Catch Up Your Contributions
A match feature took effect January 1, 2014 for the Clergy Retirement Security Program (CRSP). The Church formerly contributed 3% of your plan compensation* to your CRSP Defined Contribution (DC) account. However, beginning January 1, 2014, that contribution was reduced for participants who do not contribute to the United Methodist Personal Investment Plan (UMPIP).
The Church matches 100% of your UMPIP contributions—up to 1% of your plan compensation—and deposits those matching funds into your CRSP DC account.
If you contribute at least 1% of your plan compensation to UMPIP, the Church’s contribution to your CRSP DC account is still 3%.
If you don’t contribute to UMPIP, you will receive only a 2% contribution to CRSP DC from the Church.
Earn Your Match for the Full Year
Even if you did not begin contributing to UMPIP on January 1, there is still time to earn the full CRSP match for 2014. All you have to do is catch up your contributions. Here’s how:
1. Submit a Before-Tax and After-Tax Contributions Agreement to your conference or salary-paying unit indicating the percentage of compensation you would like to contribute to UMPIP.
2. Make sure you contribute enough to make up for the months you missed. For example, if you begin contributing in June, you will have missed five months of contributions. Therefore, you could:
Contribute at least 2% of your plan compensation to UMPIP for five months, or
Contribute an extra 5% for one month, making your contribution for that month 6% of plan compensation, or
Spread your extra contributions over as many months as you choose provided you catch up by the end of the year.
3. Contribute at least 1% of your plan compensation to UMPIP for the rest of the year.
Change Your Contributions at Any Time
You can begin contributing to UMPIP or change your contribution percentage at any time by submitting a new Before-Tax and After-Tax Contributions Agreement. While averaging a 1% contribution to UMPIP for 2014 will earn you the matching funds, a higher level of contributions may better prepare you for retirement, particularly given that the CRSP Defined Benefit (DB) formula was reduced for years of service after December 31, 2013. Consider a higher level of contributions to make up for the reduction in the CRSP DB benefit formula.
The longer you wait, the more you’ll have to set aside to catch up your contributions, and you’ll miss out on potential earnings on your investments. So start saving for your retirement today!
Note: If you don’t feel that you can afford to catch up your contributions, you can still earn at least some Church contributions. Your contributions to UMPIP are matched dollar for dollar up to 1% of your plan compensation.
* Plan compensation includes the value of your parsonage, if any.
Clergy Retirement Security Program—Matching Contributions Video
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