Tomorrow 1st Quarter, 2012
Introduction from Sumner Grant
Dear Members,
2011—What a wild ride of a year. Who could have predicted that MMBB’s centennial year would be one of the most challenging in our history? It has been. We are a financial services organization and, as such, we are subject to market pressures. In May it appeared as though the economy was in a sustainable recovery. The April unit value of the Balanced Fund stood at $41.97, up 5.8% for the first four months of the year. The Annuity Fund promised to yield a substantial increase in the payout after three consecutive decreases.
Of course, that changed. As of September 30 the Balanced Fund dropped to $37.08—a swing of 11.6% from the April high. And we were fortunate to eke out a small gain of 1.13% in the annuity payout to our retired members. We saw 500 point swings in the market in a single day.
Since September 30, the equity markets have rebounded somewhat. This is reflected in the value of the Balanced Fund—$38.47 as of December 31.
Now, try to run a business that relies on fees from assets under management in this kind of environment. And try to do financial modeling which projects realistic revenues to sustain our mission. That’s our challenge—and one we accept, though we might wish it could be different.
We accept this challenge because we know you also face uncertainty. In this issue of Tomorrow we address a question we frequently receive from those on the cusp of retirement—is this the time to retire? From conversations you’ve had with our Senior Benefits Specialists, we know that your underlying question is about market timing. You want to know if the market is going up or down so you can purchase the greatest possible number of shares for your annuity.
As the article by Melody Chartier, one of our Specialists and a CFP, explains, MMBB suggests you think differently about when to retire. The real issue is whether you will have sufficient income to live where and how you want in retirement. Our website (http://mmbb.org/ retirement-benefits-services/calculators-financial-tools/) has several calculators to help you answer these questions or, if you want personalized service, contact a Senior Benefits Specialist at 800.986.6222.
We are cautiously optimistic about 2012 but we also believe that markets will remain volatile. In these uncertain times, we want to walk hand-in-hand with you. Never hesitate to call us.
Sincerely,
Sumner M. Grant
Executive Director
Retire When You Are Ready
RetiRing When YoU ARe ReAdY iS the keY to Long-teRM SUcceSS
by Rev. Melody S. Chartier, CFP®
You may have read in previous issues of Tomorrow about the collective expertise of our team. To build that collective expertise, we often discuss your questions with each other. One of your most burning questions is: when should I retire?
We’ve learned that this question isn’t really about age. It’s about market timing; in other words, when is it most advantageous for me to retire? How can I time my retirement so that the market is up and my account is worth more? The answer may seem counter- intuitive, but the reality is clear: You should retire when you are ready, because attempting to time the financial markets is both difficult and irrelevant.
Ministry is more than a job: it is a way of life, an identity—and a calling. Retirement for clergy involves changes in the deepest sense of self and relationships, both personal and to your church community. Planning for retirement involves considering not only your money but your health, happiness and wholeness.
Many members believe that if they time their retirement when the markets are up, their account will be worth more—and therefore their monthly annuity income will be higher. In fact, the most important factor affecting when you should retire is your own financial and emotional readiness, not the state of the financial markets.
The financial implications of retirement are, quite simply, dependent upon your ability to live off your retirement income once you stop working. And only you can decide if you are ready to move from working every day to pursuing volunteer opportunities, part-time employment, hobbies, travel or whatever awaits you in the next stage of your life. Consult the financial calculators in the Retirement Benefits & Services section of mmbb.org/retirement-benefits-services/ calculators-financial-tools/ to help:
- Determine how much income you will need in retirement.
- Estimate whether your MMBB annuity will provide sufficient income.
- Combine your MMBB annuity income with your retirement income from other sources to determine if this is enough to afford the lifestyle you want in retirement. Remember to take any retirement savings your spouse may have into consideration.
If there is a gap between your anticipated income and expenses, consider taking a more creative approach. Perhaps you will want to delay your retirement and work a bit longer. Maybe you will continue to work in retirement, even while receiving your monthly annuity payments. You may also need to think about reducing your monthly expenses in retirement.
The bottom line is that YOU are the one who determines when you are emotionally and financially ready to retire.
MMBB plan provisions allow for multiple annuities so if you have funds remaining in your account after you take your initial annuity, you have the option to take an additional annuity based on your account value at a later time.
If you are an ordained or licensed minister, receiving an annuity from MMBB will provide you with the most advantageous tax shelter anyone can have – the ability to keep your housing allowance tax deduction in retirement. If you have other retirement funds outside of MMBB that may be eligible for the housing allowance designation, you should consider rolling those funds over to MMBB; converting these funds to an annuity will further increase your retirement income.
MMBB—A Proud history Fighting for Justice
By Everett Goodwin
MMBB’s centennial observance inspired my reflection on its achievements. Authorized in 1911 by the Northern Baptist Convention, the forerunner of ABCUSA, MMBB was legally chartered in 1913. Central to its charter’s statement of purpose was “the better maintenance of the ministry.” Most commonly we celebrate the benchmarks of MMBB’s financial achievement, especially the provision of retirement income at the end of active ministry.
But, as I sifted through the records and minutes of one hundred years, the variety of ways MMBB fulfilled its goals to support ministers and missionaries in times of crisis also become clear. In addition to its primary goal to provide financial resources for the support of the ministry, MMBB actively sought ways to bridge the fissures created by social change and aspirations for justice.
