JULY 2020

NEWSRetiRee

2020

RETIREMENT CONFERENCE

SEPTEMBER 24-25

2020 Retirement Conference This year MERS will hold our Annual Retirement Conference as an online event. While we’ll miss the opportunity to see everyone’s smiling faces, our virtual conference will still provide valuable insights on current trends in the retirement industry for both employers and participants, as well as our Annual Business Meeting and board elections.

myMERS Account AccessAt MERS, we are doing everything possible to conduct business as usual during these unprecedented times. We are asking you to help us help you by using your myMERS account (www.mersofmich.com) as the primary method of conducting business with us at this time.

You can use your myMERS account to:

• Change your mailing address

• Change your email address

• Retrieve your quarterly statement(s)

• Update beneficiaries on your participant directed accounts

• Change your investment allocation

We recently took additional steps to protect your data online by implementing a two-factor authentication (2FA) process when you log in to your myMERS account. This enhanced security measure uses a code sent via text or phone call when logging in to your account to

verify your identity and requires a verification code through email when resetting your password. If you haven’t logged in to your account in a while, you will be prompted to enter your phone number and email address to set up 2FA for your account. If you don’t know your username and password, you can easily create a new account.

Using this secure online method will help ensure transactions are processed efficiently while teams are working remotely. As an alternative, you can fax forms to 517.703.9706.

Please note that any paperwork that is sent via U.S. mail may experience processing delays.

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Beware of Social Security Scams Did you know that Social Security scams are the #1 type of fraud reported to the Federal Trade Commission? The Social Security Administration (SSA) is warning people to be on the lookout.

Telephone Scams – Callers falsely claiming to be SSA employees are misleading people into making cash or gift card payments for help with supposed identity theft or to avoid arrest for bogus Social Security number problems. In some cases, the caller ID may even look official, but it’s not.

Email Scams – Fraudsters may also email fake documents in attempts to get people to comply with their demands. The letters may use official letterhead and government jargon to try to convince victims they are legitimate; they may also contain misspellings and grammar mistakes.

If there is a problem with your Social Security number or record, in most cases Social Security will mail a letter. SSA employees do occasionally contact people by phone, but generally only those who have ongoing business with the agency.

Real SSA employees will not:

• Threaten you

• Suspend your Social Security number

• Contact you to demand an immediate payment

• Ask you for credit or debit card numbers over the phone

• Require payment by cash, gift card, pre-paid debit card or wire transfer

• Promise benefit approval in exchange for information or money

You can help prevent others from being victimized. If you receive a suspicious phone call or email, report it to the Office of the Inspector General at oig.ssa.gov.

Health Insurance Exchange If you don’t get your health insurance from your employer, and you are responsible for shopping for insurance on your own, health insurance can be confusing — especially when it comes to finding the right insurance plan for your retirement. MERS has partnered with Mercer Marketplace 365+SM Retiree to provide you with access to a private retiree health care exchange to support you in choosing a health plan that best meets your needs.

Mercer offers a comprehensive menu of individual insurance plans in Michigan and across the country, providing you with the comfort and familiarity of well-known national carriers as well as strong local plans with a variety of options. You will have the opportunity to select from several insurance plans to find the optimal coverage based on your personal needs. In addition, if you participate in the MERS Health Care Savings Program, you can use the funds in your account to cover the cost of insurance premiums.

A trained Mercer Benefits Counselor will assist you each step of the way:

• EDUCATE Understand your options and decide on a health plan strategy.

• EVALUATE Consider the plans available based on your personal needs and budget.

• EXPLORE Make you aware of any tax credits for which you or your dependents may qualify.

• ENROLL Choose your plans, let us handle the enrollment, and enjoy ongoing support.

Call 1.855.694.5369 or visit retiree.mercermarketplace.com/mers to compare plans available to you.

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Legislative Updates that Might Affect You The Setting Every Community Up for Retirement Enhancement (SECURE) Act took effect on January 1, 2020. While none of these changes affects your MERS Defined Benefit pension, below is an overview of key changes that may impact you or your spouse:

Required Minimum Distributions (RMD) begin at age 72The beginning date for RMDs was increased to age 72 (previously 70½). The change only applies to individuals who reached age 70½ on or after January 1, 2020. For anyone who turned 70½ before that date, the old rules will still apply. While this can apply to other defined benefit plans, it does not affect your MERS Defined Benefit pension in any way. MERS will notify you if and when an RMD is required from any of your MERS accounts. See CARES Act side panel for additional details on 2020 RMDs.

Applies to: 401(a) defined benefit and contribution, 457(b), Traditional IRA, 403(b), and 401(k)

You can make IRA contributions beyond age 70½The rule that prohibited contributions to a traditional IRA by individuals age 70½ and older has been lifted. This change applies to contributions for tax years beginning after December 31, 2019. Contributions for 2019 are still covered by the age 70½ limit. All other rules, including the requirement that you have “earned income” in order to contribute, still apply.

