earned. When you enroll in the Defined Contribution Plan, you select from the streamlined MERS Investment Menu. For more information, please read Understanding the MERS Investment Menu found here.
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.
You can begin receiving retirement benefits when you reach the age and service requirements under your plan provisions. You can also leave your account invested with MERS under your direction. A few reasons to keep your account active include:
- Access to the MERS Investment Menu
- Low administrative fees
- Excellent customer service.
Click here to learn about the Defined Contribution Plan retirement process.