MARQUETTE -- There are new developments for 12 Marquette County employees in the opt-out program.  These employees retired and continued working without a termination of employment, must now pay IRS penalties.

According to a letter from the Municipal Employees Retirement System, (MERS) the employees who opted out of their employment are subject to a 10 percent premature distribution penalty if they did not have a bona fide severance of employment, or are 59 years old.
    
The letter came as a response to the Marquette County Board of Commissioners who requested an official interpretation of the 'opt out' policy in August.  The board says there's currently a 3.5 million dollar deficit in the fund, retired employees draw their benefits from.

"Now we need to know if there is a next step that needs to be taken by MERS according to the planned document. that's a question we've asked per motion of the board, sent that letter out, see what kind of response we get from that," said Marquette County Board of Commissioners Chair, Debbie Pellow.

That  letter to MERS will ask if there's any further action the board should take on the opt out or retire-rehire policies.