Learn About Benefits Access - calnev-pensions.brtsite.comPresentation...2 | Wespath •...

Pre-Retirement Seminar

California – Nevada Conference 2019

2 | Wespath 2 | Wespath

• Not-for-profit organization • Approximately $22 billion

in assets under management • 100,000 participants • Wespath maintains the largest

reporting faith-based pension fund in the world

Wespath Benefits and Investments

Caring for those who serve by providing investment and benefit services that honor the mission and principles of The United Methodist Church.

Presenter

Presentation Notes

Check asset level


Overview

• Retirement Provisions • Wespath Retirement Plans • Investing with Wespath • Housing Allowance Exclusion • Comprehensive Protection Plan (CPP) • EY Financial Planning • Wespath Participant Services

Presenter

Presentation Notes

Check asset level


Provisions for Retirement—Book of Discipline ¶357

• Normal Retirement: Age 65 or 40 years of service

• Early Retirement: Age 62 or 30 years of service

• Mandatory Retirement: Age 72

• 20-year retirement


§415 Compensation Plus Housing Benefits— Plan Compensation

Example: (1) Taxable cash salary $25,000 (2) 125/403(b) reduction $ 5,000 (3) Housing exclusion $ 2,000 (4) Parsonage (25%) $ 8,000 Total Plan Compensation $40,000

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Presentation Notes

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________�


2019: $71,361

2018: $70,202

Denominational Average Compensation (DAC)

2020: $72,648

Average plan compensation of clergy serving full-time appointments


Wespath Retirement Plans

CRSP

Pre-82 Plan (Minister’s Reserve Pension Fund)

2014+ CRSP

1982-2006 Ministerial Pension Plan (MPP)

2007-2013 CRSP UMPIP


Clergy Retirement Security Program (CRSP)

Defined Benefit (DB)

Defined Contribution (DC)

Monthly benefit Account balance +


Example for 2019 Retirement

$71,361 (2019 DAC) x .0125 x 7 years = $6,244 ÷ 12 = $520 per month

CRSP DB: Service from 2007 – 2013

Monthly payment, payable for life, calculated by multiplying the following and then dividing by 12: • 1.25% • DAC at time of retirement • Years of credited service from

January 1, 2007 until December 31, 2013 (7 years if full-time)


CRSP DB: Service 2014 – June 30, 2019

Example for 2019 Retirement

$71,361 (2019 DAC) x .01 x 5.5 years = $3,925 ÷ 12 = $327 per month

Monthly payment, payable for life, calculated by multiplying the following and then dividing by 12: • 1.00% • DAC at time of retirement • Years of credited service from

January 1, 2014 until June 30, 2019


CRSP DB: Service 2007 to 2019

• Surviving spouse benefit available

• Choice of cost-of-living adjustment (COLA)

• Reduction for early retirement

2019 Retirement Total benefit: $520 + $327 = $847 per month


In this example the clergyperson does not meet the 40-years-of-service rules

$847 Full amount for 2019 - $102 12% reduced; reduction of 6% per year

= $745 Per month

CRSP DB: Age 63 Early Retirement

2019 Early Retirement Total benefit: $745 per month

Presenter

Presentation Notes

Full Benefit vs. early retirement


Matching Contributions

Participant before-tax, Roth and/or after-tax

contributions

CRSP DC

2% Non-Match

1% Match

UMPIP

With 1% UMPIP contribution


CRSP DC

• Account balance invested as directed by the participant • Available as cash distributions

─ Full lump sum distribution ─ Partial lump sum distribution ─ Cash installments: Self-Managed Retirement Income, or LifeStage Retirement Income

• Remaining balance paid to beneficiaries upon participant’s death • Can leave on account until age 70½


Example—Pastor Peterson

Grove 01/01/07 – 06/30/09 Malvern 07/01/09 – 06/30/11 Leola 07/01/11 – 06/30/13 Temple 07/01/13 – 12/31/22

CRSP $1,090 (DB)

$39,000 (DC)

Appointment Retirement Plan Lifetime Benefit Account Balances



CRSP


2014+ CRSP




Ministerial Pension Plan: 1982 – 2006

• MPP provides a lifetime benefit upon retirement and a cash account balance

• Account balance invested using LifeStage Investment Management

• MPP account balance (including accumulated earnings) remains separate from other plan balances and benefits until distributed in retirement


