FREE CHURCH MINISTERS AND MISSIONARIES PENSION PLAN. (As Amended and Restated Generally Effective January 1, 2016)

Transcription

1 FREE CHURCH MINISTERS AND MISSIONARIES PENSION PLAN (As Amended and Restated Generally Effective January 1, 2016)

2 TABLE OF CONTENTS Page ARTICLE I FCMM Pension Plan... 1 ARTICLE II General Definitions... 2 ARTICLE III Eligibility Provisions... 5 ARTICLE IV Contributions... 6 ARTICLE V Vesting... 8 ARTICLE VI Retirement Benefits... 9 ARTICLE VII Maximum Benefit ARTICLE VIII Trust Fund ARTICLE IX Plan Administration ARTICLE X Miscellaneous Provisions Concerning Members ARTICLE XI Claims Procedure ARTICLE XII Amendment and Termination ARTICLE XIII Interpretation APPENDICES: Appendix One Top-Heavy Provisions Appendix Two Actuarial Equivalents Appendix Three Benefits Prior to January 1, 1997 Appendix Four Benefit Increases and Improvements ( ) i

3 FREE CHURCH MINISTERS AND MISSIONARIES PENSION PLAN (As Amended and Restated Generally Effective January 1, 2016) ARTICLE I FCMM Pension Plan 1.1 Name and Purpose The Free Church Ministers and Missionaries Pension Plan, or the FCMM Pension Plan or the Plan, is sponsored and administered by FCMM, a Minnesota not-for-profit corporation organized exclusively for religious, charitable and educational purposes as permitted for organizations described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the Code ). FCMM is the church benefits board of the Evangelical Free Church of America ( EFCA ), within the meaning of section 414(e)(3)(A) of the Code, and is responsible for sponsoring and administering such benefits and other programs as it deems necessary for the benefit of ministers, lay staff workers, missionaries and other eligible persons employed by churches, districts and other organizations controlled by, associated with or under the jurisdiction of the EFCA. 1.2 History of the Plan The Plan, a section 401(a) defined benefit plan, was originally effective January 1, Effective January 1, 2004, the Plan was closed to new members and FCMM ceased accepting contributions from participating employees. This Plan was previously referred to as Option A. It has been amended from time to time. Prior to January 1, 2013, the Plan was part of the Free Church Ministers and Missionaries Retirement Plans, which was administered by the Trustees of FCMM, a division of the EFCA, and included the Free Church Ministers and Missionaries Retirement Plan (the Retirement Plan ), a section 403(b)(9) defined contribution plan. In 2012, the EFCA incorporated FCMM as a separate not-for-profit corporation and appointed FCMM as the successor to the Trustees of FCMM. Effective as of January 1, 2013, the terms of the FCMM Pension Plan and the terms of the Retirement Plan are set forth in separate plan documents to assist FCMM in more easily administering both plans. The FCMM Pension Plan is now generally amended, restated and continued effective January 1, 2016, except as otherwise noted herein. 1.3 Construction The FCMM Pension Plan is intended to be a church plan as described in section 414(e) of the Internal Revenue Code of 1986 (the Code ) and Section 3(33) of the Employee Retirement Income Security Act of 1974 ( ERISA ). The Plan has not elected to be subject to ERISA. The Plan shall be construed and administered in accordance with the laws of the State of Minnesota. 1

4 ARTICLE II General Definitions 2.1 Definitions As used in this instrument, the following words and phrases shall have the meanings respectively indicated, unless expressly provided otherwise. (a) Accrued Benefit means, for any Member as of any date and subject to Article VII, the sum of the amount of benefit earned to such date, payable monthly as a single life annuity beginning at the Member s Normal Retirement Date (or immediately, if the Member has passed his Normal Retirement Date and is still an Active Member) calculated in accordance with Section 6.1. (b) Actuarial Equivalent means such amount or amounts of equivalent value as may be determined by the Plan s actuary. Except as otherwise provided in this Plan, Actuarial Equivalents shall be determined pursuant to such factors, methods and assumptions as are set forth in Appendix Two to the Plan. Appendix Two may be modified from time to time, in whole or in part, by FCMM in their discretion. (c) Annual Compensation is defined as follows: (i) The Annual Compensation of a Member (other than a missionary) on which the contributions are based shall consist of the annual cash salary for the year in which the contribution is made but including any amounts which are excludable from gross income under Sections 125, 132(f), 401(k), 403(b) of the Code and, if any, the rental value of a home or parsonage, or the housing or parsonage allowance, including utilities and other items permitted to be included in the housing allowance, that is furnished as a part of the Member s compensation. (ii) The Annual Compensation of a Member who is a missionary on which the contributions are based, shall be such dollar amount as is determined from time to time by the appropriate Board of Missions of the EFCA. (iii) The Annual Compensation taken into account under the Plan shall not exceed the maximum amount permitted to be taken into account under section 401(a)(17) of the Code. For purposes of determining benefit accruals in a Plan Year beginning after December 31, 2001, Annual Compensation shall be limited to $150,000 for any determination period beginning in 1996 or earlier (or such other amount as was provided by section 401(a)(17) as of the last day of such year); $160,000 for any determination period beginning in 1997, 1998, or 1999; and $170,000 for any determination period beginning in 2000 or (d) Administrator means FCMM or any FCMM committee, person or organization appointed by FCMM and charged with the responsibility of administering this Plan. 2

