Product: Defined Contribution, Hybrid (DC portion), DC+, 457, Health Care Savings Program, MERS IRA

Contacts: All PDA participants

Date sent: Email – 1/25/22, Mailing – 1/25/22

Format: Email/Mailing


Participant directed account quarterly statements for Q4 2021 will be available in myMERS by end of the day on 1/24. For participants who have not opted out of receiving paper statements, those statements will be mailed on 1/24 as well.


In accordance with new Department of Labor (DOL) guidelines, Alerus has changed the way lifetime income projections are calculated in participant statements. Assumptions will use age 67 as the date distributions begin; if the participant is older than 67, their actual age will be used instead. Projections will show both an estimated monthly amount for a Single Life annuity (equal payments over their lifetime) and a Joint and Survivor Annuity (equal payments over the joint lives of the participant and their spouse). Going forward, the new income projections will be located to the back page of their statement and provided on an annual basis (rather than quarterly).

Participants may find the new monthly income illustration to be much lower than previously projected. This reduction is caused by several changes, but two factors required by the DOL are especially impactful:

  1. Plans must use account balance at the end of the reporting period. Projections cannot include assumptions about future contributions to the plan.
  2. Projections must assume the future account rate of return is equal to the 10-year Treasury rate (approximately 1.40%). It cannot use your actual rate of return or make assumptions based on the investments held.