Full-time, union and non-union employees hired after 1997 receive retirement benefits in accordance with a defined contribution (DC) plan, providing the following components: 

  • Mandatory employer contribution equal to eight (8%) percent of the employee's compensation for non-union salary and Teamsters Union employees
  • Mandatory employer contribution equal to eight and three quarters (8.75%) percent of the employee's compensation for POAM Union employees
  • Right of covered employees to make voluntary contributions to the DC plan on an after-tax basis
  • Full vesting of employer contributions after three (3) years of service (3-year cliff vesting)
  • Immediate vesting of employee contributions
A defined contribution plan is a company retirement plan, such as a 401k, in which the employee elects to defer some amount of his or her salary into the plan and bears the investment risk. Contributions may be made by the employee, the employer, or both. A 401a plan is simply a 401k plan for government employees. A 401a or 401k plan is the most common type of defined contribution plan offered by employers.

The City of Chelsea defined contribution plan/401a is administered by the Municipal Employees Retirement System (MERS).

Current Employees Eligible for MERS defined contribution benefits:

  • Teamsters Union - 16
  • POAM Union - 13
  • City Manager
  • Police Chief
  • Administrative Director
  • Planning & Zoning Director
  • Bookkeeper/City Clerk
  • Deputy Clerk
  • Deputy Treasurer
  • Accounting & Assistant Clerk
  • Water/Wastewater Superintendent
  • Public Works Superintendent
  • Electric Operations Supervisor
  • Solid Waste Superintendent