Defined Contribution

The county offers a Defined Contribution (DC) Plan through the Municipal Employees’ Retirement System (MERS), to employees hired beginning in 2012 and 2013. Participation is mandatory and requires employees to select at least 3% of their salary pre-tax. The county matches 100% of contributions up to 6% of the employee’s salary. Employees are not able to change their contribution after it is elected.

Vesting is the minimum amount of years employees are required to work to be eligible for the county’s contributions to their DC account.

Vesting:
50% after three years of service
75% after four years of service
100% after five years of service

Employees may begin to withdraw funds from their DC plan without a penalty, if they leave employment after January 1 of the year they turn age 55. If employees leaves before this time, they must wait until they are age 59 1/2 to take withdrawals without a 10% penalty. All withdrawals are subject to State and Federal taxes.

Loans and financial hardship withdrawals are not permitted on this plan. Employees must be separated from employment in order to access funds in their account.

Calculation: Employer Contributions + Member Contributions + Earnings or losses in the Market – Fees= Your Savings

Defined Benefit

Prior to the DC plan, a Defined Benefit (DB) Plan was offered to employees. The MERS DB Plan is funded by Ottawa County and the employee. It provides a lifetime, monthly benefit if vested and contributions are not withdrawn. With the DB plan, the employee is purchasing the benefit, not investing. This plan is closed to new employees after 2012 and 2013; please see your Benefits Manual or CBA for specific dates.

Vesting is the minimum amount of service credit employees are required to earn to be eligible for a retirement benefit with Ottawa County. One month of service credit is earned when an employee works 80 hours in a calendar month or uses paid time.

Retirement Vesting

The amount retirees receive under the DB plan is calculated as shown below:

FAC x Years

Retirement Plans

Ottawa County offers benefited employees two accounts to save for retirement. These include the voluntary 457 plan and the mandatory MERS plan. See below for more information.

Deferred Compensation/457 Plan Through Empower Retirement

Empower Retirement offers one account and two ways to save. All benefited employees may choose to participate in a pre-tax deferred compensation program or the Roth (post-tax) option administered by Empower Retirement. The County will match either 20% or 25% of contributions up to $1,000 per calendar year for most county employees. Contact Human Resources for more information.

*NOTE: Pre-tax contributions are available immediately when you leave employment. There is no age restriction for withdrawals. Roth contributions must be in your account for at least five years and the money withdrawn after age 59½, death or disability. Any earnings on Roth contributions may be distributed tax-free if a withdrawal is a qualified distribution.

See the video below to learn more about the Roth option.

The county will match both pre- and post-tax contributions, typically up to a maximum match of $1,000 total per calendar year, or up to the IRS maximum for Unclassified, as stated in your group’s manual. Any match will be deposited as a pre-tax benefit in your account. You will need to pay taxes on the match at the time of withdrawal.

You may choose to contribute BOTH pre-tax and post-tax contributions. See below for the forms to update your 457 contribution to include a post-tax amount, or to enroll in a 457 account!

Empower Retirement Contribution Change Form Empower Retirement Enrollment Form Empower Beneficiary Designation Form Empower Plan Highlights

Planning for Retirement

There is no better time to plan for retirement than now! Information on this page provides a summary of benefits and should be treated as such. Human Resources can help with any retirement question and guide you through the process.

A retiree is defined as an employee who leaves employment and collects a MERS defined benefit (DB) pension the month following their last day worked.

Retirement Process

Start by talking to Human Resources. A Benefit Estimate can be requested by contacting Human Resources or by calling MERS. This estimate will reflect your specific benefits and a breakdown of beneficiary options available to you at retirement.

1. Begin Process

Choose a date to retire and log into your myMERS account to apply. It is best to apply for retirement no less than 45 days and no more than 90 days before your expected date.

2. Paperwork

Complete the Retiree Final Payoff form, the insurance election form, and, if applicable, the Retiree Autowithdrawal form and send that to Human Resources before your last day.

3. Confirmation

You will receive a confirmation letter from MERS that will show your payment option and beneficiary choice details. This letter will also explain your first pay date and the preliminary calculation for your monthly pension.

4. Retirement & Pay

Congratulations! You can retire! Receive your payment on the 18th of the month following your last day worked.

5. Final Wages

Ottawa County will report your final wages to MERS the month after your final paycheck. You will then receive a letter from MERS that will show your final pension amount and any retro due.

Retiree Health Insurance

A retiree may choose to purchase retiree insurance. This is a one-time option at the time of retirement.

  • Retiree must elect medical coverage to be eligible for dental
  • Vision coverage is not offered through retiree benefits
  • Retiree may opt to elect COBRA for 18 months, dependents 36 months, instead of retiree insurance
  • Insurance is effective the day after the retirement date
  • In order to elect insurance, retiree must be on health insurance as an active employee prior to retiring
  • Retirees pay the full cost of coverage through auto withdrawal
  • Retirees may make plan changes during open enrollment
  • Retirees may remove spouse/dependents from coverage
  • Review your Benefit Manual or CBA for health insurance discount eligibility and amount

Plans Offered by Ottawa County

Retirees under age 65 will be offered the health coverage they are enrolled in at the time of retirement.

Retirees over age 65 will be offered the Medicare Wrap Plan through Priority Health. This is a 90/70 plan and acts as a supplement to Medicare.

Please contact Human Resources with any questions.

Offered by MERS

We are excited to announce MERS has partnered with a private health care exchange – Mercer Marketplace 365 – to offer members a sustainable approach to providing retiree health care for pre-65 and Medicare-eligible retirees. Mercer Marketplace 365 is available for individual retirees to sign up for a health care plan. More information for individuals can be found here.