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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: June 9, 2026 Title: MERS 457 Participation Agreement
Submitted by: Kenneth Grant, Finance Director Department: Finance
Brief Summary:
MERS requires that Contribution Addendum to ensure that our Employer Match on record matches
what was negotiated or agreed upon per each bargaining unit. Non-Union's employer match is
$3,000. Clerical and DPW's employer match is $2,000.
Detailed Summary & Background:
MERS requires a Contribution Addendum be approved by the the City Commission to ensure that the
employer match on record aligns with what was negotiated or agreed upon for each bargaining
unit. The employer match for Non-Union employees is $3,000, while the employer match for Clerical
and DPW employees is $2,000.
Goal/Action ltem:
2027 Goal 4: Financial Infrastructure
Is this a repeat item?:
Explain what change has been made fo justify bringing it back to Commission:
Amount Requested: Budgeted Item:
Yes X No N/A
Fund(s) or Accouni(s): Budget Amendment Needed:
Yes No N/A
Recommended Motion:
| recommend that the Commission approve the MERS Contribuition Addendum for the employer 457
match for the Non-Union, DPW, and Clerical bargaining units.
Approvals: Name the Policy/Ordinance Followed:
Immediate Division
Head
Information
Technology
Other Division Heads
Communication
MERS 457 Participation Agreement @MERS
Municipal Employees’ Retirement System
1134 Municipal Way Lansing; Ml 4891/7 |.800:767.6377 | mersotmich:com coe
EMPLOYER INFORMATION
Municipality Name: City of Muskegon
Municipality Address:
Street: 933 Terrace
City: Muskegon Zip: 49440
Municipality Phone: 231-724-6713 Municipality Number: 6116
Plan Number: 8461161-01 Reporting Unit: 01
Payroll Frequency:
If Other is selected, provide details here:
EFFECTIVE DATE
[_] New Plan
Effective Date:
[@] Amended Plan
This agreement is a substitution and amendment of an existing MERS 457 Program.
Note: This agreement only reflects changes to the plan.
Effective Date; June 1, 2026
PLAN ELIGIBILITY
Only Employees as defined in the Program may be covered by this Participation Agreement. Subject to
other conditions in the Program, this Agreement, and Addendum (if applicable), the following Employees
are eligible to participate in the Program:
Eligible Employees (examples: Full-Time, Clerical, Union Employees participating in XXXX Union):
This plan will be named:
Probationary Period
CI No probationary period
CI Contributions will begin after the probationary period has been satisfied. Probationary periods
are allowed in one-month increments, no longer than 12 months. Participant wages must be
reported to MERS from the time of hire, including during the probationary period.
Probationary months:
Form MD-470 (version 2026-01 -14) Page 1 of 4
MERS 457 Participation Agreement Plan Number: 6461161-01
f (BRT ER
IV. CONTRIBUTIONS
1. Definition of Compensation
This must be used when determining both employer and employee contributions.
Select one option below.
CI Base Wages
[_] Box 1 Wages of W-2
[_] Gross Wages
[_] Box 5 Medicare Wages of W-2
CI Custom Definition. If selected, you must submit a Custom Definition of Compensation Addendum (MD-008)
2. Employee Contributions
The Program allows for both pre-tax and Roth deferrals. Participants can increase, decrease, or stop
contributing at any time, subject to IRS limits and requirements, through their online account access.
3. Automatic Enrollment
CI No — If No, skip to question 4.
CI Yes — If Yes, complete 3.1-3.2 below.
3.1 Covered Employees
The following eligible employees are covered employees (check one):
CI Only employees hired, rehired, or promoted into a position covered by the MERS 457
Program on or after the effective date of this agreement will be automatically enrolled in the
Program.
CI Employees currently employed, hired, rehired, or promoted into a position covered by
the MERS 457 Program on or after the effective date of this agreement will be enrolled,
regardless of their date of hire.
3.2 Automatic Enrollment Contribution
Participant’s pre-tax contribution per payroll will be:
i
3.3 Automatic Escalation Schedule
This contribution will be increased annually each January 1 by the Annual Increase up to the
Maximum Escalation amount as defined below.
Annual Increase: % or $
Maximum Escalation: % or $
Automatic Enrollment / Automatic Escalation can only be added to an existing plan as of
the first day of the Employer’s Plan year and after a 30 day notice is provided to employees.
Contributions are withheld and reported on a pre-tax basis according to the contribution
schedule selected in this Agreement and will continue until the covered employee affirmatively
elects otherwise or has a severance from employment.
Employers are responsible for notifying employees of their right to opt out of participation at the
time of eligibility and allow up to 90 days for the Opt Out and Refund Form to be returned.
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Form MD-470 (version 2026-01-14) Page 2 of 4
MERS 457 Participation Agreement Plan Number: 6461161-01
4. Employer Contributions
Employer Contribution shall be permitted:
[“] No
(el Yes — If Yes, contributions are outlined in the Contribution Addendum for MERS 457 (MD-470b).
V. LOANS
Loans are permitted:
["]No
CI Yes — If Yes, your signature on this document confirms you have received and reviewed the
Defined Contributions & 457 Loan Addendum (MD-071). Also, the election of loans for any division
automatically applies to all divisions of your 457 Plan.
Vi. APPOINTING MERS AS THE PLAN ADMINISTRATOR
The Employer hereby agrees to the provisions of this MERS 457 Participation Agreement and appoints
MERS as the Plan Administrator pursuant to the terms and conditions of the Plan. The Employer
also agrees that in the event of any conflict between the MERS Plan Document and the MERS 457
Participation Agreement, the provisions of the Plan Document control.
