MERS is partnering with a new recordkeeper

 

 


Introducing Empower

After a thorough evaluation, we’ve selected Empower to be our new recordkeeper partner for our defined contribution and institutional investment programs.


When will this transition occur?

Application Date

Item

Week of March 16, 2026

Log in information available. Employers will receive log-in information from Empower with instructions on how to establish their account.

Week of
March 23, 2026

Blackout is expected to end, and plans are set up with Empower.

  • Participants will be able to set up profiles and see their plan accounts on Empower’s portal and start making changes.
  • Employers will also be able to start submitting contributions, including any contributions that were withheld during the blackout period.

June 30, 2026

Current portal access ending. This is the last day participants and employers will be able to access their online account with their current login (including the myMERS app). Participants should download any historical statements, 1099s, or confirmations to retain for records prior to this date as they will not carry over to Empower.


Additional past dates

Application Date

Item

Starting in December 2025

During the month of December and January, there will be additional communications from MERS regarding plan provision changes. If you need to amend your plan adoption agreements due to these changes, MERS will notify you.

By January 16, 2026

MERS and Empower will send transition details to you and your participants.

February 6, 2026

Any submitted corrections (participant data or contribution / payroll corrections) are processed. No new submissions will be accepted after this date with Alerus. New correction submissions must be submitted to Empower after the blackout period ends the week of March 23, 2026.

February 17, 2026

Participant deadline for paper forms. Participant forms must be received at Alerus by this date, in good order, to be processed before the blackout date. This includes transactions such as participant loan applications, distributions, and rollover requests.

February 23, 2026

Payroll reporting deadline. Employers should submit their payroll reporting and ensure contribution funds are received by Alerus prior to 2 p.m. on this date. As a guideline,

  • ACH funding generally takes 1-3 business days to process
  • Wire funding is typically processed the same day, but can take up to 3 days
  • Check funding requires the longest lead time, usually 2-7 business days

If payroll files and funding are not received by Alerus prior to 2 p.m. on February 23, 2026, those payroll files and funding will need to be submitted directly to Empower once the blackout period ends.

February 24, 2026

Alerus blackout begins.
Your plan participants will not be able to make investment election changes, establish loan repayment schedule, or submit requests for new loans and distributions changes to their plan accounts. Participants will have limited access to their myMERS account through Alerus and will not have access to their Empower account until the blackout period ends.

March 2, 2026

Assets are transferred from Alerus to Empower.


Payroll

As part of this transition, we will be changing the way you report information for MERS Defined Contribution (DC) Plan, 457 Program, and Health Care Savings Program (HCSP). Note: reporting for MERS Defined Benefit (DB) Plan will not change (with the exception of creating a new log in).

To best support employers, we worked with Empower to review individual plan structures to provide a personalized recommendation on the best contribution reporting option to meet each employer’s unique needs. The available payroll submission methods are:

  • Guided Payroll Process (GPP), which is used for smaller plans that allows for manual entry of payroll and demographic information.
  • Payroll Data Interchange (PDI), which is used for mid to larger plans that utilize a predefined template to upload payroll and participant demographic information.
  • Payroll Bridge (PB), which is used for larger plans utilizing a payroll provider that has an automated connection to Empower.
  • BS&A PDI, which is used for mid to larger plans that have BS&A as their payroll provider and utilize the automated connection to Empower.

You should have already received information indicating which payroll submission method has been assigned to you. If you are unsure, please contact us at 800.767.6377. Please note that after the transition is complete, you may work with Empower to change your payroll submission method if needed.

Once we are live with Empower (expected the week of March 23, 2026), you may begin submitting payroll and funding contributions through Empower’s Plan Service Center (PSC).

Guided Payroll Process (GPP)

Resources

Communications

Questions

  • Plan Service Center (PSC) assistance: call 800.840.3272
  • Voluntary contribution rate collection process: email EmpowerMERSDeferralCollection@empower.com

Payroll Data Interchange (PDI)

Resources

Communications

Questions

Payroll Bridge (PB)

Resources

Communications

Questions

BS&A (PDI only)

The following resources and communications are only for employers who use the BS&A software AND have been assigned to the Payroll Data Interchange (PDI) file upload payroll submission method. If you use BS&A but were assigned to the Guided Payroll Process (GPP), please follow the instructions found in the GPP section. 

