How It Works

The MERS Retiree Health Funding Vehicle (RHFV) provides employers with a simple answer to a complex problem — how to establish an irrevocable trust for funding other post-employment benefits (OPEB) with cost-effective, diversified investments.

As an established Section 115 Trust, RHFV makes it easy for employers to set aside assets to fund their OPEB liability while benefitting from investing in MERS’s low-cost investment options.

Program Advantages

There are many benefits of the MERS Retiree Health Funding Vehicle.

We’re Local
MERS serves Michigan municipalities exclusively

Peace of Mind
MERS provides employers with peace of mind because MERS acts as sole fiduciary for the default investment fund ― while also providing employers access to a menu of other investment options ― monitoring fund performance, and ensuring fees are reasonable

Holistic Oversight
The MERS Retiree Health Funding Vehicle is a turn-key program, including plan administration, recordkeeping, investment menu oversight and acting as trustee of the programs’ assets

IRS-Approved Solution
The Trust has been approved by a Private Letter Ruling from the IRS

Higher Discount Rate
By pre-funding your OPEB liability through a Trust, you can use a higher discount rate to calculate your unfunded liability

Reduced Liabilities
Earnings on assets will reduce your long-term contributions and unfunded liability

Potential to Reduce OPEB Liability
Funding may prevent your net OPEB obligation from becoming a significant liability on your balance sheet

The Retiree Health Funding Vehicle can be used alone or in conjunction with the MERS Health Care Savings Program

Disclaimer: The information contained in this Web site is being made available as a public service. The information is not intended to constitute legal, tax, accounting or investment advice, or to replace official versions of that information. Benefit Estimates or Service Credit Purchase estimates requested through this Web site are not official descriptions of any benefits, and do not represent a promise by MERS to provide any benefit(s) to any person(s). No one can detrimentally rely upon the information provided in, or requested through this Web site. MERS reserves the right to correct any errors, and presents this information without warranties, express or implied, regarding the information's accuracy, timeliness or completeness. If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.6377.