The United Methodist Personal Investment Plan (UMPIP) is the plan for personal contributions effective January 1, 2006.
UMPIP is also the United Methodist Pension Plan available to lay employees of United Methodist churches and related agencies. The Book of Discipline of The United Methodist Church-2012, ¶ 258.2g12 states that local church Staff Parish Relations Committees shall recommend to the church council a “100 percent vested pension benefit of at least three percent of compensation for lay employees of the local church who work at least 1,040 hours per year.” The GPUMC recommends, at a minimum, that the local church adopt the UMPIP plan for its lay employees so that they may make tax deferred personal contributions to a pension plan to ensure a more secure future.
The following resolution was adopted by the annual conference session:
WHEREAS, the religious denomination known as The United Methodist Church (the Church), of which this Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 107) who were or are duly ordained, commissioned, or licensed ministers of the Church (clergypersons);
WHEREAS, the practice of the Church and of this Conference was and is to provide active Clergypersons with a parsonage or a rental/housing allowance as part of their gross compensation;
WHEREAS, pensions or other amounts paid to active, retired, terminated, and disabled Clergy persons are considered to be deferred compensation and are paid to active, retired, terminated, and disabled Clergypersons in consideration of previous active service; and
WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as an appropriate organization to designate a rental/housing allowance for Clergy persons who are or were members of this Conference and are eligible to receive such deferred compensation;
NOW, THEREFORE, BE IT RESOLVED: THAT an amount equal to 100% of the pension, severance, or disability payments received from plans authorized under The Book of Discipline of The United Methodist (the Discipline), which includes all such payments from the General Board of Pension and Health Benefits (GBOPHB), during the period January 1, 2016 through December 31, 2016, by each active, retired, terminated, or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each such Clergyperson; and
THAT the pension, severance, or disability payments to which this rental/housing allowance designation applies will be any pension, severance, or disability payments from plans, annuities, of funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity, or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active a retired, a terminated or a disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church contributions to or accrue a benefit under, such a plan, annuity, or fund for such an active, a retired, a terminated, or a disabled Clergyperson’s pension, severance, or disability plan benefit as part of his or her gross compensation.
Note: The rental/housing allowance that may be excluded from a Clergyperson’s gross income in any year for federal (and, in most cases, state) income tax purposes is limited under internal Revenue Code section 107(2), and regulation thereunder, to the least of: (a) the amount of the rental/housing allowance designated by the Clergyperson’s employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year: (b) the amount actually expended by the Clergyperson to rent or provide a home in such year; or (c) the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year. Each clergyperson or former clergyperson is urged to consult with his or her own tax advisor to determine what deferred compensation is eligible to be claimed as a housing allowance exclusion.
2. Past Service Rate (PSR): The PSR shall be increased from the 2015 rate of $729 for each past service year to $744 for each past service year, beginning January 1, 2016. (The past service rate is a defined benefit based upon years of service through December 31, 1981.)
3. Contingent Annuitant Percentage (CAP): The CAP for the surviving spouses shall remain the same for 2016. Former Nebraska and Kansas East conferences have the rate of 85%, and the rate for the former Kansas West conference is at 100%. The former Nebraska and Kansas East conferences rates will be reviewed each year with the possibility of moving the rate to 100% sometime in the future.
4. Special Pension Grants: Continue to provide Special pension grants for the following:
5. Clergy Retirement Security Program (CRSP) Funding:
6. Use of Reserves: Establish a 5% fund spending of the pension reserves to be utilized to offset Conference Staff benefit costs, with health insurance benefits coming from the share of unrestricted funds.
Oct. 20, 2014, the annual conference voted to end the clergy health insurance plan and replace it with a health insurance allowance.
After reviewing the results of surveys of clergy and taking into account the average rate on insurance exchanges in each district, the Board of Pension and Health Benefits recommended a $15,000 health care allowance for 2017. For years after 2017, the Board will research annually the actual cost of a silver PPO plan for all the pieces of geography in the Great Plains Conference. The Board will compare each year’s rate to the prior year’s rate for the same plan and the same geography and that will guide the Board in determining any rate for the health care allowance for the ensuring year.
