Keeping you on the right road in retirement
You’ve worked hard for your money, and now that you’re in retirement, you can let your money work for you. Your MERS Defined Contribution Plan can be an important source of your income, and a great way to stay on the right road in retirement.
As a retired member, you have an invested account you manage, with flexibility and investment choice.
How It Works
As a MERS Defined Contribution Plan retiree, you have a variety of options on how to use your account. You can leave your account invested with MERS, roll your funds into an eligible plan, or take distributions. Please remember, you must begin taking Required Minimum Distributions when you reach age 70 1/2.
By keeping your account in the MERS Defined Contribution Plan, you’ll continue to receive the benefits of MERS Investment Menu, low administrative fees, and excellent customer service.
There are several ways to receive payments from your Defined Contribution account — lump sum, substantially equal payments, periodic, amount certain, or period certain.
To begin taking distributions, or to change your distributions, download and return the Distribution/Direct Rollover Form (MD-005).
Please note that all payments are taxable in the calendar year you receive the money. We are also required to apply mandatory withholding for federal or any applicable state income taxes, although in some instances you may opt out of this withholding.
If you are married and your vested balance is equal to or more than $1,000, you must choose the Qualified Joint and Survivor Annuity, unless your spouse consents in writing to another form of payment.
For more information about your distribution options, please see the MERS Defined Contribution Plan Member Handbook, available here.
When it comes to investing, it’s important to understand all your options, needs and goals. That’s the first step to finding an investment strategy that best suits you. Even if you are a confident investor, it’s a good idea to make a regular evaluation of your investment choices. The MERS Defined Contribution Plan and the Defined Contribution portion of the Hybrid Plan have four strategic investment categories designed to help you meet your retirement goals. This streamlined approach offers a simple way to choose investments. You should also consult your financial advisor when choosing your investments. For more information, please read Understanding the MERS Investment Menu and the Investment Menu Summary.
The MERS Defined Contribution & Hybrid Plan Investment Menu consists of:
- Retirement Strategies
- Diversified Portfolios
- Expanded Funds
- Self-Directed Brokerage Window
Please remember, it’s always a good idea for you to review your investment options on a regular basis because investment objectives can change due to changes in your life circumstances, risk tolerances or finances.
Want to learn more? Click the links below for more about the MERS Defined Contribution Plan.
- You’ll receive quarterly statements detailing your retirement account.
- You’ll also receive the Retiree News, a quarterly newsletter full of important information about MERS, your benefits, and the issues affecting you.
- You can also log into your account at mymers.mersofmich.com to find up-to-the-minute information about your MERS retirement at any time.
- Frequently Asked Questions
- Service Center
- Our Service Center offers friendly, knowledgeable, over-the-phone assistance for a wide variety of benefit questions and issues. The Service Center is available during business hours at 800.767.2308.
Working in Retirement
After you’ve retired from your municipality, you may want to return to work with your employer at some point.
If you rehire into a position that is covered by MERS Defined Contribution, regardless of age, the employer should consider you a rehired employee and contributions begin upon rehire date. The rehired status has no impact on accessing your Defined Contribution account for distributions, assuming age-eligibility has been reached.
The benefit you are enrolled in is the open, active plan for this covered position based on your rehired date.
Getting Ready For Retirement?
Make sure you’re prepared! Contact us to have a retirement packet sent to you.
Just follow these simple steps:
- Complete any necessary paperwork your employer requires.
- Download and complete the Distribution/Direct Rollover Form (MD-005).
- Mail or fax the completed form to us at 517.703.9706.