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
CRSP
Ministerial Pension Plan (MPP)
CRSP: Clergy Retirement Security Program
UMPIP: United Methodist Pension Plan
Pre-82 Plan (Ministerial Reserve Pension Fund)

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

5. Wespath Retirement Plans
CRSP
2014+ CRSP
UMPIP
CRSP
Ministerial 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 Single Participant Single-life, no refund
Benefit ceases upon participant’s death
Married Participant
Life with 70% to surviving spouse (spouse at time of retirement)

8. Wespath Retirement Plans
CRSP
2014+ CRSP
UMPIP
CRSP
Ministerial 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:
Annuity Type
Paid to You
Life with 10-year Certain
$1,501
Life with 5-year Certain
$1,540
Life Only
$1,551

12. MPP Distribution Options: Life with Survivor Annuities
Example:
Annuity Type
Paid to You
Paid to Contingent Annuitant
Life with 100%
$1,196
Life with 85%
$1,239
$1,053
Life with 70%
$1,284
$899

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

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. Housing Allowance Exclusion
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

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

21. United Methodist Personal Investment Plan
Before-tax contributions
After-tax contributions
Roth contributions (after-tax)
Rollovers, including:
401(a)
401(k)
403(b)
IRA (traditional)
457 (b) plans may also be rolled over- these are government plans for most employees

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

23. CPP Active and Retiree Death Benefits
Benefits Schedule in 2019 for:
Active Clergy – serving ¾ time or more
$50,000
Active Clergy Spouse
$14,272 (20% of DAC)
Retired before 1/1/13
Retired after
1/1/13
Retired Clergy
30% of DAC
$20,400
Retired Clergy Spouse
20% of DAC
$15,300
Retired Clergy Surviving Spouse
15% of DAC
$10,200
Retiree benefit changes are in GC petitions

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

25. Wespath Services- LifeStage Retirement Income
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
The LifeStage Investment Management Service that will invest the participant’s account balance according to his or her personal risk tolerance and time horizon to retirement. Participants have the option to change risk tolerance and date of expected retirement

26. Wespath Services – EY Financial Planning Services
No need to enroll –
just call

27. Retiree Medical Program

28. Retiree Medical Program

29. Retiree Medical Program

30. Housing Allowance Exclusion
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

31. Housing Allowance Exclusion
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

33. Questions?
Joni Mardesen, Dir HR/CBO