Safe
Harbor Fund
Policies
and Guidelines •
Safe Harbor Fund Performance and Value
Purpose
The purpose of the Safe Harbor Fund is to provide to pastors age 60
and above the option to move their account from the pooled income account
to one in which investment risk is minimized, thus providing protection
of those funds from market loss.
Administration
The fund will be established with an investment policy limiting investments
to “short term liquid, low risk, and interest bearing deposits
and securities or comparable investments.” Individual Participant
accounts will be administered separately from but in the same manner
as participant accounts in the pooled income account.
Election
Participants age 60 and above will elect annually during the month of
October to participate in the Safe Harbor Fund or not. Investments will
be transferred and become effective the following January 1st. Participants
may elect to go in and out of the fund only during the Annual Election
Period (October).
Funding
of Accounts
During the annual election, the participants may invest 25% or 50% of
their account balance into the Safe Harbor Fund. Currently the pooled
income fund is 30% invested in a fixed portfolio. The election to move
25% or 50% would in effect establish 40% or 65% of the participant accounts
into reduced risk accounts, thus protecting those funds from market
fluctuations. The portion of the funds transferred would be valued as
of the December 31st immediately following the participant elections.
Participants may change their investment percentages only during the
annual election period (October). Contributions made on behalf of the
pastor by the local church will be split in accordance with the percentage
of the amount chosen on the annual election. For example, if a participant
chooses to put 50% of their funds into Safe Harbor, then 50% of all
contributions will be directed to the Safe Harbor account.
Annual
Statements
Separate annual statements for Safe Harbor participants will be provided
in accordance with the Pension Plan Document in the month of September
with August unit values.
Safe
Harbor Fund Performance and Value
