How It Works

The MERS Retiree Health Funding Vehicle (RHFV) is a Section 115 Governmental Integral Part Trust giving employers the ability to establish a qualified medical trust using MERS’ cost-effective diversified investments to fund Other Post Employment Benefits (OPEB).

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 takes on the sole fiduciary role for all our retirement plans

Holistic Oversight
MERS can provide a turn-key solution for your retirement 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

Fiduciary Responsibility

As the sole fiduciary for our retirement plans, MERS takes on the liability for selecting the investment options, monitoring fund performance, and ensuring fees are reasonable. Click to learn more.

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 If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.MERS (6377).