5 (e) Annuity Starting Date means the first day for which an amount is payable as an annuity or, in the case of a benefit not payable in the form of an annuity, the date as of which the benefit is paid. (f) Beneficiary or Beneficiaries means that person or those persons who are from time to time designated by a Member in writing as described in Section (g) Board of Missions means the ReachNational or the ReachGlobal department of the EFCA responsible for the commissioning, assigning and supervision of persons serving as national or foreign missionaries of the EFCA and such other responsibilities as may be delegated from time to time. (h) Code means the Internal Revenue Code of 1986, as amended. (i) Compensation Credits means the credits described in Section 4.2. (j) Disability Retirement Date means the first day of the month next following the Member s retirement upon becoming Disabled. (k) Disability or Disabled means, as determined in the sole discretion of the Administrator, the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued or indefinite duration. The permanence and degree of such impairment must be supported by medical evidence. (l) Early Retirement Date means the first day of the month next following the date that the Member attains age 59 ½. (m) EFCA means the Evangelical Free Church of America, a not-for-profit corporation organized under the laws of the State of Minnesota. (n) Effective Date of the restated Plan means January 1, (o) Employee means any person employed with a Qualified Employer that participates in the Plan. (p) FCMM means the not-for-profit corporation organized by that name under the laws of the State of Minnesota. (q) FCMM Pension Plan or Plan means the 401(a) defined benefit pension plan described in this instrument and administered by the FCMM for the benefit of Members and their Beneficiaries. (r) Late Retirement Date means, in the event a Member remains employed by a Qualified Employer beyond his Normal Retirement Date, the first day of the month next following the Severance from Employment. (s) Limitation Year means the Plan Year. 3

6 (t) Member means an individual who has an Accrued Benefit under this Plan. (u) Normal Retirement Date means the first day of the month next following the Member s sixty-fifth birthday. (v) Plan Year means any fiscal year commencing on January 1 of any given calendar year and terminating on December 31 of the same calendar year. (w) Qualified Employer means a church, district, camp, school or other organization controlled by, associated with or under the jurisdiction of the EFCA, which, by appropriate action of its governing body and subject to the approval of FCMM, agreed to enroll in and participate in the provisions of this Plan. (x) Qualified Employer Pension Contributions means any amount paid to the Plan by a Qualified Employer with respect to a Member and held in the Trust Fund. (y) Required Beginning Date means, with respect to any Member, the first day of April following the later of the calendar year in which the Member has a Severance from Employment or the Member attains age 70½. (z) Severance from Employment means, for any Member, the termination of his or her employment with a Qualified Employer. A change in service from one Qualified Employer to another Qualified Employer does not constitute a Severance from Employment under this Plan, unless such change takes more than 24 consecutive months or such other time period as determined by the Administrator. (aa) Spouse means a Member s married partner as determined by biblical Christian church orthodoxy, namely that marriage is the union of one man and one woman. (bb) Trust Fund or Trust means the corpus of the trust created by this instrument to provide the benefits in the Plan, which shall be held by FCMM, as sole trustee, under the provisions of this Plan. Trust assets shall be applied solely for purposes of providing Plan benefits and paying corresponding reasonable administrative expenses. (cc) Valuation Date means the last day of each Plan Year, and any interim date on which FCMM determines a valuation of the Trust Fund shall be made. 4

7 ARTICLE III Eligibility Provisions 3.1 Eligibility Each Employee participating in the Plan on December 31, 2014 shall continue participation hereunder, according to the terms of the amended and restated Plan. Notwithstanding any provision in the Plan to the contrary, no Employee was eligible to become a Member in the Plan after December 31,

8 ARTICLE IV Contributions 4.1 Qualified Employer Pension Contributions For Plan Years prior to January 1, 2004, there shall be paid to the Trust Fund from the Qualified Employer with regard to each Member, a Qualified Employer Pension Contribution or Contributions not to exceed in total fifteen percent (15%) of the Member s Annual Compensation during any Plan Year. Each Qualified Employer shall establish annually a contribution rate for its Members. A Qualified Employer may establish different contribution rates for different classes of Members, provided that the Member classifications are reasonable and based on objective standards. (a) Effective January 1, 2004, the Administrator shall not accept any additional Qualified Employer Pension Contributions pursuant to Section 4.1(a) on behalf of any Members. 4.2 Compensation Credits For Plan Years prior to January 1, 2004, a Member s Compensation Credits for a Plan Year are the product of his annual Qualified Employer Pension Contribution made on behalf of the Member in that year times a multiple which is determined as follows: (a) For Qualified Employer Pension Contributions made before January 1, 1998, the multiple is equal to that specified in Appendix Three; (b) For Qualified Employer Pension Contributions made on or after January 1, 1998 and before the Member s Normal Retirement Date, the multiple is equal to ten (10) times the future value factor (as determined by FCMM) from the date the contribution was made to the Member s Normal Retirement Date using 6% interest per annum; and (c) For Qualified Employer Pension Contributions made on or after January 1, 1998 and after the Member s Normal Retirement Date, the multiple is equal to ten (10) times the future value factor (as determined by FCMM) from the date the contribution was made to the Member s actual retirement date. For Plan Years beginning on or after January 1, 2004, a Member s Compensation Credits as of the last day of the prior Plan Year shall be increased using 6% interest per annum. Effective January 1, 2015, a Member's Compensation Credits shall only be increased to the extent that an ad hoc increase under Section 4.3 is granted by the FCMM, in its sole discretion. 4.3 Interest Credits Should Pension Plan assets, due to favorable investment and actuarial experience, be accumulated over and above those required for actuarial reserves and any other reserves, FCMM may award each Member with interest credits based on his Accrued Benefit. No person shall have a right to any such apportionment unless and until it has been authorized, and such 6