Ministerial Pension Plan

Life Annuity • Six-life annuities • Percentage increase

Account Balance • As a cash distribution • Other options


MPP Election Options

• Annuity is based on 65% of MPP balance—no more, no less

• Remaining 35% of balance may be: ─ Rolled over to UMPIP or other retirement plan ─ From UMPIP, taken as: Partial lump sum Self-Managed Retirement Income LifeStage Retirement Income

• Taken as full cash distribution

Presenter

Presentation Notes

Keep in mind that cash distributions create a taxable event and large amounts may push participant into a higher tax bracket which would diminish the net amount


Retirement Options: MPP

Life Annuity Options

6 Life annuity

types

% COLA Annual

increase


What Is an Annuity?

A series of payments

Life annuity—benefit payments that last through the participant’s lifetime (or two lives, if joint annuity elected)


Life Annuity Factors

• Participant’s age • Contingent annuitant’s age (typically surviving spouse) • 65% of account balance • Type of annuity selected • Percent of annual increase selected

(i.e., 0%*, 2%*, 3%*, 4%* or 5%*) • Mortality table (life expectancy) • Wespath annuity payout rate

(wespath.org/retirement/mpp)

* CRSP DB does not offer a 0% COLA

Presenter

Presentation Notes

Current rate is 4%


MPP and CRSP DB Distribution Options: Life and Survivor Annuities

Annuity Type Payable to You Payable to Contingent Annuitant

Life and 100% $1,196 $1,196

Life and 85% $1,239 $1,053

Life and 70% $1,284 $899

Example:


Annuity Type Payable to You

Life only $1,551

Life with 5-year certain $1,540

Life with 10-year certain $1,501

Example:

MPP and CRSP DB Distribution Options: Life Annuities


MPP and CRSP DB Annuity: COLA Options*

$0

$600

$1,200

$1,800

$2,400

$3,000

$3,600

$4,200

$4,800

65 67 69 71 73 75 77 79 81 83 85 87 89 91 93

0% 2% 3% 4% 5%

* CRSP DB does not offer a 0% COLA


Sources: 1821-1913 Global Financial Data; 1914-2018 U.S. Bureau of Labor Statistics; Consumer Price Index for All Urban Consumers: All Items (CPIAUCNS), retrieved from FRED, Federal Reserve Bank of St. Louis

Historical Annual U.S. Inflation Rates

Past 198 Years

Past 100 Years

Past 50 Years

Past 25 Years

Highest 10 Years

Lowest 10 Years

1.9% 2.8% 4.0%

2.2%

8.7%

-3.3%


• Can leave on account until age 70½

• Annuity options ─ 0, 70%, 85%, 100% survivor ─ 0, 2%, 3%, 4% or 5% annual increases ─ Single Life

• Use of 35% of account balance

Retirement Considerations: MPP

Presenter

Presentation Notes

Message for MPP is to downplay one-time distribution in order to emphasize the importance of the annuity. Over a long retirement period the annuity will provide protection that may be lost by taking a large one-time distribution. General Conf petition calls for limiting annuity to 65% of balance - remainder goes to part in the form of “balance” which can be annuitized outside of GB or moved to UMPIP or other retirement plan



Avondale 01/01/82 – 06/30/84 Berwyn 07/01/84 – 06/30/88 Central 07/01/88 – 06/30/94 Exton 07/01/94 – 06/30/02 Grove 07/01/02 – 12/31/06

MPP $1,300 (65%)

$80,000 (35%)


CRSP $1,090 (DB)

$39,000 (DC)




CRSP


2014+ CRSP




CRSP Supplement One: Pre-82 Plan

Pre-82

Defined Benefit Service Money

(DBSM) Formula Benefit


Pre-82 Benefit

• Lifetime monthly benefit payment • Benefit is the greater of:

─ Pre-82 Years of Service x Past Service Rate ─ DBSM account balance converted to annuity

Example: • 10 years x $703 = $7,030 annual benefit / 12 = $586 monthly benefit • $150,000 converts to $8,424 annual benefit • $8,424 / 12 = $702 monthly benefit


