New Retirement Plan Ready

The Committee on Support and Retirement (COSAR) has been working hard at putting a new retirement plan in place. (The picture is of the voting members of COSAR at their June 2008 meeting.) This became necessary with the changing of federal law about how 403b plans would change beginning January 1, 2009.

A plan has been crafted in conjunction with a company in Altoona, PA, which will meet the new laws and allow for flexibility for investing. This company, Retirement Plan Solutions (RPS), has been appointed by COSAR as our Third Party Administrator (TPA) for the plan. RPS will keep track of and file required forms. The annual fee per participant for this service will be paid by COSAR.

Investments will be with Barry C. Clapper, LPL Branch Manager for Clapper & Associates Financial Services,726A Logan Blvd.Hollidaysburg, PA 16648 (814) 943-7647 with securities offered through LPL Financial. They are a member of FINRA/SIPC.

A letter has been sent to church treasurers and pastors about this new plan. Copies of the Plan Document and a description of the plan are posted at http://sdbministry.org/Pastors.html#nrp A password is required to read the documents there. It was sent in the letter to the pastors and treasurers and is available to pastors at the Pastor's Forum. The hope is that copies of the documents can be downloaded so we don't have to make lots of copies and send them through the mail. If you want to and are unable to print these documents, please let me know.

As you read the plan please remember that this was based on a generic document that meets requirements for the IRS. Some of the information in the plan may not apply to us but it still needs to be there.

This is the way we see it operating:

An SDB Church (the participating employer, see article VIII) will officially vote to adopt this plan. Once the plan has been adopted, the pastor (employee) will contact Barry Clapper to discuss what funds will be used. There are lots of them, and this is much more individual than the previous plan now administrated by Nationwide. Funds are sent by either the Pastor or the Church Treasurer to the appropriate address for the funds selected. Clapper and Associates notifies the TPA who then keeps track and files the appropriate paperwork.

The new laws make 403b accounts more like 401k accounts with stricter regulation on how the money can be accessed prior to retirement.

The advantage for Pastors and other ordained ministry individuals is that money that is in a 403b which was placed there as a consequence of ministry service can be designated as "parsonage allowance" in retirement for the minister. A minister's widow is not eligible for this designation.