9 authorization, availability of funds, determination of eligibility and manner of distribution shall be solely in the discretion of FCMM. 7

10 ARTICLE V Vesting 5.1 Vesting A Member shall always be 100% vested in his Accrued Benefit. 8

11 ARTICLE VI Retirement Benefits 6.1 Normal Retirement Benefit (a) A Member who retires on his Normal Retirement Date shall be entitled to receive a normal retirement benefit as calculated in Subsections (b) and (c) below. (b) The normal retirement benefit is calculated as follows: (i) for Compensation Credits accrued before January 1, 1998, a monthly payment of 1/12 of one and three-fourths percent (1.75%) of all such Compensation Credits on behalf of such Member, and (ii) for Compensation Credits accrued on or after January 1, 1998, a monthly payment of 1/12 of one percent (1%) of all such Compensation Credits on behalf of such Member. FCMM may set such other percentage as it deems appropriate as of any January 1, which percentage will apply to contributions made on or after such date and until a new percentage is set. (c) In the event a Member has made a withdrawal election under Section 6.8, his normal retirement benefit shall be calculated as follows: (i) before January 1, 1998, based upon the amount of Compensation Credits on his behalf as of the date of termination, adjusted to reflect any amount previously withdrawn under Section 6.8, and (ii) after January 1, 1998, based upon the amount of Compensation Credits on his behalf as of the date of termination, less the Compensation Credit reduction described in the last sentence of Section 6.8(c). (d) For a Member with no Spouse as of his Annuity Starting Date, the normal form of benefit is a pension payable monthly, commencing on his Normal Retirement Date and continuing throughout his life. For a Member with a Spouse as of his Annuity Starting Date, the normal form of benefit is a qualified joint and survivor annuity with 100% of the amount payable during the life of the Member payable to the Member s Spouse on the death of the Member. If the Beneficiary dies before the Member, there shall be no increase in the amount of the payments, and the Member may not select another Beneficiary. 6.2 Early Retirement Benefit A Member who retires on his Early Retirement Date may elect to receive a monthly pension commencing on or after his Early Retirement Date and continuing during his lifetime. The Member may elect to defer receipt of such pension to any date no later than his Required Beginning Date. The Early Retirement Benefit is a monthly amount which is the Actuarial Equivalent of his normal retirement benefit (described in Section 6.1) accrued to such Early 9

12 Retirement Date, adjusted for early commencement using the factors contained in Appendix Two. 6.3 Late Retirement Benefit If a Member reaches his Normal Retirement Date and continues in employment, the Member may elect to defer payment of his benefit until his actual retirement, at which time he will receive a benefit which is the Actuarial Equivalent of his Accrued Benefit as of his Normal Retirement Date together with the benefit accrued after his Normal Retirement Date, adjusted for late commencement using the factors contained in Appendix Two. 6.4 Disability Retirement Benefit A Member who has a Disability Retirement Date will receive a monthly pension commencing on his Disability Retirement Date and continuing during his lifetime. The Member may elect to defer receipt of such pension to any date but no later than his Required Beginning Date. The Disability Retirement Benefit is a monthly amount which is the Actuarial Equivalent of his normal retirement benefit (described in Section 6.1) accrued to such Disability Retirement Date, adjusted for early commencement using the factors contained in Appendix Two. 6.5 In-Service Commencement of Benefits Notwithstanding the foregoing, a Member remaining in the employ of a Qualified Employer upon his attainment of age 62 shall be entitled to commence benefits under this Article VI at his election. 6.6 Optional Retirement Benefits A Member may elect to receive an optional form of retirement benefit in lieu of the normal form of benefit described in Section 6.1(d). The amount of monthly pension payable under an optional form shall be the Actuarial Equivalent of the amount payable under the normal form of benefit determined using the factors contained in Appendix Two. The optional forms available are the following: (a) A benefit payable during the lifetime of the Member, with a minimum of 60 or 120 monthly guaranteed payments, as elected by the Member. If the Member dies before the expiration of the guaranteed period, the remaining payments shall be made to his Beneficiary. (b) A joint and 100% survivor benefit payable so long as either the Member or his Beneficiary survive. If the Beneficiary dies before the Member, there shall be no increase in the amount of the payments, and the Member may not select another Beneficiary. (c) A joint and ⅔ survivor benefit payable during the joint lifetime of the Member and his Beneficiary and continuing to the survivor after the first death in an amount equal to twothirds (⅔) of the original amount. (d) A single-sum distribution payable as soon as administratively possible following the completion of benefit commencement forms designated by FCMM. Notwithstanding the 10

