Due to the
late date of Annual Conference, the first payment may not arrive
until the middle to possibly late July.
3. What are the pensions benefits of the East
Ohio Conference?
Ministers
Reserve Pension Fund (Pre-1982 benefits) and the Ministerial
Pension Plan (MPP) are pensions benefits funded through the
church or salary-paying unit. Effective 1-1-98 the Personal
Investment Plan was introduced to the Denomination. This Plan is
for a participant’s personal contributions to their pension.
The participant, through the church or salary-paying unit, makes
a Before Tax or After Tax pension contribution. (Prior to
1-1-98, personal contributions were a part of MPP.)
4. How are PRE-1982 benefits calculated and what
are the distribution options?
The number of
pre-1982 years of service with pension credit is multiplied by
the current annuity rate of the annual conference(s) that you
served. (See your service record.) That amount divided by 12
(months) is your monthly benefit amount.
There is only
one option available for this portion of your benefit. If you
are married, the annuity will be paid to you for your lifetime
with 70% payable to your spouse for his/her lifetime in the
event of your death. If you are single, the benefit will be
paid to you for your lifetime and will stop in the event of your
death.
5. How are MPP Church Account benefits calculated
and what are the distribution options?
Benefits are
based on the accumulation in your account. Annuity amounts are
based on the account balance and your age (for joint-life
annuities, the age of your contingent annuitant, or spouse, is
also taken into consideration.)
A participant
may take up to 25% of the MPP account balance as a lump sum. The
remaining 75% MPP account balance must be annuitized. Another
option is to take the entire account balance as a lifetime
annuities.
6. How are After Tax and Before Tax
contributions calculated and what are the distribution options?
Benefits are
based on the accumulation in your United Methodist Personal
Investment Plan (UMPIP). Annuity amounts are based on the
account balance and your age (for joint-life annuities, the age
of your contingent annuitant, or spouse, is also taken into
consideration.
Various
distributions options are variable: a) Lump-sum distribution of
the entire account. b) Partial lump-sum distribution (one
allowed per year.) c) The entire or remaining balance as one of
16 annuities (including annual, monthly, and lifetime
annuities.) d) Cash Installments.
7. What other benefits features are under the
United Methodist Personal Investment Plan?
Hardship
Distributions and In-Service Withdrawals. Please contact the
General Board of Pension at 1-800-851-2201, for more information
about these options. Also participants can utilize the
Interactive Voice Response (IVR) System by calling
1-888-851-2201. This system can provide information about your
accounts 24 hours a day, seven days a week. You must have your
Social Security Number and Personal Identification Number
available to access your accounts. IVR provides personal account
and loan information; investment performance; general plan
information; and can accept form and information requests.
8. Is there a life insurance benefit as a
retiree?
Provided you
were a participant in Comprehensive Protection Plan (CPP) for
two years immediately prior to your retirement under P. 359.2b
or P. 359.2c. Death benefits are payable for the retiree, the
spouse or surviving spouse.
9. Is there a retirement move benefit?
Reference the
2006 CCF&A Report. The benefit described in the Journal in the
year in which you retire is the applicable policy for your
retirement move.
10. How is my pension paid?
Each month,
the General Board of Pension will issue either a check or send
your pension via an Electronic Funds Transfer (EFT) to your bank
account. The check is mailed to reach you on or soon after the
first day of each month. Pension is paid in advance; i.e., the
funds you receive dated July 1 is for the month of July. If you
die on the first day of the month, the check becomes part of
your estate. If you die during the month preceding the date of
the check, your executor should return it to the General Board
of Pensions and a new check in the proper amount will be issued
to your surviving spouse.
11. Will the amount I receive in my pension
payment remain the same?
It may change
as the East Ohio Conference (or other conference) may change its
annuity rate for Pre 82 service. This annuity rate is set by
each Annual Conference session for the succeeding calendar
year. It may be raised or lowered. However, there has been no
decrease since adoption of the MRPF and MRPP plans. The annuity
rate is for years of service prior to January 1, 1982. MPP
retirement annuity increases are based on your chosen option at
retirement.
