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SUMMARY PLAN DESCRIPTION

Fondo De Pensiones Wesleyan Descripción Sintetizada Del Plan

Wesleyan Pension Fund’s
Retirement Planning Services Team

The Retirement Planning Services Team has extensive experience in conducting financial planning and retirement consulting services. This assistance is offered on a FEE-WAIVED basis for all Wesleyan Pension Fund participants as an additional perk to your benefits.

If you would like to schedule a consultation with an Advisor, please see their contact information by clicking on the link below. You can reach out to the Retirement Planning Services Team via phone or email and they will be glad to set up a session with you.  (See link below.)

We encourage you to take advantage of this tremendous value being provided for you and your family!

Wesleyan Pension Fund and the Retirement Planning Services Team are excited to bring this additional assistance in charting your financial course for the future!

Wesleyan Pension Fund Retirement Services Team

ELIGIBILITY FOR WITHDRAWING FUNDS:  Must be age 62 or over (if under age 62, please see the “Early Access to Funds” tab).

I’M ELIGIBLE—HOW DO I ACCESS MY FUNDS?

There are three options for accessing your funds:

1. Partial Withdrawal – removes any portion of funds. (A rollover option is also available.)*
2. Extended Payment – an automatic, scheduled payment of your choice distributed monthly, quarterly, semi-annually or annually.*
3. Lump-Sum Distribution – removes all the funds and closes the account.  (A rollover option is also available.)*

If you are a minister, all your funds are 100% housing allowance, which means the taxes are not withheld when you withdraw your funds. If you use your funds for items not pertaining to home/property, you can fill that amount in the “taxable income” box when you receive your 1099-R for your tax preparation. There is an example of the 1099-R under “Forms” on this website.

To access your funds, you need:

• A form for one of the above withdrawals (Partial Withdrawal—Extended Payment—Lump Sum) – forms are downloadable from this website or WPF office can mail or email you forms.
• The W-4P form (for ministers only) (1st page only) with the box checked for no withholding of Federal taxes.  (Your State may also have a W-4P form.)
• The Direct Deposit form with voided check (if available) – for funds to be deposited in a checking or savings account.
• A spouse signature witnessed by someone other than you (18+ years of age).  This can be done before completing the form for confidentiality.
• A signature of the witness (does not have to be a notary).
• A copy of the spouse’s driver’s license or other official document showing the signature (unless spouse is also a WPF participant, as we would have her/his signature on file).

WPF forms are available on this website or they can be sent to you.

*Principal Financial Group (PFG) charges a transaction fee of $50 for each partial and for the lump sum. The Extended Payment’s fee is pro-rated so it is one $50 fee charged throughout the year.

When placing a withdrawal, if you’d like to receive the entire amount you wrote on the form, place “NET” after the amount so the taxes (if you’re having taxes withheld) are taken out of the remaining funds in the account and not out of the amount you wish to receive (see example).

Example:
Requested:  $5000 NET = $5000 received
Requested:  $5000 = $3800 received  ($1000 Fed Tax, $200 NC State Tax)

Email or call WPF if you have questions or need forms sent to you.  We are happy to assist!

WITHDRAWING FUNDS BEFORE AGE 62:

1. Must no longer be employed by the hiring employer who contributed to your pension account.
2. Must not be potential for employment in another organization willing to make employer contributions to your pension account.
3. Non-ministerial members may take employer-contributed funds after a five-year waiting period from separation of employment.
4. Ministers may take employer-contributed funds after registering a job/credential termination date with their District Office and the District Administration recording that date in TWCHub*—this triggers a five-year waiting period before funds can be accessed.
5. Employee Payroll Salary Reduction (Elect Deferral)—same as above but with a one-year waiting period after employment separation.

*DISTRICT REPORTING:  Under Credential Record—Status Reason, example:  “Withdrawn 8/23/2022.”  (Date Required)

NON-WESLEYAN CLERGY

Early withdrawal of funds requires a job/credential termination date verified by the body that granted the ordination/licensing and after WPF receives written confirmation of that date from the credentialing body. The five-year wait begins from that termination date.

The Defined Contribution Plan—IRS 403(b)(9) is for the purpose of assisting employees to have enough funds set aside for their retirement years.  It is not provided for loans or hardships of any kind. 

Formularios de inscripción en español – incluye formulario requerido de beneficiario

Folleto para acceso a cuenta online PFG

You can now wait until age 73
to take a Required Minimum DIStribution

The Secure Act increased the required minimum distribution (RMD) age from 70-1/2 to 72 and now to 73, marking the first change to the RMD age since first becoming law in 1986. The age increase will only apply to anyone born on or after July 1, 1949.

FAQ Tips Sheet

The Tips Sheet addresses:

• When can I access my funds?
• What if I leave my job?
• Why am I not seeing the total contribution in my PFG online account?
• Can I give personally to my pension?
• Isn’t 4-47487 my account number?
• What about forms and payments?
• Online Payment System (OPS)
• TWCHub Usage

-FORMS:  Available for download on our website under “FORMS” or we can email or mail them. We do not recommend emailing completed forms to WPF as email is not secure. Our contact information is available on the forms.

–TWCHub USAGE:  We use The Wesleyan Church Hub to check ministerial credential status, to find local church leaders and email addresses. Please help us by keeping the Hub continually updated.

ENROLLING AN EMPLOYEE IN WESLEYAN PENSION FUND:

-ALL employees are eligible to participate in WPF – both clergy and laity staff.

-Give Enrollment Forms to employee (on website under “Forms”). If there is an agreement between the employer and employee to also have a voluntary, salary-reduction (employee contribution), you will need to sign the form in Section C. Fax or mail completed forms to WPF. If a new employee is already a member of WPF, please do not have him/her complete another enrollment form, just give us any updated information.  