Applies to: Traditional IRA

“Stretch-Out” rules eliminated for non-spousesUnder the previous rule, designated beneficiaries were able to “stretch” RMDs from an inherited account over their own lifetime. Under the new rule, all funds from an account of an individual who dies on or after January 1, 2020, that are inherited by a non-spouse beneficiary must now be distributed within 10 years of the account owner’s death. Exceptions include designated beneficiaries who are a spouse, a minor child of the deceased (but only until they reach the age of majority), a disabled or chronically ill person, or an individual not more than 10 years younger than the deceased. If you planned to leave to your account to a non-spouse beneficiary with the intent to provide them with income over their lifetime, you may want to reevaluate your strategy with a tax advisor or estate planning attorney.

Applies to: 401(a) defined contribution, 457(b), Traditional IRA, 403(b), and 401(k)

Penalty-Free withdrawals for birth or adoption of childIndividuals may withdraw up to $5,000 from their retirement account within the one-year period following the birth or adoption of a child without paying the 10% early-withdrawal penalty (income tax will be owed on the distribution, unless the funds are repaid). If married, each spouse can withdraw $5,000 from one of their own accounts, penalty-free.

Applies to: 401(a) defined contribution, 457(b), Traditional IRA, 403(b), and 401(k)

The Coronavirus Aid, Relief, and Economic Security (CARES) ActThe CARES Act waived the RMD for any amount payable in 2020 for defined contribution retirement plan accounts like 401(k), 401(a), 457(b) or 403(b) plans, as well as outside IRAs (Traditional IRA, SEP IRA, SIMPLE IRA).

As a result, you are not required to take an RMD from your MERS Defined Contribution Plan and/or 457 Program account in 2020. If you already took your RMD for 2020 before the CARES Act passed and want to reverse it, you may have until August 31, 2020, to do so.

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If Disaster Strikes, Will You be Ready? No one expects to be the victim of a disaster, yet every year people find themselves in the midst of fires, floods, earthquakes and other catastrophic events with little, if any, time to prepare. And every year personal and financial records are lost because they can’t be located quickly in an emergency. That’s why it’s important to take the time to organize your records and essential information so that they’re easily accessible if you are forced to leave your home suddenly.

Personal records include:

• Birth certificates for you and your family

• Adoption papers

• Social Security cards

• Health insurance identification cards

• Marriage certificate, prenuptial agreement, divorce decree or separation agreement

• Passports

Financial records include:

• Deeds to your home and other property

• Vehicle titles and registrations

• Auto, life, and homeowners insurance policies

• Bank accounts and investment records

• Wills, trust agreements, and other estate planning documents

• Mortgage and loan agreements

• Credit cards

• Copies of tax returns

• Passwords to online accounts

You may also want to make a list of the names, addresses and phone numbers of your financial institutions, insurance agent, attorney, doctor and financial advisor and keep them with your records.

Once you have all your important documents together, you’ll want to keep them that way. Storing them in a locked, fireproof box that you can take with you during an evacuation is one option. But you should also keep copies of all important documents in a safe place outside your home. Consider scanning other important documents into electronic format and storing them on a backup storage device or a secure cloud-based storage server.

It’s just as important to let someone you trust know where those records are stored, so that if something happens to you, your loved ones have access to the information they need.

You can find a wide range of information on disaster planning on the Department of Homeland Security’s Ready.gov website, including an Emergency Financial First Aid Kit that can help you organize your records.

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Retiree Connections You’re invited to join a virtual Retiree Connections meeting!

Because social distancing requirements make meeting face-to-face challenging, MERS is bringing our next Retiree Connections meeting to you via webinar. You can attend online from the comfort of your home.

One topic retirees frequently tell us they would like to learn more about is Medicare and how to pick the right health care plan in retirement. So we have invited an expert from the Michigan Medicare Medicaid Assistance Program (MMAP) to share her expertise and answer your questions.

Some important Medicare topics we will be discussing include:

• Understanding the ABCs (and part D!) of Medicare

• When you can and can’t enroll in Medicare

• Medicare considerations if you have employer-sponsored health insurance

• Why you should reevaluate your plan every year

As a MERS retiree, you’ll also learn how you can get help choosing the right health care plan from the trained benefits counselors at Mercer Marketplace 365+SM Retiree.

Date: Tuesday, September 29, 2020

Time: 10:00 a.m. – 11:30 a.m.

Cost: Free

Registration: Register for this event

If you cannot register online or have questions about your registration for this event, you can call the MERS Service Center at 800.767.6377 and we will be happy to assist you.

2020 Pension PaymentsPayments go out on the 18th of the month or one business day before a weekend or holiday.

18MONTH

• July 17

• August 18

• September 18

• October 16

• November 18

• December 18

1134 Municipal WayLansing, MI 48917

Contact us

MERS Service Center is available 8:30 a.m. - 5:00 p.m. Monday - Friday to answer your questions.

800.767.6377

You can also send us a question anytime on Facebook Messenger.

Join the conversation

Follow MERS of Michigan to keep up with the latest updates from MERS, learn from the experts about topics like health care and social security, and share retirement tips with peers.

www.mersofmich.com

This publication contains a summary description of MERS benefits, policies or procedures. MERS has made every effort to ensure that the information provided is accurate and up to date. Where the publication conflicts with the relevant Plan Document, the Plan Document controls.

PUB 9544c 2020-07-27

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