Employee Manual 2023 - Flipbook - Page 53
Municipal Employees Retirement System. These benefits are fully paid by the City, subject to the
terms and conditions of Act No. 135, P.A. of 1945, as amended. Employees hired on or after July 1,
1997, or those hired prior to July 1, 1997, who converted to a defined contribution program, will be
entitled to retirement benefits in accordance with the defined contribution program of the
Municipal Employees Retirement System/ICMA Retirement Trust.
All new hires effective July 1, 2014 will be provided with a MERS Health Care Savings Program
Account (HCSP) in lieu of full medical benefits upon retirement. The HCSP shall be 5% of base
wages. It shall be paid per pay period and managed by the employee. It will be based on the
following vesting period:
• 5 Years – 75%
• 7 Years – 100%
Effective July 1, 2012, due to the State of Michigan EVIP, the following changes are in place as it
relates to retirement:
• All new hires shall have the City's contribution rate capped at 10 % of members’ base salary.
• All current employees shall have the City's contribution rate capped at 13% of employees’
gross salary.
• All members shall have the option of making voluntary individual pre-tax contributions
between 0 – 20% into their respective 401a retirement plan with total contributions in
compliance with IRS rules.
Employees hired prior to July 1, 1989 and vesting under the ten year requirement, will receive
medical, dental and vision insurance for themselves and their spouses with the premiums 100
percent paid by the City. Coverage shall become effective immediately upon receipt of MERS
retirement benefits.
Employees hired on or after July 1, 1989 will receive medical, dental and vision insurance for
themselves and their spouses as stated below. Employees hired on or after July 1, 2010 will receive
the same coverage only for said employee.
• 15 years but less then 20 years of Service and if MERS retirement benefits are received
immediately upon leaving the City: 50 percent of premiums to be paid by the City.
• 20 or more years of service and if MERS retirement benefits are received immediately upon
leaving the City: 100 percent of premium to be paid by the City.
Effective July 1, 2014, any retirement benefits in this article provided to the spouse of the
employee, shall be limited solely to the employee’s spouse at the time of retirement. A spouse who
is divorced from a retiree, or who remarries after a retiree’s death, shall only be eligible for those
benefits which the spouse would be permitted to obtain, by providing the City of Plymouth with
the full premium costs, under Federal laws regarding extended health care coverage.
In the event, an active full-time employee passes away while still employed and have met all their
retirement requirements (i.e. years of services, vesting, etc), they will be considered retired at the
time of death as if they officially retired.
City of Plymouth Employee manual - Page 53 – March 2023
