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Eligibility and Enrollment
You are eligible to become a member of benefit plans administered by
the Ministers and Missionaries Benefit Board (MMBB).
The Retirement/Death Benefit Plans include retirement, death and
disability benefits as long as you are compensated by a National
Association of Congregational Christian Churches (NACCC) church or
related organization.
You simply complete an application form, attach a $65 initial premium
payment from your employer and send both to MMBB.
When Participation Begins
Your membership begins on the day that MMBB receives and approves
your application and $65 payment or when you begin your NACCC
employment, whichever occurs later.
Premiums
Your employer pays the premium of your Retirement/Death Benefit
Plans membership. The premium amount is equal to 10% of your
annual compensation.
THE 10% PREMIUM PAYMENT IS PUT TO WORK
THIS WAY:
7%
-for retirement account
1 1/4%-for special benefits, including disability
1% -administrative fee
3/4% -for group term life insurance Premiums are based solely on your annual compensation as reported to
MMBB each year. Therefore, you need to report changes in your
compensation as soon as possible. Failing to do so will have an
adverse effect on the level of plan benefits you receive.
Your Retirement Benefits
Your Retirement Plan benefits include a blend of:
-tax-deferred savings throughout your career;
-Personal Investment Choices (PICs);
-a lifetime income in retirement;
-potential income growth throughout retirement; and
-tax-favorable payments in retirement for clergy.
The plan, a 403(b) church plan, also includes loan and partial
withdrawal features, flexible payment options at retirement and full and
immediate vesting.
The primary plan objective is to target a significant level of income
replacement if you retire with 15 or more years of participation.
Retirement planners recommend an income replacement target of 70% to 75%
of your pre-retirement pay. That target includes any Social
Security benefits you may be entitled to receive. If you retire
with fewer years of membership (or do not participate in Social
Security), your level of income replacement will be less.
CALCULATING YOUR ANNUAL PREMIUMS
Assume your compensation is
$40,000 for the year. The annual premium will total $4,000
($40,000 X 10%). If your compensation increases to $42,000 the
following year, your annual premium will increase to $4,200 ($42,000 X
10%). Your Retirement Plan Account
As a plan member, a premium equal to 10% of your annual
compensation is paid as a Retirement/Death Benefit Plans premium.
Of that 10%, 7% goes into your Retirement Plan account. The
remaining 3% is used to provide disability and death benefits, as well
as an administrative fee.
All money contributed to your Retirement
Plan account purchases accumulation units for you. Accumulation
units are like shares in a mutual fund. Each unit (or share) has a
dollar value, which will fluctuate daily based on investment gains and
losses.
HOW ACCUMULATION UNITS ARE PURCHASED
Assume your annual compensation is
$40,000 and the accumulation unit value, which changes daily, is $100
when your monthly premium payment is received. The number of units
purchased with that payment for your account would be:
$40,000 X 7% = $2,800
$2,800 divided by 12 = $233.33
$233.33 divided by the $100 = 2.33 units purchased
The number of units purchased each month will be based on the unit price
in effect when the payment is received. As more money is contributed to your account each month, you accumulate
more units. As those units grow in value through investments, so
does the value of your Retirement Plan account.
100% Vesting
Your retirement Plan account is 100% vested from day one.
This means that you are immediately entitled to the Plan's benefits upon
enrollment.
How Your Retirement Plan Premium and Account Balance
Are Invested
You can direct up to 50% of your Retirement Plan premiums and
contributions into Personal Investment Choices (PICs), including the
Balanced Fund. The other 50% of your RP premiums will be invested
by MMBB in the Balanced Fund. Your premiums and account balance
are automatically invested in the Balanced Fund, unless you elect to
make investment choices.
PIC's funds are professionally managed and include a wide range of
investment vehicles with various levels of risk, each of which focuses
on specific retirement goals. Having this range of possibilities
allows you to invest your money as aggressively or as conservatively as
you wish. Following is a description of the Balanced Fund:
The Balanced Fund invests in bonds as well as in the U.S. and
international stock markets. It uses equities and fixed income,
and active and passive strategies to reach a balance with which to
achieve long-term growth. It is suitable for
most members and provides a foundation for those choosing to
invest in any of the other funds.
With PIC's comes personal responsibility. MMBB is
prohibited by law from giving investment advice to members.
Therefore, if you use PIC's you are solely responsible for the
investment of your accounts. As a result of your decisions, you
may experience investment gains or losses. Thoroughly read all the
information available about PIC's before making any investment
decisions. Make sure your choices are consistent with your
investment strategy. When you enroll in MMBB's Benefit Plans, you
will receive a detailed description of PIC's.
Making Changes In Your Investments
You can change your investment elections at any time by
calling the Mellon voice response system or accessing your account via
the Internet. Confirmation notices are sent after each change you
make. If you prefer not to make any investment elections, your
Retirement Plan account-the current balance and all future premiums-will
be invested in the Balanced Fund.
DID YOU KNOW THAT . . .
. . . the NACCC has partnered
with
MMBB, who has been a leader in providing
fully funded, fully vested pension
benefits since 1920.
As late as 1930, as few as 15% of all privately
employed workers in the United States were
covered by any form of pension plan. Your Quarterly Statement
You will receive quarterly statements of your Retirement Plan
account summarizing the number of units you have accumulated, the
current value of those units and transactions made during the quarter.
Additional Membership Advantages
The Annuity Supplement
MMBB offers you the opportunity to increase your resources for
retirement by making contributions to The Annuity Supplement (TAS).
TAS is a convenient and systematic way for you to save. Combined
with your Retirement Plan account, Social Security and other savings and
investments you may have, TAS can help provide financial security for
your retirement years.
Both the Retirement Plan and TAS were
established under Section 403(b) of the Internal Revenue Code.
Your TAS contributions, like Retirement Plan premiums, are
professionally invested for long-term growth under the direction of
MMBB's Finance Committee.
Rollovers
Consolidating your retirement savings makes managing your
investments easier for you. Eligibility rules regarding what types
of funds may be rolled over into MMBB are determined by the Internal
Revenue Service (IRS) and available by contacting MMBB at
1-800-986-6222.
Housing Allowance
MMBB designates annuity payments and other distributions as
housing allowance for retired clergy, including amounts rolled over to
your accounts. You report as taxable income the amount that
exceeds the lesser of: (1) the fair rental value of your furnished home,
plus utilities, or (2) your actual housing expenses. Example: If
your annuity is $30,000 and your actual housing costs are $20,000 and
less than the rental value of the home, you pay taxes only on the
$10,000 difference.
After you enroll, you will receive complete information about your
retirement, death and disability benefits as well as PIC's, TAS and
rollovers.
For more information about the plans described in brief, please call
or write MMBB.
MMBB
The
Ministers and Missionaries Benefit Board
475 Riverside Drive, Suite
1700, New York, NY 10115‑0049
Phone: 1‑800‑986‑6222 Fax: 1‑800‑986‑6782
www.mmbb.org
Email: service@mmbb.org
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