Investment Menu – RHFV

Understanding Your Investment Choices

The MERS Retiree Health Funding Vehicle (RHFV) helps employers set aside assets for funding their Other Post-Employment Benefits (OPEB) liability, while benefiting from investing in MERS investment options. As the fiduciary, MERS is responsible for determining available investment options for the plan. Over time, and in direct response to feedback from our members, MERS has expanded the RHFV investment menu to provide a greater variety of options.

 Investment Menu Summary

 Investment Options Book for ISP & RHFV

Investment Menus

Default Investment Menu

Another part of our fiduciary role is to ensure the RHFV program complies with state and federal laws. To ensure we stay in line with the Public Employee Retirement System Investment Act (PERSIA) and best practices, MERS has established the Total Market Fund as the default fund for the program.

Employers whose assets remain in the default fund enjoy peace of mind knowing that MERS will retain sole fiduciary responsibility for the investment of assets in the default fund.

 MERS Total Market Portfolio

Additional Investment Options

If you wish to have the flexibility to invest assets outside of the Total Market Fund, MERS will retain the fiduciary duties of determining investment options and monitoring fund performance, but the fiduciary responsibility for the investment of your RHFV assets according to PERSIA will reside with you. You must follow PERSIA requirements as established for the size of your assets, thereby excluding investment in the Total Market Fund.

Portfolios Built For You

These proprietary portfolios are overseen by the MERS Office of Investments and offer attractive risk-adjusted returns at below market cost, thanks to the economies of scale created by the MERS defined benefit portfolio. MERS uses both internal and external institutional investment managers to build these professionally managed portfolios, each of which has a target asset allocation that is rebalanced on a quarterly basis. Each portfolio has an allocation of stocks/bonds (in parenthesis below).

 MERS Global Stock Portfolio (100/0)
 MERS Established Market Portfolio (60/40)
 MERS Diversified Bond Portfolio (0/100)

Funds to Build Your Own Portfolio

You also have access to selected funds to help you build your own portfolio, including include several broad market index funds.

 Large Cap Stock Index
 Mid Cap Stock Index
 Small Cap Stock Index
Real Estate Stock
Bond Index
High Yield Bond
 International Stock Index
 Emerging Market Stock
 Short-Term Income

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).