DBSM vs. Formula Benefit

Example: Past Service Rate Benefit vs. DBSM Benefit

0

3,000

6,000

9,000

12,000

15,000

18,000

Year

Annu

al B

enef

it

PSR Benefit DBSM Benefit

$703 PSR

$ 842 PSR

Presenter

Presentation Notes

Insert conf rate


Pre-82 Formula Benefit

Actuarial Reduction for Early Retirement:

½% per month or portion of a month that retirement begins in advance of Normal Retirement

Example: Age 61 with 37 years of service • 3 years from normal retirement • ½% per month for 3 years = 18% reduction

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwicgaSig63fAhWh8oMKHZCaDtwQjRx6BAgBEAU&url=http://chittagongit.com/icon/price-reduction-icon-15.html&psig=AOvVaw3TWdqnwDuRslsnuGznxb6c&ust=1545347785183704

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Pre-82: Benefit Paid for Life

Single Participant • Single-life, no refund • Benefit ceases upon participant’s death

Married Participant • Life and 70% to surviving spouse—

set by annual conference ─ Spouse during episcopal appointment,

at time of retirement and when beginning benefits

Presenter

Presentation Notes

Add conf percentage



First UMC 07/01/79 – 12/31/82 Pre-1982 Plan $500 — Avondale 01/01/82 – 06/30/84 Berwyn 07/01/84 – 06/30/88 Central 07/01/88 – 06/30/94 Exton 07/01/94 – 06/30/02 Grove 07/01/02 – 12/31/06

MPP $1,300 (65%)

$80,000 (35%)


CRSP $1,090 (DB)

$39,000 (DC)




CRSP


2014+ CRSP




What Is UMPIP?

Personal retirement savings plan • Accepts contributions from:

─ Plan sponsor/employer ─ Participant

• Participant decides amount of personal contributions

• Participant directs investments ─ “Self-manage” ─ LifeStage Investment Management

Presenter

Presentation Notes

UMPIP is a Defined Contribution Plan DC Gov’t defines how much you can contribute Participant decides how much.. Participant decides where to Employer also can contribute


Participant Contributions

Before-tax

After-tax

Roth

Rollovers


Participant Contributions

Defer the taxes you pay on contributions

until distribution

* This option is available only in UMPIP

Before-Tax

Pay taxes today and possibly avoid some

taxation in retirement

After-Tax* Roth

Pay taxes on your contributions today and possibly avoid them in retirement


Roth Contributions and Earnings

* Unless a rolled over Roth 403b or 401k is a part of your UMPIP. Also, any Roth balances may be taken last (securing the 5-year qualification) to avoid tax consequences.

Tax-free if:

• First Roth contribution was made at least 5 years* prior to withdrawal

• Participant is 59½ or older, permanently disabled or deceased

Presenter

Presentation Notes

Stress earnings on the Roth contributions when distributed. Roth contributions are made on an after-tax basis.


Rollovers—Direct or Indirect

Accepted from IRS-Qualified Accounts— such as:

• 401(k) Plans • 403(b) Plans • 457(b) Governmental Plans • Traditional IRA*

Submit Incoming Rollover form

* Roth IRAs and after-tax contributions in IRAs cannot be rolled over

UMPIP

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Presentation Notes


2019 Contribution Limits

Before-tax and Roth combined • $19,000 for 2019 • Additional $6,000 for age 50+ catch-up • Total $25,000 • Total annual employee and employer

contributions limited to lesser of $56,000 or 100% of compensation

• Future year limits subject to indexing for inflation

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Presentation Notes


Electing Your Contributions

• Percentage or dollar amount • Increase or decrease

at any time • Remit form to employer

Contribution Election form—before-tax, Roth and after-tax contributions

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Presentation Notes


UMPIP Access

• In-service withdrawals at 59 ½ • Hardship loans • Hardship withdrawals • Disability • Separation • Retirement


In-Service Account Access

In-Service Withdrawals

• Rollover account balance • At age 59½

Hardship Loans • Up to 50% of vested account balance • Maximum of $50,000; minimum $1,000 • In an amount needed to meet your financial hardship