Clergy members receiving paid incapacity leave benefits through CPP and that were eligible for health insurance coverage at the time of their application have been receiving a health care allowance of $14,232 annually. Realizing that the sustainability of this funding level was not possible the Board reviewed what 23 other conferences were doing to support their members on incapacity leave. Effective Jan. 1, 2017, those currently receiving a health care allowance and those newly eligible for CPP Incapacity Leave Benefits will receive the following:
The Conference partners with One Exchange through the General Board of Pension and Health Benefits, for Retiree Health Insurance. One Exchange is an exchange that will assist each retiree in selecting the private Medicare plan that best meets their medical needs and budget.
Nebraska Retirees retiring through 2019 are eligible for a health reimbursement account (HRA) providing they use One Exchange in securing their coverage. The coverage must continue through One Exchange in order for the HRA to be available.
The Council on Finance and Administration (CF&A) voted to pay off an unfunded liability of approximately $1.4 million for the Nebraska retiree health reimbursement subsidy using conference reserves. This move means Nebraska churches are no longer paying an extra Mission Share to support the benefit beginning in 2016.
An annual Retiree Health Valuation is required by the General Board of Pension and Health Benefits. The valuation completed by Willis Towers Watson indicates that there will be adequate funding to meet the needs of this subsidy.
The conference offers affordable voluntary life insurance. This benefit is available to clergy members and conference lay staff members who works at least 30 hours per week. The benefit can be portable when employees terminate.
The conference offers affordable vision and dental insurance. This benefit is available to clergy members and conference lay staff members who work at least 30 hours per week. These benefits are optional coverage’s and the costs are to be paid by the participant on a pre-tax basis.
Two optional coverages are made available for clergy members serving three-quarter time or more, along with family members and conference lay staff and family members.
This program is available to active clergy members serving three-quarter time or more and spouse and retired clergy and spouse, along with conference lay staff and spouse. The participant can earn actual dollars by completing their activity goals.
The Conference has an over-funded position in the Pre-82 Pension Plan and substantial pension reserves. The Board recommends we continue to use the over-funding and reserves to reduce the overall cost of the pension benefits to the local churches. The retirement contributions in excess of those paid by local churches will be funded first from the Pre-82 fund, and then out of the pension reserves, if needed. The excess funds in the Pre-82 plan will be used as long as the funding balance is not reduced below 120%.
It is the recommendation of the Board to continue the current funding level for 2017.
The Conference has an over-funded position in the Pre-82 Pension Plan and substantial pension reserves. The Board recommends we continue to use the over-funding and reserves to reduce the overall cost of the pension benefits to the local churches. The retirement contributions in excess of those paid by local churches will be funded first from the Pre-82 fund, and then out of the pension reserves, if needed. The excess funds in the Pre-82 plan will be used as long as the funding balance is not reduced below 120%. It is the recommendation of the Board to continue the current funding level for 2017.
The local church funding is as follows:
| 2016 | 2017 | |
| CPP death and disability | 3% | 3% |
| CRSP defined contributions | 3% | 3% |
| CRSP defined benefit | 2% | 2% |
| Total | 8% | 8% |
Those members serving 25% the local churches will fund 10% into the members UMPIP account. The 2% balance required will be funded from the Pre-82 over-funding, and then out of the pension reserves, if needed.
The General Board of Pension and Health Benefits will be submitting to General Conference proposed changes to the Comprehensive Protection Plan (CPP). Those changes will have an effect on some clergy members. The proposed changes are as follows:
1. Eligibility by Plan Sponsor election:
2. Eliminate special arrangements and ordained clergy and associate members serving 50% will lose coverage.
3. Clergy serving 100% with a plan compensation between 25% and 60% of the DAC will gain coverage.
To assist with those that are losing coverage the General Board is offering benefits through UMLife Options.
