Mercer Short Duration Fixed Income Fund Class Y-3 · NASDAQ:MSDYX
Mercer Short Duration Fixed Income Fund Class Y-3 — Mercer — pdf 2026 mer washington briefing april 23
48 slides from Mercer Short Duration Fixed Income Fund Class Y-3's investor presentation, Apr 23, 2026
Slide 1: Washington Update Briefing
Washington Update Briefing Law & Policy Group April 23, 2026
Slide 2: Speakers
Speakers Dorian Z. Smith Geoff Manville Partner, National Practice Leader Partner, Government Relations Leader Law & Policy Group Law & Policy Group Jennifer Wiseman Brian J. Kearney Principal Principal Law & Policy Group Law & Policy Group © 2026 Marsh. All rights reserved. 2
Slide 3: Agenda
1. Congressional update Agenda 2. Health benefits 3. Retirement benefits 4. Mercer resources 5. Q&A
Slide 4: Congressional update
Congressional update MERCER AMARSH BUSINESS
Slide 5: Employer healthcare priorities
Maintain current tax-favored treatment of employer-provided healthcare coverage Preserve ERISA’s nationally uniform regulatory framework Employer Increase transparency in the healthcare system Expand site-neutral payment reforms healthcare Restrict anti-competitive contracting provisions priorities
Slide 6: Bipartisan healthcare reforms (finally) crossing finish line
Bipartisan healthcare reforms (finally) crossing finish line Despite largely gridlocked Congress, numerous employer-friendly policies have broken through to become law PBM reforms Price transparency Provider, hospital billing reforms • Extensive disclosure of business practices to • Codify rules req
Slide 7: Key bills awaiting congressional action in 2026
Key bills awaiting congressional action in 2026 Uncertain outlook with short legislative calendar, focus on campaigning ahead of mid-term elections Bill name Description Require public reporting of negotiated rates, costs and cash prices for services provided at hospitals, ambulatory surgery centers
Slide 8: Congress mulls future retirement policies; near term action limited
Congress mulls future retirement policies; near term action limited Lawmakers focusing on ‘modernizing’ DC plans, investment lineups, curbing litigation Recent series of House and Senate hearings examine broad range of issues in laying groundwork for next round of reforms • Lower plan eligibility ag
Slide 9: Health benefits
Health benefits MERCER AMARSH BUSINESS
Slide 10: White House announces pharmaceutical tariffs
White House announces pharmaceutical tariffs 100% tariffs on imported, brand-name pharmaceuticals and ingredients announced April 2 • Cites threat to national security and invokes Section 232 of the Trade Expansion Act; separate from International Emergency Economic Powers Act (IEEPA) tariffs reject
Slide 11: White House announces MFN agreements, launches TrumpRx
White House announces MFN agreements, launches TrumpRx MFN agreements TrumpRx • Sixteen of 17 companies threatened • Launched on February 5 with 43 with tariffs in July 2025 have drugs, featuring first five announced MFN agreements manufacturers to reach MFN deals; • MFN agreements haven’t been numb
Slide 12: For employer-sponsored group health plans, PBM developments
2026 CAA PBM reforms For employer- ERISA fee disclosure requirement sponsored group clarified in 2026 CAA health plans, Recent PBM Congress and transparency developments DOL proposed PBM federal agencies are compensation disclosure rule working to increase PBM transparency. FTC/PBM settlement © 2026
Slide 13: PBM reforms in the 2026 Consolidated Appropriations Act
PBM reforms in the 2026 Consolidated Appropriations Act PBM reports Rebate pass-through Major reporting obligations for entities providing PBM services • Service providers contracting with an ERISA-covered group health plan for PBM services must agree to remit 100% of • Semi-annual reports to large
Slide 14: 2026 CAA clarifies existing ERISA fee disclosure requirements
2026 CAA clarifies existing ERISA fee disclosure requirements • The 2021 Consolidated Appropriations Act requires brokers and consultants expecting to receive at least $1,000 for their services to disclose to ERISA-covered group health plans all direct and indirect compensation for those services. ‒
Slide 15: PBM compensation disclosure proposed rule
PBM compensation disclosure proposed rule Press release; fact sheet DOL proposed rule would require covered service providers to disclose extensive compensation information to self-funded Covered service provider: ERISA group health plan fiduciaries. • Timing. In advance, semi-annually and on reques
Slide 16: Recent state PBM laws face headwinds
Recent state PBM laws face headwinds Sixth Circuit appeals court rules ERISA preempts Tennessee law • Tennessee’s 2021 law (amended in 2022) imposed an “any-willing- provider” requirement and banned financial incentives to steer participants to affiliated pharmacies. • On April 7, the Sixth Circuit
Slide 17: Transparency-in-Coverage (TiC) proposed rules
