logo Van Buren & Cass District Health DepartmentImpact Award

Employer Name:

Van Buren / Cass District Health Department

MERS Programs:

  • Defined Contribution Plan
  • 457 Program

MERS Resources:

Download this case study (PDF)

Results

The transition to MERS yielded several positive outcomes:

  • Cost Savings: The Health Department saved over $4,000 annually by eliminating third-party administrator fees
  • Streamlined Processes: Reporting and administrative tasks became easier through the MERS portal, with support from the MERS service center.
  • Enhanced Participant Education: Onsite employee meetings and education sessions were well-received, enhancing employee satisfaction with the new plans.
  • Fiduciary Duty: MERS assumed fiduciary responsibility, reducing the administrative burden on the Health Department.
  • Future Focus: The Department plans to review the savings and consider increasing employer contributions to the Defined Contribution plan.

Situation

Van Buren/Cass District Health Department employees expressed dissatisfaction with the lack of responsiveness and clarity in plan options from their previous plan provider.

Process

In June 2023, The Van Buren/Cass District Health Department began a review of the benefits offered to employees. After gathering feedback from employees, the Department reached out to another retirement benefits provider (MERS) in August 2023.

MERS provided a free plan comparison report, highlighting significant cost savings and higher rates of return compared to the other provider. The report indicated that employees could save an average of 0.59% in fees and showed how those savings would impact not only their account balance but projected retirement income as well.

Strategy

Key steps in the Department’s strategy included:

  • Review Plans: Conducting a thorough review of the current retirement plans and gathering employee feedback.
  • Engage Provider: Contacting MERS to compare plan options and benefits.
  • Communicate Findings: Presenting the findings to employees and the Board of Directors to gain support for the transition.
  • Implement Change: Implementing the new MERS plans, effective January 2024.
  • Educate Employees: Providing onsite education and training sessions for employees to ensure a smooth transition.