13 foregoing, at the Member s election, such distribution may be payable in installments pursuant to a payment schedule agreed upon by both the Member and the Administrator. The single-sum amount shall equal the Actuarial Equivalent of a Member s Accrued Benefit, adjusted using the factors contained in Appendix Two. This optional form of retirement benefit is only available to Members with benefit commencement dates between January 1, 2009 and April 1, (e) Any other optional form of benefit that is Actuarially Equivalent to the Normal Form of Benefit, and which form is mutually agreeable to the Member and FCMM. If a Beneficiary is not the Member s Spouse, the percentage payable to the Beneficiary after the Member s death shall not be greater than the applicable percentage determined under Table I attached as part of Appendix Two. If payments are made in the form of monthly installments, the number of such installments may not exceed the factor from Table II of Appendix Two multiplied by twelve (12). 6.7 Small Benefit Payments Notwithstanding any other provision of the Pension Plan, if the Actuarial Equivalent single-sum value of a Member s Accrued Benefit does not exceed $10,000, such benefit may be paid in a single sum as soon as practicable after the Member s Severance from Employment with the consent of the Member. Such payment, up to $1,000, may be made at the sole discretion of the Administrator. 6.8 Benefits on Termination of Employment (a) A Member who leaves the employ of a Qualified Employer prior to his Early Retirement Date shall receive a monthly pension commencing as of his Early Retirement Date and continuing for his lifetime. The Member may elect to defer receipt of his pension to any date but no later than his Required Beginning Date. The benefit is a monthly amount which is the Actuarial Equivalent of his benefit described in Section 6.1 accrued through his Annuity Starting Date, and adjusted for early commencement using the factors contained in Appendix Two. (b) A Member who leaves the employ of a Qualified Employer prior to his or her Annuity Starting Date has a one-time option to elect a single-sum distribution of all Qualified Employer Pension Contributions made to the Plan on his behalf. This option is only available to Members who have a Severance from Employment between January 1, 2009 and April 1, (c) Effective January 1, 1998, if a Member makes a withdrawal under this Section 6.8, the Member s Compensation Credits shall be reduced by an amount equal to the amount of Compensation Credits that would have been credited had the amount withdrawn been contributed on the date withdrawn. 6.9 Benefits on Death of Member (a) The Beneficiary of a deceased Member shall receive the Actuarial Equivalent of the Member s Accrued Benefit, minus any amounts previously withdrawn from the Plan; provided, however, that no such payment to the Beneficiary of a Member who was actively employed by a Qualified Employer as of the date of his death and who dies prior to his Annuity 11

14 Starting Date shall be less than $10,000, minus any amounts previously withdrawn from the Plan. (b) The death benefit shall be payable in a single-sum, or at the option of his Beneficiary, a life-only annuity (beginning on or after the date the Member would have reached his Early Retirement Date) or an installment form of payment which is Actuarially Equivalent to the single-sum death benefit. Any such election by a Beneficiary must be in writing, must be made prior to the time any payments are made and shall be irrevocable. (c) If the Member dies after his Annuity Starting Date, the remaining portion of such interest will continue to be distributed at least as rapidly as under the method of distribution being used prior to the Member s death. If the Member dies before his Annuity Starting Date, his entire benefit shall be distributed by December 31 of the fifth year after the year of his death, unless the remainder of his benefit is payable to a designated Beneficiary over the life of such Beneficiary (or over a period not extending beyond the life expectancy of such Beneficiary) and such distribution begins not later than December 31 of the year after the year of the Member s death or if the Beneficiary is the Member s Spouse, such distribution begins not later than December 31 of the later of the year following the year of the Member s death or the calendar year in which the Member would have reached age 70½ had he lived Benefit Increases Benefit increases may be granted from time to time at the discretion of FCMM. Such increases may be applied to the amount of Compensation Credits for those not yet retired or in the amount of pension being received for pensioners, or in both situations. A list of increases is set forth in Appendix Four Benefit Commencement Date Notwithstanding any other provision of the Plan, distribution to a Member must commence no later than his Required Beginning Date. All distributions under this Plan to a Member or Beneficiary shall at least comply with the applicable minimum requirements of section 401(a)(9) of the Code and the regulations thereunder although the Plan may provide for more generous or rapid distributions than otherwise required Direct Rollovers (a) Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee s election hereunder, a distributee may elect, at the time and in the manner prescribed by the Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. (b) Section Definitions. The following definitions shall apply for purposes of this 12

