The MERS 457 Program is an employer-sponsored deferred compensation program, meaning with the pre-tax option, taxes on the contributions are deferred until they are withdrawn.

MERS 457 Program offers you a self-directed account in which you choose a portion of your salary to be contributed. You decide the level of contributions and how to invest the assets. There is also an available Roth contribution option employers can adopt for employees, which helps you save with post-tax dollars. Click here to learn more about Roth and Pre-Tax (Traditional) contributions.

Your MERS 457 Program benefit is made up of any contributions from you and your employer, and investment interest earned. When you enroll in the program, you select from the streamlined MERS Investment Menu. For more information, please read Understanding the MERS Investment Menu (pdf).

Contributions are deposited into your individual account, and invested under your direction. At retirement, your benefits are based on the total amount of money in your account. This amount is determined by:

• your contributions
• any employer contributions
• market performance, minus fees

You can begin using your account as soon as you leave employment, or you can continue to keep your assets invested.

After leaving employment, your benefit is based on the total amount of money in your account. You can also claim any available Roth savings at retirement age. Additionally, public safety officers (as defined by the IRS) may be eligible to use 457 funds to pay for health insurance premiums.  View more information on this topic.

The MERS 457 Program is a participant-directed account, meaning you take an active role in determining your financial goals, making investment choices, and monitoring your portfolio. The decisions you make today will affect the results you see tomorrow.

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.

For more information, please read Understanding the MERS Investment Menu.