Unit
Value
Individuals usually want a picture of where they are at in terms of
retirement funds. Unit values are like shares purchased in the Pension
Fund. The number of units increases in your individual account as long
as you "buy" them. The value of those unit is tied to market
activity, as well as everyone’s contributions and withdrawals.
1. How are contributions converted into
units?
When a contribution is made on behalf of a pastor, the amount contributed
is divided by the current month’s unit value. This will determine
how many units a contribution will buy. For example: $693 is contributed
on behalf of Pastor Smith. The unit value for the month in which the
contribution is received is $75.33. Pastor Smith’s pension account
will be credited for 9.199 units. ($693 divided by $75.33)
2. How is unit value determined?
Each month, the unit value for the entire pension fund is determined.
All funds are in a pooled account.
First, the market activity, expenses (fees from money managers, auditor,
and administrator), and withdrawals from that month are added to the
ending balance of the previous month. Generally, if the market goes
up, then the unit value increases, and visa versa.
Second, individual contributions are converted into units, based on
the new value, and credited to each pastor’s account.
3. Statements
According to the IRS and the Pension Plan Document, statements are to
be sent out once a year. The statement is to reflect an audited calculation.
By the time the audit is completed and the office is free of summer
conference activity, the statements are calculated and sent out in September.
The statement reflects the number of units in each pastor’s account,
and the cash value of those units based on September’s data.
You can receive information on your account (number of units and their
current value) any time you need it simply by contacting Jack O'Neill
(503.659-5622). If you would like further assistance in retirement planning,
our office can help you make a list of resources.
