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While many retired clergy choose to enjoy their well-deserved season of rest, some seek ways to continue nurturing their spiritual calling.
The payout value is determined after evaluating four factors which impact the payout value:
The payout value of the annuity unit is directly linked to the value of the assets in the annuity fund. In order to assure the health and longevity of the Annuity Fund, there has to be a reasonable degree of financial synergy between the value of an annuity unit and the amount of money that is paid out per unit. If the underlying value of an annuity unit is $85, a payout value of $95 per annuity unit would not be feasible without causing a negative gap which could not be sustained.
MMBB makes the assumption that the investments in the Annuity Fund will earn a minimum of 4% during your retirement years. If the investments in the Annuity Fund earn more than 4% for the 12 months ending September 30, this may result in an increase in your annuity payments in the following year. When the investments in the Annuity Fund earn less than 4%, the following year’s payout may be reduced.
Actuarial tables are used to determine how much money a company needs to maintain in its cash reserves to continue to pay future benefits.
As people live longer, a lifetime annuity such as MMBB’s must pay people longer. This is good news, but it also requires that MMBB assure that the annuity payout is structured to account for increased longevity. Here’s an example: Let’s suppose that an annuitant is expected to live 20 years after retirement and is receiving a monthly annuity of $500. If the annuitant’s life expectancy increased to 25 years after retirement then the monthly annuity has to adjust to $400 to account for the additional five years of life.
MMBB’s downside guarantee assures that our members will never experience more than a 5% drop in the payout price during the first year of an economic downturn and no more than 10% decrease in the payout price in the second or subsequent year of market declines.
This guarantee means there may be years when the amount that MMBB pays per unit is greater than the underlying value of an annuity unit. When this occurs the difference must be factored into how the payout is determined in subsequent years in order to recover the gap between what we paid and the actual value of a unit in the Annuity Fund.
As the Board of Managers balances your best interests with its fiduciary responsibility each of these factors must be considered in order to arrive at the unit payout value each year.
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Translations of any materials into languages other than English are intended solely as a convenience to the non-English-reading public. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist.
Las traducciones de cualquier material a idiomas que no sean el inglés son para la conveniencia de aquellos que no leen inglés. Hemos intentado proporcionar una traducción precisa del material original en inglés, pero debido a las diferencias de la traducción a un idioma extranjero, pueden existir ligeras diferencias.
MMBB Financial Services is pleased to unveil our new website experience.
Watch a guided tutorial of our enhanced site to introduce you to important new features designed to help you live your life with financial confidence.
You will be linking to another website not owned or operated by MMBB. MMBB is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by MMBB of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from MMBB.
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