As a member of the clergy, you pour a great deal of yourself into your work, and as a result, you may not be doing enough to plan for your retirement. Whether retirement is a long way off or just around the corner, the CRSP will help ensure you have some financial security to count on when you’re no longer working.
Who is eligible
You’re automatically enrolled if you are a TAC clergy receiving compensation under Episcopal appointment to a TAC church, charge, district or conference controlled entity and have eligible service after January 1, 2007.
How the CRSP works
The CRSP is subject to the rules for Internal Revenue Code 403(b) retirement plans. The CRSP has two distinct elements:
The Defined Benefit (DB) component of the plan uses a formula based on your years of service and your pay at the time you retire.
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Every month, your TAC salary-paying unit contributes 6.8% of your plan compensation to fund this component. At retirement, the plan will calculate your monthly benefit as shown:
1.25% x Denominational Average Compensation (DAC) at retirement x years of credited service
(reduced for less than full-time appointments) from 1/1/07 through 12/31/13
+
1.00% x DAC at retirement x years of credited service
(reduced for less than full-time appointments) after 12/31/13
÷ 12
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The DB component offers a number of specific payment options when you retire. You do not direct the investment of the funds in the DB component of the CRSP.
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You can use the pension-projection calculator to estimate your pension benefits.
The Defined Contribution (DC) component of the plan provides a monthly contribution into an investment account that can grow, tax-deferred, until you retire. The DC component of the CRSP is not the same as, or connected with, your UMPIP account.
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Every month, your salary-paying unit contributes 2% of your plan compensation into your CRSP DC account.
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In addition, the TAC Board of Pensions will match your personal contributions to the United Methodist Personal Investment Plan (UMPIP) up to 1% of your plan compensation.
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You direct how your account is invested among various investment fund options.
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Your contributions and their earnings grow, tax-deferred, until you withdraw them.
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You can take a lump-sum distribution of your account, a partial lump sum or cash installments.
You can monitor your retirement benefits via your online Benefits Access account at benefitsaccess.org, or you can speak to a Wespath representative at 1-800-851-2201 between 8 a.m. and 6 p.m. CT, Monday through Friday. If you have not set up your Benefits Access account, click on New User Registration at the link above.
Unsure about investing?
If you’re not comfortable making investment decisions for the DC component of your CRSP, you might consider these resources:
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Active participants, surviving spouses, and terminated and retired participants (retirees with a balance of $10,000 or more) can receive valuable investing and financial planning guidance from Ernst & Young at no charge. Just call 1-800-360-2539 between 9 a.m. and 8 p.m. ET, Monday through Friday.
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LifeStage Investment Management Service is a free investment tool that makes investment recommendations based on your age, risk tolerance and other factors.
Reserve Fund
TAC assumes all financial liability for the defined benefit (DB) component of CRSP. Since pension plans depend on market earnings, the Reserve Fund was established to help protect benefits under the DB component against market fluctuations. Your TAC salary-paying unit contributes.25% of your plan compensation to the Reserve Fund.
Sustentation Fund
Your TAC salary-paying unit contributes one-half of .75% of your plan compensation to the Sustentation Fund, which provides transition aid to clergy and congregations of TAC. It provides temporary financial assistance to clergy on incapacity leave, clergy sabbaticals and leaves of absence, as well as to interim pastors and congregations in clergy transitions, and for emergencies. It replaces the former Covenant Fund and now provides benefits for all eligible clergy.