Resources:

Communications:

Questions:

Plan & Process Changes

The following changes are specific to MERS 401(a) Defined Contribution (DC) Plan, 457(b) Program, and Health Care Savings Program (HCSP).

If you have a MERS Defined Benefit (DB) Plan, in addition to any of these plans, you will sign on separately to two secure portals - one to manage DB and another for your other plan(s).

All Plans

Address Changes

If an employee is actively employed, they must change their address by contacting their employer. This information will be reported by the employer through the ongoing payroll reports to Empower.

Once an employee separates from employment, they must change their address directly through Empower.

For MERS Defined Benefit Plan, active employees who wish to update their address must also contact their employer. This information can be updated by managing the individual employee under the MERS DB login. Once an employee with DB separates from employment, they must change their address online through their myPension account.

Plan Fees

For a complete list of plan fees, see the MERS Fee Disclosure.

Free Financial Advice

Participants will now have access to straightforward guidance about their retirement and investment strategy, at no cost to them, so they can better plan for their future. For more information, see this handout.


401(a) Defined Contribution Plan (including DC portion of Hybrid)

Optional Enrollment Forms for Defined Contribution Plans

Although no enrollment form is required for defined contribution, some employers have requested a form for internal tracking of pre-tax required one-time contribution elections.

The MERS Defined Contribution Election form has been developed for your internal records only.

Full Employee Rosters

All employers must report the full roster of covered employees (those eligible for a MERS plan) to Empower. As part of MERS’ fiduciary responsibility, we are required to meet certain compliance and oversight obligations for the retirement plan. Specifically, this change allows us to:

  • Support plan compliance: Accurate employee data helps ensure the plan is administered according to its rules, including eligibility requirements such as probationary periods.
  • Deliver required notices: Some plan notices must be provided to all eligible employees, not just those who are already participating.
  • Proactively inform eligible employees: Complete data allows Empower to reach out to employees who are eligible to participate so they understand their retirement savings options. Employees may opt out of future communications at any time.
  • Provide better participation insights to employers: Employers receive more complete and accurate information about overall plan participation and engagement.
  • Help verify eligibility and reduce fraud risk: A full employee census helps Empower validate who is eligible for the plan and adds an important safeguard against errors or fraudulent activity.
Probationary Periods

All new hires must be reported and start accruing service (for purposes of vesting) as of their actual hire date. Those with probationary periods will begin contributions (if applicable) after the probationary period ends.

Employee Pre-Tax Required Contributions

For employers who allow a one-time election for pre-tax required employee contributions, newly hired employees may elect to contribute up to 99% of compensation, subject to the annual IRS limits (whichever is lower). For more information, view this guide.

Additionally, employers may use this form to capture their employees’ one-time elections for their internal records.  

Employee After-Tax Voluntary Contributions

All voluntary after-tax contributions must be initiated by the employee via their Empower online account or by calling the MERS team at Empower (833.500.6377).

Employers may share this guide with their employees to help them in updating their voluntary contributions.

MERS-to-MERS Time

Moving forward, defined contribution service will only be recognized in whole year increments.


457 Program

Full Employee Rosters

All employers must report the full roster of covered employees (those eligible for a MERS plan) to Empower. As part of MERS’ fiduciary responsibility, we are required to meet certain compliance and oversight obligations for the retirement plan. Specifically, this change allows us to:

  • Support plan compliance: Accurate employee data helps ensure the plan is administered according to its rules, including eligibility requirements such as probationary periods.
  • Deliver required notices: Some plan notices must be provided to all eligible employees, not just those who are already participating.
  • Proactively inform eligible employees: Complete data allows Empower to reach out to employees who are eligible to participate so they understand their retirement savings options. Employees may opt out of future communications at any time.
  • Provide better participation insights to employers: Employers receive more complete and accurate information about overall plan participation and engagement.
  • Help verify eligibility and reduce fraud risk: A full employee census helps Empower validate who is eligible for the plan and adds an important safeguard against errors or fraudulent activity.
Employee Voluntary Contributions

All voluntary after-tax contributions must be initiated by the employee via their Empower online account or by calling the MERS team at Empower (833.500.6377).

