Understanding Our Pension Plan
The basic provisions of the pension plan were initially approved by the Missionary Church, Inc. in 1969 and have been amended, as necessary, since that time. Highlights of the plan are included below.
1. Eligibility: All employees, qualifying for at least 1000 hours of service per year, as a minister who is either ordained or licensed and who performs ministerial services for the church or an affliated church, as a missionary, as an evangelist, as an unlicensed district administrator, as a denominational headquarters staff member or as a licensed bi-vocational minister; and your employer adopts this plan as a participating employer and your employer also elects to cover your job classification (i.e. pastor of Youth, Worship, CE or Associate Minister).
2. Type of Plan: The pension plan has been qualified by the IRS as a defined benefit plan. Each church pays periodic assessments into a pension pool for all participants. These payments are not allocated to any individual until that individual is eligible for benefits under the provisions of the plan. At such time, the necessary funds from the pool will be paid in a lump sum or used to provide monthly retirement income. Several different monthly income alternatives are available.
3. Procedure for Enrollment: Eligible personnel should fill out forms available from the denominational office as soon as possible when beginning active service within the denomination. This should be done, if at all possible, within 30 days from date of full-time employment.
4. Individual Contributions: The plan is noncontributory and assessments are paid entirely by Missionary Churches or affiliate organizations.
5. Survivor Benefits: If a person dies before retirement, a survivor's benefit will be payable to his/her designated beneficiary equal to 100 times the anticipated monthly income from the pension plan at age 65.
Example:
Retirement benefit $650.00 per month
Survivor's benefit $650.00 x 100 = $65,000.00
*In addition, the participant's accrued pension benefits are payable to the beneficiary if vested in the plan.
6. Social Security: Pension plan benefits and Social Security benefits are completely independent of each other. The Social Security benefit will not be affected by the pension benefit or vice-versa.
7. Administration of Plan: The plan is administered by the denominational office of the Missionary Church, Inc. in cooperation with Alliance Benefit, Inc., pension actuaries and consultants in Indianapolis, IN.
Detailed information concerning the plan is available at the denominational office. Apportionment is made annually to the churches for complete funding of the plan. Pastors are urged to be especially diligent in working with their treasurers, church boards, and congregations in seeing that this obligation is fully met.
Understanding Our Pension Plan
The basic provisions of the pension plan were initially approved by the Missionary Church, Inc. in 1969 and have been amended, as necessary, since that time. Highlights of the plan are included below.
1. Eligibility: All employees, qualifying for at least 1000 hours of service per year, as a minister who is either ordained or licensed and who performs ministerial services for the church or an affliated church, as a missionary, as an evangelist, as an unlicensed district administrator, as a denominational headquarters staff member or as a licensed bi-vocational minister; and your employer adopts this plan as a participating employer and your employer also elects to cover your job classification (i.e. pastor of Youth, Worship, CE or Associate Minister).
2. Type of Plan: The pension plan has been qualified by the IRS as a defined benefit plan. Each church pays periodic assessments into a pension pool for all participants. These payments are not allocated to any individual until that individual is eligible for benefits under the provisions of the plan. At such time, the necessary funds from the pool will be paid in a lump sum or used to provide monthly retirement income. Several different monthly income alternatives are available.
3. Procedure for Enrollment: Eligible personnel should fill out forms available from the denominational office as soon as possible when beginning active service within the denomination. This should be done, if at all possible, within 30 days from date of full-time employment.
4. Individual Contributions: The plan is noncontributory and assessments are paid entirely by Missionary Churches or affiliate organizations.
5. Survivor Benefits: If a person dies before retirement, a survivor's benefit will be payable to his/her designated beneficiary equal to 100 times the anticipated monthly income from the pension plan at age 65.
Example:
Retirement benefit $650.00 per month
Survivor's benefit $650.00 x 100 = $65,000.00
*In addition, the participant's accrued pension benefits are payable to the beneficiary if vested in the plan.
6. Social Security: Pension plan benefits and Social Security benefits are completely independent of each other. The Social Security benefit will not be affected by the pension benefit or vice-versa.
7. Administration of Plan: The plan is administered by the denominational office of the Missionary Church, Inc. in cooperation with Alliance Benefit, Inc., pension actuaries and consultants in Indianapolis, IN.
Detailed information concerning the plan is available at the denominational office. Apportionment is made annually to the churches for complete funding of the plan. Pastors are urged to be especially diligent in working with their treasurers, church boards, and congregations in seeing that this obligation is fully met.