The Board received seven Farmer Fund emergency grant requests. These were approved for funding. The Board maintains written guidelines for emergency grants. Crouse Fund Grants: The Cabinet approved four Crouse Fund Grants. The Cabinet established criteria for Crounse Fund Grants as follows:
Short-term disability funding is available to assist member churches in the event a full-time or part-time (1/2 time or more) clergy or District Superintendent Assignment (DSA) is unable to perform the duties of their appointment due to a documented medical disability when the period of the clergy or DSA’s absence exceeds 30 days but is anticipated to be less than 180 days. Five short-term disability grants were funded through-out the year. The Board maintains written guidelines for short-term disability funding.
The Board of Pensions has $13.5 million of reserves for pension benefits (BOP Pensions $9.6 million, KWC Endowment corpus $2.2 million, and KWC Endowment Earnings $1.7 million). The Mission Alignment team requests the Board of Pensions continue to draw 5% of pension-designated reserves to help pay for Conference Staff benefits. The retirement contribution for Conference Staff is about $1.1 million. Currently 5% of the $13.5 million reserve is about $675,000, of which $200,000 must be restricted for pensions. The Board established a 5% fund spending of the pension reserves to be utilized to offset Conference Staff benefit costs, with health insurance benefits coming from the share of unrestricted funds.
The PSR shall be increased from the 2016 rate of $744.00 for each past service year to $759.00 for each past service year, beginning January 1, 2017. (The past service rate is a defined benefit based upon years of service through December 31, 1981.)
The CAP for the surviving spouses shall remain the same for 2017. Former Nebraska and Kansas East conferences have the rate of 85%, and the rate for the former Kansas West conference is at 100%. The former Nebraska and Kansas East conferences rates will be reviewed each year with the possibility of moving the rate to 100% sometime in the future.
Special pension grants have been provided for the following:
A minimum funding level of 120% is to be maintained to protect the Pre-82 commitment. Any increases to the annuity Past Service Rate (PSR) shall be funded immediately in the year in which the increase occurs.
The Board continues a contractual relationship with Lockton. As our broker we are provided updates/reporting requirements in regards to Affordable Care Act (ACA) and Lockton conducts the bidding processes on all of the benefits made available to conference members and staff.
The Board is required to submit a comprehensive funding plan each year to the General Board. A summary of the plan is included in the items for action considered at the 2016 annual conference session.
1. Resolution on Rental/Housing/Household Expense Allowance, in accordance with Federal Guidelines for clergy housing, the following resolution if recommended.
WHEREAS, the religious denomination known as The United Methodist Church (the Church), of which this Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 107) who were or are duly ordained, commissioned, or licensed ministers of the Church (clergypersons);
WHEREAS, the practice of the Church and of this Conference was and is to provide active Clergypersons with a parsonage or a rental/housing allowance as part of their gross compensation;
WHEREAS, pensions or other amounts paid to active, retired, terminated, and disabled Clergy persons are considered to be deferred compensation and are paid to active, retired, terminated, and disabled Clergypersons in consideration of previous active service; and
WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as an appropriate organization to designate a rental/housing allowance for Clergy persons who are or were members of this Conference and are eligible to receive such deferred compensation;
NOW, THEREFORE, BE IT RESOLVED: THAT an amount equal to 100% of the pension, severance, or disability payments received from plans authorized under The Book of Discipline of The United Methodist (the Discipline), which includes all such payments from the General Board of Pension and Health Benefits (GBOPHB), during the period January 1, 2017 through December 31, 2017, by each active, retired, terminated, or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each such Clergyperson; and
THAT the pension, severance, or disability payments to which this rental/housing allowance designation applies will be any pension, severance, or disability payments from plans, annuities, of funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity, or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active a retired, a terminated or a disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church contributions to or accrue a benefit under, such a plan, annuity, or fund for such an active, a retired, a terminated, or a disabled Clergyperson’s pension, severance, or disability plan benefit as part of his or her gross compensation.
Note: The rental/housing allowance that may be excluded from a Clergyperson’s gross income in any year for federal (and, in most cases, state) income tax purposes is limited under internal Revenue Code section 107(2), and regulation thereunder, to the least of: (a) the amount of the rental/housing allowance designated by the Clergyperson’s employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year: (b) the amount actually expended by the Clergyperson to rent or provide a home in such year; or (c) the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year. Each clergyperson or former clergyperson is urged to consult with his or her own tax advisor to determine what deferred compensation is eligible to be claimed as a housing allowance exclusion.
