Reg Convocation ALNWFL

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Regional Convocation of Alabama Northwest Florida

http://i.huffpost.com/gen/1361559/thumbs/o-BUSINESS-LUNCH-facebook.jpgRetirement Savings Options

Employer-Sponsored Programs

Pension Plan

Tax-Deferred Retirement Account

Personal Savings

Roth IRA

Traditional IRA

Pension Plan
Defined Benefit

Lifetime monthly benefit

Benefits are based on a formula

Benefit amounts can increase

Not dependent on ability to choose investments

Includes death and disability benefits

elderly couple.jpgPension Plan

Eligibility and Participation

Eligibility: Employer contributes to retirement benefits on behalf of member unless member is a self-employed minister

Participation: Dues are defined as 14% of total compensation

Vesting: Lay members are vested after two years of participation

Ministers are vested immediately

Pension Plan

Age Retirement Benefits

Based on lifetime earnings

Contribution: 14% of total compensation

Benefit formula: Salary on which dues are paid multiplied by .11, then divided by 7.35

Total Compensation x .11/7.35 = Pension Credits

https://scontent-b-lga.xx.fbcdn.net/hphotos-ash4/254530_10150212385447058_1323234_n.jpgPension Plan

Special Apportionments

Board of Directors reviews once a year

Current and future benefits are fully funded

Reserves in place for down market years

If excess reserves are available, the directors consider Special Apportionments

Special Apportionments
2005 2014

Special-Apportionments-4Q-2013.pngCumulative-Effect-4Q-2013.pngCumulative Effect of Special Apportionments on a
Retirement Benefit of $1,000

Pension-SocialSecurity-4Q-2013.pngPension Plan vs.
Social Security

Pension Plan

Death in Active Service

Salary Continuation Benefit/Death Benefit

Up to $50,000

(age 60+, up to $30,000)

Surviving Spouse Pension

50% of accumulated pension credits or minimum of $400 per month

Pension Plan

Death in Active Service

https://scontent-b-lga.xx.fbcdn.net/hphotos-frc3/527784_2321824583050_102394411_n.jpgSurviving Child Pension

$500 per month each minor child to age 21

Education Benefits

$5,000 per year up to 4 years for post high school education

Pension Plan

Disability in Active Service

Begins on 61st day of disability

Based upon salary on which dues have been paid over preceding 12 months

60% of salary up to $2,500 per month for first 12 months

40% of salary, after first year, with medical review

Defined Contribution

Tax advantaged retirement savings plan

Choice of beneficiaries

Various retirement payout options

Immediate vesting

young couple.jpgTax-Deferred Retirement Account

3 - 6% base plus Good Experience Credits

Current rate is 3.5%

Can Be Supplemental Retirement Account

jar of bills.jpgTDRA Interest Rate 10-Year History

.

TDRA-SideBySide-4Q-2013.pngTDRA Interest Rate 10-Year History

TDRA-Stacked-4Q-2013.pngMarket Comparison of TDRA
Growth of $10,000

Market-Comparison-4Q-2013.pngPension Fund Retirement

Options Comparison

Employer-Sponsored Programs

Pension Plan TDRA

Benefit for life Choose beneficiaries

Death benefits Flexible

Disability benefits Base rate

Special Apportionments Good Experience Credits

Personal Savings

Individual Retirement Accounts

Traditional IRA

Roth IRA

C:\Users\ibobadilla\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\50DT1BBK\6881508144_3a4dd3c74a_z[1].jpgRoth IRA

After-tax contributions

Not an employer-based plan

Name any beneficiary

Base rate of 3-6% plus Good Experience Credits

Annual contributions and earnings limits

wheelbarrow.jpgPersonal Savings

Individual Retirement Accounts

Traditional vs. Roth

Who is eligible to contribute?


Are my contributions deductible?


How much can I contribute?


When can I withdraw money?


Required Minimum Distributions


Are my withdrawals taxable?

Where will I be in the future??

C:\Users\ibobadilla.PENSIONFUND\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\XP3QE7EU\MP900289931[1].jpgChristian Church Health Care Benefit Trust

Churchwide Healthcare

Eligibility

Available to all clergy and employees of the Christian Church and the Stone Campbell Tradition

Allisonville Spleth2.jpgPlans Offered

Health Choice 500 ($500 Individuual deductible)

Health Choice 1000 ($1000 Individual deductible)

HSA Choice 2500 ($2500 Individual deductible)

HSA Choice 4500 ($4500 Individual deductible)

Two Medicare Secondary Plans available with/without Part D coverage

Fully-insured dental plans

Churchwide Healthcare

Challenges

Aging Population

Church plans on average are 10 years older than secular industries

Occupational Stress

Uncertainty in health benefit industry

Carl & co spring 2013 rev.jpgChurchwide Healthcare

Affordable Care Act & Church Health Benefit Plans

Individual Health Coverage Mandate went into effect January 1, 2014.

Four benefit levels available on exchanges

Platinum (provides health coverage = 90%)

Gold (provides health coverage = 80%)

Silver (provides health coverage = 70%)

Bronze ( provides health coverage = 60%)

Employers that issue fewer than 250 W-2s exempt from reporting value of coverage on W-2s as well as self-insured plans like the Christian Church Health Care Benefit Trust

Congregations may continue to pay premiums direct to the CCHCBT on a pre-tax basis, however congregations may no longer pay premiums directly for coverage purchased on the exchange or direct for insurance companies.

Congregations who reimburse their employees health insurance premiums purchased on the exchange, spouses employer, or private policy must include this amount in taxable income effective January 1, 2014 per the IRS.

Healthcare Insurance

Affordable Care Act Subsidies

Available to persons who purchase their coverage through the Healthcare Exchange and have a total HOUSEHOLD income up to 400% of the Federal Poverty Level

Any subsidy is based on Member Only premium and not the actual premium (Member & Adult Dependent, Member & Child(ren) or Family)

Christian Church Health Care Benefit Trust benefits plans meet federal qualifications, however they are not available on the healthcare exchanges and not eligible for subsidies

Pension Fund Services

Ministerial Relief

Emergency Aid

Health Care Premium Assistance

Student Gift Programs

Honored Ministers Pin

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Roth IRA

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Reg Convocation ALNWFL

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Transcript of Reg Convocation ALNWFL