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Getting Started
Premiums (continued)
Your employer pays the premium for your membership in Benefits for Life, formerly known as the Retirement/Death Benefit Plans. The premium amount is equal to 16% of your annual compensation (see box below).
Premiums are based solely on your annual compensation as reported to MMBB each year. Therefore, you need to report changes in your compensation as soon as possible. Failing to do so will have an adverse effect on the level of plan benefits you receive.
| The 16% premium payment is put to work this way: |
| 13% |
for retirement account |
| 1 ¼% |
for special benefits, including disability |
| 1% |
for assistance to members |
| ¾% |
for group term life insurance |
Your Retirement Plan Account
As a plan member, a premium equal to 16% of your annual compensation is paid as a Benefits for Life premium. Of that 16%, 13% goes into your Retirement Plan (RP) account. The remaining 3% is used to provide disability, death, and other benefits, as well as member assistance.
All money contributed to your RP account purchases accumulation units for you. Accumulation units are like shares in a mutual fund. Each unit (or share) has a dollar value, which will fluctuate daily based on investment gains and losses.
How Accumulation Units Are Purchased
Assume your annual compensation is $40,000 and the accumulation unit value, which changes daily, is $100 when your monthly premium payment is received. The number of units purchased with that payment for your account would be:
- $40,000 multiplied by 13% = $5,200
- $5,200 divided by 12 = $433.33
- $433.33 divided by the $100 = 4.33 units purchased
The number of units purchased each month will be based on the unit price in effect when the payment is received.
As more money is contributed to your account each month, you accumulate more units. As those units grow in value through investments, so does the value of your RP account.
MMBB Also Provides Financial Assistance:
- Annual grants for retired ministers, missionaries and lay employees with low income
- Emergency aid for pre-retired and retired ministers, missionaries and lay employees
- Educational grants for spouses and children of disabled and deceased members
- Medical premium assistance for eligible pre-retired and retired ministers, missionaries and lay employees.
MMBB Promotes Interest in the Better Maintenance of the Ministry:
- Services for pre-retired members include personal consultation; advocacy for fair clergy compensation; seminars and workshops to interpret benefits and encourage financial and retirement planning; and publications
- Services for retired members include personal consultation; fellowship events; personal annual visits; distribution of the Retired Ministers and Missionaries Offering; and publications.
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