MERS’ DB Employer Portal is your central hub for your DB plan administration, resources, and tools. In the employer portal, you can:

• View the Benefit Provisions your municipality has adopted.
• Navigate to the Manage Employees section to search for and update your employees’ information.
• Process Reporting to submit wage and contribution information.
• View Statements and Reports (including your Annual Actuarial Valuation).
• Manage Employer Contacts to ensure the right people at your municipality have the system access they need.

Empower’s Plan Service Center (PSC) is your central hub for DC 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.

View our dedicated report wages and contributions page for the Defined Benefit Plan.

Based on your municipality’s size, you’ll be assigned a reporting option that best supports accurate and efficient payroll processing. The available payroll submission methods are: 

• Guided Payroll Process (GPP), which is used for smaller plans that allows for manual entry of payroll and demographic information.

• Payroll Data Interchange (PDI), which is used for mid to larger plans that utilize a predefined template to upload payroll and participant demographic information. 

• Payroll Bridge (PB), which is used for larger plans utilizing a payroll provider that has an automated connection to Empower.

• BS&A PDI, which is used for mid to larger plans that have BS&A as their payroll provider and utilize the automated connection to Empower. 

Enrolling in the DEFINED BENEFIT (DB) Portion of the Hybrid Plan

1. Employer reports eligible employee
   When an employee becomes eligible to participate in the MERS Hybrid Plan (newly hired or transferred divisions), report the employee to MERS through the DB Employer Portal by navigating to the Manage Employee tab and selecting Enroll Employee.
2. Employee receives instructions to create their online account
   MERS will send the employee communications welcoming them to the plan and 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 letter at their home address.
   
3. Employee creates their online account
   The employee visits our website and selects “Register Account” 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 set up their multi-factor authentication.

Enrolling in the DEFINED CONTRIBUTION (DC) Portion of the Hybrid Plan

1. Employer reports eligible employee 
   When an employee becomes eligible to participate in the MERS Hybrid Plan (newly hired or transferred divisions), report the employee to Empower through the payroll process in the Plan Service Center (PSC).If your plan allows employees to make a one-time election of required pre-tax contributions, you may have the employee complete this Contribution Election form to retain for your records. This form does not need to be submitted to MERS or Empower.
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

Rehired employees (that are not considered “retirees” for purposes of MERS Defined Benefit) are placed in the open active plan even if it is different from the plan they retired from. Please refer to the “New Hire” section on this page for more information.

When you have an employee transferring from one division to another, the standard rules place them into the active plan at the time of a transfer. Treating transferred employees the same will provide consistency and effortless recordkeeping during transitions. Your municipality may adopt the plan continuation rules using the Employer Resolution Establishing a Uniform Transfer Provision.

Standard Transfer Rules and Plan Continuation Rules
Under the Standard Transfer Rules, if an employee transfers from one division to another, they must participate in the open, active retirement plan of the new division. Under the Plan Continuation Rules, the employer will enroll a transfer or rehired employee into the closed plan that is the same plan type as the plan the employee transferred from (or was formerly enrolled in), whether open or closed, if such plan exists. When both open and closed plans of that type exist, the employee will be enrolled in the open plan. If the same plan type does not exist, the employee is enrolled in the open plan for that division, regardless of plan type.

Under either rule, where a plan offers an option in employee contributions, the plans’ default rate will apply to the returning or transferring employee.

A Participant Transfer Certification form is required regardless of which rules are adopted. Employers may adopt the Plan Continuation Rules by Resolution Establishing Uniform Transfer Provision.

Transfer Form

• • Participant Transfer Certification for Same Employer

If you have an employee that retires and later decide to return to the workplace, there are restrictions that can affect their MERS pension under certain conditions. These restrictions apply only if they become re-employed by the same employer they retired from. There are also different rules for elected officials than regular employees. There are no restrictions if they are hired anywhere other than the employer they retired from.

