FAQs - Pension and Retirement
These are some of the typical ways to calculate pension values: (to determine the amount the pension fund is underfunded) Accounting Standards Codification (ASC)
Pension assets minus pension obligations being paid on an ongoing basis equals pension liability (the unfunded amount).
Pension assets minus the fair market value of the pension plan equals the pension liability (the unfunded amount)
The fair market value of the plans assets minus the present value of its projected benefit obligation. The fair value of plan assets is straightforward, it's the fair value of the funds invested to pay pension obligations
The Florida annual conference has determined that they will calculate the pension values as follows: (to determine the amount the pension fund is underfunded)
Present pension assets minus pension obligations, assuming no further pension payments will be received, plus paying out to all surviving beneficiaries living to their maximum age expectancy equals the pension liability. In this calculation, all pensions would be considered grossly underfunded.
PLEASE NOTE: When a Florida church agrees to disaffiliate under par 2553 and pays their required pension liability, those monies received by the conference are NOT given to Wespath to be applied towards the “underfunding” of the pensions. Instead, it is kept by the Florida annual conference and placed in their general fund account.
Wespath Services (including institutional investment management services, Global Methodist Church and other groups)
Can Wespath serve churches or clergypersons who choose to leave the UMC, including those that move to a New Methodist Expression?
Yes. Wespath is authorized by the Discipline and U.S. law to manage funds and offer services to church and nonprofit organizations that share “common religious bonds and convictions” with, or are otherwise controlled by, associated with or related to the UMC, which Wespath evaluates on a case-by-case basis. On this basis, Wespath can administer benefits and provide investment management services (for a local church’s endowment, for example) for a group of churches—or even a single church— that may break away from the UMC. Clergypersons can continue to participate in Wespath-administered plans if they serve such organizations, and if those organizations become plan sponsors of Wespath-administered plans. More information about benefit plan sponsorship is in this document (PDF).
Is Wespath working with the Global Methodist Church (GMC) to provide employee benefit plans to clergy and laypersons of their denomination?
Wespath is in dialogue with the GMC to provide their churches employee benefit plans going forward, including retirement and health and welfare plans, after the GMC is formed. Discussions are still in progress.