1. Benefits through the stages of your life. MID COUNCIL FINANCIAL NETWORK Rev. Kevin Keaton, Regional Representative 1-800-773-7752, ext. 7044 kkeaton@pensions.org

2. is a nonprofit corporation established by the PC(U.S.A.) to administer pension, medical, disability, and death benefits for members of the Benefits Plan, their spouses, eligible dependents and beneficiaries. The Church’s provision of benefits for its employees is holy work … Therefore the Church, as the Body of Christ, is rightly committed to a ministry of wholeness and compassionate care. 2 THE BOARD OF PENSIONS

3. WHY A CHURCH PLAN? There is value in the church serving the servants of the church. We serve members not shareholders. Governed by Directors, who are Ruling Elders and Teaching Elders. Calls are not answered by a corporate call center but by Member Services. Decisions/ exceptions made by the church, not by a corporation. 3

4. ENROLLMENT ISSUES Eligibility: Who May Participate: Any employee (ordained or lay) - Minimum average of 20 hrs/ wk to qualify. Who Must Participate: A teaching elder serving in a called and installed relationship (G-2.0804) - NO minimum average applies to installed TE’s Effective Salary: Understanding Effective Salary http://www.pensions.org/AvailableResources/Booklets andPublications/Documents/pln-103.pdf 4

5. USE THE CALCULATORS! Located at bottom of home page www.pensions.org www.pensions.org –Able to adjust for Dependent Care –Includes Taxation of Death Benefits Dues Calculator 5

6. TAX ADVANTAGED PLANS Tax Advantaged Plan Resources –http://www.pensions.org/availableresources/taxadvan tagedplans/Pages/default.aspxhttp://www.pensions.org/availableresources/taxadvan tagedplans/Pages/default.aspx Section 125 Plans –Web Module providing overview of Section 125 Plans –Employer Guide to Tax Advantaged Plans –Sample Documents Note: Note: Flexible Spending Arrangements only may be offered when an employer-paid qualified healthcare plan is in place. 6

7. Any W-2 employee of an eligible employing organization may participate RETIREMENT SAVINGS PLAN Fidelity Investments is record keeper Annual fee of $15 www.fidelity.com “How Much Do I Need to Retire?” Contributions may be made by employee, employer, or both 7

8. DEFINED BENEFIT PENSION Members earn pension credits –The Board of Directors may award Experience Apportionments Balanced Investment Portfolio –Broadly diversified, professionally managed Mature Pension Plan –Designed for investments to generate revenue to fund pension payments Fully Funded –On September 30, 2015, the portfolio had a market value of $8.1 billion 8

9. Paid up to 12 months when the ministerial position is vacant and the church plans to call a replacement 12% of the Effective Salary of last installed minister Share with Sessions: www.pensions.org/availableresources/bookletsan dpublications/documents/vacancydues.pdf www.pensions.org/availableresources/bookletsan dpublications/documents/vacancydues.pdf 9 VACANCY DUES

10. Most routine changes as well as payments may be made using Benefits Connect ® www.pensions.org Members & Employers > Treasurers & Administrators Enrolling / Classifying Employees Determining Eligibility/ Participation New Treasurer & Administrator Reporting Service Changes Special Circumstances Taxation of Death Benefits Paying Dues Tax Credit Information & Resources 10 ONLINE RESOURCES

11. HEALTHCARE EXCHANGE NOTICE After October 1, 2013 PPACA requires employers to notify all new W-2 employees of the availability of state health insurance marketplaces. Provide letter when completing W-2 and I-9. www.pensions.org Available Resources > Healthcare Reform 11

12. BOARD UNIVERSITY Board University’s educational tools SeminarsSeminars –Getting in Shape Fiscally –Growing Into Tomorrow … Today –Render Unto Caesar (Treasurers/Administrators) –Post-retirement OnlineOnline –E-learning –E-learning webinars and learning modules –Tax Resource Center –Financial & Retirement Planning Resource Center 12

13. PREVENTIVE CARE BENEFIT Not subject to deductible Plan pays 100% of office visit, lab work, and tests, according to preventive schedule “Preventative Care” PTS-630 $0 office visit copay for network providers –50% plan allowance for out of network providers 13

14. Who? –Members act in 2016 to qualify for 2017 When? –complete health actions between October 1, 2015 - September 30, 2016 How tracked? – via Benefits Connect Why??? – Lower Deductible!!! 14

15. SUPPORT CALL TO HEALTH Offer computer for employees to find provider/ record health actions Provide PTO for employees to have Annual Health Maintenance Visit Provide employees copy of Preventative Care Schedule Offer employer contribution to Flexible Spending Arrangement for completing Call to Health 15

16. EMPLOYEE ASSISTANCE PROGRAM Cigna: Employee Assistance Program –Confidential counseling/referral service 866-640-2772 24 hours/7days a week access –For members and household members free –Six free sessions per person per issue Stress, personal issues, substance abuse, legal, financial, legal help, and life events 16

17. MANAGEMENT CONSULTATION Management consultation services are available through EAP to church leaders/other managers who need assistance with a difficult management or employee performance issue. Management consultation services broad categories: –Informal referrals; –Formal Management Referrals; –Critical Incident Response services; –Guidance for other concerns. Referral to the EAP can be mandatory and a condition of the employee’s continued employment. Call 866-640-2772. Employee assistance consultants are licensed master’s degree-level clinicians with backgrounds in theology: Dan Ahlfield & Pam Meier 17

18. BENEFITS PLAN REDESIGN SERVING MORE Serve more employees who serve the church. SERVING BETTER Provide employing organizations with flexibility and a competitive benefits package. SERVING THE CHURCH Help employing organizations be the best employers they can be.

19. TOWARDS ONE PLAN Medical Retirement Death & Disability Benefits Menu Optional Benefits PPO % Dues PPO Tiered EPO Tiered Pension RSP D & D Supp. Death Supp. Dsblty. Dental

20. SOME DETAILS… Menu options for Installed Teaching Elders are pre-selected: PPO, DB Pension, D&D –This will be known as Pastor’s Participation –Pastor’s Participation Dues will be on % basis Menu options for Other Employees, including Non-Installed Teaching Elders, will be selected by the Employing Organization –Selection of PPO or EPO Medical –For Non-Installed Teaching Elders, Employers may select Pastor’s Participation or a la carte Dues for Other Employees will be on tiered price basis, calculated on a regional pricing model rated by employer zip code. 20

21. … MORE DETAILS … There will be a transitional pricing structure for existing employers which limits increases in family coverage costs. Employers will be able to implement grandfathering provisions for Other Employees. If employers elect EPO Medical, which will be about 15% less than PPO, they may wish to consider an employer contribution to a Flexible Spending Arrangement to offset increased deductibles and co-pays. 21

22. … MID COUNCILS MAY … Attend Regional Benefits Consultations. Communicate Benefits Redesign with leadership, congregations, and employees. Approve and adopt any changes in employment practices/ personnel policy. –Provide support for congregations. Decide about eligibility, coverage option, and cost sharing for Other Employees in 2016 for 2017. 22

23. …TAKE AWAY Benefits Plan Redesign: Effective 1/1/17 NOT –Will NOT affect most Churches!!! If you have Lay Employees in Plan Alternate Dues Method available for 2016. If you desire to enroll Lay Employees –Lower cost options may be available in 2017. Review actions of Board of Directors. –October, 2015 – Presentation of Plan Design –March, 2016 - Approval of Plan Design 23

24. Benefits through the stages of your life. QUESTIONS?