Transparency -in-Coverage (TiC) proposed rules Agencies revisit the November 2020 TiC rules Machine-readable files Price comparison tool Proposed rules address the MRFs required for in-network (IN) rates and Proposed rules align overlapping requirements in the TiC rules and the out-of-network (OON)
Slide 18: Direct primary care service arrangements and HSAs, HDHPs
Direct primary care service arrangements and HSAs, HDHPs IRS Notice 2026-5 provides some detail about One Big Beautiful Bill Act HSA enhancements Notes • DPCSAs are not HSA-disqualifying Direct Primary Care Service Arrangements (DPCSAs) • HDHP can’t pay the fees or provide ✓ Provide medical care con
Slide 19: Telehealth and HSAs, HDHPs
Telehealth and HSAs, HDHPs IRS Notice 2026-5 provides details about One Big Beautiful Bill Act HSA enhancements Telehealth and other remote care services that an HSA-qualifying HDHP may cover predeductible: • Safe harbor for services included on Medicare’s telehealth services list. • Services not on
Slide 20: Vaccine recommendations in flux
Vaccine recommendations in flux October 6, 2025 December 16, 2025 March 16, 2026 Advisory Committee on Immunization Practices ACIP recommends (and CDC adopts) January 5, 2026, vaccine schedule changes, (ACIP) recommends (and CDC adopts) shared SCDM recommendation for Hepatitis B ACIP appointments, a
Slide 21: Preventive services mandate update
Preventive services mandate update New HRSA cervical cancer screening guidelines (press release) Updated Health Resources and Services Reminder: Nongrandfathered Administration (HRSA) guidelines add the group health plans and insurers following to the list of health services that must cover without
Slide 22: No Surprises Act update
No Surprises Act update NSA survived constitutional challenges, but lawsuits continue • Agency guidance follows twists in Qualifying Payment Amount (QPA) methodology litigation (most recently FAQs Part 73); awaiting en banc Fifth Circuit decision • Providers and insurers/TPAs accuse each other of su
Slide 23: DOL enforcement priorities
DOL enforcement priorities Employee Benefits Security Administration (EBSA) health and welfare National Enforcement Projects No Surprises Act Mental health benefits Cybersecurity • Focus on identification of emergency • Targeting most serious violations • Investigating how plans and claims, plan exc
Slide 24: DOL announces employee benefit plan enforcement principles
DOL announces employee benefit plan enforcement principles Field Assistance Bulletin 2026-01 sets policy for EBSA employees Prioritize the most egregious conduct Avoid regulation through or significant harm enforcement • Focus on criminal cases. Enforcement activity must have a close • Prioritize br
Slide 25: HHS, CMS modernization efforts could impact health plans
HHS, CMS modernization efforts could impact health plans Agencies’ focus on modernizing US healthcare includes: • HHS restructuring its health tech leadership and appointing a board to modernize US healthcare system “The 1980s called, and they want their fax • CMS launching first wave of tech tools
Slide 26: CMS finalizes Medicare Part D creditable coverage changes
CMS finalizes Medicare Part D creditable coverage changes Final rule eliminates notice for “account-based plans,” updates simplified determination methodology to reflect Part D enhancements Eliminates Part D notice Codifies new SDM Looking ahead requirement for account-based plans Non-RDS group heal
Slide 27: Looking ahead…
Looking ahead… Based on Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions Final rules addressing: Target date Other expected guidance Independent dispute resolution operations Pending review at OMB since January 29 • Mental Health Parity and Addiction Equity Notice of benefit and pay
Slide 28: HSA, HDHP, excepted benefit HRA figures
HSA, HDHP, excepted benefit HRA figures Projected amounts HSA and HDHP limits 20271 2026 2025 Self-only coverage Maximum tax-deductible/tax-free HSA $4,500 $4,400 $4,300 contribution HDHP minimum annual deductible $1,750 $1,700 $1,650 HDHP in-network out-of-pocket maximum $8,700 $8,500 $8,300 Family
Slide 29: 2027 ACA limits
2027 ACA limits Nongrandfathered group health plan out-of-pocket 2027 2026 2025 maximums Self-only coverage (and embedded individual max in family $12,000 $10,600 $9,200 coverage) Family coverage $24,000 $21,200 $18,400 Projected Employer shared-responsibility assessments 2027 2026 2025 Not offering
Slide 30: Inflation adjustments for HIPAA and MSP penalties
Inflation adjustments for HIPAA and MSP penalties HHS released adjusted penalty amounts for violations of the HIPAA privacy, security, breach notification and electronic healthcare transaction rules, and the Medicare secondary payer (MSP) rules; for penalties assessed on/after January 28, 2026 HIPAA
Slide 31: Retirement benefits
Retirement benefits MERCER AMARSH BUSINESS
Slide 32: USPS postmark changes
USPS postmark changes Impact on employee benefit plans • Government filings and participant disclosures sent by US mail are generally considered filed or provided on time if postmarked on or before the due date. • In the past, mail dropped off at a post office or put in a public mailbox before the f