Employers may share this guide with their employees to help them in updating their voluntary contributions.


Health Care Savings Program (HCSP)

HCSP Post-Tax Contributions

Employees will no longer be able to make post-tax voluntary contributions to HCSP. This change will only affect future contributions; prior contributions will remain invested and available for qualified medical expenses after employment ends.

If any employees are actively contributing to HCSP on a post-tax basis, please inform them of this change. Additionally, please update any of your materials that reference voluntary post-tax contributions to HCSP.


IRA

Eligibility

To be eligible to open a MERS IRA, participants must be a current or former employee of a Michigan municipality. They do not have to have participated in a MERS retirement plan or the MERS 457 Program directly.

The spouse of an eligible IRA owner is also eligible to open and contribute to a MERS IRA if they file a joint tax return. The eligible employee must have established a MERS IRA for themselves in order for their spouse to open one, but the employee’s account does not have to be funded.

How to Contribute to the IRA

Once an account is created, contributions must be initiated by the employee via their Empower online account or by calling the MERS team at Empower (833.500.6377).


Employer

Resources

Communications

Participant

Resources

Communications


Why Empower

We are always looking for ways to improve our offerings and deliver the best possible experience for you. In addition to collecting and listening to your feedback, our team regularly seeks out and evaluates solutions to ensure we’re offering a best-in-class experience.

Building iconEmpower has a proven and successful track record with large state-wide governmental plans, such as MERS.

Lock icon They offer superior security and risk management infrastructure, procedures, governance, and capabilities.

arrow up icon Together we are committed to helping participants pursue their financial goals through a combination of technology, people, and advice.

personal bank icon By leveraging MERS size and scale, we are able to secure the best possible cost for our members, while ensuring employers and participants will continue to receive high-quality service offerings.

Meet Empower

Empower is the one of the largest retirement savings plan firms in the U.S. They serve more than 19 million individuals and are driven by a mission to help people save enough money today to enjoy their retirement. Empower is known for its advanced technology, efficient tools, and customer service. They are committed to providing companies with the support they need to help their employees save for the future and increase financial independence.

Watch Empower Transition Video.


Frequently Asked Questions

What services does a recordkeeper provide?

A recordkeeper manages the detailed records of retirement plan participants, processes payroll data, and ensures compliance with regulatory requirements. They also provide support and educational resources to participants, helping them understand and manage their accounts.

How will I report wages and contributions to Empower?

As part of this transition, we will be changing the way employers report information for DC, 457, and HCSP plans.  To best support employers, we worked with Empower to review individual plan structures and responses to they payroll survey completed in 2025 to provide a personalized recommendation on the best contribution reporting option to meet each employer’s unique needs.

You should have received information regarding changes to your payroll submission process previously. There are three methods of payroll submission: (1) Payroll Bridge (PB), which is used for larger plans utilizing a payroll provider that has an automated connection to Empower; (2) Payroll Data Interchange (PDI), which is used for mid to larger plans that utilize a predefined template that is used to upload payroll and participant demographics; and (3) Guided Payroll Process (GPP), which is used for smaller plans that allows for manual entry of payroll and demographic information. For more information, select the "Payroll" tab.

All payroll submission methods require ACH banking for funding.

Note: reporting for MERS Defined Benefit (DB) Plan will not change (with the exception of creating a new log in).

Will I need to change what information I’m required to report?

Yes. In addition to changes in how employers will report, there will also be updates to what information employers are required to report.

  • Report compensation (DC, 457, and HCSP):
    This is essential for maintaining compliance with retirement plan regulations. It also provides critical data for a new financial wellness tool we’re introducing in partnership with Empower – the Lifetime Income Score. This tool allows employees to estimate their projected monthly income in retirement, helping them make informed decisions and better prepare for the future.
  • Report elective deferral rates (457 and DC post-tax):
    Providing any elective deferral rates participants are enrolled in allows them to be more engaged with their overall financial health. They will be able to model and project their retirement income based on their compensation, to assist them in planning for retirement. It also streamlines the compliance process and aligns to IRS contribution maximum limitations.
  • Submit full employee roster (457):
    This enables us to proactively reach out to employees who are eligible to participate. This outreach helps them better understand the benefits of this valuable employer-sponsored option and encourages them to take action.
What processes are changing?

