Pre-Conference Workbook - North Carolina Conference of The ...

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C. Prohibition on Before-Tax Salary Reduction Contributions - Before-tax contributions under a
salary reduction agreement shall not be permitted under this Fund.
IX. Death Benefits - When a participating member of the Fund dies, the Treasurer shall pay to his or
her designated beneficiary or beneficiaries, otherwise to his or her estate, the full amount of the
base benefit payments plus the dividends, if any, added to his or her account. In the event that a
minister dies prior to the eleventh year of membership, the designated beneficiary or
beneficiaries, or otherwise the estate, shall receive the full amount of the base benefit payments
plus the assessments contributed by the participating member. In no case would the beneficiary,
beneficiaries or estate receive less at the time of the ministers death than the member’s
assessments plus simple interest credited annually at the rate of The United Methodist
Foundation, Inc., cumulative dividend yield for the most recent four quarters prior to the date of
death.
X. Designation of Beneficiary - Each member shall provide the Conference Treasurer the name(s)
of the beneficiary or beneficiaries to whom the death benefits described in Article IX are to be
paid in the event of death. The designation shall be indicated on a form provided by the
Conference Treasurer. A designation shall not be effective unless such form has been duly
completed and filed with the Conference Treasurer. In the absence of a designated beneficiary,
benefits shall be paid to the member’s estate.
XI. Irrevocable Election Regarding Distribution of Funds - Members actively serving must make,
prior to attaining age 59 1/2, an irrevocable election to either terminate from the Ministers’
Transition Fund beginning with the Annual Conference following the attainment of age 60 or to
defer termination from the Fund until retirement, as defined in the Book of Discipline, 2012,
358.1, 358.2a, 358.2b, 358.2c. Such irrevocable election is the responsibility of the member
and must be made in writing to the Conference Treasurer by age 59 1/2. Forms can be obtained
upon request from the Conference Treasurer. Should the member fail to make the irrevocable
election, the member will not terminate from this Fund until retirement.
XII. Payment of Benefits
A. In General - At retirement or early termination from the Fund, members who have accrued
the same number of years of service credited under the Fund (during the same calendar
years) will have exactly the same accrued benefit and will receive exactly the same benefit
regardless of their total individual contributions. Notwithstanding any other provision of this
Fund, all payments under this Fund must be made at least as rapidly as required under
section 401(a)(9) of the Code and any proposed or final regulations thereunder, including but
not limited to the incidental death benefit requirements of Code section 401(a)(9)(G).
In no case would the member receive less at retirement than the member’s assessments
plus interest computed at the United Methodist Foundation, Inc. cumulative dividend yield for
the four most recent quarters prior to the retirement date.
1. Ministers With Less Than Ten (10) Years. For ministers retiring between January 1
through Annual Conference, and who retire or terminate from this Fund with less than ten
(10) years credit in the Fund shall be paid in a single lump sum immediately following the
session of the Annual Conference at which he or she retires or terminates. For ministers
retiring between Annual Conference and December 31, payment shall be paid between
January 1 and January 10 of the year following the year in which the minister terminates
or retires. The benefit shall be the base benefit as prescribed in the table for retired
members under Article VI plus minister contributions.
2. Ministers With Ten (10) or More Years. A minister who retires or terminates from this
Fund with ten (10) or more years credit in the Fund must make an irrevocable election to
receive benefit payments under one of the following options. This irrevocable election
must be made no later than ninety days prior to the retirement month or month of
termination due to early retirement or disability. For either option selected, total benefit
payments shall be the base benefits as prescribed in the table plus the dividends
credited. Interest will accrue on the principal balance beginning on the later of the
retirement date or July 1 of the retirement year and will continue until the account is paid
in full. The interest rate will equal the United Methodist Foundation, Inc. cumulative
dividend yield for the four most recent quarters. All payments excluding the payment of
member assessments shall be subject to income tax.
(a) Two payment option: The first payment shall be equal to the cumulative amount
that the member has paid in assessments. The second payment shall be the
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