First Presbyterian Church October 20, 2018 RSP Benefits Overview First Presbyterian Church October 20, 2018

Speaker The Reverend Dr. John Doe Church Consultant, Synod of the XYZ jdoe@pensions.org [intro speaker] The Reverend Dr. John Doe Synod of the XYZ 215-587-XXXX jdoe@pensions.org I’m here to introduce you to participation in the Retirement Savings Plan (RSP) through the Board of Pensions, as members in the Benefits Plan of the Presbyterian Church (U.S.A.). I’m pleased to be here and to have the opportunity to provide these benefits to First Presbyterian Church.

About the Board of Pensions Who are we? The Board of Pensions is a non-profit agency of the Presbyterian Church. We are dedicated to exclusively serving the benefit needs of Presbyterian church workers and affiliated employees – like all of you. We trace our history to 1717 when the first benefit, a fund for widows and children of Presbyterian ministers, was created by the Presbytery of Philadelphia. We’re still based in Philadelphia today, but now – 300 years later - we serve the entire country! We’d like you to think of the Board of Pensions , of us here, and the staff back in Philadelphia, as YOUR ADVOCATES – helping you to get the most out of your benefits. It is our MISSION, our MINISTRY to serve you and others who work for the Church. And if for ANY reason there is ever a problem, we are all here to make it right. We are accountable to YOU. The Board delivers benefits through relationships with LEADING partners. Each of these organizations was especially chosen and plays a role. We administer the Retirement Savings Plan through Fidelity Investments, the record keeper. We have a LOTS of ground to cover, so let’s get started.

Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP) Can contribute beginning 1/1/2019 Salary reduction form due 11/6/2018 Fidelity representative on site 11/6/2018 Current savings plan funds may remain or transfer to RSP The RSP is available to employees of First Presbyterian Church beginning January 1 Current savings plan participants will automatically be enrolled in the RSP; employees who don’t participate in the current plan will be given an opportunity to enroll Salary reduction agreements (forms) for those who want to contribute or want to continue to contribute will be due 11/6 A Fidelity Investments retirement planner will visit on November 6 to review investment options and Fidelity’s NetBenefits participant portal Current savings plan funds may remain in the current plan or transfer into the RSP It’s most important for you to ask questions as we go if anything is unclear or confusing So, here are some high-level features of the RSP

Retirement Savings Plan Important retirement savings vehicle – 403(b)(9) plan; partner with Fidelity Pretax or Roth after-tax salary deferrals Immediate vesting; enroll at any time 12 funds: socially responsible options, global fossil fuel-free fund Target date funds, managed accounts, brokerage window Competitive fund fees, admin costs Church contribution The Retirement Savings Plan – known as the RSP -- is a valuable and important benefit – available through the Benefits Plan of the Presbyterian Church (U.S.A.). As Benefits Plan members, you are eligible to contribute to the plan through salary deferrals deducted from your regular pay by your employer. A few features of the RSP . . . We partner with Fidelity Investments as the plan record keeper Pretax or Roth after-tax salary deferrals Immediate vesting; enroll at any time Tax advantages for employees through pretax or Roth after-tax salary deferrals Federal Saver’s Tax Credit may be available based on income and other tax rules Additional tax advantages for teaching elders: RSP distributions are designated as housing allowance for tax purposes 12 investment options, spanning the investment risk spectrum, including socially responsible investment options and the Pax Global fossil-fuel free fund 13 target date funds, for investors who prefer an easy, single-fund investment option, managed accounts to help create an individually tailored portfolio a brokerage window, for access to thousands of mutual funds beyond the RSP Low administrative fee of $15 per participant annually; institutionally priced competitive fund expense ratios Loans allowed up to lesser $50,000 or 50% of account balance; limited to one loan at a time The RSP permits church and employer contributions to the plan; for First Presbyterian Church: 2-5 years of service: 5% of annual compensation 5-11 years of service: 5% of annual compensation plus up to amount of employee’s contribution the prior year up to 5% (employee must contribute minimum of 3%)

Investment Options Size/Style Value Blend Growth Money Market Bond Balanced U.S. Equity Int’l Equity Specialty PC(USA) Socially Responsible Balanced Fund Diversified International & Pax Global Environmental Money Market Government Portfolio U.S. Bond Index Fund 6 U.S. Equity Fund Options Real Estate Investment Portfolio Size/Style Value Blend Growth All PCUSA Socially Responsible U.S. Equity Fund Large T. Rowe Price Equity Income Fund Fidelity 500 Index Fund Growth Company Fund Mid Extended Market Index Fund Small Royce Opportunity Fund Current RSP investment lineup; shown across the risk spectrum from conservative at the left to more aggressive at the right Detailed fund information and performance is available on pensions.org and at Fidelity NetBenefits (fidelity.com/atwork) Funds are continually monitored to ensure they provide our members an opportunity to maintain a diverse portfolio Fidelity Freedom Index Funds Income Fund, 2005, 2010, 2015, 2020, 2025, 2030, 2035 2040, 2045, 2050, 2055, 2060

The Power of Compounding No contribution is too small Consider the power of compounding Example: Save $10 per week ($520 per year) Year Total Saved Return (@7%) Balance 1 $520 $18.94 $538.94 5 $2,600 $513.49 $3,113.49 10 $5,200 $2,327.29 $7,527.29 15 $7,800 $5,984.43 $13,784.43 20 $10,400 $12,254.54 $22,654.54 No contribution is too small If you invest $10 per week ($520 per year) at a 7% rate of return, after 5 years your RSP account could be more than $3,100 including investment returns After 10 years $7,500+, and after 20 years, almost $23,000. Gradually increasing contributions by a few dollars per week, per year, can result in sizable retirement savings over time The power of compounding is one of the most basic, yet most powerful concepts behind investing in the RSP. 7

Resources for Employees Fidelity retirement planner Josie Mullen visits FPC November 6, 2018 Fidelity 1:1 guidance 800-602-0636 (mention plan #57887) Fidelity NetBenefits (fidelity.com/atwork) Board Member Services 800-773-7752 (800-PRESPLAN) Pensions.org and Benefits Connect Fidelity retirement planner Josie Mullen will be on site November 6 for a presentation and Q&A, to help you prepare for making your fund elections and going online to designate your beneficiaries

Fidelity NetBenefits® Fidelity’s NetBenefits portal provides 24/7 web access; you can Change future investment elections Rebalance portfolio Attend on-demand e-learning workshops Try online retirement planning tools at Planning & Guidance Center

pensions.org Pensions.org is the Board of Pensions website – where you can access forms, publications, and more by searching Retirement Savings Plan.

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