What: The MERS Retirement Board recently approved adding a default provision to the DC forfeiture rules.
Action Required: None
Key Dates:
Impacted Audiences: Employers with a defined contribution plan (including the DC portion of Hybrid)
For More Information: See Below
Key Information:
The MERS Retirement Board recently approved adding a default provision to the DC forfeiture rules. This means that if action is not taken to utilize forfeiture funds by the required deadline, funds will automatically be distributed as an equal share to any active participant in that DC plan. This ensures that employers remain in compliance with this provision. MERS will begin applying this default in alignment with the revised deadline of December 31, 2025.
Please note, you may continue applying funds toward offsetting employer contributions or participant fees, upon request and if received prior to the revised deadline.