Slide 33: Trump accounts
Trump accounts Recent IRS guidance addresses some key issues Employers can contribute to the accounts of employees, employees’ dependent children under age 18 starting July 4. Trump account basics IRS Notice 2025-68 Proposed regulations • Accounts are traditional IRAs with special • The $2,500 limit
Slide 34: DOL proposed regulations on investment selection
DOL proposed regulations on investment selection Fiduciary duties in selecting designated investment alternatives • A new DOL proposed regulation would address how fiduciaries of DC plans that allow participants to direct investments could demonstrate they acted prudently when selecting a designated
Slide 35: DOL proposed regulations on investment selection (continued)
DOL proposed regulations on investment selection (continued) Fiduciary duties in selecting designated investment alternatives Safe harbor factors Performance Valuation Consider a reasonable number of similar alternatives and Consider and determine that the DIA has adopted adequate determine that the
Slide 36: DOL proposed updates to e-disclosure safe harbor regulations
DOL proposed updates to e -disclosure safe harbor regulations Requirement to provide paper statements in certain cases SECURE 2.0 requires retirement plans to give certain benefit statements on paper starting in 2026 plan year. Changes to 2002 “wired at work” safe harbor Changes to 2020 “notice and
Slide 37: DOL 'investment advice fiduciary rule' update
DOL ‘investment advice fiduciary rule’ update Biden-era “retirement security rule” is officially dead • In March 2026, a federal district court vacated DOL’s 2024 fiduciary rule and related amendments to seven prohibited transaction exemptions (PTEs). – 2024 rule would have broadened the scope of wh
Slide 38: DOL Technical Release (TR) 2026-01
DOL Technical Release (TR) 2026 -01 Application of ERISA fiduciary requirements and preemption provisions to proxy advisory services • A December 2025 Executive Order directed DOL to revise its guidance on the fiduciary status of proxy advisors. – The order claimed proxy advisors regularly prioritiz
Slide 39: DOL enforcement projects (retirement plans)
DOL enforcement projects (retirement plans) January 2026 news release Protecting benefit Retirement asset Criminal abuse of Cybersecurity distributions management contributory plans • Review how plans and • Ensure participants receive • Review whether fiduciaries • Protect employees who service prov
Slide 40: Plan amendment deadline for major laws approaching
Plan amendment deadline for major laws approaching Most plans need to be amended by the end of this year • December 31, 2026, is the deadline to adopt most required and discretionary amendments for the following laws: – Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 – SEC
Slide 41: Mercer resources
Mercer resources MERCER AMARSH BUSINESS
Slide 42: Law & Policy Group
Law & Policy Group www.mercer.com/insights/law-and-policy/ Providing timely analysis of relevant legislative, regulatory, judicial, and policy developments. Health, Wealth and Global news, views and analysis, written by Mercer legislative, regulatory, and policy pros with practical insights for empl
Slide 43: Get timely insights and commentary on US Health News
Get timely insights and commentary on US Health News Every week on US Health News, Mercer publishes our observations, research, and best thinking on the most pressing healthcare issues and the transforming healthcare environment. Sign up for our weekly subscriber email: www.mercer.com/en-us/insights
Slide 44: Mercer online resources
Mercer online resources Stay informed on the latest insights, legislative updates and breaking news Mercer’s Law & Policy Group is a team of lawyers, actuaries, and technical experts who provide analyses on US, state, and global compliance and policy matters affecting benefit and leave programs. Vis
Slide 45: Continuing education credits
Continuing education credits Washington Update briefing — April 23, 2026 SHRM Credits HRCI Credits This program, 26-GN9TD, has been pre-approved for This Program, ID No. 739311, has been approved 1.50 SHRM PDC(s) toward CP and SCP recertification for 1.50 Seminar recertification credit hours toward
Slide 46: MERCER
MERCER /AMARSH BUSINESS
Slide 47: Legal disclaimer
Legal disclaimer Mercer is not an “administrator,” “sponsor” or other “fiduciary” within the meaning under applicable law, including the Employee Retirement Income Security Act of 1974, as amended. Mercer is not engaged in the practice of law, accounting, auditing or medicine. Any commentary in this
Slide 48: Mercer is not an administrator, sponsor, or other fiduciary
Mercer is not an “administrator,” “sponsor,” or other “fiduciary” within the meaning under applicable law, including the Employee Retirement Income Security Act of 1974, as amended. Mercer is not engaged in the practice of law, and the content is not intended as a substitute for legal advice. Accord