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Planning Your Retirement: Iowa Conference 2019

Join Joni Mardesen to learn about Wespath Retirement Plans, protection options, medical programs, and more to set the course for your retirement readiness. Discover CRSP and UMPIP plans, pension calculations, distribution options, and exclusive benefits for clergy. Gain insights on housing allowance exclusions, contribution types, death benefits, and financial planning tools to secure your future. Attend the event on June 8, 2019, for expert guidance on achieving a fulfilling retirement.

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Planning Your Retirement: Iowa Conference 2019

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  1. Setting the Course for Retirement Readiness Iowa Annual Conference June 8, 2019 Presented by:Joni Mardesen, Dir HR/CBO

  2. Overview • Preparing for Retirement • Wespath Plans • Comprehensive Protection Plan • Wespath Services • Retiree Medical Program • Housing Allowance Exclusion

  3. Wespath Retirement Plans CRSP 2014+ CRSP UMPIP 2007-2013 CRSP 1982-2006Ministerial Pension Plan (MPP) CRSP: Clergy Retirement Security Program UMPIP: United Methodist Pension Plan Pre-82 Plan(Ministerial Reserve Pension Fund)

  4. DAC and CAC Denominational Average Compensation (DAC): Average plan compensation of United Methodist clergy serving full-time appointments 2019 DAC: $71,361 Conference Average Compensation (CAC): Average plan compensation of United Methodist clergy serving full-time appointments 2019 Iowa CAC: $69,466

  5. Wespath Retirement Plans CRSP 2014+ CRSP UMPIP 2007-2013 CRSP 1982-2006Ministerial Pension Plan (MPP) CRSP: Clergy Retirement Security Program UMPIP: United Methodist Pension Plan Pre-82 Plan(Ministerial Reserve Pension Fund)

  6. Pre-82 Plan • Lifetime Payment • Benefit is calculated by the formula: • Years of Service x Past Service Rate (PSR) = • Annual Benefit • Example: • 10 Years x PSR in 2019 ($650) = • $6,500/year or $542/month

  7. Pre-82 Plan • Married Participant • Life with 70% to surviving spouse (spouse at time of retirement) • Single Participant • Single-life, no refund • Benefit ceases upon participant’s death

  8. Wespath Retirement Plans CRSP 2014+ CRSP UMPIP 2007-2013 CRSP 1982-2006Ministerial Pension Plan (MPP) CRSP: Clergy Retirement Security Program UMPIP: United Methodist Pension Plan Pre-82 Plan(Ministerial Reserve Pension Fund)

  9. Ministerial Pension Plan (82-96) • Benefit based on account balance • Account balance invested until benefits begin • MPP account balance remains separate until distributed in retirement

  10. Ministerial Pension Plan (82-96) • MPP Annuity is based on exactly 65% of MPP balance • Remaining 35% of balance may be: • Rolled over to UMPIP or other retirement plan • Taken as a cash distributions using LifeStage Retirement Income • Taken as a full or partial distribution 65% 35%

  11. MPP Distribution Options:Life Annuities • Example:

  12. MPP Distribution Options:Life with Survivor Annuities • Example:

  13. Wespath Retirement Plans CRSP 2014+ CRSP UMPIP 2007-2013 CRSP 1982-2006Ministerial Pension Plan (MPP) CRSP: Clergy Retirement Security Program UMPIP: United Methodist Pension Plan Pre-82 Plan(Ministerial Reserve Pension Fund)

  14. Clergy Retirement Security Program Defined Benefit (DB) Defined Contribution (DC)

  15. CRSP DB Component – Service Before 2014 Monthly payment, payable for life, calculated as: 1.25% x DAC at retirement x Years of Service • Example: • .0125 x $71,361 (2019 DAC) x 7 years = • $6,244/year or $520/month

  16. CRSP DB Component – Service After 2014 Monthly payment, payable for life, calculated as: 1.00% x DAC at retirement x Years of Service • Example: • .01 x $71,361 (2019 DAC) x 5.5 years = • $3,925/year or $327/month

  17. CRSP: DC Component Effective January 1, 2007 through December 31, 2013 CRSP DC 2% Non-match 1% Match* Effective January 1, 2014 * 100% of UMPIP contributions up to 1% of compensation

  18. CRSP: DC Component • Contributions were based on total compensation • Account balance invested as directed by the participant or through LifeStage Retirement Income • Available as a cash distribution • Remaining balance goes to the beneficiary at death

  19. Available to clergy in retirement. Amount to be excluded is the least of: • Amount designated as housing allowance – 100% of pension received (per the retiree housing resolution in the Iowa Journal) • Amount actually spent for housing • Fair rental value of housing Housing Allowance Exclusion

  20. Wespath Retirement Plans CRSP 2014+ CRSP UMPIP 2007-2013 CRSP 1982-2006Ministerial Pension Plan (MPP) Pre-82 Plan(Ministerial Reserve Pension Fund) CRSP: Clergy Retirement Security Program UMPIP: United Methodist Pension Plan

  21. Before-tax contributions • After-tax contributions • Roth contributions (after-tax) • Rollovers, including: • 401(a) • 401(k) • 403(b) • IRA (traditional) United MethodistPersonal Investment Plan

  22. Comprehensive Protection Plan (CPP) Death and Disability Benefits

  23. CPP Active and Retiree Death Benefits

  24. Find current account information • Tools • Retirement Readiness Tool • Retirement Benefits Projection • Investment information • Beneficiary designations • Resources on finances and retirement Wespath Services - Benefits Access

  25. Converts defined contribution account balances into monthly income • Adjusts payments annually for inflation • Keeps payments within the “payment safety zone” • Offers excellent probability of lifetime income, but not a guarantee Wespath Services-LifeStageRetirement Income

  26. Wespath Services –EY Financial Planning Services No need to enroll – just call 1-800-360-2539

  27. Retiree Medical Program

  28. Retiree Medical Program

  29. Retiree Medical Program

  30. Available to clergy in retirement. Amount to be excluded is the least of: • Amount designated as housing allowance – 100% of pension received (per the retiree housing resolution in the Iowa Journal) • Amount actually spent for housing • Fair rental value of housing Housing Allowance Exclusion

  31. Not applicable to surviving spouses of retired clergy • Attach a note to IRS Form-1040 • Will receive a 1099-R each January from Wespath • Retiree housing resolution will be in the Board of Pension action item of each Iowa Journal Housing Allowance Exclusion

  32. Joni Mardesen, Dir HR/CBO joni.Mardesen@iaumc.org 515-974-8940 Questions?

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