Vil. MODIFICATION OF THE TERMS OF THE ADOPTION AGREEMENT
lf the Employer desires to amend any of its elections contained in this Adoption Agreement, including
attachments, the Governing Body or Chief Judge, by resolution or official action accepted by MERS,
must adopt a new Adoption Agreement. The amendment of this Agreement is not effective until
approved by MERS.
VIll.ENFORCEMENT
1. This Participation Agreement may be terminated only in accordance with the MERS 457 Plan
Document.
2. The Employer hereby agrees to be bound by the MERS 457 Plan Document and all policies adopted
by the Board as applicable to the MERS 457 Plan, as these may be amended from time to time.
3. The employer hereby acknowledges it understands that failure to properly fill out this Participation
Agreement may result in the ineligibility of the program.
ERAS SOE TERA Fo BIT ET ER RATIONS Spal Ne SO PT RE CSN SB OM oS Sa RE RDI Se DER Sl SA a LS eed
Form MD-470 (version 2026-01-14) Page 3 of 4
MES 497 Participation Agreement Plan Number: 6461161-01
Src” 77, i]
Be,‘EXECUTION
Authorized Designee of Governing Body of Municipality or Chief Judge of Court
This Adoption Agreement is hereby approved by (municipality/court):
City of Muskegon
Authorized signature : “Vr pl7
ea
=
Name (printed): Ken Johnson
= ]
Title: Mayor
Approved by the Municipal Employees’ Retirement System of Michigan
Dated (DD/MM/YYYY):
Authorized MERS Signature:
Ea Bos I SE a EAST SS rh ARS AS OTD BOB as Ti 2 ES AAS tS ON is AREER ee
Pada.4 of 4
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Form MD-470 (version 2026-01-14)
Contribution Addendum to the MERS 457 @MERS
Municipal Employees’ Retirement System
1134 Municipal Way Lansing, Ml48917 | 800:767.6377 Mmersoitmichicom:
: ,
Bees |
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This is an addendum to the 457 Participation Agreement completed by the following municipality.
Municipality Name: City of Muskegon
Plan Number: 6461161-01
The details below apply to CI ALL covered employees —OR- a specific group of
covered employees (specify here): Clerical & DPW
1. Employer Matching Contributions
C] No - If No, skip to section 2.
(e] Yes — If Yes, complete 1.1 and 1.2 below.
1.1. Employer Match Calculation
The employer elects the following matching contribution formula (check one):
CI Percentage: The employer will match % of the participant deferrals at a
rate of __% (minimum) up to___% (maximum).
For example, if an employer chooses a 50% match, they contribute 0.50% for
every 1% the participant defers. For a 100% match with a 5% minimum and 10%
maximum, the employer matches contributions dollar-for-dollar on amounts above
5% and below 10%.
(el Flat Dollar: The employer will match 100 % of participant deferrals as a flat dollar
rate of $1 (minimum) up to $_2,000 (maximum)
per _year
1.2 Employer Match Frequency
Employer match contributions will be made (check one):
(e Per Payroll CI Quarterly CI Annually CI Other:
2 Non-Matching Contributions
No
[_]
[_] Yes - If Yes, complete 2.1 to 2.2 below.
2.1. Employer Non-Match Calculation
The employer hereby elects to make contributions to the participants’ accounts
without regard to a participant’s contribution amount (check all that apply).
CI Compensation: a contribution of $ or. _%
[_] One-Time: $
2.2 Employer Non-Match Frequency
Employer non-matching contributions will be made (check one):
[_] Per Payroll [_] Quarterly [_] Annually [_] Other:
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Form MD-470b (version 2026-02-09) Page 1 of 1
Contribution Addendum to the MERS 457 @MERS
Municipal Employees’ Retirement System
4484 Municipal Way Lansing, Ml 48917 | 800.767.6377 I) ersofmichicom ee
This is an addendum to the 457 Participation Agreement completed by the following municipality.
Municipality Name: City of Muskegon
Plan Number: 6461161-01
The details below apply to CI ALL covered employees —OR- a specific group of
covered employees (specify here): _Non-Union employees
1. Employer Matching Contributions
Cl No — If No, skip to section 2.
(e] Yes — If Yes, complete 1.1 and 1.2 below.
1.1. Employer Match Calculation
The employer elects the following matching contribution formula (check one):
CI Percentage: The employer will match % of the participant deferrals at a
rate of % (minimum) up to % (maximum).
For example, if an employer chooses a 50% match, they contribute 0.50% for
every 1% the participant defers. For a 100% match with a 5% minimum and 10%
maximum, the employer matches contributions dollar-for-dollar on amounts above
5% and below 10%.
(e] Flat Dollar: The employer will match 19° % of participant deferrals as a flat dollar
rate of $.1 (minimum) up to $_3,000 (maximum)
per _year
1.2 Employer Match Frequency
Employer match contributions will be made (check one):
(@] Per Payroll [—] Quarterly [_] Annually ["] Other:
2 Non-Matching Contributions
[“]
No
[_] Yes - If Yes, complete 2.1 to 2.2 below.
2.1. Employer Non-Match Calculation
The employer hereby elects to make contributions to the participants’ accounts
without regard to a participant’s contribution amount (check all that apply).
(_] Compensation: a contribution of $ or__%
[_] One-Time: $
2.2 Employer Non-Match Frequency
Employer non-matching contributions will be made (check one):
(] Per Payroll [—] Quarterly [“]Annually [~] Other:
mS |
Form MD-470b (version 2026-02-09) Page 7] of 1
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