What: The MERS Retirement Board approved plan amendments to allow new options to be made available to employers looking to close their existing 401(a) plans to new hires while freezing accrued benefits of existing employees.
Action Required: None
Key Dates: Effective immediately and as administratively feasible
Impacted Audiences: Employers offering Defined Benefit, Defined Contribution and/or Hybrid Plans
For More Information: Contact your Benefit Plan Coordinator
Key Information:
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 future employees. Some restrictions apply. Additional details can be found in the following documents:
- A new MERS Retirement Board Policy: Plan Closures, Freezes and Conversions Policy and Procedure
- Revisions to the Actuarial Policy outlining actuarial requirements and defining actuarial assumptions impacting the employer
- Technical revisions to the Termination Policy to align with Plan Document amendments