15 (i) Eligible rollover distribution. (A) An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee s designated Beneficiary, or for a specified period of ten years or more; and any distribution to the extent such distribution is required under section 401(a)(9) of the Code. (ii) Eligible retirement plan. An eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, a Roth individual retirement plan described in section 408A(b) of the Code, an annuity plan described in section 403(a) of the Code, an annuity contract or account described in section 403(b) of the Code, an eligible plan under section 457(b) of the Code that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that agrees to separately account for amounts transferred into such plan from this Plan, or a qualified trust described in section 401(a) of the Code, that accepts the distributee s eligible rollover distribution. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former Spouse who is the alternate payee under a qualified domestic relation order, as defined in section 414(p) of the Code. However, in the case of an eligible rollover distribution to a non- Spouse Beneficiary, an eligible retirement plan is an individual retirement account, an individual retirement annuity, or a Roth individual retirement plan. (iii) Distributee. A distributee includes an employee or former employee. In addition, the employee s or former employee s surviving Spouse and the employee s or former employee s Spouse or former Spouse who is the alternate payee under a qualified domestic relations order, as defined in section 414(p) of the Code, are distributees with regard to the interest of the Spouse or former Spouse. A distributee also includes a non-spouse Beneficiary designated by a Member under Section (iv) Direct rollover. A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee Distributions Each Member (or, in the event that a Member has died, such Member s Beneficiary) shall receive the Member s Accrued Benefit (or death benefit, as applicable) in the manner described in this Article VI. 13

16 ARTICLE VII Maximum Benefit 7.1 Maximum Benefit In no event shall benefits under the Pension Plan violate the applicable limitations for a Limitation Year set forth in section 415 of Code and the regulations thereunder, which are hereby incorporated into this Plan. 14

17 ARTICLE VIII Trust Fund 8.1 Trust Fund The benefits provided in this Plan are to be paid from the Trust Fund. FCMM shall serve as the sole trustee of the Trust Fund. 8.2 Investment of Trust Fund FCMM shall have the sole responsibility for the investment and re-investment of the Trust Fund (including each sub-fund), and full and unrestricted power and authority to invest and re-invest the same as a common trust fund without distinction between principal and income, in each and every kind of property, real, personal, or mixed, including oil, gas and other mineral interests, and every kind of investment, specifically including, but not by way of limitation, bonds, debentures and other individual or corporate obligations, insurance or annuity policies, and preferred and common corporate stocks, including mutual funds, which an ordinarily prudent person of discretion and intelligence who is a trustee of the property of others would acquire as such trustee. FCMM shall also have full power and authority to hold cash funds uninvested without liability for interest thereon, in such amounts and for such period of time as they shall determine to be advisable. FCMM is further specifically given the right to commingle the assets of this Plan with the assets of another retirement plan sponsored by FCMM and to enter into contractual arrangements with the EFCA under the terms of which all or any part of the Trust Fund may be placed in a common trust fund with other trust funds of the EFCA, for the purpose of investment only, provided that all commingled funds are separately accounted for by FCMM or the EFCA, as applicable. This Plan is intended to be exempt from federal and state securities laws. 8.3 Powers and Duties With Respect to Trust Fund FCMM shall have the sole legal and equitable title to the Trust Fund from time to time held, acquired or received by them under the terms of the Plan. It shall be the responsibility of FCMM to invest and re-invest the Trust Fund; to disburse monies and other properties from the Trust Fund; and to perform such other duties as are specifically delegated to FCMM hereunder. FCMM shall have the right, power and authority to do each and every act and thing and to enter into and carry out each and every agreement with respect to the Trust Fund which may be necessary or advisable to discharge their responsibilities, and without limiting the generality of the foregoing, and in addition to all other powers and authority herein elsewhere specifically granted to FCMM, and those powers granted FCMM by the laws of the State of Minnesota, as amended from time to time. 8.4 Rights of Members in Trust Fund No employee, Member, or Beneficiary shall have any right to, or interest in, any part of the Trust Fund, upon termination of employment, retirement or otherwise, except as provided under this Plan and only to the extent provided herein. All payments of benefits provided for in 15

18 this Plan shall be made or provided for only out of the appropriate sub-fund of the Trust Fund, and neither the EFCA, the Qualified Employer, nor FCMM shall be liable therefor in any manner or to any extent. 8.5 Records and Accounts FCMM shall keep accurate and detailed records and accounts of its administration of the Trust Fund and of all investments, receipts and disbursements and other transactions hereunder. FCMM shall make such filings as are required of church plans under federal and state laws. 8.6 Plan Expenses The reasonable and necessary expenses incurred by FCMM in administering the Plan shall be paid by the Trust Fund. 16

