Effective with the January 1, 2022, retirement payroll MERS will be able to deduct insurance premiums from retiree and survivor benefit payments to send to employers to pay their insurance vendors. The retiree or survivor must sign either a ‘Retiree or Survivor Insurance Premium Deduction Authorization’ form before insurance deductions are withheld from their monthly benefit payments. Payments to the employer will be made electronically directly to the checking account instructions on the ‘Employer Direct Deposit Agreement Form’ or a check will be mailed. The preferred method is electronic deposit.
Employer responsibilities and requirements:
1. Complete and return an ‘Employer Request to Withhold Insurance Premiums’ form.
2. Complete and return the ‘Employer Direct Deposit Agreement Form’ for electronic deposit of funds deducted.
3. Submit ‘Retiree or Survivor Insurance Premium Deduction Authorization’ forms for all retirees or survivors that want their insurance premiums withheld from their monthly benefit.
4. Submit Excel spreadsheet that contains the retiree’s social security number, payee’s social security number, first and last name of the payee, and the monthly amount to be withheld. The last line should have a total amount to be deducted and submitted.
5. Ensure that the retiree or survivor’s insurance premium is not higher than their monthly benefit.
All the above required forms and files need to be submitted preferably through the ‘Employer Portal’ but can be faxed to 225-925-4816 or emailed by requesting a secure link from the MERS office. The deadline to have deductions made on January 1, 2022, is no later than Monday, December 15, 2021.
Call our office at 800-820-1137 or 225-925-4810 if you need assistance.
