Empower’s Plan Service Center (PSC) is your central hub for plan administration, resources, and tools designed to help you complete tasks accurately and efficiently. In the PSC, you can:

• Visit the Action Center to help you stay on top of outstanding tasks.
• Use the Case Management Tool to submit common plan requests and check the status of open cases.
• Navigate to the Participants menu to search for and manage your employees’ information.
• Process Payroll to submit wage and contribution information.
• View Reports to identify opportunities for targeted education and engagement to improve retirement outcomes.
• Manage Plan Contacts to ensure the right people at your municipality have the system access they need.

Watch this PSC Overview to learn more about the key features available online.

1. Employer reports eligible employee 
   When an employee becomes eligible to participate in the MERS Health Care Savings Program, report the employee to Empower through the payroll process in the Plan Service Center (PSC).
2. Employee receives instructions to create their online account
   MERS recordkeeper Empower will send the employee communications encouraging them to create their online account. If you added an email address, the employee will receive electronic communications. If there is no email address on file, the employee will receive a postcard at their home address.
3. Employee creates their online account
   The employee visits empower.com/MERS and selects “Register” to create their online account. They will be asked to verify their account (enter SSN, date of birth, and zip code), add their contact information (personal email and mobile phone number), create a username and password, and complete any other prompts.
4. Employee receives ongoing communications from MERS and Empower
   The newly enrolled employee will receive a confirmation of enrollment, followed by ongoing communications about the best next steps (designate beneficiaries, download the Empower app, etc.) to help them make the most of their plan.

 Participant Handbook

This occurs when a participant has separated from employment and returns to work. For the Health Care Savings Program, this can have a different meaning based on the terms of their rehire. The individual cannot be actively receiving pre-tax contributions from their employer and be eligible to use the account for post-employment medical expenses at the same time.

For example;

• If the employee returns to work in a job title that participates in the Health Care Savings Program, the individual should be “rehired” in the employer’s next contribution reporting following their rehire date. The participant will not be able to use their account for reimbursement once rehired by the employer, and their claims card will be shut off.
• If the employee returns to work in a job title that does not participate in the Health Care Savings Program, the individual may continue to use their account for reimbursement of medical expenses.

If you have questions, please contact your Benefit Plan Coordinator.

If an employee changes jobs within your municipality, there are two possible scenarios:

Moving into a division that offers MERS Health Care Savings Program

• Vesting is calculated from the employee’s original hire date, not the date of their transfer.
• The employee’s HCSP account will transfer to the current division’s provisions.
• The employee’s HCSP account will be accessible to them upon separation of employment.

Moving into a division that does not offer MERS Health Care Savings Program

• Vesting is calculated from the employee’s original hire date, not the date of their transfer.
• The employee may not receive further employer contributions or make further deposits.
• The employee’s HCSP account will be accessible to them upon separation of employment.

Employees are eligible to use their HCSP account when they separate from employment. Separation can be for any reason, not just for retirement.

When an employee is reported as “terminated,” they will be mailed a claims card to begin using their HCSP account for health expenses. This option is great when paying for prescriptions at a pharmacy or co-payments that aren’t adjusted after the point of sale.

They can also request reimbursements using their online account at empower.com/MERS or the Empower Benefit Accounts app.

More details about how to use the HCSP account, including a list of eligible expenses, can be found in the Participant Handbook.

As your partner, we want to ensure your plan is in compliance with IRS guidelines. Leave conversions are all or a portion of unused leave payouts that are contributed annually or at separation of employment.

Upon adoption, your municipality may have chosen to offer a leave conversion lump sum into HCSP. In order for your plan to maintain its tax-qualified status, contributions must be mandatory. Employees cannot choose how they receive their leave conversion. However, each division may define its own payout option.

If you are currently offering a lump sum amount for leave conversions as an optional benefit to your employees, it is recommended that you immediately stop. Administering your plan in this manner violates the tax-free nature of the program and may require those contributions to be taxable income reported on an individual’s W2.

If you are seeking a flexible option that allows your employees to choose how they receive leave conversions, consider amending your HCSP agreement and utilizing the MERS 457 Program. Contact your Benefit Plan Coordinator with questions or for more information.