19 ARTICLE IX Plan Administration 9.1 Responsibility for Plan Administration FCMM shall have full power and authority to administer the Plan in accordance with their terms, which shall be executed by FCMM, the Administrator or other delegate. 9.2 Powers and Duties FCMM or its delegate shall administer the Plan for the exclusive benefit of the Members and their Beneficiaries. FCMM or its delegate will administer the Plan in accordance with its terms and will have the power and sole discretion to construe the terms of the Plan and to determine all questions arising in connection with the administration, interpretation, and application of the Plan. Any such determination by FCMM or its delegate will be conclusive and binding upon all persons. FCMM, in addition to all powers and authorities under common law, statutory authority, and other provisions of the Plan, will have the following powers and authorities, to be exercised in its sole discretion (or in the sole discretion of its delegate): (a) To establish procedures, correct any defect, supply any information, or reconcile any inconsistency in such manner and to such extent as may be deemed necessary or advisable to carry out the purpose of the Plan. (b) To determine all questions relating to the eligibility of an individual to remain a Member hereunder and to receive benefits under the Plan. (c) To compute the amount and the kind of benefits to which any Member or Beneficiary may be entitled hereunder and to prescribe procedures to be followed by Members and Beneficiaries when applying for benefits. (d) To construe and interpret the Plan and adopt such administrative rules or regulations relating to the Plan as are consistent with the terms hereof, and to resolve or otherwise decide matters not specifically covered by the terms and provisions of the Plan. (e) To maintain all necessary records for the administration of the Plan. (f) To obtain from the EFCA, Qualified Employers, Members and Beneficiaries, such information as may be necessary to the proper administration of the Plans. (g) To assist any Member or Beneficiary to understand his or her rights, benefits, or elections available under the Plan. (h) To decide the validity of any election or designation made under the Plan, and the amount, manner and time of any allocation to accounts or payment of any benefits hereunder; and to make factual determinations necessary or appropriate for such decisions or determination. 17

20 (i) To appoint or employ advisors, including legal and actuarial counsel (who may also be counsel to the EFCA or FCMM) to render advice with regard to any responsibility of FCMM under the Plan or to assist in the administration of the Plan. (j) (k) To select annuity providers (if applicable) to provide benefits from the Plan. To delegate duties and power to third parties. (l) To adopt reasonable procedures for determining whether any order, judgment, or decree constitutes a qualified domestic relations order and to notify the Member and all alternate payees as to the results of its determination. Plan. (m) (n) To determine from time to time the status of all Members and Beneficiaries of the To direct distributions from the Plan. (o) To do all other acts that FCMM or its delegate deem(s) necessary or proper to accomplish and implement the terms of the Plans. FCMM shall, from time to time, make such rules and regulations as it, in its sole discretion, deems necessary or appropriate to administer the Plan or any part thereof. Any rule or procedure adopted by FCMM or its delegate, or any decision, ruling, or determination made by the FCMM or its delegate, in good faith and in accordance with applicable fiduciary standards will be final, binding and conclusive on all Qualified Employers, Members, Beneficiaries and all persons claiming through them. FCMM or its delegate has discretionary authority to grant or deny benefits under this Plan. Benefits under this Plan will be paid only if FCMM or its delegate decides in its sole discretion that the applicant is entitled to them. Rules and procedures adopted in accordance with this Article IX may vary any provision of the Plan that are administrative or ministerial in nature (including the time provided for performing any act, if not required by law), without the necessity of a formal amendment. 9.3 Limitation on Liability FCMM shall have no liability or responsibility whatsoever for any loss or depreciation in the Trust Fund and shall not be liable for any action taken by it pursuant to this Article IX. 9.4 Indemnity FCMM shall jointly and severally indemnify the Administrator and its delegate, save and hold them harmless from any and all loss, cost, damage or expense which they or any of them may incur or sustain arising out of the administration of the Plan, except to the extent that the same shall result from the willful misconduct or gross negligence on the part of the Administrator or its delegate. 18

21 ARTICLE X Miscellaneous Provisions Concerning Members 10.1 Conditions Precedent to Receipt of Benefits No Member shall be entitled to any benefit hereunder until his right thereto shall have been finally determined by FCMM, and until he shall have submitted to FCMM, in such form as FCMM shall require, all data requested, including but not limited to, proof of date of birth. FCMM shall not incur any liability to any Member by acting upon any notice, authorization, request, consent, instructions or document believed by them, in good faith, to be genuine and to have been given by the proper person or persons, or by acting in reliance upon any provision of this instrument. In the event any question shall arise as to the name or identity of any Member or Beneficiary to whom the payments or distributions of any of the assets under the Plans shall be made, or as to the validity, applicability, enforceability or effect of any provision of this instrument purporting to govern the distribution of assets, the payment or distribution may be withheld until indemnity in form and amount satisfactory to FCMM shall have been received Discharge This instrument shall never vest in any Member any right to be retained in the employ of a Qualified Employer, and nothing herein contained shall ever be construed as in any way limiting or restricting the right of any such employer to terminate the employment of any Member Non-alienation of Benefits The benefits hereunder are intended for the personal protection of the Members and Beneficiaries as herein provided. No benefit under this Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void; nor shall any such benefit be in any manner liable for or subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such benefits, except pursuant to a Federal tax levy made pursuant to section 6331 of the Code. Notwithstanding the foregoing, the Administrator shall honor the terms of a domestic relations order that the Administrator determines to satisfy the applicable requirements of section 414(p) of the Code as described in Section Facility of Payment Whenever, in the opinion of FCMM or its delegate, a person entitled to receive any payment of a benefit under the Plan is under a legal disability or is incapacitated in any way so as to be unable to manage such person s financial affairs, FCMM shall make payments directly to the person or to the person s legal representative, or apply any such payment for the benefit of the person in such manner as FCMM or its delegate deems advisable. The decision of FCMM or its delegate, in each case, shall be final, binding and conclusive upon all persons ever interested hereunder. FCMM and its delegate shall not be obligated to see to the proper application or 19

