Retirement Plan:How to Get Started

403(b)(9) Church Plan

Presented: January 20, 2012

© 2012 Envoy Financial, Inc. All rights reserved.Envoy Financial, 8415 Explorer Drive, Suite 115, Colorado Springs, CO 80920

Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc., Registered Investment Advisor.

First Use: January 20, 2012

Retirement Plan: How to Get Started403(b)(9) Church Plan

Presented: August 20, 2012

© 2012 Envoy Financial, Inc. All rights reserved.Envoy Financial, 8415 Explorer Drive, Suite 115, Colorado Springs, CO 80920

Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc., Registered Investment Advisor.

First Use: August 20, 2012

Bruce H. BruinsmaEnvoy FinancialCEO & Co-FounderDirect: 719.268.2711, ext. 203Cell: 626.399.2247Email:bbruinsma@EnvoyFinancial.com

Speaker

What is retirement? ◦ That depends on your perspective.◦ Retirement years are also “ministry” years.

At Envoy, we see retirement as “not only a reward for past service, but a stepping-stone to future ministry”

Future-Funded Ministry: ◦ Managing God’s resources God’s way so His

purposes can be carried out in and through our lives, to the very end.

A Future-Funded Ministry Plan

A plan for those with ministerial status and named executives is required:◦ 10% minimum contribution◦ Additional options such as an additional matching

component are possible

Staff may participate on a voluntary basis immediately beginning with employment

A plan for staff composed of a basic contribution, matching contribution, or both is available and up to each church to decide

403(b)(9) Church Plan

Housing Allowance: Distributions taken by those with ministerial status can be tax-protected

A Roth Provision: After-tax contribution and tax-free growth

Loan Provision Default Investment: Where the money goes if

the participant does not select one Automatic Enrollment: Starts the contribution

even if the eligible participant has not enrolled

Key Features of the Plan

Roth Contribution Options

*Subject to Qualification Rules

Traditional 403(b) Roth 403(b)

Pre-Tax Contributions

Tax-Deferred Savings

Taxable Withdrawals

Taxed Contributions

Tax-Free Earnings*

Tax-Free Withdrawals*

The Retirement Plan Oversight committee:

Minimum of 5 members:◦ Minister with investment

knowledge◦ Minister with no

retirement plan expertise◦ Investment specialist◦ Communication specialist◦ COO of ECO◦ Additional member as

needed

Support for the Plan will come from:

Envoy TPA and Recordkeeping

Envoy Advisory Envoy Financial

◦ Legal and Compliance ◦ Recordkeeping and

reporting◦ Investment Counsel◦ Education and

Information

Legal and Operational Framework

A National Plan: Reduces costs, simplifies administration

A 403(b)(9) Church Plan: Maintains key benefits

10% required church contribution for all Ministers and Designated Executives

All Churches, Presbyteries, and National office a part of the plan: An Opt Out Option for Churches

A Plan to Benefit All: Key Highlights

National Office:◦Legal ◦Investment menu◦Administrative

oversight

Local Church:◦Who Participates◦How much is

contributed (10% for ministers)

◦When do the church contributions start

◦[Universal eligibility on a voluntary basis]

Key Decisions

“It is vanity to wish to live long... and then not to live it impacting

others. A life well spent”

A Key Thought From Long Ago: Thomas à Kempis

Ministers:◦ Your PCUSA defined benefit plan will

remain and be distributed according to its formula and age availability

◦ All future contributions will go into the ECO 403(b)(9) Church plan

◦ All current 403(b)(9) account values may be transferred to the new ECO Plan

◦ Transfers from other plans and eligible IRA’s to the ECO Plan are allowed

How Will This Impact Me?

What does getting started mean?

DecisionsUnderstanding the processFollowing the sequence

Be an official member of ECO, or the Fellowship

Decide WHO will participate: Pastors required

Decide What contributions will be made

Decide on a Plan Representative

If there are 403b accounts at the Pension Plan, know who has them

Pick a first payroll date

Prerequisites

Goal of the RPOC and Envoy is to make the transition easy

The process clear Staff encouraged

Most of the heavy lifting has been done by ECO

Legal, Structure, Investments, Systems RPOC will give oversight to the plan on

your behalf Envoy will handle the administration of the

Plan

Overview of Getting Started

ECO Retirement Plan Oversight Committee

The Member Sponsor, Church, adopts the plan

The Plan Representative is the connecting point

WHO are the Key Players?

Fellowship of Presbyterians Website: About ECO

Retirement Planning “Click here to start” Welcome and Plan Representative

Information and Instruction

Steps to Getting Started

Plan Representative Easy Start Guide - An easy-to-follow guide that takes you through the steps to Register and Setup your participation in the ECO 403(b) Retirement Plan.

Click the cover image to access the Plan Representative Guide (PDF format).

Member Sponsor Forms - We have provided PDF versions of the forms your church will need to complete in order to establish your church's participation in the ECO 403(b) Retirement Plan.  The forms can be filled out online and then printed for signing and Returning.

Click the cover image to access the Member Sponsor Forms (PDF format).

Sample Personal Retirement Guide for Participants - A sample of an easy-to-follow guide that takes Participants through the steps to Register and Enroll into the ECO 403(b) Retirement Plan. Also includes helpful tools, a Christian perspective on retirement, and a glossary of retirement and investment terms.

Please do not distribute this sample. A customized version with your specific plan highlights will be available to you once your church adopts the plan.

Click the cover image to access the Personal Retirement Guide (PDF format).

How to use this guide: For many, retirement plan administration is not the first thing on their “to do” list because they think it is complicated or confusing. That’s why we’ve made this easy to use guide with three main sections: Section 1: Member Sponsor Registration - Provides an overview of the four required documents that need to be completed by your church to proceed with the adoption and installation of the ECO retirement plan. Section 2: Member Sponsor Setup – Provides an overview as to the implementation steps that will follow once you have submitted your registration documents, along with payment, to Envoy for processing. Section 3: Participant Instructions - Provides an overview as to how it is that your staff will become participants within the plan. And a brief description of the online tools available to them. We look forward to partnering with and serving you for many years to come.

Seize The Day!

Clear Instructions: Easy to follow, Easy to implement

Our SmartPlan Interactive Guide helps Participants determine their risk profile, select investments, complete account reviews, and more!

The Envoy Web Portal

Connect to the Envoy Web Portal

Provides clear, concise, easy to understand information:◦ Plan information◦ Keys to understanding◦ Enrollment : Risk Profile, $ goals, Investment

allocation suggestion◦ Periodic reviews◦ All administrative activities: Loans,

Distributions, Contributions, and Investment changes

The Envoy Web Portal

Delivery services, education, and information will come to

you throughthe Envoy Web Portal

The Envoy Web Portal

Envoy Web Portal◦ Plan Sponsor Resource

Center◦ Participant Resource

Center

Resources For You

Envoy Website

Check out Envoy at: www.envoyfinancial.com

Services provided by:

Envoy TPA and Recordkeeping, Inc. Third Party Administration Envoy TPA and Recordkeeping, Inc. Recordkeeping Services Envoy Advisory, Inc. Registered Investment Advisor Envoy Securities, LLC Broker/Dealer Member FINRA/SIPC Envoy Financial, Inc. Education, Sales and Marketing

Bruce H. BruinsmaDirect: 719.268.2711, ext. 203Cell: 626.399.2247Email:bbruinsma@EnvoyFinancial.comWeb: www.EnvoyFinancial.com

End of Presentation: Time to ask questions now or join us for Q&A Session

Envoy Personnel are available to consult with you or your church.