learn about benefits access - calnev-pensions.brtsite.compresentation...2 | wespath •...
TRANSCRIPT
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.
3 | Wespath 3 | Wespath
Overview
• Retirement Provisions • Wespath Retirement Plans • Investing with Wespath • Housing Allowance Exclusion • Comprehensive Protection Plan (CPP) • EY Financial Planning • Wespath Participant Services
4 | Wespath 4 | Wespath
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
5 | Wespath 5 | Wespath
§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
6 | Wespath 6 | Wespath
2019: $71,361
2018: $70,202
Denominational Average Compensation (DAC)
2020: $72,648
Average plan compensation of clergy serving full-time appointments
7 | Wespath 7 | Wespath
Wespath Retirement Plans
CRSP
Pre-82 Plan (Minister’s Reserve Pension Fund)
2014+ CRSP
1982-2006 Ministerial Pension Plan (MPP)
2007-2013 CRSP UMPIP
8 | Wespath 8 | Wespath
Clergy Retirement Security Program (CRSP)
Defined Benefit (DB)
Defined Contribution (DC)
Monthly benefit Account balance +
9 | Wespath 9 | Wespath
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)
10 | Wespath 10 | Wespath
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
11 | Wespath 11 | Wespath
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
12 | Wespath 12 | Wespath
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
13 | Wespath 13 | Wespath
Matching Contributions
Participant before-tax, Roth and/or after-tax
contributions
CRSP DC
2% Non-Match
1% Match
UMPIP
With 1% UMPIP contribution
14 | Wespath 14 | Wespath
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
15 | Wespath 15 | Wespath
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
16 | Wespath 16 | Wespath
Wespath Retirement Plans
CRSP
Pre-82 Plan (Minister’s Reserve Pension Fund)
2014+ CRSP
1982-2006 Ministerial Pension Plan (MPP)
2007-2013 CRSP UMPIP
17 | Wespath 17 | Wespath
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
18 | Wespath 18 | Wespath
Ministerial Pension Plan
Life Annuity • Six-life annuities • Percentage increase
Account Balance • As a cash distribution • Other options
19 | Wespath 19 | Wespath
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
20 | Wespath 20 | Wespath
Retirement Options: MPP
Life Annuity Options
6 Life annuity
types
% COLA Annual
increase
21 | Wespath 21 | Wespath
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)
22 | Wespath 22 | Wespath
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
23 | Wespath 23 | Wespath
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:
24 | Wespath 24 | Wespath
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
25 | Wespath 25 | Wespath
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
26 | Wespath 26 | Wespath
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%
27 | Wespath 27 | Wespath
• 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
28 | Wespath 28 | Wespath
Example—Pastor Peterson
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%)
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
29 | Wespath 29 | Wespath
Wespath Retirement Plans
CRSP
Pre-82 Plan (Minister’s Reserve Pension Fund)
2014+ CRSP
1982-2006 Ministerial Pension Plan (MPP)
2007-2013 CRSP UMPIP
30 | Wespath 30 | Wespath
CRSP Supplement One: Pre-82 Plan
Pre-82
Defined Benefit Service Money
(DBSM) Formula Benefit
31 | Wespath 31 | Wespath
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
32 | Wespath 32 | Wespath
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
33 | Wespath 33 | Wespath
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
34 | Wespath 34 | Wespath
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
35 | Wespath 35 | Wespath
Example—Pastor Peterson
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%)
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
36 | Wespath 36 | Wespath
Wespath Retirement Plans
CRSP
Pre-82 Plan (Minister’s Reserve Pension Fund)
2014+ CRSP
1982-2006 Ministerial Pension Plan (MPP)
2007-2013 CRSP UMPIP
37 | Wespath 37 | Wespath
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
38 | Wespath 38 | Wespath
Participant Contributions
Before-tax
After-tax
Roth
Rollovers
39 | Wespath 39 | Wespath
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
41 | Wespath 41 | Wespath
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
42 | Wespath 42 | Wespath
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
43 | Wespath 43 | Wespath
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
44 | Wespath 44 | Wespath
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
45 | Wespath 45 | Wespath
UMPIP Access
• In-service withdrawals at 59 ½ • Hardship loans • Hardship withdrawals • Disability • Separation • Retirement
46 | Wespath 46 | Wespath
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
47 | Wespath 47 | Wespath
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
48 | Wespath 48 | Wespath
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)
49 | Wespath 49 | Wespath
Example—Pastor Peterson
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
50 | Wespath 50 | Wespath
Example—Pastor Peterson
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%)
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)
Annville 01/01/23 – 06/30/25 New Plan — $50,000
Appointment Retirement Plan Lifetime Benefit Account Balances
Investing with Wespath
52 | Wespath 52 | 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
53 | Wespath 53 | Wespath
Investment Categories and Funds
• Inflation Protection Fund • Fixed Income Fund • Extended Term Fixed Income Fund
Income Funds—Bonds
• Stable Value Fund
Capital Preservation Funds
54 | Wespath 54 | Wespath
• 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
55 | Wespath 55 | Wespath
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
56 | Wespath 56 | Wespath
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
57 | Wespath 57 | Wespath
Investment Information at wespath.org
• Daily changes
• Fund descriptions
• Comparative results
• Benchmarks • Fees
58 | Wespath 58 | Wespath
• Available online—benefitsaccess.org
• By mail
• View current account balances
• Verify transaction details
Quarterly Statements
Investment Performance—As of March 31, 2019
59 | Wespath 59 | Wespath
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%
60 | Wespath 60 | Wespath
Investing with Wespath
Choose your own mix of investment funds
Asset allocation consultation through EY
LifeStage Investment Management
61 | Wespath 61 | Wespath
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
62 | Wespath 62 | Wespath
LifeStage Investment Management
• 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
63 | Wespath 63 | Wespath
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
64 | Wespath 64 | Wespath
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
Housing Allowance Exclusion
66 | Wespath 66 | Wespath
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
67 | Wespath 67 | Wespath
Housing Allowance Exclusion
• 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…
68 | Wespath 68 | Wespath
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
70 | Wespath 70 | Wespath
Housing Allowance Exclusion
• 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
71 | Wespath 71 | Wespath
Comprehensive Protection Plan
Death and Disability
72 | Wespath 72 | Wespath
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
73 | Wespath 73 | Wespath
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
74 | Wespath 74 | Wespath
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
75 | Wespath 75 | Wespath
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
76 | Wespath 76 | Wespath
Access to Retirement Plans
MPP 35% of account balance
CRSP DC account balance
UMPIP 100% of account balance if permanently disabled
Disability
77 | Wespath 77 | Wespath
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
78 | Wespath 78 | Wespath
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
79 | Wespath 79 | Wespath
EY Financial Planning Services
80 | Wespath 80 | Wespath
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.
81 | Wespath 81 | Wespath
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
82 | Wespath 82 | Wespath
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
83 | Wespath 83 | Wespath
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
www.wespath.org 84 | Wespath
85 | Wespath 85 | Wespath
Benefits Access
• Current account information • Projection tools • Retirement Readiness Tool • Retirement Benefits Projection • Investment information • Beneficiary designations • Educational resources about finances
and retirement
86 | Wespath 86 | Wespath
87 | Wespath 87 | Wespath
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
89 | Wespath 89 | Wespath
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
94 | Wespath 94 | Wespath
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
95 | Wespath 95 | Wespath
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
Questions?
98 | Wespath 98 | Wespath
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/