The Pension Plan

Purpose
This Plan is a defined contribution money purchase plan under the appropriate provisions of the Internal Revenue Code of 1954 and the Employee Retirement Income Security Act of 1974. This Plan is to be maintained for the exclusive benefit of the Participants and is intended to provide a measure of security for them and their beneficiaries.
Administration

The Plan is under the jurisdiction of the Board of Pensions and Insurance elected by the Annual Conference of the Pacific Conference. The Plan is administered by an Administrative Committee appointed by the Board. The Committee is responsible for the interpretation, administration, and selection of the Investment Managers. The record keeping is performed by an employee of the Pacific Conference and the Plan is responsible to reimburse the Conference for related salary and other expenses. The Board also retains legal counsel to keep the Plan current with Federal Law and is responsible to have the Plan audited each year by a recognized CPA firm. Copies of the audit are available for review.

Participants
Participants are all full-time Ministers whose credentials are held by the Conference and serving a church under assignment. A full-time minister is one regularly employed in a position normally requiring more than 20 hours per week. Participation is not optional.

Contributions
Contributions are to be made at least quarterly by each church for each minister assigned by the Conference. The contribution is to be seven and one-half percent (7.5%) of the compensation paid to the minister consisting of: cash salary, housing/utilities, social security, family health insurance, and professional expenses (auto, entertainment, continuing education). Housing includes the purchase of their own home, rental allowance or a parsonage furnished by the church. Forms are provided to make the calculation easy for the church treasurer. Additional voluntary contributions are also allowed. (Voluntary contributions can be withdrawn without penalty at any time.)

Vesting of Interests
In the event a Participant withdraws credentials and asks for distribution of the funds contributed, the following table will be used to calculate the amount due:
under 1 year of service 0%

Distribution of Benefits
Distribution of Plan benefits may be made upon the occurrence of the following events:

Upon retirement the Participant can elect to withdraw funds immediately or leave them in the Plan. Withdrawal of funds must be done before age 70.5.

It is a good idea for the Participant to begin financial planning at least one year prior to retirement to determine the best investment for funds in order to achieve any financial goals. The use of a qualified financial planner is important in order to consider all the options available.

Investments
In the Plan, all contributions are combined into a pooled investment, versus individually defined investments. Individual accounts are still kept, but all funds are invested under one investment strategy.

Investments are diversified into growth, growth and income, and value stocks as well as fixed income investments (e.g. bonds). It is designed to be a moderate-at-best risk to protect the fund while allowing for some growth. The Plan cannot invest in alcohol, tobacco, abortion- related, and entertainment industries.

Unit values are like "shares" purchased in the Pension Fund. The number of units increases in each Participant’s individual account as long as contributions are made. The value of those units is tied to market activity, as well as all other contributions and withdrawals. Statements are mailed each September.