Compass Retirement Plan
A structured, modern retirement plan for eligible United Methodist clergy
Designed exclusively for eligible United Methodist Church (UMC) clergy, the new Compass retirement plan reflects the shared commitment between the Church and its ministers to provide a sustainable and modern approach to saving for the future.
What Is Compass?
Compass is an account-based defined contribution 403(b) retirement plan. Throughout your ministry, retirement contributions made by the UMC and your personal contributions accumulate in an individual account. Compass also allows you to leave remaining retirement account balances to your beneficiaries.
Who Is Enrolled?
Enrollment in Compass is automatic for eligible clergy and requires no action on your part:
- Clergy appointed full-time to the UMC
- 50% or 75% part-time clergy, if designated by their annual conference
- Bishops
How Compass Builds Retirement Savings
Compass is built on a shared-responsibility model in which both the UMC and clergy contribute to growing retirement savings over the course of ministry.
The UMC contributes to your retirement account in three ways to support your long-term financial well-being:
- A flat monthly contribution
- A 3% of plan compensation contribution
- A dollar-for-dollar match on clergy contributions, up to 4% of plan compensation
Student Loan Matching Feature
Compass includes a unique provision that may provide matching contributions on qualifying student loan payments. When you make eligible loan payments, the plan provides a matching contribution based on your compensation, helping ensure student debt does not limit your ability to build retirement savings.
Investment Approaches
Compass offers two ways to manage retirement savings:
A professional, automated service that adjusts your investment mix over time based on age and other factors. All UMC contributions are invested through LifeStage Investment Management to support consistency and disciplined long-term growth. You can also manage your personal contributions through LifeStage Investment Management for a fully guided experience.
For clergy who prefer a more active role managing their retirement investments, personal retirement contributions may be self-managed through Wespath’s suite of investment funds.
Income Options in Retirement
When you transition to retirement, Compass provides options to turn your savings into income:
Amounts invested through LifeStage Investment Management, including all funds from UMC contributions, are distributed as monthly income through Wespath’s LifeStage Retirement Income program.
Your personal retirement contributions can also be converted into monthly income through LifeStage Retirement Income or taken as withdrawals based on your personal financial goals.