The MERS Retirement Board approved several important changes to the Plan Document at its May meeting, including the section governing rehiring of some retirees.

The Board made changes to Section 31 of the Plan Document, requiring a 2-year gap between retirement as an elected or appointed office position and re-employment in any capacity at the same municipality. The amended section is on the MERS Web site here.

Why is MERS making changes?

As a tax-qualified plan under the Internal Revenue Service, MERS is required to follow the IRS expectation that, as a condition for paying benefits, there has been an actual “bona fide termination of employment in which the employer/employee relationship is completely severed.” The changes are intended to more effectively enforce the federal rules.

Effective May 12, 2010, an elected or appointed (to elective office) official must have a 2-year gap between the day their pension commenced and any re-election or re-appointment or employment in any other capacity by the same MERS participating municipality. If there is no 2-year gap, the pension is suspended.

The Board's amendment addresses only elected or appointed officials at this time; for all other employees, the Board will be directly addressing this and related issues at its July meeting.

For more information, visit the MERS Web site here.