How It Works
The MERS Retiree Health Funding Vehicle (RHFV) is a Section 115 Governmental Integral Part Trust giving employers the ability to establish a qualified medical trust using MERS' cost-effective diversified investments to fund Other Post Employment Benefits (OPEB).
There are many benefits of the MERS Retiree Health Funding Vehicle.
MERS serves Michigan municipalities exclusively
Peace of Mind
MERS provides employers with peace of mind because MERS takes on the sole fiduciary role for all our retirement plans
MERS can provide a turn-key solution for your retirement program, including plan administration, recordkeeping, investment menu oversight and acting as trustee of the programs' assets
The Trust has been approved by a Private Letter Ruling from the IRS
Higher Discount Rate
By pre-funding your OPEB liability through a Trust, you can use a higher discount rate to calculate your unfunded liability
Earnings on assets will reduce your long-term contributions and unfunded liability
Potential to Reduce OPEB Liability
Funding may prevent your net OPEB obligation from becoming a significant liability on your balance sheet
The Retiree Health Funding Vehicle can be used alone or in conjunction with the MERS Health Care Savings Program
As the sole fiduciary for our retirement plans, MERS takes on the liability for selecting the investment options, monitoring fund performance, and ensuring fees are reasonable. Click to learn more.