-The WPF Summary Plan Description is a document you should suggest to your new employees for an understanding of the Plan policies. It is available on our website.

-Begin Contributions. Enrollments are not processed until a contribution from the ministry is received by WPF.

-WPF recommends contributing an amount equal to 12% of the employee’s gross salary. Salary is equal to cash salary plus housing. If the employee is provided a parsonage, the value used should be the taxable year-end amount. A portion of the employer contribution totaling 1% of the gross salary is used to purchase disability and life insurance for the employee and for such other purposes as the Board of Pensions may determine. The rest is invested in the Plan account.

OTHER TIPS:

Exit Interviews. Remind the outgoing employee about their pension funds. They will need to keep WPF informed of contact information changes. Lay personnel can access their employee (EE) funds one year after job termination date and in five years for employer (ER) funds. They will no longer have the insurance benefits in the Plan. Clergy members may take employer-contributed (ER) funds after registering a job/credential termination date with their district office and the district administration records that date in TWCHub. This triggers a five-year waiting period before funds can be accessed. ALL participants may access their funds at the age of 62. *Also see “Employee Job Termination.”

Employee Job Termination. When an employee leaves their job and processes a Lump Sum Distribution for the balance of their funds, which closes their account, they are committing to not returning to a job that would require a future enrollment in WPF. If they plan to seek a position in another ministry where WPF is utilized, they must leave their funds intact.

Employer (ER) and Employee (EE) Funds. When adding employees to your Online Payment System account, be sure to mark the correct option for posting. ER funds are contributions paid by the ministry. (Insurance premiums are paid from these funds.) EE funds are contributions made from voluntary, salary-reduced funds of the employee. If the funds are not posted correctly, it can affect the employee’s insurance coverage.

Year-End Contributions. All Employer (ER) and Employee (EE) contributions are due to WPF by the middle of December to have them credited to their accounts in the current year. We post the due dates on our website under “Year-End Processing.”

Year-End at Principal Financial Group (PFG). The first two-three weeks in January are blackout dates for Principal while they process year-end. Contributions to accounts and withdrawals from accounts are put on hold during that time. The Annual Statements are usually sent by the end of February. If you want your contributions to show up in the current year’s statements, those must be sent in by the middle of December.   (See “Year-End Processing on our website for exact dates.)

-For information on Voluntary, Salary-Reduction (EE contributions), contribution limits and housing allowance for ministers see the “Plan Benefits and Information” section on this website.

The National Securities Markets Improvement Act (the “Act”) signed into law on October 11, 1996, exempts church plans from federal and state securities laws, except for anti-fraud provisions.  In order to qualify for the exemption, church plans must satisfy eligibility requirements under section 414(e) of the Internal Revenue Code of 1986, as amended (the “Code”) and the assets of church plans must be used exclusively for the benefit of plan participants and beneficiaries.  Church plans continue to be subject to the Internal Revenue Code and its regulations regarding eligibility, governance, and operations of such plans.

The following notice is provided in accordance with the Act:

The Wesleyan Pension Fund Inc or any company or account maintained to manage or hold assets of the Plan and interests in such Plan, companies, or accounts (including any funds maintained by Wesleyan Pension Fund Inc) are not subject to registration, regulation or reporting under the Investment Company Act of 1940, the Securities Act of 1933, the Securities Exchange Act of 1934, Title 15 of the United States Code, or State securities laws.  Therefore, plan participants and beneficiaries will not be afforded the protections of those provisions.

If you are an active or retired minister, a portion or all of your annual pension may be designated as available for housing allowance, pursuant to Internal Revenue Service Ruling 75-22. However, the amount actually excludable as housing allowance cannot exceed the lowest of these factors:

• The fair rental value of the furnished home plus the cost of utilities, furnishings and maintenance; or
• The actual expenses of operating a home; or
• The amount designated by WPF as a housing allowance.

-Any excess over the lowest of these factors is reportable as additional income for income tax purposes.

-The Board of Pensions has authorized the designation up to 100% of retirement benefits as a housing allowance paid as part of a retired minister’s compensation for past years of service.

-As a retired minister, pension distributions are NOT subject to SECA tax.

-To report such a designation, WPF recommends you use a self-prepared schedule and keep it for your records.  (See 1099-R form explanation in the “Forms” section above.)

-To review the latest housing allowance information, please see the Minister’s Tax & Financial Guide, available for download in our Resources section below.

The WPF 403(b) Defined Contribution Plan allows for any member to begin drawing from their retirement account at the age of 62. If you are eligible, you may either withdraw the funds monthly or receive funds through a partial distribution. All ordained/licensed members in our plan may be eligible to use the funds for housing allowance. Please see the Housing Allowance Chapter in the resource below or call our office for further details.

The Extended Payment Form is to be completed for a monthly (or quarterly, semi-annually or annual) benefit. You have the option to have the benefit funds directly deposited into a checking or savings account.

The W-4P Form is a Federal tax form where you can indicate if you want to withhold tax or not.

These forms may be mailed or faxed to our office for processing.  Once received and processed to Principal Financial Group, please allow 7-10 business days to receive your funds.

Please call our office if you have further questions.

The Extended Payment and W-4P Forms are available for download.  See FORMS on this site.

• 2023 HOUSING EXCLUSION CHAPTER

• Housing Allowance Chapter
• Insurance Age Table
• Principal Financial Group Online Account Access Flyer
• Retirement Planning Services Team
• Special Tax Notice-Plan Payments
• Summary Plan Description
• Fondo de pensiones Wesleyan Descripción Sintetizada del Plan
• Unum Group Life Insurance Plan
• Unum Group Long-Term Disability Plan