General
Changes can be made via Workday or by using the address change form (Retiree Forms).
Federal - Yes
State of Michigan – Yes, if your residency is in Michigan
Medicare - No
FICA – No
Changes can be made via Workday or by using the Federal W-4P form or the State of Michigan MI W-4P form. Once the form is completed, please submit it to Retirement Services.
Yes, simply list your beneficiaries on the Beneficiary Designation form and submit it to Retirement Services.
Yes, but it cannot be paid to a minor. Letters of conservatorship would have to be filed with the courts before contributions would be paid to the minor as a beneficiary. Please consult an attorney if you need information about creating a Conservatorship for a minor. To update your beneficiary, click the link to get the Beneficiary Designation form and submit it to Retirement Services.
457b Deferred Compensation Plan and Trust
Macomb County Deferred Compensation Plan and Trust is similar to a 401(k). It allows you to make pre-tax contributions into investment funds of your choice. This is a voluntary benefit; you are NOT automatically enrolled in the plan.
Simply fill out the enrollment form and send it to Vanguard. For information about Deferred Compensation and the enrollment form visit our Vanguard page.
Vanguard will not have any record of your employment until you fill out an Enrollment Form. Please follow the instructions on the form to enroll in their plan.
078097
More information about the 457(b) can be found on the Vanguard page.
401a Defined Contribution Plan and Trust
The 401(a) Defined Contribution Plan has a mandatory participation for all full time employees hired on or after January 1, 2016. Contributions into the 401a are pre-tax.
Macomb County deducts three percent (3%) of your base earnings and deposits it into the 401(a) plan. The County will also contribute an amount equal to six percent (6%) of your base earnings into the 401(a) plan on your behalf, for a total contribution of nine percent (9%).
Once you have completed five (5) years of service, you may elect to contribute four percent (4%) of your base earnings. If you elect to do so, the County will also contribute an amount equal to eight percent (8%) of your base earnings in the 401(a) plan on your behalf, for a total contribution of twelve percent (12%). This election is irrevocable.
In addition to mandatory contributions, the County will contribute $100 per pay period, up to $2,600, per year, into your 401(a) account.
Participants in the 401a, shall have the following schedule as it relates to vesting for the Employer contributions:
- Completion of 1 year of service 20%
- Completion of 2 years of service 40%
- Completion of 3 years of service 60%
- Completion of 4 years of service 80%
- Completion of 5 years of service 100%
More information about the 401(a) can be found on the Vanguard page.
Deferred Retirement Option Plan (DROP)
The Deferred Retirement Option Plan (DROP) allows an eligible member to collect his/her retirement benefit while continuing to work full time in his/her position for up to five (5) years. The pension benefits are credited to the employee’s individual DROP account, which will be established within the defined benefit plan of the Macomb County Employees’ Retirement System. DROP participants must withdraw the funds from their DROP account upon termination of employment. Enrolling in the DROP has significant impacts on an employee’s terms of employment and retirement, including but not limited to the amount of the retirement benefit, the number of sick or PTO days available during employment and longevity payments if applicable. For more information, contact Retirement Services.
Effective January 1, 2023, all members of the Macomb County Employees Retirement System (MCERS) members are eligible to participate in the DROP once they have met their normal retirement requirements. Reciprocal service cannot be used towards the vesting for DROP.
Annual/PTO is available on a prorated basis, if leaving before the end of the year. To estimate your monthly available annual/PTO time, take your January balance and divide by 12. This will provide an approximate monthly availability. If you used more than the prorated amount, you will be expected to pay the County back the value of the over used PTO.
No. Your pension option and monthly allowance was elected at the time you enroll in DROP.
You have several options to choose from:
a. The full taxable bank balance as cash. Please note it will be subject to federal taxes (approximately 20%) and state taxes (approximately 4%)
b. The full taxable bank balance can be rolled over into such investments as a IRA or your Vanguard 457b plan
c. The taxable bank balance can be divided by taking part in cash (as noted in a) and part in a rollover (as noted in b)
For more information about the DROP program, visit the DROP - Deferred Retirement Options Plan page.
Annuity
An annuity is the sum of the contributions you contributed to the Macomb County Employees Retirement System, and includes interest earned on those contributions. The annuity is available to the member at the time of retirement.
You have several options:
1) You may leave the annuity in the Macomb County Employees Retirement System, which will provide a higher monthly pension benefit, or
2) You may withdraw the annuity from the Macomb County Employees Retirement System.
When you withdraw the annuity as a lump sum distribution, you have several options to choose from:
a. The lump sum can be taken as cash. Please note it will be subject to federal taxes (approximately 20%) and state taxes (approximately 4%)
b. The lump sum can be rolled over into such investments as a traditional IRA
c. The lump sum can be divided by taking part in cash (as noted in a) and part in a rollover (as noted in b)
Retirement
No, an appointment is not needed to retire.
Please contact Retirement Services with your desired retirement date per the guidelines below. retirement@macombgov.org
Applying to retire (and you do not have an Eligible Domestic Relations Order (EDRO) in force, and you or your spouse are not eligible for Medicare) - 30 days before your desired retirement date.
However, if an Eligible Domestic Relations Order (EDRO) is in place that affects your pension, you must establish your retirement date at least 3 months in advance, and it cannot change.
Applying to retire (and you or your spouse are eligible for Medicare) - 60 days before your desired retirement date.
Yes, only if they are qualified earnings per your Collective Bargaining Agreement and only if one of your high FAC years is the year you retire.
Option SL: Straight Life Option: A monthly pension will be paid until your death.
Option A: A monthly pension will be paid until your death, and the same amount would be paid to your beneficiary thereafter.
Option B: A monthly pension will be paid until your death, and one-half of this amount would be paid to your beneficiary thereafter.
Option C: You would receive a monthly pension for 10 years certain and life thereafter. However, no amount would be paid to your beneficiary after 10 years.
Option EA: Joint & 100% Survivor Pop-Up: A monthly pension will be paid until your death, and the same amount would be paid to your beneficiary thereafter. However, if your beneficiary pre-deceases you, your pension amount would be increased to the Straight Life benefit.
Option EB: Joint & 50% Survivor Pop-Up: A monthly pension will be paid until your death, and one-half of this amount would be paid to your beneficiary thereafter. If you passed away, your beneficiary would receive one-half of that amount per month for life. However, if your beneficiary pre-deceases you, your monthly pension amount would be increased to the Straight Life benefit.
The monthly pension benefit cannot be paid to a minor. Letters of Conservatorship would have to be filed with the courts before monthly payments can continue to the minor as a beneficiary. Please consult an attorney if you need information about creating a Conservatorship for a minor.
Please review the Retirement/DROP Schedule.