12. Does the amount I receive effect my Social
Security payments?
No, only your
earnings from employment (pulpit supply, minister of visitation,
etc.) effect your Social Security payments, and then only when
the earnings from employment exceed the allowable maximum prior
to your Social Security defined full retirement age (FRA).
13. Is my service annuity pension taxable?
Yes, with the
exception of the amount you may be able to exclude as a
Conference designated housing exclusion. You must be able to
prove expenses equal to the amount you exclude (property taxes,
insurance premiums, utilities, repair, etc.; or rental payments
if you do not own your retirement residence). Limits do apply to
the amount a retired clergy may exclude. Please reference Item
VI of the Board of Pension report.
14. Can I have taxes withheld from my pension?
Yes, by
arrangement with the General Board of Pensions and filing of the
necessary form with the General Board, taxes can be withheld and
paid to the IRS for you; otherwise, you will need to file an
estimated tax return and pay the amounts estimated in quarterly
installments directly to IRS. THE LATTER IS RECOMMENDED.
15. Must I participate in Medicare?
Yes. Your
Health Care benefit package provided by the Annual Conference to
eligible clergy presupposes your participation in Medicare. If
you do not participate in Medicare you must bear the expense of
what Medicare would cover from your own resources, or you must
carry separate insurance at your own expense. Sixty days before
you or your spouse attain age 65, all participants must notify
the Conference Treasurer’s Office, for transfer if applicable,
may be made to the Conference’s Secondary coverage.
Reference:
Health Care Questions Freguently Asked, questions #31 through
#36.
16. How is the Death Benefit paid?
Your
surviving spouse or the executor of your estate should contact
the Benefits Office at the Conference Area Center. If
applicable, the General Board of Pensions upon receipt of the
Notification of Death from the EOC Benefits Manager, will issue
a death benefit check.
17. How do I take advantage of the Housing
Exclusion Designation whiling actively serving?
You deduct
the amount from your gross receipts or income, and report only
the reduced amount on your income tax return. You must have
expenses equal to the amount of the exclusion. Expenses greater
than the exclusion cannot be deducted.
18. As an active member can I participate in the
United Methodist Personal Investment Plan (UMPIP)?
Participation
in the Ministerial Pension Plan (MPP) automatically provides
eligibility in UMPIP. Your church treasurer deducts from your
cash salary, a before-tax contribution that is sent to the
General Board of Pensions (GB) and held on deposit for you. An
after tax contribution can also be made to UMPIP. The church
treasurer must make the payment directly to the GB ‑not you.
Contribution limits due apply. Visit websites:
www.irs.gov or
www.gbophb.org
19. Am I required to contribute personally
contributions to my pension plan?
No, but it is
highly suggested and supported by the East Ohio Conference Board
of Pensions that all members make personal contributions to
their pension plan. Prior to 1-1-98, a MPP participant was
required to contribute 3% of cash salary to their personal
account.
20. If I do not have a copy of my service record,
where do I obtain one?
Write the
General Board of Pensions, 1201 Davis Street, Evanston, Illinois
60201, and request that a copy of your service record be sent to
you. Or call 1-800-851-2201.
21. If I feel there is an error on my service
record, whom do I contact?
You should
write the Board of Pensions of the Annual Conference within
whose boundaries geographically the service was rendered. The
East Ohio Conference Board of Pensions can deal only with the
service rendered in a predecessor Annual Conference within the
boundaries of the current East Ohio Conference.
22. If I want a change in my service record, what
must I do?
You must
present documentary evidence to the Conference Board of Pensions
to support any change requested, particularly if you are
requesting annuity credit for service previously classified as
"without annuity credit" or service that is unclassified.
Documentary evidence consists of references of Conference
Journals and Yearbooks and other records substantiating the
claim. The Conference Board of Pensions may require information
from third parties.