If the employee retires and returns to a regular (non-elected/appointed) position, the following rules apply:

• They must complete and submit the Working in Retirement Certification (Form F-29c), signed by both the employee and the employer, to MERS.
• They must have a bona fide termination before returning to work, per IRS rules. Bona fide termination is defined as no formal or informal agreement to return to work prior to retirement.
• They must have 60 days of separation.
• They may work up to 1,000 hours in a calendar year.

If an employee retires and returns to an elected/ appointed position, the following rules apply:

• They must complete and submit the Working in Retirement Certification (Form F-29c), signed by both the employee and the employer, to MERS.
• They must have a bona fide retirement before returning to work, per IRS rules. Bona fide retirement is defined as no formal or informal agreement to return to work prior to retirement.
• If they are re-elected/appointed into the same position, they must have two years of separation.
• If they are elected/appointed into a different position, they must have 60 days of separation.
• They are not subject to any hour limitation.

To terminate an employee from Part I (defined benefit portion):

1. If they are retiring, have them complete and sign the Application for Service Retirement and return it to us 45-90 days before their retirement date. You will also need to sign their Certificate of Termination, which they return to us.
2. When you report their final wages, change their employment status by logging in to the MERS Employer Portal.
3. Click ‘Defined Benefit’ under the ‘Reporting’ tab.
4. Click ‘Prepare Reports’ under the ‘Wage Reporting’ tab.
5. Click ‘Search for Member,’ and then click on their name.
6. Change their employment status to ‘Terminated’ followed by the appropriate reason (i.e., ‘Retired’).

To terminate an employee from Part II (defined contribution portion):

1. When you report their final contributions, change their employment status by logging in to the MERS Employer Portal.
2. Click ‘Defined Contribution’ under the ‘Reporting’ tab./MERS/Resources/Log-In
3. Click ‘Prepare Reports’ under the ‘Wage Reporting’ tab.
4. Click ‘Search for Member,’ and then click on their name.
5. Change their employment status to ‘Terminated’ followed by the appropriate reason (i.e., ‘Retired’).

It is important to note that terminated employees do NOT have to roll out their Hybrid Part II account balance upon termination. In fact, there are many benefits to keeping their money with MERS even throughout retirement. For more information on these benefits, view our rollover information.

If a participant in your municipality’s plan is deceased, please contact the MERS Service Center weekdays from 8:30 a.m.-5:00 p.m., at 800.767.6377. View additional ways to contact us.  If known, please provide the following information:

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

One of the most important things employees can do for themselves and their family is to name a beneficiary. Equally important is to make sure beneficiary information remains up-to-date.

Employees should name their beneficiaries when filling out the Hybrid Enrollment Form (Form MD-300). They can add, edit or change contact information through their myMERS account.

Please note: If employees choose to make these updates by completing the Hybrid Beneficiary Designation Form (Form MD-303), you can send the completed form to MERS.

Employees who would like to verify MERS-to-MERS time for inclusion Hybrid Part II service should contact the MERS Service Center at 800.767.MERS (6377) or fill out and submit the MERS-to-MERS Service Verification Form (form md-016). MERS-to-MERS time will only apply before a Hybrid Part II distribution is taken or a forfeiture occurs, ensuring that employers will not incur future liabilities.

To view IRS-established retirement plan contribution limits and reporting data for the current year, click here (pdf).

Hybrid Part I:
There are two types of Hybrid Part I (defined benefit plan portion) disability retirement: Non-duty disability and duty disability. Employees may apply for disability retirement benefits if they have incurred a total and permanent disability, or you as the employer can submit the application your employees’ behalf. Applications must be filed within one year of termination. In addition to an independent medical examination MERS requires the employee to undergo, we may ask the employer’s designated contact additional questions regarding the employees’ situation.

After review of all information, the final decision regarding disability pension requests will be determined by MERS. MERS will mail a written notice to the employer when a disability application for one of its employees is approved or denied. An employer may appeal a decision that it does not agree with by requesting a contested case hearing.

