Free
Methodist Church of North America The Free Methodist Church of North America Defined Benefit Pension Plan is designed to help provide our ministerial team with a secure source of retirement income. A person is eligible if they are: •A conference appointed pastor who receives cash compensation/ and or housing. •An employee who is employed a minimum of 25 hours per week for at least five months. The Free Methodist Church of North America pension plan requires that all appointed personnel be on the pension plan. This means that any appointed pastor (including Lay Supply pastors) are required to pay 8.5% on the salary and housing allowance (or fair rental value on church-owned home that they live in). This benefit if paid for by the local church. At the October 1999 denominational Board Of Administration meeting, a minimum contribution level was determined for participation in the pension plan. The minimum annual contribution for those participating in the FMCNA pension plan is $500. Some may ask, “What about those who receive very little compensation?” people like bi-vocational pastors, retired pastors who continue to serve, or ministerial candidates who are appointed to a church while they go to school? Does the local church pay the pastor a salary of at least $500 per month? If this is the case, the local church requires a pension contribution.
An employee must be appointed
by conference, receiving cash/housing compensation with a minimum contribution
of $500 per year per plan. An employee is an appointed pastor, ministerial
candidate, supply or superintendent of an annual conference. It is also a
person who is employed at least 20 hours a week or full-time for five months
a year by an annual conference or the World Ministries Center. As an employee,
you become eligible to participate in the plan on the January 1 following
either your employment date or the date your annual conference or organization
qualifies you for inclusion in the pension plan.
However, if someone feels the appointed individual should not be part of the plan and the church desires to provide some financial support to the individual, the support paid to the individual must be classified as something other than salary or housing.
The local church is responsible for providing medical insurance for appointed pastor/staff. The PNW Conference does have a mandatory Life Insurance and Disability program. All Conference appointed personnel must participate in the Life and Disability insurance program
What
does this mean?
1. All appointed/pensioned personnel will have $15,000 basic life insurance. Churches will be billed $4.20 a month for this benefit. You may name the beneficiary of your choice.
2. All appointed/pensioned personnel will have long-term disability insurance as follows:
The maximum amount of monthly benefit is $2,000. (The earnings include salary and housing). This coverage is required regardless of any other individual or group disability coverage you may have. Churches will be billed monthly for this premium. The maximum premium is $14.33 per month for a salary of $3,333 per month. (The pastor’s salary is multiplied by $.43 and then divided by $100. Therefore, it cost $14.33 per month. Premium for any pastor’s earnings that are less than $40K per year would be less since it is proportionate to his/her earnings).
Please contact our office if you have questions about this. Thank you.
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