Enrollment FAQ
All employers must have a signed Adoption Agreement on file with MMBB. Contact MMBB at 800.986.6222 with any questions on eligibility and/or to receive a membership application.
Benefits for Life (BFL) Enrollment FAQ
Q: What happens if a check is not sent with the application?
A: MMBB will send an invoice to your church on the first business day of the month after we receive the completed application. Membership (including disability and group term life insurance coverage) begins when we receive the initial payment.
Q. When does coverage become effective?
A. If the application has all necessary information, coverage goes into effect the day MMBB receives the employer’s check.
Q: Can death or disability coverage be retroactive to the date of employment?
A: No. The death and disability benefits only go into effect when MMBB receives the completed application and the employer premium payment.
Q: Our church has two staff persons who are already members of Benefits for Life. If we want to begin membership for another, can we add the name to the invoice and send in the amount we know we will owe?
A: No. We must receive a completed application (Form A-1) for each new member before we can process the membership. We will then add the member to the invoice or your church can send a separate payment before the next invoice.
Q: Is an Adoption Agreement required for every employee enrolling in the plan?
A: No, only one Adoption Agreement is required from each employer for all BFL enrollees.
Q: How can our church start coverage for our employee as soon as possible?
A: Contact MMBB to determine the amount of the premium and send an employer check in that amount with the completed application (Form A-1).
Q: Our pastor was employed for four years before the church could afford Benefits for Life coverage. Can the church make up the lost premiums?
A: Yes, if the amount of those additional premiums falls within IRS limits. Contact MMBB for information and a calculation of contribution limits for the member in question. We will credit additional premium payment amounts entirely to the member’s Retirement Plan account.
Tax-Deferred Annuity (TDA) Enrollment FAQ
Q. Does an employer have to make monthly contributions to TDA on behalf of its employee(s)?
A: No. Employers may make contributions on a one-time basis or periodically, at the intervals they prefer. However, in order to qualify for MMBB’s PremierHealth plan, employers must make monthly contributions on behalf of employees in an amount not less than $50 per month.
Q. If we make monthly contributions on behalf of our employee(s), is there a minimum amount we must contribute per month?
A. Yes, $50.
Q. Can I make a one-time contribution on behalf of an employee?
A. Yes, you may make one-time contributions at any time.
The Annuity Supplement (TAS) Enrollment FAQ
Q: Our church employs a clergyperson as a consultant who is treated as self-employed for federal income tax purposes. The person wants to contribute to TAS. Does the church have to sign off on the salary reduction agreement?
A: No. The self-employed clergyperson can execute his or her own salary reduction agree- ment and sign as both the “employee” and “employer.” In order for the contribution of a self-employed clergyperson to be tax deductible, the self-employed person must make the contribution directly. If MMBB bills you, the employer, for these TAS contributions, the contri- butions must be regarded as taxable income.
Q: If the church approves a clergyperson’s request for a higher housing allowance, will that affect the amount he or she could contribute to TAS?
A: As long as the cash compensation does not change, increasing the housing allowance will not affect the amount she or he can contribute to TAS. The TAS contributions, as well as the Benefits for Life and TDA contributions, are based upon the minister’s “includible compensa- tion,” as defined by IRS rules. Compensation provided through the housing allowance is not part of “includible compensation.” If in doubt, contact MMBB at 800.986.6222 or service@mmbb.org for a calculation of your employee’s contribution limits.
Q. What action does the church need to take prior to enrolling employees in TAS?
A. The trustees or board of your church or institution must adopt a resolution authorizing the church or institution to modify employees’ salaries in order for them to make pre-tax TAS contributions.
From the 2012 MMBB Guide for Church-Related Employers. For the full guide, please visit our Download Documents & Resources section.