Pensions

The work of the conference Board of Pensions is carried out through the conference benefits officer, David Stotts, who is also the conference treasurer/director of finance and administration, and the pensions liaison officer, Byrd Hillman. Jackie McGough is the administrative assistant to the conference benefits officer.  Dee Harris is responsible for the billing and collection of phase 1 of Direct Bill.

 

Contact Information
Phone: 601.354.0515 or toll-free 866.647.7486
FAX: 601.948.5980

1. David Stotts, david@mississippi-umc.org
    Extension 26

2. Jackie McGough, jackie@mississippi-umc.org
    Extension 22

3. Byrd Hillman, byrdnsara@bellsouth.net
    Phone: 800-586-0113
 

The Council on Finance and Administration recommended and the 2008 Annual Conference adopted a 4 phase plan of direct bill.  Direct Bill requires a church/charge to pay for the benefits for their appointed clergy.  The plan was approved and the phase one was implemented in 2009.  At the 2009 Annual Conference,  the Council on Finance and Administration and the Board of Pensions recommended and the 2009 Annual Conference adopted an amended plan of direct bill, which is presented below. The Conference voted to begin billing phase 2 and 3 in addition to phase one on January 1, 2010.  Phase 4 is not set to begin January 1, 2010. That will be determined by future annual conferences.

 

Amended Plan of Direct Bill

The 2008 Annual Conference in session on June 10, 2008, adopted a process of Direct Billing for the pension and health benefits of the clergy appointed to the local church. By going to the direct bill method, the apportionment of the cost of pensions and health insurance will phase out as the Direct Bill Plan phases in. There will be an apportioned amount to fund the administrative expense for insurance in phase 4.


The four phases are as follows:


Phase 1: In 2009 the Comprehensive Protection Plan (CPP) premium began being billed to the local church where a full time pastor eligible for CPP was serving. The CPP plan provides the death benefits for the clergy and the clergy family and the disability benefits for the clergy member. The actual premium was set at $1,630 per clergy.


The 2010 premium to be billed will be the percentage billed by the General Board of Pensions and Heath Benefits (currently 3-percent) of the eligible participant’s plan compensation. Plan compensation is defined by the General Board of Pension and Health Benefits. This method will be more beneficial to the majority of the applicable churches as the conference average compensation is less than $54,333. The current $1,630 is 3-percent of $54,333.


Phase 2: The defined contribution portion of the Clergy Retirement Security Plan (CRSP) will be billed to the local church at the rate established by the General Board of Pensions on the plan compensation.

This applies to all active clergy appointed to the local church who have met the requirements of the pension plan. The rate is currently 3-percent of plan compensation.


Phase 3: The defined benefit portion of the Clergy Retirement Security Plan (CRSP) will be billed to the local church at a percentage rate of plan compensation established by the Conference Board of Pension.


This rate will be based on the actuarial valuation done by the General Board of Pension and Health Benefits divided by the total plan compensation of the participating Mississippi clergy. The projected rate in 2010 would be 11.25-percent.


There shall be a fund established beginning in the third phase to provide assistance in funding of these pensions costs when the local church is unable to pay the cost. Funding shall be one-fourth of one-percent added to the rate determine above. This shall be a temporarily restricted fund accessible through a joint committee on Aid to Local Churches for Clergy Benefits made up of two District Superintendents, two representatives of CFA, two representatives of Conference Board of Pensions and two representatives from the Church Leadership Table. Staff to this committee will be the Conference Benefits Officer and the Administrative Assistant to the Bishop. This sub-committee will determine the standards to be followed in granting funds to churches in need. This plan will be approved by CFA, Board of Pensions and the appointive Cabinet.


Phase 4: The base cost of medical insurance will be billed to all local churches who have full-time clergy appointed whether the appointed clergy participates in the plan or not. There will continue to be an amount apportioned to provide for the retirement credit available for the retired clergy or their surviving spouses and the pre 2008 surviving spouses who are participating in plan. There shall be a fund established beginning in the fourth phase to assist in funding of these health insurance costs in the local church when the local church is unable to pay the cost. The level of funding and the actual development of the process for requesting assistance will be recommended to the annual conference in the year preceding the beginning of Phase 4.

 

Pension Benefits for Lay Employees
General Conference 2004 passed legislation that requires the Pastor-Parish (Staff-Parish) Relations Committee to recommend to the church council that a pension benefit of at least 3% of compensation be provided for lay employees who are:

1. 21 years of age
2. Have at least one year of permanent service
3. Work at least 1,040 hours per year (20 hours a week)

Though not strictly mandatory, the recommendation of lay pension benefits is now a part of the official duties of the Pastor-Parish Committee as listed in The Book of Discipline. Church councils responding to Pastor-Parish recommendations are to begin providing benefits by January 1, 2006.


Based on this legislation, a local church employee earning $20,000 per year would receive from the church an annual contribution of $600 ($50 a month) into his or her retirement account. An employee earning $12,000 per year would receive a contribution of $360 or $30 a month. This legislation also applies to lay employees of the annual conference.


The General Board administers pension plans for lay employees of the church and affiliated agencies that local churches may sponsor, but local churches and annual conferences are free to contract with the provider of their choice.

 



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