Hardship Withdrawals

• From after-tax, Roth and before-tax • Must take rollover contributions first • Six-month suspension from contributing • Considered taxable income and potential penalty • Must provide proof of qualifying hardship

Presenter

Presentation Notes

Loans and withdrawals are available through UMPIP for financial hardship reasons. [In case of questions, following are the approved reasons: Un-reimbursed medical expenses Purchase of residence (only principal residence for withdrawals) Post-secondary education Prevent eviction or foreclosure of primary residence Repair of damage to residence due to casualty Funeral and burial expenses Catastrophic repairs Expenses due to declared disasters Other financial hardship reasons (loans only)] A loan can be taken for an amount up to 50% of the vested account balance, but not in excess of before-tax, after-tax and rollover account balances, and cannot exceed $50,000. A hardship withdrawal can be taken from after-tax, before-tax and rollover accounts. The participant is suspended from contributing to the plan for six months following a withdrawal. Other ways participants have access to their accounts are…


Distribution Options for Retired and Separated Participants

* RMD: Required Minimum Distributions

• Leave on account until RMD* • Distribution choices

─ Full lump sum ─ Partial lump sum ─ Cash installments Self-Managed Retirement Income LifeStage Retirement Income

• At death remaining balance to beneficiaries


Required Minimum Distributions

• Beginning by no later than April 1st of the following year after the participant turns age 70½*

• Applies to defined contribution accounts (UMPIP, CRSP and MPP 35%) • Subsequent RMDs each calendar year using prior-year

December 31 balances • MPP, CRSP DB and Pre-82 benefits must also begin at this time • See IRS Publication 590 for details

* Or retirement, if later (e.g., age 72)



Pre-1982 Plan $500 —

MPP $1,300 (65%)

$80,000 (35%)

CRSP $1,090 (DB)

$39,000 (DC)

UMPIP — $250,000

Retirement Plan Lifetime Benefit Account Balances



First UMC 07/01/79 – 12/31/82 Pre-1982 Plan $500 — Avondale 01/01/82 – 06/30/84 Berwyn 07/01/84 – 06/30/88 Central 07/01/88 – 06/30/94 Exton 07/01/94 – 06/30/02 Grove 07/01/02 – 12/31/06

MPP $1,300 (65%)

$80,000 (35%)


CRSP $1,090 (DB)

$39,000 (DC)

Annville 01/01/23 – 06/30/25 New Plan — $50,000


Investing with Wespath


Benefits of Investing with Wespath

• Sustainable investing • Uphold the values of UMC • Diversified investment options • Reasonable investment expenses • No sales charges or commissions • LifeStage Investment Management

Presenter

Presentation Notes

Wespath is a socially responsible investor. The investments are in accordance with the Social Principles of The United Methodist Church. Even with the social screens, the Wespath has very competitive returns. Their low expense ratios are probably the best reason to invest through The United Methodist Church. Since there are no advertising expenses or commissions, their administrative expenses are less and so you make more. In addition, Wespath works hard to uphold the values of The United Methodist Church through its investments and its work.


Investment Categories and Funds

• Inflation Protection Fund • Fixed Income Fund • Extended Term Fixed Income Fund

Income Funds—Bonds

• Stable Value Fund

Capital Preservation Funds


• Multiple Asset Fund (A fund of funds) ─ 35% U.S. Equity Fund ─ 30% International Equity Fund ─ 25% Fixed Income Fund ─ 10% Inflation Protection Fund

Balanced Funds—Bonds and Stocks

• U.S. Equity Fund • International Equity Fund

Equity Funds—Stocks

Investment Categories and Funds


For participants with a heightened focus on companies’ environmental and social performance

