Your Retirement Won't Wait
The Clergy Retirement Security Program Defined Benefit plan (CRSP DB) provides a monthly benefit at retirement based on Denominational Average Compensation (DAC) and years of credited service. At retirement, you receive a predictable payment for life.
The CRSP DB plan was changed effective January 1, 2014 to balance adequate benefits for clergy with plan affordability and sustainability for the Church. For service before January 1, 2014, your years of service are multiplied by 1.25% of the DAC at retirement. Beginning January 1, 2014, the multiplier was reduced to 1.00% for service on or after January 1, 2014.*
Save a Little More
Even though you may be contributing enough to the United Methodist Personal Investment Plan (UMPIP) to earn your CRSP match from the Church, a higher level of contributions may better prepare you for retirement. Consider increasing your UMPIP savings to make up for the DB plan reductions. You can increase your contributions at any time by submitting a Contribution Election form to your conference or salary-paying unit.
Wespath Benefits and Investments (Wespath) can help you determine how much extra you need to save to prepare for the retirement you envision:
- EY Financial Planning Services: Wespath offers custom guidance at no charge from financial planners who are trained on Wespath-administered plans and clergy tax issues.
- Benefits Access: The participant account management website offers two projection tools—the Retirement Readiness Tool and Retirement Benefits Projection—as well as articles on saving and planning. After logging in, click "Learn More," then select a topic in the FOCUS ON YOUR GOALS menu.
* The 1.25% multiplier remains effective for all service prior to January 1, 2014.
Video: Clergy Retirement Security Program—Matching Contributions