Denominational Retirement Plan. Presented: Orlando: February 1, 2013

Transcription

1 Denominational Retirement Plan Presented: Orlando: February 1, Envoy Financial, Inc. All rights reserved. Envoy Financial, 4194 Royal Pine Drive, Colorado Springs, CO Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc., Registered Investment Advisor. First Use: August 20, 2012

2 Bruce H. Bruinsma Envoy Financial CEO & Co-Founder Direct: , ext. 203 Cell:

3 What is retirement? That depends on your perspective. Retirement years are also ministry years. At Envoy, we see retirement as not only a reward for past service, but a stepping-stone to future ministry Future-Funded Ministry: Managing God s resources God s way so His purposes can be carried out in and through our lives, to the very end.

4 It is vanity to wish to live long... and then not to live it impacting others. A life well spent

5 A National Plan: Reduces costs, simplifies administration A 403(b)(9) Church Plan: Maintains key benefits 10% Required church contribution for all Ministers and Designated Executives All churches, Presbyteries, and National office a part of the plan: An Opt Out Option for Churches

6 National Office: Legal Investment menu Administrative oversight Local Church: Who Participates How much is contributed (10% for ministers) When the church contributions start [Universal eligibility on a voluntary basis]

7 A plan for those with ministerial status and named executives is required: 10% minimum contribution Additional options such as an additional matching component are possible Staff may participate on a voluntary basis immediately beginning with employment A plan for staff composed of either a basic contribution, matching contribution, or both is available and up to each church to decide

8 Housing Allowance: Distributions taken by those with ministerial status can be tax-protected A Roth Provision: After-tax contribution and taxfree growth Loan Provision Default Investment: Where the money goes if the participant does not select one Automatic Enrollment: Starts the contribution even if the eligible participant has not enrolled

9 Traditional 403(b) Roth 403(b) Pre-Tax Contributions Taxed Contributions Tax-Deferred Savings Tax-Free Earnings* Taxable Withdrawals Tax-Free Withdrawals* *Subject to Qualification Rules

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11 The Retirement Plan Oversight committee: Minimum of 5 members: Minister with investment knowledge Minister with no retirement plan expertise Investment specialist Communication specialist COO of the ECO Additional member as needed Support for the plan will come from: Envoy TPA and Recordkeeping Envoy Advisory Envoy Financial Legal and Compliance Recordkeeping and reporting Investment Counsel Education and Information

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13 Our SmartPlan Interactive Guide helps Participants determine their risk profile, select investments, complete account reviews, and more!

14 Provides clear, concise, easy to understand information: Plan information Keys to understanding Enrollment : Risk Profile, $ goals, Investment allocation suggestion Periodic reviews All administrative activities: Loans, Distributions, Contributions, and Investment changes

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16 How does this impact me? Will I have enough?

17 Ministers: Your PCUSA defined benefit plan will remain and be distributed according to its formula and age availability All future contributions will go into the ECO 403(b)(9) Church plan All current 403(b)(9) account values may be transferred to the new ECO Plan Transfers from other plans and eligible IRA s to the ECO Plan are allowed

18 Non-Ministerial Staff: All current PCUSA 403(b)(9) account values are eligible for transfer to the ECO 403(b)(9) Plan All future voluntary, and if available, church basic or matching contributions will be made to the ECO 403(b)(9) Plan Transfers from other plans and eligible IRA s to the ECO plan are allowed

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22 Key Assumptions: Age Current income Life expectancy Salary growth (1.5%) Contribution to retirement ($ amount) (10%) Rate of return (6%) Distribution factor (7.3%)

23 Current Defined Benefit Plan + Current Defined Contribution Plan + ECO 403(b)(9) Plan = Estimated Income

24 Current PCUSA Defined Benefit $ 2,800 Estimated Defined Contribution $ 1,500 Estimated ECO 403(b)(9) $ 2,012 Total Monthly Inc. Estimate $ 6,312 Annual Estimated Income $ 75,744 Assumes: Age 50, $70,000, retires at 67

25 Current PCUSA Defined Benefit $ 3,500 Estimated Defined Contribution $ 1,500 Estimated ECO 403(b)(9) $ 564 Total Monthly Inc. Estimate $ 5,064 Annual Estimated Income $ 60,768 Assumes: Age 60, $100,000, retires at 67

26 ALERT! One of the Goals for the ECO plan is total transparency regarding costs and fees. New regulations will require that all fees and costs be disclosed by all vendors later in In the industry, costs of 403(b) and 401(k) plans have often not been disclosed. The disclosure will be paired with the services being provided. There will not be just a total number. If you are involved in other retirement plans, these disclosures will be coming later this year... don t be surprised.

27 Initial: $5 Recordkeeping setup per participant $5 Advisory setup per participant Ongoing: $75 per year administrative

28 Participant: Advisory: $.0065 annually, collected monthly Administrative: $35 annually, collected monthly Recordkeeping:.0025 annually, collected monthly Advisory: $1,000,000.58% annual rate.0542% monthly $2,000,000.48% annual rate.0400% monthly $4,000,000.39% annual rate.0325% monthly

29 Church decides whether to opt out or not? If opt out, then Church Board to sign required paperwork If in, then decide the answers to: Who, When, and How much Complete the Member Sponsor paperwork: This will be available online so look for information Select a Member Sponsor Plan Administrator for your church Follow the instructions as provided

30 Website: EnvoyFinancial.com ECO Retirement plan website Question and Answer: Available online or Envoy Financial ECO representative

31 A National Plan: Nat l Office, Presbyteries, Churches A 403(b)(9) Church Plan, defined contribution 10% to ministers and designated executives A church may opt out, but have adequate substitute Legal, Investments and Administration: National Office Plan design and qualifications, local church Support: Envoy Advisory, Envoy TPA and Recordkeeping, Envoy Financial

32 Bruce H. Bruinsma Direct: , ext. 203 Cell: Web: Services provided by: Envoy TPA and Recordkeeping, Inc. Envoy TPA and Recordkeeping, Inc. Envoy Advisory, Inc. Envoy Securities, LLC Envoy Financial, Inc. Third Party Administration Recordkeeping Services Registered Investment Advisor Broker/Dealer Member FINRA/SIPC Education, Sales and Marketing

33 Services provided by: Envoy TPA and Recordkeeping, Inc. Third Party Administration Envoy TPA and Recordkeeping, Inc. Recordkeeping Services Envoy Advisory, Inc. Registered Investment Advisor Envoy Securities, LLC Broker/Dealer Member FINRA/SIPC Envoy Financial, Inc. Education, Sales and Marketing

34 Denominational Retirement Plan Presented: Orlando: February 1, Envoy Financial, Inc. All rights reserved. Envoy Financial, 4194 Royal Pine Drive, Colorado Springs, CO Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc., Registered Investment Advisor. First Use: August 20, 2012