22 expenditure of any payment so made. Any benefit payment (or installment thereof) made in accordance with the provisions of this Section 10.4 shall completely discharge the obligation for making such payment under the Plan Unclaimed Benefits If a Member or a Beneficiary fails to properly claim a benefit due under the Plan prior to the date such benefit is required to be paid under the terms of the Plan or by law, and there is no current mailing address on file in the Plan s records, FCMM or its delegate shall send a letter to the last known address of the Member or Beneficiary indicating that the Member or Beneficiary has two years from the date he or she became eligible to receive the benefit to claim such benefit. If the Member or Beneficiary fails to claim the benefit within the specified period, the Member or Beneficiary shall be deemed, in accordance with rules and regulations adopted by FCMM or its delegate, to have relinquished any benefit that may be payable to the Member or Beneficiary. Upon relinquishment, the benefit shall be considered to have been refused and forfeited and, in the case of a benefit refused and forfeited by a Beneficiary, shall cause the benefit to be paid to the secondary Beneficiary or default Beneficiary in accordance with the Plan. If the last default Beneficiary does not claim the benefit within a two-year period commencing on the date on which he or she became eligible to receive the benefit, the full commuted value or amount of said benefit or payment shall be paid into the reserve funds of the Plan and no person shall have a further right or claim to the same. FCMM or its delegate shall prescribe uniform and nondiscriminatory rules for carrying out this provision Rights of Veterans Notwithstanding any provision of the Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with section 414(u) of the Code. In the case of a Member who dies while performing qualified military service, the survivors of the Member are entitled to any additional death benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan had the Member resumed and then terminated employment on account of death. This provision shall be applied in accordance with guidance issued by the Treasury Department under section 401(a)(37) of the Code Beneficiary Designation (a) A Member shall have the right from time to time to designate a Beneficiary or Beneficiary to receive payment of the Member s Accrued Benefit under these Plans upon his or her death. If a Member is married, the Member s Beneficiary shall be his or her Spouse unless the Spouse consents in writing to the Member s change of Beneficiary on a prescribed form. Such designation shall be in writing, shall be made on a form supplied by FCMM or the Administrator, and shall be effective only when received by FCMM or the Administrator during the lifetime of the Member. Each Beneficiary designation will cancel all prior Beneficiary designations filed by the Member. If a Member marries or remarries after completing a Beneficiary designation form, the Member s marriage will cancel all prior Beneficiary 20

23 designations filed by the Member and the Member s Beneficiary shall be his or her Spouse, provided that the Member and his or her Spouse have been married for at least one year, and such cancellation shall remain in effect until the Member completes another Beneficiary designation form. (b) In the absence of a written Beneficiary designation by a Member, the Beneficiary shall be the Member s surviving Spouse, and if the Member is not survived by a Spouse, the Beneficiary shall be the Member s heirs at law, as determined in accordance with the laws of descent and distribution of the state of residence of the Member at the time of his or her death. (c) A Member s divorce shall revoke any Beneficiary designation in favor of the Member s Spouse made prior to the divorce. Until such time as a new Beneficiary designation is filed with FCMM or the Administrator in accordance with this Section 10.7, benefits will be payable as if the former Spouse had predeceased the Member Effect of Member s Divorce A Spouse, former Spouse or natural or legally adopted child ( Alternate Payee ) may, in the event of a divorce between the Member and such Member s Spouse, become entitled to receive a portion of the Member s Accrued Benefit under Plan. Such a benefit (or a portion thereof) shall only be payable to an Alternate Payee pursuant to a domestic relations order issued by a court of competent jurisdiction and approved by the FCMM or the Administrator. No such order shall be valid and binding upon FCMM or the Administrator if the order entitles an Alternate Payee to receive a benefit that (i) requires any type or form of benefit, payment or option not permitted under the respective Plans, (ii) requires the acceleration of any benefit payment under the Plans, (iii) requires the Plans to pay benefits in excess of the amount determined to be the Member s Accrued Benefit, or (iv) requires the payment of benefits which already are being paid to another Alternate Payee pursuant to a previous domestic relations order issued by a court of competent jurisdiction. Under no other circumstances will an Alternate Payee be entitled to receive any benefits under this Plan. Any benefit payable to an Alternate Payee shall reduce the amount of any benefit that would otherwise, absent the benefit payable to the Alternate Payee, have been payable to the Member or any succeeding Spouse or Beneficiary of the Member, as the case may be, to the extent of the benefit payable to the Alternate Payee. 21

24 ARTICLE XI Claims Procedure 11.1 Claims A Member or Beneficiary may make a claim for Pension Plan benefits by filing a written request with the Administrator Claims Denials If a claim is wholly or partially denied, the Administrator will furnish the Member or Beneficiary with written notice of the denial within 90 days (180 days in special circumstances and with prior notice of the extension to the claimant) of the date the original claim was filed. The notice of denial will specify: (a) (b) the reason for denial; specific reference to pertinent Plan provisions on which the denial is based; (c) a description of any additional information or requirements needed to be eligible to obtain the denied benefit and an explanation of why such information or requirements are necessary; and (d) an explanation of the review procedure Request for Review The Member or Beneficiary will have 60 days from receipt of the denial notice in which to make written application for review by FCMM. The Member or Beneficiary will have the right to representation (at his own expense and without any assistance from FCMM), to review pertinent documents, and to submit comments in writing. FCMM will issue a decision on such review within 60 days (120 days in special circumstances and with prior notice of the extension to the claimant) after receipt of an application for review. 22

