Good employees are great to find, which makes it common to rehire them after breaks in employment, whether due to military service, layoff, or even retirement. However, there are specific rules regarding the handling of rehired employees and especially retirees.
It’s important to change their employment status in our system as soon as possible, so they can begin accruing benefits:
- When you report their first contributions, change their employment status by logging in to the MERS Employer Portal.
- Click the appropriate program under the ‘Reporting’ tab.
- Click ‘Prepare Reports’ under the ‘Wage Reporting’ tab.
- Click ‘Search for Member,’ and then click ‘Add Member’ on their name.
- Change their employment status to ‘Active’ followed by the appropriate reason (i.e., ‘Rehired’).
- Repeat this process for any other MERS programs the employee has.
If the rehired employee is a retiree from your municipality, certain rules apply. Click here for details.
If you have questions about rehiring employees, please contact us at 800.767.2308.
When you have an employee transferring from one division to another, the standard structure places them into the active plan at the time of a transfer. Treating transferred employees the same will provide consistency and effortless recordkeeping during transitions. Your municipality may adopt an alternative transfer provision, through the Employer Resolution Establishing a Uniform Transfer Provision.
MERS RETIREMENT PLAN MEMBERS
If the employee is currently a Defined Benefit Plan, Defined Contribution Plan, or Hybrid Plan member, the effects of a transfer depend on whether your municipality has the Standard Transfer Rules or has adopted the Alternative Transfer Rules:
Standard Transfer Rules
Under the Standard Transfer Rules, if an employee transfers from one division to another, they must participate in the open, active retirement plan of the new division.
They’ll also need to complete the Standard Transfer Member Certification (Form 35 B) and return it to your municipality. For more information, please read the Standard Transfer Rules on our website.
Alternative Transfer Rules
If your municipality has adopted MERS Alternative Transfer Rules, the employee can choose to stay in their previous retirement plan, or join the new plan.
If the Alternative Transfer Rules apply, they’ll need to complete the Alternative Transfer Member Certification (Form 35 C) and return it to your municipality.
MERS 457 PROGRAM OR HEALTH CARE SAVINGS PROGRAM PARTICIPANTS
If the employee moves to a new position or new division within your municipality, their MERS account will move and grow with them if that division offers the program in which they are enrolled.
But, if the new division doesn’t offer the program, their account will stay safe with us. They’ll be able to access it once they’ve separated from your municipality, based on the provisions of your program. Please refer them to their program handbook for more information, available here. Employer Resolution Establishing a Uniform Transfer Provision.