Starting in the spring of 2026, we are introducing several changes to streamline processes.

  • All elective contribution changes (457 and DC post-tax) will need to be initiated directly by participants through the Empower online system. Once a participant submits a change, employers will receive a notification with updated information, enabling them to adjust payroll withholding accurately and in a timely manner. This will provide uniformity across all adopting employers and allow participants to easily make all transactions on their retirement accounts directly with Empower.
  • Active employees will be required to update their mailing address information directly through their employer. This updated information will then be included in the employer’s ongoing reports to Empower. This change is designed to ensure consistency between systems, reduce discrepancies, and maintain accurate address records. Once an employee separates from service, they will be able to update their address directly through their online account.
Are there any Plan design changes that I need to be aware of?

Yes, you can expect a few updates to the Plan design:

  • Loans (DC, 457): Beginning 9/1/2025, plans that offer loans will be required to apply the loans across all divisions under the employer umbrella. This modifies the option to offer loans only in certain divisions.
  • Mandatory Contribution Ranges (DC): Beginning January 1, 2026, all DC plans that offer a required pre-tax employee contribution range or choice of options, will be updated to provide employees with the full range of allowable contribution options. This means that for all employees hired on or after January 1, 2026, the available contribution range will be from 0% to 99%, subject to the annual IRS limits. If your current range or option set has a minimum greater than 0% (or $0), participants will be required to contribute at least that much, meaning the range will start at the minimum and go up to 99%, or the IRS limit.
  • Probationary Periods (457, DC, and HCSP): Beginning in the spring of 2026, vesting in the DC and HCSP plans will begin on an employee’s original date of hire, rather than after the probationary period ends. DC and 457 employees may roll funds into their plan right away. For DC, 457, and HCSP, employers will report all new employees on their hire date, regardless of their probationary period.
  • DC+ Plans: Starting with the transition to Empower, DC+ plans will be split into two distinct plans: DC & 457. Upon log-in, participants will see separate DC and 457 plans with Empower, and employers will be required to submit contribution reports for both plans.
  • Post-Tax Distribution Limitation (DC): Beginning January 1, 2026, participants are no longer limited to 2 post-tax distributions per year.
  • Claims Eligibility (HCSP): Effective January 1, 2026, participants must be terminated from employment to access their account for reimbursement of medical expenses.  Participants who were on medical leave greater than 6 months as of January 1, 2026, will be grandfathered in, allowing them to continue using their funds until they return to work, or terminate employment.
  • Transfers/Rehires (DC, HCSP): Effective with the transition to Empower, employees who transfer between divisions will retain the original vesting schedule applied to their existing employer contributions. Any new employer contributions made after the transfer will follow the vesting schedule of the employee’s new division.

As new Plan design changes are approved by MERS Retirement Board, they will be communicated to impacted parties and added to this list.

How will the recordkeeper transition impact my employees?

At a high level, participants will need to create a new online account with Empower to view their account balances, change voluntary contributions, designate beneficiaries, change investments, view statements, and more.

A transition guide (pdf), which provides detailed information on what to expect during and after the transition, will be delivered to all participants. Claims eligible HCSP participants will a special guide detailing information specific to claims processing.

 


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This is a dedicated website to communicate our recordkeeper transition. You can switch to our main website at www.mersofmich.com.

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Disclaimer: The information contained in this Website is being made available as a public service. The information is not intended to constitute legal, tax, accounting or investment advice, or to replace official versions of that information. Benefit Estimates or Service Credit Purchase estimates requested through this Website are not official descriptions of any benefits, and do not represent a promise by MERS to provide any benefit(s) to any person(s). No one can detrimentally rely upon the information provided in, or requested through this Website. MERS reserves the right to correct any errors, and presents this information without warranties, express or implied, regarding the information's accuracy, timeliness or completeness. If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.6377.