If an employee separates service before meeting vesting requirements, forfeited employer contributions can be used in three different ways:

• Used to offset future employer contributions
• Deposited into your MERS Retiree Health Funding Vehicle account
• Spread across all participants within the division, as determined by your participation agreement

If a participant in your municipality’s plan is deceased, please contact the MERS team at Empower by calling 833.500.6377.

If known, please provide the following information:

• Participant’s name
• Social Security number
• Date of death
• Family contact information

An original or certified copy of the death certificate must be submitted to Empower.

One of the most important things employees can do for themselves and their families is to name a beneficiary. Equally important is to make sure beneficiary information remains up-to-date. Employees can name their beneficiaries and update contact information through their online account at empower.com/MERS.

If an employee does not wish to go online to make changes, they may contact the MERS team at Empower by calling 833.500.6377 to obtain a Beneficiary Designation form. You may also access the form by signing in to the Plan Service Center (PSC) and navigating to “Participants” and “Employee forms.” Then, select “Beneficiary Designation.”

There are no federally mandated contribution maximums for the Health Care Savings Program.

Reminder! MERS continues to pay the Patient-Centered Outcomes Research Institute (PCORI) fee, as required by the Affordable Care Act, on your behalf. This fee funds research to understand consumer health decisions. We will pay this fee on your behalf through 2029, when the requirement to pay this fee ends. We are pleased to provide this service in partnership with our employers.

MERS’ legal counsel has determined that the Health Care Savings Program may qualify as minimum essential coverage (MEC) under the Affordable Care Act (ACA) and therefore should be reported to the IRS using forms 1094-B and 1095-B. Only those participants who have access to their account for qualified medical expense reimbursements – generally this refers to terminated participants or their beneficiaries with an account balance – need to be reported using these forms.

What does this mean for you?
Employers who sponsor such programs are required to file a 1094-B Transmittal of Health Coverage Information Returns form (one per municipality) and a 1095-B Health Coverage form (one for each terminated employee or beneficiary) with the IRS.

Important Deadlines

• February 28 (if filing by paper) or March 31, 2025 (if filing electronically)
  • Deadline to file completed 1094-B and 1095-B forms with the IRS.
  • Important Note: Employers required to file 10 or more information returns must file electronically. The 10-or-more requirement applies in the aggregate to certain information returns that are original or corrected returns. Accordingly, a filer may be required to file fewer than 10 Forms 1094-B and 1095-B, but still have an electronic filing obligation based on other kinds of information returns filed. The electronic filing requirement does not apply if you request and receive a hardship waiver. The IRS encourages employers to file electronically even if filing fewer than 10 returns.
• March 3
  • Deadline to post notice to municipality’s website or intranet OR provide a completed 1095-B form to terminated HCSP participants/beneficiaries with an account balance.
• October 15
  • Date when notice can be removed from website or intranet

Important Information on Providing 1095-B Forms to Individuals and Beneficiaries
Previously, all employers were required to provide a completed 1095-B Health Coverage form to each of their terminated employees (or their beneficiary) who have an HCSP account balance. The IRS changed this guideline for tax year 2019. Employers are not required to take the above action if they meet the following two conditions:

• By March 3, post a notice prominently on the municipality’s website or intranet stating that eligible individuals may receive a copy of their 2024 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that eligible individuals can use to contact the employer with any questions; AND
• Furnish a Form 1095-B, for the applicable year, to any eligible individuals upon request within 30 days of the date the request is received

The IRS has developed the following guidelines for posting the notice mentioned above, including language that must be used, formatting guidelines and posting timelines:

• The provider must provide clear and conspicuous notice, in a location on its website that is reasonably accessible to all responsible individuals, stating that responsible individuals may receive a copy of their statement upon request. The notice must include an email address, a physical address to which a request for a statement may be sent, and a telephone number that responsible individuals may use to contact the provider with any questions. A notice posted on a provider’s website must be written in plain, non-technical terms and with letters of a font size large enough, including any visual clues or graphical figures, to call to a viewer’s attention that the information pertains to tax statements reporting that individuals had health coverage. For example, a provider’s website provides a clear and conspicuous notice if it:
  1. Includes a statement on the main page—or a link on the main page, reading “Tax Information,” to a secondary page that includes a statement—in capital letters, “IMPORTANT HEALTH COVERAGE TAX DOCUMENTS”;
  2. Explains how responsible individuals may request a copy of Form 1095-B, Health Coverage, (or, for an applicable large employer member that sponsors a self-insured group health plan and makes a return in accordance with Regulations section 1.6055-1(f)(2)(i), explains how non-full-time employees and nonemployees who are enrolled in the plan may request a copy of Form 1095-C, Employer-Provided Health Insurance Offer and Coverage); AND
  3. Includes the provider’s email address, mailing address, and telephone number.
• The provider must post the notice on its website by March 3, and retain the notice in the same location on its website through October 15.
• The provider must furnish the statement to a requesting responsible individual within 30 days of the date the request is received. To satisfy this requirement, the provider may furnish the statement electronically if the recipient affirmatively consents.

Other Important Reminders and Tips

• MERS will continue to provide you with the data necessary to complete the forms in your secure Employer Portal should participants request this information. We will alert you when this information becomes available in December.
• Employers are not required to complete both Part II and Part III on each form – the Tip on page 6 of the Instructions for Forms 1094-B and 1095-B booklet states:
  “Employers reporting self-insured group health plan coverage on Form 1095-B, except for an individual coverage HRA, enter code B on line 8, but don’t complete Part II. If you entered code B for self-insured coverage, skip Part II and go to Part III.”
• When completing the 1095-B form, MERS encourages employers to speak with their tax consultant(s) to confirm the sections of the form apply to their municipality. MERS does not know this information.
• The information on the form should be completed by the Employer (Employer name, address and Employer Identification Number are required on the form). MERS does not know your EIN.
• HCSP is not health coverage; it is a reimbursement arrangement and is considered “employer sponsored” for the purposes of minimal essential coverage.

Frequently Asked Questions

• Do I need to report for Medicare-eligible participants?
  • No. Medicare exempts from reporting for employees who are over age 65; thus, these participants do not need to receive a form.
• Why don’t I need to report for my active employees?
  • The Health Care Savings Program is not considered MEC for active employees because they are not eligible to access their account.
• Why am I receiving data to report for someone who is not a former employee?
  • The report you receive in the Employer Portal will contain the data of anyone who is eligible to use their HCSP account balance for qualified medical expenses and the months in which they were eligible and/or carried a balance. This could be a former employee from your municipality OR their beneficiary. MERS’ legal counsel has advised that it is lawful for employers to have access to beneficiary data for the purpose of filing a 1095-B form on their behalf.
• I provided retiree health insurance for employees or COBRA during the year. Do I need to file for those retired employees?
  • If you provided retiree health insurance or covered former employees under COBRA for the current year, you do not also need to file a 1095-B on behalf of those former employees. One filing per Social Security number is sufficient. If the retiree or terminated participant is not participating in another health insurance option, or is not taking COBRA, then the employer should file a 1095-B form on behalf of that former participant. It is not enough to just offer COBRA or a health insurance plan; the participant must have been covered under COBRA or the health insurance plan during the current filing year in order to not file a 1095-B on behalf of their behalf.

Your MERS Regional Team

Our staff are dedicated to helping you make the most out of your plan.

• Benefit Plan Advisor: Assists you with implementing MERS high-quality, cost-effective solutions and serves as a liaison between employers, boards, unions, and consultants throughout the decision-making process.
• Regional Manager: Meets with you to provide consultation regarding plan administration, collective bargaining assistance, governing body education, and plan and benefit changes.
• Benefit Plan Coordinator: Facilitates implementation of plan changes and everyday service needs.
• Benefit Education Specialist: Provides education to your employees to help them understand the MERS plan(s) you offer and prepare for their retirement.

Our Recordkeeper Empower

MERS works with Empower to provide you with access to the Plan Service Center (PSC), your central hub for plan administration, resources, and tools designed to help you complete tasks accurately and efficiently. Throughout the site, you’ll find helpful how-to videos and guides.

If you need assistance, we encourage you to create a case. This will ensure your request goes to the team that can best serve you. Learn more about the case types or watch the video on how to submit cases.

Need help logging in? First, check with the person at your municipality who manages plan contacts to ensure you have been granted access. Then, call 800.840.3272 and ask for “PSC Support.”