• U.S. Treasury Inflation Protection Fund • Social Values Choice Bond Fund

Fixed Income Funds—Bonds

• Social Values Choice Equity Fund

Equity Funds—Stocks

Social Values Choice Suite of Funds


Risk and Return

Risk*

Retu

rn*

Stable Value Fund

U.S. Treasury Inflation Protection Fund

Inflation Protection Fund

Social Values Choice Bond Fund

Fixed Income Fund

Extended Term Fixed Income Fund

Multiple Asset Fund

U.S. Equity Fund

Social Values Choice Equity Fund

International Equity Fund

* Risk and return are generally correlated


Investment Information at wespath.org

• Daily changes

• Fund descriptions

• Comparative results

• Benchmarks • Fees


• Available online—benefitsaccess.org

• By mail

• View current account balances

• Verify transaction details

Quarterly Statements

Presenter

Presentation Notes

Conversion Factor is 5% on pension projections – Depends on current factor

Investment Performance—As of March 31, 2019


Fund Three Months Year-to-Date One Year

Three Years

Five Years Ten Years

Since Inception3

Assets (millions)

Extended Term Fixed Income Fund 4.87% 4.87% 5.09% 3.53% - - 3.55% $1,016 ETFIF Benchmark(4) 6.45% 6.45% 5.24% 3.75% - - 4.14% Fixed Income Fund 3.84% 3.84% 3.34% 3.76% 2.94% 5.61% 5.41% $5,577 FIF Benchmark(4) 3.68% 3.68% 4.56% 2.92% 3.10% 4.89% 5.01% Inflation Protection Fund 3.32% 3.32% 0.70% 3.12% 1.58% 3.99% 3.68% $1,861 IPF Benchmark(4) 4.12% 4.12% 2.14% 4.25% 3.50% 4.21% 4.48% International Equity Fund 12.16% 12.16% -3.87% 9.97% 3.24% 10.23% 6.32% $4,718 IEF Benchmark(4) 10.30% 10.30% -4.96% 7.94% 2.66% 9.20% 5.00% Multiple Asset Fund 10.18% 10.18% 3.06% 9.24% 5.67% 10.39% 7.13% $5,896 MAF Benchmark(4) 9.31% 9.31% 3.08% 8.48% 5.98% 10.61% 6.77% Short Term Investment Fund 0.79% 0.79% 2.26% 1.21% 0.76% 0.60% 1.39% $145 STIF Benchmark(4) 0.60% 0.60% 2.12% 1.19% 0.74% 0.43% 1.35% Social Values Choice Bond Fund 3.81% 3.81% 4.56% - - - 2.42% $89 SVCBF Benchmark(4) 3.68% 3.68% 4.56% - - - 2.60% Social Values Choice Equity Fund 12.26% 12.26% 4.62% 10.38% - - 6.97% $79 SVCEF Benchmark(4) 11.99% 11.99% 4.59% 10.45% - - 7.14% Stable Value Fund 0.42% 0.42% 1.78% 1.58% 2.15% 2.49% 3.04% $389 SVF Benchmark(4) 0.60% 0.60% 2.12% 1.19% 1.87% 2.29% 2.79% U.S. Equity Fund 15.48% 15.48% 8.77% 13.43% 9.63% 14.81% 7.14% $6,214 USEF Benchmark(4) 14.04% 14.04% 8.77% 13.49% 10.36% 16.00% 7.34% U.S. Equity Index Fund 13.72% 13.72% 8.94% 13.15% - - 9.29% $52 USEIF Benchmark(4) 14.04% 14.04% 8.77% 13.49% - - 9.71% U.S. Treasury Inflation Protection Fund 3.29% 3.29% 2.39% - - - 2.18% $660 USTPF Benchmark(4) 3.34% 3.34% 2.69% - - - 2.37%

Presenter

Presentation Notes

This table is included in your Quarterly statement. This table shows you how the funds have been performing. The first column is the name of the fund. The next column is how the fund performed in the past three months, then year-to-date, then 1 year, 3 years, 5 and 10 years then since inception. This table explains how the funds are doing. Under the name of each Wespath fund you will see the name of an industry benchmark. The benchmark allows you to compare how the Wespath funds are doing compared to a standard.

http://www.wespath.org/funds/etfif

http://www.wespath.org/funds/fif

http://www.wespath.org/funds/ipf

http://www.wespath.org/funds/ief

http://www.wespath.org/funds/maf

http://www.wespath.org/funds/stif

http://www.wespath.org/funds/svcbf

http://www.wespath.org/funds/svcef

http://www.wespath.org/funds/svf

http://www.wespath.org/funds/usef

http://www.wespath.org/funds/useif

http://www.wespath.org/funds/ustpf


Investing with Wespath

Choose your own mix of investment funds

Asset allocation consultation through EY

LifeStage Investment Management



• Personalized investment management tool for Defined Contribution (DC) accounts

• Set your account on auto-pilot • Fund allocations unique to each participant • Variables affecting fund allocations

