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      Medical Expense Reimbursement Plan (MERP) for Retirees

      Medical Expense Reimbursement Plan (MERP)

      The City of Phoenix Medical Expense Reimbursement Plan (MERP) offsets your medical premiums and/or other out-of-pocket health care expenses.

      You are eligible for MERP if:

      • You retired between August 1988 and July 2007, or 
      • You were working for the City on August 1, 2007 and on that date were within 15 years of City service retirement. There are several different types of MERP, which are described below. 
      • You are not currently enrolled in PEHP — employee cannot receive MERP and PEHP at the same time.

      MERP is not directly applied towards City premium deductions and acts as a reimbursement monthly.

      Basic MERP
      • Basic MERP provides eligible retirees with a monthly amount to offset out-of-pocket health expenses such as medical premiums, deductibles, copays, dental care, vision care, etc.
      • Basic MERP is tax-free, if you use all of it for eligible health expenses in the same calendar year in which you receive it. If you do not use all the Basic MERP you receive for health expenses, you should return the remainder to the City of Phoenix or declare it as income and pay taxes accordingly. 
      • If you are retired and re-hired at the City of Phoenix, become PEHP eligible in your new employment instance, and enroll in City benefit plans, you are not eligible to receive both PEHP and MERP payments. MERP will stop during employment and you will begin receiving PEHP for the duration of employment while enrolled in City of Phoenix coverage.

      Visit the Retiree Benefits Guide to review monthly Basic MERP amounts.

      Qualified City Contribution (QCC)

      The Qualified City Contribution is another way the City helps reduce retiree premiums for MERP eligible retirees on Non-Medicare plans and Medicare plans.

      Visit the Retiree Benefits Guide to review monthly QCC amounts.

      Category MERP

      MERP eligible retirees from certain Benefit Categories and who are enrolled in City retiree medical coverage may receive an additional $100 per month in Category MERP. 

      Visit the Retiree Benefits Guide to review each Benefit Category for eligibility.

      Supplemental MERP

      You may qualify for a Supplemental MERP amount in addition to other types of MERP benefits. If you qualify, Supplemental MERP is added to your Basic MERP each month.

      Supplemental MERP is based on your gross annualized pension amount and is intended to offer additional assistance to retirees with smaller pensions.

      Visit the Retiree Benefits Guide to review gross annualized pension amounts and supplemental MERP amounts.

      Contact the Benefits Office
      Phone: (602) 262-4777
      Email: benefits.questions@phoenix.gov