25 ARTICLE XII Amendment and Termination 12.1 Amendment (a) The Plan is intended to be permanent, however, it may be amended as described in this Section (b) The right to alter or amend the Plan is reserved solely to FCMM. FCMM, in its sole discretion, shall the right, from time to time, to amend the Plan. Notice of any amendment to the Plan shall be provided by the Administrator to the EFCA, Members and Qualified Employers in such manner as the Administrator deems reasonable and appropriate based on the nature of the amendment. (c) Notwithstanding the foregoing, no amendment shall attempt or purport to provide for the use or diversion of any Plan funds to purposes other than for the exclusive benefit of Members their Beneficiaries, except as provided in Section 12.2, unless such amendment shall be necessary, and then only to the extent necessary, to make the either Plan comply with any applicable law, regulation or order or with such provisions of the Code and regulations issued thereunder as must be complied with to qualify the Plan as affected thereby as exempt from taxation under the Code Termination of a Plan The Plan may be terminated at any time by action of FCMM, in its sole discretion. In the event of a termination, the entire funds shall be applied to the extent adequate for the following purposes, in the following order of priority: (a) To provide for all Members and for Beneficiaries of deceased Members, who are entitled at the time to receive benefit payments from the Plan, the full value of their Accrued Benefits. (b) To provide for all Members the full value of their respective Accrued Benefits to the extent that provision is not made therefor under Paragraph (a) hereof. (c) Any amount remaining after satisfaction of the liabilities described in paragraphs (a) and (b) above shall be distributed to FCMM unless otherwise required by law. (d) In the event the Trust Fund shall not be sufficient to provide in full for all benefits specified in any one of the preceding Paragraphs, the benefits to be provided under such paragraph shall be pro-rated in proportion to the value of the respective benefits which would be provided under such paragraph if the Trust Fund was sufficient. All determinations of value required or advisable to be made in order to carry out the foregoing provisions hereof shall be made by FCMM, which shall also determine the method and manner in which such benefits shall be distributed to the persons entitled thereto. 23

26 12.3 Merger or Transfer of Plan (a) The Plan may be merged or transferred at the end of any calendar quarter ( End Date ) into another church 401(a) or 403(b) plan maintained by FCMM at its sole discretion. A Member s or Beneficiary s Accrued Benefit immediately after the merger or transfer shall be equal to or greater than the Member or Beneficiary s Accrued Benefit immediately before the merger or transfer, and such Accrued Benefit shall be nonforfeitable after the merger or transfer. (b) Prior to any merger or transfer of this Plan into another plan, in the event that Plan assets are less than Plan liabilities, a Member or Beneficiary s Accrued Benefit account value will be valued in the following manner: (i) The Plan shall provide for the return to all Members and Beneficiaries of deceased Members of any Contribution made by Qualified Employers (and in the case of Beneficiaries of deceased Members, of the contributions made by Qualified Employers of the decedent) to the extent that such Contributions shall not have been returned by benefit payments. (ii) The Plan shall provide for all Members and Beneficiaries of deceased Members who are receiving annuity benefit payments from the Plan and who are 80 years of age or older as of the End Date, and for all Members and Beneficiaries of deceased Members whose benefit payments commenced before the Plan was frozen on January 1, 2004, the continued payment of benefits with no reduction. Sufficient funds shall be set aside to fund these payments from the Plan. (iii) The Plan shall provide for all Members and Beneficiaries of deceased Members who are receiving annuity benefit payments from the Plan and who are under 80 years of age as of the End Date and whose benefit payments commenced on or after January 1, 2004, cessation of annuity benefit payments as of the End Date and adjustment of each Member s or Beneficiary s account value as described in subsection (v) below based on the Plan s value as of the End Date. (iv) The Plan shall provide for all Members and Beneficiaries of deceased Members who are not receiving benefit payments from the Plan as of the End Date and adjustment of each Member s or Beneficiary s account value as described in subsection (v) below based on the Plan s value as of the End Date. (v) A lump sum Accrued Benefit account value shall be determined for each Member and Beneficiary based on Article 4 and the Actuarial Equivalent factors described in the first paragraph of Appendix Two as of the End Date. The Accrued Benefit account value so determined shall be adjusted downward for Members and Beneficiaries described in subsections (iii) and (iv) above, using a sliding scale based on each Member s or Beneficiary s percentage of his or her age as compared to age 80. For example, a 60-year-old Member would have his account reduced by the sliding scale percentage of 25% (60/80). Accrued Benefit account values shall be further adjusted by multiplying the sliding scale percentage by the percent necessary so that the Plan is in balance after benefit payments under subsections (i) and (ii) above are fully funded. 24