─ Participant’s age ─ Benefit commencement date ─ Risk tolerance ─ Social Security benefits ─ Wespath benefits

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Presentation Notes



• Creates a diversified investment portfolio customized to each participant

• Sets an asset allocation and reviews quarterly

• Rebalances your account as needed

• Sets a separate asset allocation for MPP accounts

• Manages investments throughout active service and in retirement

Presenter

Presentation Notes

LifeStage will re-balance your account each year as your investment variables change. It incorporates a long-term investment strategy


Investment Profile Default

If you create a Personal Investment Profile, LifeStage will model your target allocation according to your profile.

Otherwise, the default profile is… • Moderate risk tolerance • Benefit commencement at age 65 • Eligible for Social Security benefits

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Presentation Notes


LifeStage Investment Management: Rebalancing

Before the Rebalance

13% 14%

29% 17%

27%

13% 13%

34% 14%

26%

U.S. Equity Fund Extended Term Fixed Income Fund International Equity Fund Fixed Income Fund Inflation Protection Fund

U.S. Equity Fund Extended Term Fixed Income Fund International Equity Fund Fixed Income Fund Inflation Protection Fund

After the Rebalance

Presenter

Presentation Notes

Housing Allowance Exclusion


Housing Allowance Exclusion in Retirement

Amount to be excluded is the least of: • Amount designated as housing allowance

─ Generally comes from annual conference resolution designating a housing allowance

• Amount actually expended for housing

• Fair rental value of the housing



• Receives $24,000 in pension (designated) • Spends $20,000 on housing • Fair rental value of housing is $21,000 • Housing allowance exclusion cannot exceed $20,000 • Amount taxable: $4,000

Example: A clergyperson…


Retired Clergy Housing Allowance Exclusion—Examples

Two kinds of first-year pension disbursements:

• $40,000

• $1,800/monthly or $21,600

Total: $61,600

Lesser of:

• Amount designated: $61,600

• Amount spent: $25,000

• Fair rental value: $24,000

Subject to taxation: $37,600

Example A First-year setup with monthly pension only:

• No withdrawals

• $1,800/monthly or $21,600

Total: $21,600

Lesser of:

• Amount designated: $21,600

• Amount spent: $25,000

• Fair rental value: $24,000

Subject to taxation: $0.00

Example B

69 | Wespath



• Available to retired clergy

• Not applicable to surviving spouse*

• Attach a note to IRS Form-1040

• Refer to section in conference journal

* Unless clergy couple


Comprehensive Protection Plan

Death and Disability


CPP Death Benefit

Clergy $50,000

Spouse 20% of DAC at time of death

Surviving spouse 15% of DAC at time of death

Child 10% of DAC at time of death

2019 DAC: $71,361

Active Clergy Death Benefits 2019


Retiree Death Benefit Eligibility

• Eligible to receive a clergy retirement benefit

• 25 years total CPP participation, or

• CPP participation immediately preceding retirement in 12 of last 15 years in 2019

Presenter

Presentation Notes

Slide changed Cash installment payments are paid 2 business days after annuities


Retired Clergy Death Benefits

Clergy $20,400

Spouse $15,300

Surviving spouse $10,200

Child $8,160

Benefits increased 2% January 1, 2017

and every four years thereafter

2017 – 2020

Presenter

Presentation Notes

Work underway to offer additional life insurance coverage


CPP Disability Benefits

• 70% of plan compensation coordinated with any Social Security disability benefit

• Must submit application and be approved

• Periodic re-approval

• Retirement plan credit


Access to Retirement Plans

MPP 35% of account balance

CRSP DC account balance

UMPIP 100% of account balance if permanently disabled

Disability


Beneficiary Designation

Spouse Usually primary, if married

Children and other heirs Contingent

Estate or charity Contingent

• Retirement accounts and welfare plans— CRSP DC, MPP*, UMPIP and CPP death benefit

