Compass

Compass is available to UMC bishops and clergy with full-time appointments who are members of annual conferences. Part-time clergy may be eligible at the annual conference's discretion.

Compass is an account-based plan with shared responsibility between clergy and the UMC. Clergy accumulate an account balance during their active ministry.

UMC Contributions

There are three types of UMC contributions:

*Increases 2% annually ($5 increments)

**Plan Compensation includes 35% for parsonage or housing allowance

UMC contributions are held in the clergy’s Compass Directed Balance, which is required to be invested and managed by LifeStage Investment Management. At retirement, Compass Directed Balance is distributed as monthly income through LifeStage Retirement Income.

  Clergy Contributions

Clergy contributions are a critical component of Compass. Clergy are encouraged to consider contributing 4% of their plan compensation early in their career to:

• Benefit from long-term investment growth
• Qualify for the full matching UMC contributions
• Take advantage of available tax benefits (when making before-tax personal contributions)

By contributing at least 4% of their plan compensation, clergy receive the full matching contribution—resulting in more dollars invested toward their retirement.

Personal contributions make up the Compass Flexible Balance. Clergy can elect LifeStage Investment Management to manage the investment of this balance or they can self-manage the investments.

Compass provides matching contributions on qualified student loan payments made by clergy so that student debt doesn’t stand in the way of saving for retirement.

If you are making qualified student loan payments, you may self-certify those payments. This allows you to receive up to the full matching contribution, even if contributions made directly from salary are reduced while focusing on loan repayment.

In retirement, Compass provides two kinds of retirement income:

• Compass Directed Balance is distributed as monthly income through Wespath’s award-winning LifeStage Retirement Income program based on clergy elections.
• Clergy have access to 100% of their Compass Flexible Balance at retirement. They can elect LifeStage Retirement Income to create monthly income or take distributions in retirement as they see fit.