On December 1, 2022, The MERS Retirement Board approved changes to Sections 6(5), 6(6) and 50(2)[a] of the Plan Document to include amendments relating to employee transfers/rehires for “cash or deferred arrangement” (CODA) prohibition compliance. Per a recent IRS ruling, any benefit option that presents an employee with a choice between cash or deferred compensation after… Continue reading
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. This waiver… Continue reading
In an effort to proactively offer employers options to help meet their unique financial needs and manage the affordability of their MERS plans, the MERS Plan Document was revised to allow more options to employers to close or freeze their current MERS retirement plan and choose a different retirement plan style for their current and/or… Continue reading
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
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
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View eBlast containing the process change details.
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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