• Designate in advance who receives benefits

• Plan defaults—spouse or estate (if not married)

* Not yet annuitized


Beneficiary Designation

• Beneficiary designations are required for retirement and welfare plans, and supersede Will provisions

• Can make separate designations for CRSP DC, UMPIP and CPP

• Update at times of change ─ Birth or adoption of a child, marriage, divorce or death

Update at benefitsaccess.org


EY Financial Planning Services

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Program Advantages

• Confidential, professional financial counseling at no additional cost* • Unlimited hours of financial planning advice via telephone • Objective advice—no sales pitch • No need to enroll

– Call 1-800-360-2539 – Visit website: wespath.eyfpc.com

(create a username and password to register)

* Costs for these services are included in Wespath ’s operating expenses that are paid for by the funds.


Consultation Topics

• Creating a retirement plan • Electing Roth contributions • Choosing retirement plan investments • Buying a home • Developing an estate plan • Managing debt • Funding children’s/grandchildren’s education • And more


EY Financial Wellness Assessment

• Questions financial attitudes and behaviors

• Identifies financial concerns

• Provides score and recommendations for improving finances

• Take periodically to compare scores and develop new action plans


Action Planning

• Register for Benefits Access ─ Online—benefitsaccess.org ─ Mobile app

• Optimize your contribution strategy

• Determine your investment strategy—review your LifeStage Investment Management profile

• Project your retirement income

• Call EY

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www.wespath.org 84 | Wespath


Benefits Access

• Current account information • Projection tools • Retirement Readiness Tool • Retirement Benefits Projection • Investment information • Beneficiary designations • Educational resources about finances

and retirement


Retirement Benefits Projection

Not a “forecast,” but a changeable estimate based on: • Account growth • Inflation assumption for salary • Assumed retirement commencement date • DC account balance distributions are projected using

LifeStage Retirement Income

88 | Wespath

Created for: Sample Participant Printed by: User 01/02/2019


Retirement Readiness Tool

A projection of how much income you are expected to have in first year of retirement, based on:

• Retirement age • Risk tolerance • Current compensation • Includes estimate of Social Security Retirement Benefits

Tool also indicates whether there is a gap between amount of income you are expected to need and how much you are expected to have.

As of 08/31/2015 to 01/02/2019

92 | Wespath

As of 01/02/2019

93 | Wespath

As of 01/02/2019


Reasons to Keep Your Money with Wespath

• Autopilot solutions—LifeStage Investment Management and LifeStage Retirement Income

• Comprehensive financial guidance—EY Financial Planning Services • Clergy housing allowance preservation—Rollovers out of a Wespath-

administered plan may not be eligible for the housing allowance exclusion • Sustainable investment—We promote environmental stewardship,

human rights and sound corporate governance to create long-term value • Expenses—Compare our investing costs with other plans and IRAs • Flexible retiree loans—Retirees can take a loan from account balances

instead of a taxable distribution


Participant Resources

Wespath Customer Service wespath.org 1-800-851-2201

Benefits Access benefitsaccess.org (online participant account management) Mobile app

EY Financial Planning Services wespath.eyfpc.com 1-800-360-2539

Presenter

Presentation Notes

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Questions?


Key Messages to Participants • Your benefits are secure. Your retirement account with

Wespath is secure. Wespath will continue to administer your pension benefits as a prudent fiduciary.

• Our mission remains. Wespath will continue to provide investment and benefit services that honor the mission and principles of the UMC.

• We are sustaining investments for future generations. Wespath is focused on the future, assuring that the plans we manage and the funds we invest are sustainable for future generations.

• Wespath will adjust as necessary. Through our scenario planning, we are well-positioned to continue fulfilling our mission.

wespath.org/WayForwardWespathFAQ/

Presenter

Presentation Notes

[These message points are somewhat shortened from Barbara’s letter and April 19 training.] Wespath will continue its mission of caring for those who serve—regardless of the outcome and aftermath of General Conference 2019. Mention letter sent late April to 100,000 participants—reassuring them that their benefits are secure.

https://www.wespath.org/WayForwardWespathFAQ/



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