Enhancements to the Deferred Retirement Option Program (DROP)

To reduce the risk of additional projected liability and/or cost from adding a DROP and balancing it with the increasing need to retain employees of various skillsets and talent, these changes will: Allow employers to select a Credited Interest Rate under the DROP as a whole percentage between 0% and 3%; Allow employers to select… Continue reading

Rehire Retiree Guidelines – Waiver Extended

To assist employers with filling open positions due to labor shortages or increased needs arising from COVID-19 related factors, there will be a temporary adjustment to MERS rehired retiree requirements. Retirees who return to work due to employer need will not have their pension benefits suspended if they exceed the 1,000 hour limit during 2022;… Continue reading

Leave of Absence Provision Administration Clarification

After extensive research of IRS regulations and PERSIA requirements, we’ve made the following determinations regarding the administration of the Leave of Absence provision: When mandatory contributions for 401(a) defined benefit plans are in place, employee contributions are required when granting service credit to an employee on a leave of absence. There is not an option… Continue reading

Plan Termination Policy Updated

It is important to ensure a fair and transparent process that protects the integrity of our entire pool of customers. The previous process for electing to terminate participation, specifically in the MERS Defined Benefit Plan, was established over 70 years ago, presumably in an effort to protect the volatility a small pool of municipalities. Today… Continue reading