Impact Award

Employer Name:

Wexford County Road Commission

MERS Programs:

  • Defined Benefit (closed)
  • Hybrid
  • Health Care Savings Program
  • Retiree Health Funding Vehicle
  • 457

MERS Resources:

Download this case study (PDF)

Results

The Commission’s sustained approach produced financial and organizational results:

  • Funded status improved from 62% to 111%.
  • Retirement obligations no longer create the same ongoing concern for organizational viability.
  • The Commission is better positioned to honor benefits promised to employees.
  • Employees receive annual education about how their retirement and health care benefits work, thereby helping them understand the benefits and the impact on their long-term financial security.
  • Leadership maintains an informed, hands-on approach to MERS programs and resources.
  • Employees gain a clearer understanding of the value of their complete compensation and benefits package.

Situation

In 2010, the Wexford County Road Commission faced a difficult combination of financial and workforce pressures. The organization was 62% funded, recovering from major storm-related expenses, operating during a severe economic downturn, and anticipating that much of its workforce could retire within approximately five years.

Leadership recognized that without meaningful action, rising retirement costs could threaten the organization’s long-term viability and its ability to fulfill commitments to employees. The Commission chose to address the challenge directly, even though doing so required difficult decisions.

Process

The Commission restructured its operations to improve efficiency and create room for long-term investment.

Actions included:

  • Reducing crew and administrative staffing temporarily during a period of financial hardship.
  • Redesigning routes, work structures, and maintenance practices.
  • Purchasing equipment to improve efficiency with a smaller workforce.
  •  Implementing a wage freeze and limiting raises during difficult economic conditions.
  • Setting aside resources and making larger pension contributions when financially possible.

Strategy

Retirement funding and employee benefits were treated as parts of one coordinated strategy rather than separate decisions. The Commission:

  • Closed the traditional MERS Defined Benefit Plan to new hires and adopted a MERS Hybrid Plan.
  • Changed its retiree health care approach by using HCSP and RHFV strategies, including an employer HCSP contribution.
  • Adopted the MERS 457 Supplemental Retirement Program.
  • Requested billing as though the long-term defined benefit rate of return assumption was 4.75%, resulting in additional pension contributions.
  • Consistently attended MERS conferences, roundtables, Pizza & Planning meetings, and other educational events.
  • Requested annual MERS education for employees and provided hands-on help using the online portal and MERS resources.

Education supports both informed leadership decisions and employee understanding. Leadership emphasized that employees need a clear view of how pension, defined contribution, HCSP, and other benefits work together.