To apply for disability benefits, the employee or employer should:

1. Complete and submit the Application for Disability Retirement (Form 51), or by calling the MERS Service Center at 800.767.6377.
   Current medical records will need to be submitted to MERS with the application, including two separate Physician’s Statements. If the illness or injury was a result of a work-related cause MERS will need a copy of Employer’s Basic Report of Injury and all documents relating to worker’s compensation. Please review the instructions on Form 51 for further details.
2. The application and any medical documentation will be evaluated by Managed Medical Review Organization, Inc. (MMRO), MERS’ disability vendor. The employee will be contacted by MMRO within 5 business days of receiving the application to discuss next steps in the disability evaluation process. The evaluation process may take up to 3 months to complete.
3. We will notify both the employee and employer of the results once the disability evaluation is complete. If the application is approved, the employee will be eligible to apply for retirement benefits. The disability approval letter will detail next steps in order to start collecting a benefit.

For more information on disability retirement, please consult the Participant Handbook or contact our Service Center.

Hybrid Part II:
In the event an employee becomes permanently disabled while actively employed, all funds from Hybrid Part II (defined contribution portion) become fully vested. The Internal Revenue Code definition of disability, Section 72(m)(7), states that “an individual shall be considered to be disabled if they are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration.”

To request a distribution, the employee must obtain a signed letter verifying his or her qualification under the Internal Revenue Code definition of disability, Section 72(m)(7), from his or her physician. When the employee has received this document, he or she will need to submit it, along with a completed Defined Contribution Distribution Form (Form MD-005), to MERS’ record keeper, Alerus Retirement Solutions. Instructions to submit these documents are located on the form. When MERS has processed the employee’s request, he or she will either be notified by Alerus that more information is needed or, if approved, will receive the distribution.

For more information on disability retirement, please contact our Service Center.

You can change the method in which you pay your monthly invoices for open defined benefit divisions.

• For more information, click here.
• If you would like to change your billing method, access the online form.

Unless otherwise adopted by the employer, defined contribution plans (including Hybrid Part II) earn service based on elapsed time. Elapsed time looks at only the date of hire and date of termination to calculate time toward meeting vesting.

Example: If an employee has a hire date of 10/1/2013 and termination date of 10/5/2014, one year of service is earned toward vesting. If the termination date was 9/15/2014, no service would be earned.

Elapsed time has been applied to all active participant records. Participants who were terminated prior to October 2015 will have service calculated based on when contributions were reported by their employer in each month. When applying service credit from defined contribution to defined benefit, months can still be applied to help a participant reach their defined benefit vesting. When applying service toward a defined contribution record from a defined benefit or another defined contribution plan, all time (by months) will be considered, although only full year increments count to reach vesting.

It is important to monitor the forfeiture balance of the defined contribution (DC) portion of your MERS Hybrid Plan throughout the year to ensure you use your funds in accordance with Internal Revenue Service (IRS) guidelines.

What is a forfeiture?

A forfeiture is the non-vested employer contributions of a participant’s account that they give up upon separating from employment before meeting vesting requirements and:

1. Fulfill a 12-month separation of employment (date of termination + 12 months), OR
2. Take a distribution from their account following termination

You can view which participant accounts are included in the last forfeiture deposit through the Request Reports function in your Employer Portal. Page 19 of the Wage, Contribution and Employer Portal Guide shows the steps to generate this report.

How can forfeitures be used?

Per IRS regulations, funds in your forfeiture account must be used within the DC plan in the plan year they occur and can be used in three ways:

1. Funds may be used to offset future employer contributions – the majority of plans use this option.
2. Funds can be used to offset employee fees.
3. Funds can be equally distributed across all employee accounts

MERS will initiate a forfeiture of non-vested funds from former employees after a period of five years has passed from the date of termination. However, any participant with a termination date of January 1, 2017 or later who has not met the requirements to become vested in their employer contributions will forfeit non-vested assets after a period of one year or a withdrawal of his or her entire vested account balance has occurred. MERS-to-MERS or Act 88 time may be used to meet vesting requirements as long as the time is earned before the forfeiture occurs. Additionally, time earned at the former employer may be used toward vesting and eligibility at a future MERS employer.

Forfeitures are pulled from affected participant accounts four times per year – February, May, July and November.

Resources

 Wage, Contribution and Employer Portal Guide (pdf)

 Understanding Forfeitures (video)

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.”