The civil rights movement provides a powerful example. Fifty years ago, as our society began to address racial inequities and injustices, MMBB was there as an institution, in person, and in programs and policies of response to the urgencies of the time.
As the civil rights movement gathered strength, MMBB responded first by assess- ment. It gathered information, sent members of the senior executive staff to national conferences and briefings, and connected with African American constituencies within the ABC. MMBB concluded that civil rights had to be prioritized as the most significant challenge of the time. Its first responses were institutional:
- It appointed William McKee, MMBB’s first African American staff member, as a resource to work with pastors and denominational leaders in response to civil rights issues.
- It sent out a pastoral letter to all MMBB members acquainting them with the urgency of the issue and affirming its support of ministers caught in personal
or professional circumstances because of active participation in the civil rights effort. - It appointed African American pastors and church leaders to MMBB’s staff and its Board of Managers.
- It opened a field office in Greenville, North Carolina to offer more proximate support to American Baptist ministers and others in the South.
- It invested significant funds in a number of African American-governed financial institu- tions in response to a challenge from a group of American Baptist black churchmen.
- It provided financial support for Interpreter’s House, founded by Carlyle Marney, as a facility to assist and support ministers wounded by civil rights and other crises.
MMBB also responded personally. J. Martin England, an MMBB staff member, opened the Greenville, NC, field office. A Southerner, he had a unique sensitivity to both the culture and the racial history of the region. He quickly became identified as one who seemed to appear in every crisis. Singlehandedly England created a network of hope and support in some of the most turbulent areas of the South; he became the “go to guy” for black and white pastors in professional or personal trouble.
England was present in Birmingham, AL, when Martin Luther King was arrested in 1963. When he visited King in prison King passed to him a fragile paper on which his “Letter from a Birmingham Jail” was written. Dean Wright, MMBB Executive Director, sometimes accompanied by Howard Moody, pastor of Greenwich Villiage’s Judson Memorial Church, often joined England in times of crisis or at demonstrations. According to England, it was to Wright that he gave King’s writing and Wright, who had it published as “Letter from a Birmingham Jail.”
It was J. Martin England whose persistence convinced Martin Luther King to enroll and it was MMBB which paid his premium until he was assassinated. As a result, the King family was supported in the years following King’s death.
MMBB also responded with new policy direc- tions. In a prophetic decision, MMBB began the practice of voting MMBB managed stock shares in ways to persuade corporations invested in South Africa to work to end Apartheid.
During this period MMBB also began aggres- sively to recruit and enroll pastors of African American churches in its plans for retirement, disability and death benefits. Partly as a result, MMBB membership encouraged the affiliation of many African American churches with the ABC/USA, contributing to the broad diversity that characterizes the denomination today.
In these and many other public and private ways, MMBB exercised a witness for justice that was prophetic, personal, and institutional during a transformative time in the nation. This and the many other experiences and achievements of MMBB are described in the forthcoming book by Everett Goodwin recounting MMBB’s first hundred years: MMBB: A Pioneer in Employee Benefits—The First 100 Years.
Everett Goodwin, historian, preacher, and author, served as senior minister of several ABC/USA churches, including Washington, DC’s First Baptist Church and the Scarsdale Community Baptist Church.

Stable Value Fund Rate for 2012 Set
Candace Cox, MMBB’s chief investment officer, announced that the estimated net rate of return for the Stable Value Fund would be approximately 0.75% in 2012.
The decrease in the Portfolio Return from 2011 is wholly consistent with the decrease in prevailing returns on high quality fixed income investments, Ms. Cox reported. Compared to money market funds, the Stable Value Fund is still generating a significantly better return.
The Stable Value fund is unique among MMBB’s nine investment choices because it offers a guaranteed rate of return for each calendar year. It is a great choice for investors looking to safeguard principal, balance a portfolio that currently holds higher risk investments, and protect against stock and bond market fluctuation.
Loan Application Process Upgraded
As of January 3, 2012, all applications for general purpose loans (1- 5 year repayment term) are no longer required or available. You must request a general purpose loan online or by speaking with an ACS representative.
This upgrade in our loan process allows us to serve you faster. ACS will process the same day that you make the request and a check will be mailed to you within 3 business days. You will have until 4 PM Eastern Time of the day you apply for the loan to change or cancel it. After that time, the loan will not be reversible. For more details on what this might mean for you, contact a senior benefits specialist at 800.986.6222 or send an email to service@mmbb.org
Loans for primary residence purchase (terms up to 10 years) will continue to require an application and proof of purchase.
Medical Plan Updates
PremierHealth Participants Plan changes went into effect January 1, 2012. The changes affect:
- Prescription drug coverage
- HMO Dental coverage
- Employee Assistance Program
For more details, visit the MMBB website, http://mmbb.org/news-and-updates/2012-health-care-plan-changes/
The Hartford Plan Participants
Please note that the new year brings a Governmental Resources fresh start in calculating your prescription • Internal Revenue Service deductibles under The Hartford Senior Medical Insurance Plan. For more information, contact UMR at 866.868.0502 or www.caremark.com