A Traditional Pension That
Affordably Rewards Employee Loyalty
Whether it’s recruitment or retention, affordability or sustainability, there are a variety of reasons the MERS Defined Benefit Plan can be the right retirement fit for your municipality.
The MERS Defined Benefit Plan is a traditional pension plan that rewards your employees’ loyalty and longevity, with a lifetime retirement benefit. The MERS Defined Benefit Plan can help you attract and retain top talent at your municipality, while offering you the flexibility to affordably balance your benefits and your budget.
Features & Benefits:
- Rewards employee longevity
- Variety of benefit multipliers and other provisions available for adoption
- Benefits do not decrease with investment losses
- Past service may be financed
- Investment returns reduce long-term contributions – more than half of MERS municipal members' funding comes from investment earnings
- Cost-of-living adjustment (COLA) options available
- Death and disability benefit provisions
- Additional service credit purchases available*
*Note: Based on customer feedback and the unique needs of each municipal customer, we are implementing a new process for service credit purchase requests effective January 3, 2017.
Prior to this date, your municipality will need to determine if it will offer employees the option to purchase additional service credit.
If your municipality opts to offer this option, you do not need to take any immediate action. However, MERS will require that as of January 3, all requests for service credit purchase estimates must come from you - the employer - through an online web form on the MERS website which will be available beginning in January. Employees contacting MERS to request an estimate will be instructed to reach out to you to facilitate the request. Please note that if an employee elects to purchase service credit, your municipality's governing body will still be required to approve the final purchase.
Additionally, to assist you with your due diligence in approving these requests, we have improved the Application for Additional Service Credit Purchase to provide more straightforward information on the calculation assumptions and potential financial impact to your municipality.
If you choose not to provide employees the opportunity for service credit purchases, you will need to complete and return a Service Credit Purchase Provision Form, so that MERS is aware of your decision.
If you already have a blanket resolution on file regarding service credit purchases, we will continue to honor that resolution with no further action on your part.