Report of the
Board of Pensions
2010 Review and Status (figures rounded for simplicity):
The total of Ministers’ Retirement Fund (MRF) annuity payments to beneficiaries in 2010 was $186,300 (compared to $196,000 in 2009 and $201,700 in 2008): see Statement of Cash Receipts and Disbursements. This is the fourth year that the total disbursements have declined. There are 7 future beneficiaries of the MRF, the youngest of which will begin receiving benefits at age 65 in the year 2013. There were four beneficiaries who went home to the Lord in 2010, and survivor benefits are being paid to the widows, if applicable. Based on the current mortality assumptions, the final year of MRF payments to beneficiaries is projected to be 2035. Between now and then, it is estimated that the MRF will distribute future benefits totaling nearly $2,600,000.
As anticipated, during 2010, the Net Assets in the MRF decreased by $26,600 due to disbursements exceeding receipts. The MRF had adequate cash reserves to fund this shortfall.
Annual Funding:
As a result of the BFC transition to the new BFC Exec.Bd format and the conference-wide assessment that began in 2010, there were no contributions from the individual churches to the MRF. Beginning in 2011, the Exec.Bd plans to fund the Board of Pensions on a monthly “pay as you go” basis in an amount roughly equal to each month’s payments to beneficiaries. There should be no need in the future to issue any BOP Notes.
403(b) Plan:
Refer to the 2009 Yearbook for details. No changes in IRS requirements for 2011.
Planned Giving:
The benefits of planned giving were clearly evident in 2008 by way of the receipt of the bequest of $225,000. The Board of Pensions urges other members of the BFC to consider including the MRF in their estate planning arrangements. The simplest and most tax efficient method would be to name the MRF as a contingent or primary beneficiary (for married or singles, respectively) of a portion of an IRA or 403(b) account. This arrangement can be adjusted or revoked at any time, and does not involve changing one’s Will. For more information, please contact the BFC Executive Director.
Administration:
The Board of Pensions and BFC Exec.Bd express their appreciation to Pension Plan Administrator, Rick Volpe of Asset Planning Services, for his faithful service to the Board of Pensions.
Board of Pensions: David J. Watkins, Chairman; Keith Plows, Secretary; Clyde D. Bomgardner, Jr., Jay Fasnacht, Robert Gaugler, Ellis Hostetter, L. James Roberts, Jr., David Schoen, Thomas Shorb.
The Board of Pensions recommends the following resolutions to BFC Conference:
1. Whereas, the MRF annuity rate for 2011 is $221 per year of service, and
Whereas, cost-of-living adjustments no longer apply to MRF payments, be it
Resolved, that the MRF annuity rate for calendar year 2012 be $221 per year of service.
2. Whereas, the administrative system adopted by the 126th Annual Conference provides means for ongoing administration of the MAF and MRF through the Executive Board of the Bible Fellowship Church, therefore be it
Revolved, that the Board of Pensions be dissolved as of the 128th BFC Conference, and be it, and further
Resolved, that all responsibilities previously assigned to the Board of Pensions become the responsibility of the BFC Executive Board.
3. Whereas, Richard Volpe has provided administrative services for the Board of Pensions since the inception of the Board of Pensions, therefore be it
Resolved, that we express our appreciation to Richard Volpe for his expert and faithful service on behalf of the Board of Pensions.
4. Resolution Relating to Rental/Housing Allowances for Retired or Disabled Ministers of this Conference for Calendar Year 2012
Whereas, the religious denomination known as The Bible Fellowship Church has and functions through Ministers of the Gospel who are duly ordained or licensed; and
Whereas, the practice of The Bible Fellowship Church is to provide a parsonage or a rental allowance as part of the gross compensation for each of its active ordained or licensed ministers; and
Whereas, pensions paid to retired and disabled ordained or licensed ministers of The Bible Fellowship Church are considered as deferred compensation and are paid to said retired and disabled ordained or licensed ministers in consideration of previous, active service; and
Whereas, the Internal Revenue Service has recognized that The Bible Fellowship Church is the appropriate organization to designate a housing/rental allowance for retired and disabled ordained or licensed ministers who are members of this Conference;
Resolved,
1. An amount equal to 100% of the pension payments received during the year of 2012 be and is hereby designated as a rental/housing allowance for each retired and disabled ordained or licensed minister of The Bible Fellowship Church who is or was a member of the Bible Fellowship Church Minister’s Retirement Fund.
2. This rental/housing allowance shall apply to each retired and disabled ordained or licensed minister who has been granted the retired relationship or placed on disability leave by the Bible Fellowship Annual Conference and whose name and relationship to the conference is recorded in the Yearbook of the Annual Conference of the Bible Fellowship Church and in other appropriate records maintained by the conference.
3. The pension payment to which this rental/housing allowance applies shall be the pension payment resulting from all service of such retired or disabled ordained or licensed minister from all employment by any local church, Annual Conference or institution of The Bible Fellowship Church or of any former denomination that is now a part of The Bible Fellowship Church, or from any other employer who employed the minister to perform services related to the ministry and who elected to make contributions to the pension funds of The Bible Fellowship Church for such retired minister’s pension.
Note: The rental/housing allowance which may be excluded from a minister’s gross income is limited to the lesser of (1) the amount of the rental/housing allowance designated by the minister’s employer or other appropriate body, (2) the amount actually expended by the minister to provide his or her housing, or (3) the legally-determined fair rental value of the parsonage or other housing provided. As specified in Rev. Rul. 71-290 C.B. 92, “the only amount that will qualify for exclusion under section 107(2) of the Code as a ‘rental allowance’ is an amount equal to the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.”