The MERS 457 Program is a deferred compensation program for public sector employees, helping you save for the future above and beyond other retirement plans from your employer. The program offers you an invested account you manage, in which a portion of your salary is contributed and invested for use after you leave employment. You choose to participate, the amount to contribute, and how to invest assets to meet your goals and personal risk tolerance. When you leave employment, your benefit is based on the total amount of money in your account.

The MERS 457 Program offers you two ways to contribute, each with its own distinct advantages. Contributions are deducted from your paycheck and deposited in your account

• Learn more about Roth and Pre-Tax (Traditional) contributions.

Contributions are deposited into your individual account, and invested under your direction. At retirement, your benefits are based on the total amount of money in your account You can also claim any available Roth savings at retirement age. This amount is determined by:

• your contributions
• any employer contributions
• market performance, minus fees

You can withdrawal from your MERS 457 at any time after leaving employment. Taxes, fees, and any applicable penalties depend on your plan type and individual circumstances.

There are different ways to receive payments from your MERS 457 — payment intervals (installments),  or one-time lump sums.

The MERS team at Empower will support you through the withdrawal process. Call 833.500.6377 or log in to your online account to get started.

Required Minimum Distributions

You must take the required minimum distributions from your plan every year after your initial distribution. Your initial distribution can be deferred until April 1 of the calendar year following the year you turn age 72, or terminate employment, whichever is later. The subsequent payments must be taken by December 31 of each year.

You can begin using your account as soon as you leave employment, or you can continue to keep your assets invested.

Please remember, you must begin taking Required Minimum Distributions when you reach age 72 for any pre-tax assets held in your account.

Insurance Premium Option Public Safety Officers
If you are a former public safety officer as defined by the IRS*, you may be eligible for a tax exemption for using funds in your 457 account. Please consult a tax professional.

* A public safety officer as defined by the IRS is an individual serving a public agency in an official capacity, with or without compensation, as a law enforcement officer, as a firefighter, as a chaplain, or as a member of a rescue squad or ambulance crew.

The MERS 457 is a participant-directed account, meaning you take an active role in determining your financial goals, making investment choices, and monitoring your portfolio. The decisions you make today will affect the results you see tomorrow.

Please remember, it’s always a good idea for you to review your investment options on a regular basis because investment objectives can change due to changes in your life circumstances, risk tolerances or finances.

For more information, please read Understanding the MERS Investment Menu.