2. Resolution 9: Reinstating Group Health Insurance: The Board does not recommend reinstating the group health insurance.
3. Resolution 10: Local Church Health Care Allowance: The Board recommends that research of the actual cost of a silver PPO plan for all the pieces of geography in the Great Plains Conference be performed each year. The Board will then compare each year’s rate to the previous year’s rate for the same plan and the same geography and that information will guide the Board in determining any rate for the health care allowance for the ensuing year. Since the Board cannot use the criteria stated above for 2017 due to lack of equivalent information, the Board recommends a $15,000 health care allowance for 2017, based on clergy reporting and the average that accounts for taxes.
4. Incapacity Leave Health Care Allowance: Effective January 1, 2017 those currently receiving a health care allowance and those newly eligible for CPP Incapacity Leave Benefits will receive the following: o $300 per month. o $300 per month for the spouse and dependents until the age of 26 for 3 years.
5. Past Service Rate (PSR): The PSR shall be increased from the 2016 rate of $744.00 for each past service year to $759.00 for each past service year, beginning January 1, 2017. (The past service rate is a defined benefit based upon years of service through December 31, 1981.)
6. Contingent Annuitant Percentage (CAP): The CAP for the surviving spouses shall remain the same for 2016. Former Nebraska and Kansas East conferences have the rate of 85%, and the rate for the former Kansas West conference is at 100%. The former Nebraska and Kansas East conferences rates will be reviewed each year with the possibility of moving the rate to 100% sometime in the future.
7. Comprehensive Protection Plan (CPP): If the new changes are approved at General Conference the Board has the following recommendations:
8. Special Pension Grants: Continue to provide Special pension grants for the following:
9. Clergy Retirement Security Program (CRSP) Funding:
10. Use of Reserves: Establish a 5% fund spending of the pension reserves to be utilized to offset Conference Staff benefit costs, with health insurance benefits coming from the share of unrestricted funds.
11. 2017 Comprehensive Funding Plan Summary
The work of the Commission on Equitable Compensation is described in ¶625 of The Book of Discipline of The United Methodist Church-2012. In the Great Plains United Methodist Conference (GPUMC) that work has been assigned to the Personnel Committee. The work of the committee is directed by ¶¶623-625 625. Its purpose is to support ordained and/or pastoral ministry in the charges of the conference by:
| Full-time Local Pastor | $35445 |
| Associate Member | $37,740 |
| Provisional Member | $40,035 |
| Full Member | $42,330 |
The Equitable Compensation/Minimum Salary fund is to provide assistance for the pastoral support of charges that are temporarily unable to fulfill their financial obligations. This assistance is provided by the conference upon application, recommendation of the district superintendent and approval of the Personnel Committee. No charge will be eligible for funds for more than three years unless missional circumstances warrant two additional years.
The charge receiving equitable compensation funds is responsible for:
The charge's district superintendent is responsible for initiating the application for Equitable Compensation funds. The superintendent also will initiate a consultation regarding the mission and sustainability of the charge. The superintendent will update the appointive cabinet on the process as needed.
The Personnel Committee will establish guidelines for the application, approval and payment of equitable compensation funds in consultation with the cabinet and conference treasurer. The Administrative Services office will also keep a history of the funds provided to each local church and charge.
1. The charge receiving equitable compensation funds is responsible for:
a. Conducting a vigorous and conscientious stewardship effort;
b. Supporting conference Mission Shares and Mission Agency Support in full;
c. Using United Methodist curriculum in its Christian education program.
d. Providing all pastoral compensation and reimbursements as required beyond base compensation.
2. The charge's district superintendent is responsible for initiating the application for Equitable Compensation funds. The superintendent also will initiate a consultation regarding the mission and sustainability of the charge. The superintendent will update the appointive cabinet on the process as needed.
3. The Personnel Committee will establish guidelines for the application, approval and payment of equitable compensation funds in consultation with the cabinet and conference treasurer. The Administrative Services office will also keep a history of the funds provided to each local church and charge.
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