Pensions

 

Benefits Access for Participants - The participant account managed website designed to help manage Wespath administered retirement accounts.

 

Figuring 2021 Pension (CRSP) and Comprehensive Protection Plan (CPP) 

CLERGY RETIREMENT SECURITY PROGRAM (CRSP)

The Clergy Retirement Security Program (CRSP) is the pension program for all eligible United Methodist Clergy. CRSP offers a two component benefit design:

 
 a) Defined Benefit – Promises a specific dollar amount at retirement regardless of market 
      conditions or investment performance. The amount is based on a formula that specifies a 
      monthly retirement benefit to eligible clergy for the remainder of their lives.

             b) Defined Contribution – Promises a defined amount that is deposited into an active
      clergyperson’s account with monthly deposits. This benefit, distributed at retirement, is the
      accumulated amount plus earnings (losses) in the individual’s account.
 
The cost of participation in CRSP will continue to be direct billed to the local church for the two 
components. (Defined Benefit and Defined Contribution).
  a) Defined Benefit:    Full time clergy - $6,100
                                                   ¾ time clergy    - $4,575
                                                   ½ time clergy    - $3,050
                                                   ¼ time clergy    - Ineligible effective 01/01/2014 *
                                                                          plus
              b) Defined Contribution:  3% of participant’s Plan Compensation

Plan Compensation is calculated in the following manner:
• Pastor Lives in a Parsonage – Take the Pastor’s Salary and multiply it by 1.25 (adding 25%). This total
   figure represents plan compensation.

• Pastor Receives Housing Allowance – Take the Pastor’s Salary and add the Housing Allowance.
Note: This is NOT part of Housing/Furnishing Exclusion. This total figure represents plan
compensation.

* The Conference Board of Pensions strongly recommends that churches with a clergy appointed ¼ time sponsor the United Methodist Personal Investment Plan (UMPIP) with a 12% contribution level for their clergy. Please contact Wespath at 800-851-2201 and choose the pension option to become a UMPIP plan sponsor.
 
 
CPP is a death and disability policy on the clergy and is direct billed to the local church at a rate of 3.1% of
Plan Compensation. If your pastor does not meet the eligibility requirements, you will not be billed for CPP.
Eligibility Requirement: Full Members, Provisional Members, Associate Members and Local Pastors serving at least ¾ time, and Ministers of Other Denominations serving full time, who meet salary requirements. Lay Supply, Retired Clergy, Full Members, Associate Members, Provisional Members and Local Pastors serving less than ¾ time do not qualify regardless if they meet minimum salary.
Salary Requirement:  Plan Compensation greater than 25% of the Denominational Average Compensation (DAC). That amount is $18,550 in 2021. The following calculations are based on salary requirements to determine if a pastor meets the qualifications for CPP.
      * Pastor Lives in a Parsonage - Minimum of total salary of the PSCF should be at least $14,840 in 
         2021.
      * Pastor Receives Housing Allowance - Minimum total salary plus Housing Allowance of the PSCF 
         should be at least $18,550 in 2021.
The pastor's Personal Investment Plan (UMPIP) is a separate issue and is withheld from his/her salary.  You will receive a separate billing for UMPIP directly from Wespath.
 
Retirement Plans for Clergy

Retirement Plan for Lay Employees
United Methodist Personal Investment Plan (UMPIP)
 

Clergy and Social Security
IRS - Exemption From Self Employment(SE) Tax

 
 
If you need additional information, please contact:
Shawn-Marie Riley, Conference Benefits Administrator
Phone:  (817) 877-5222
Fax:  (817) 338-4541 
                     or
Wespath at (800) 851-2201 and choose the pension option.