Understanding the 2025 Annuity Payout

The MMBB Annuity is designed to meet the unique needs of those who have dedicated their lives to God’s service. The MMBB Board of Managers, in consultation with independent actuaries and staff, determined that the annuity payout value for 2025 will be $77.42. This represents a $4.33 (or 5.9 percent) increase over the 2024 payout value. Read on for details about the distinctive features of the MMBB Annuity and how the 2025 payout was calculated.

The annuity is designed to be a lifetime annuity. MMBB will pay you benefits for as long as you live. Also, if you are married and have chosen a joint annuity, your spouse will receive benefits for as long as he or she lives.

The annuity is variable. Your benefit depends upon the investment performance of the markets as well as other factors.

The MMBB Annuity has a guarantee, which means you receive downside protection. Your annuity will not drop more than 5 percent in the first year of market downturn, or more than 10 percent in the second or any subsequent year of decline.

The Annuity Payout Value is determined on September 30 each year using the higher of the following:

• The actual value of a unit of the annuity fund as of September 30 each year. As of September 30, 2024 -- $80.00
• The six-month average value of a unit of the annuity fund as of September 30 each year. As of September 30, 2024 -- $78.09
• The downside guarantee of 95 percent of the 2024 payout value -- $69.44
  
  

To ensure the integrity and longevity of the Annuity Fund, it has a reserve feature to help mitigate a variety of future impacts to the fund. The MMBB Board of Managers approved allocating a portion of the excess returns to the Annuity Fund Reserve, resulting in a final 2025 annuity payout value of $77.42.

Despite the variable nature of the annuity, MMBB strives to maintain stability of the payout value over time, and features such as the reserve and the guarantees are useful mechanisms to provide annuitants with smoother payouts.

The following factors determined the value of 2025's annuity unit:

• Value of the Underlying Assets -- The underlying Annuity Unit Value as of September 30, 2023, was $73.09. The calculation for the 2025 Annuity Payout Value begins with this number.
• Investment Performance – Calculated on a 12-month basis from September 30, 2023, to September 30, 2024, the investment performance of the Annuity Fund was 13.4 percent.
• 4 Percent Advance Earnings Assumption – MMBB assumes the investments in the Annuity Fund will earn 4 percent a year, and those expected future returns were factored in when you converted to an annuity. As a result, investment results must exceed 4 percent before any increase is passed on to you.
• Actuarial Adjustments – In order to secure the Annuity Fund, we must calculate payout obligations based on the expected lifetimes of our annuitants. If the actuarial assumptions change regarding life expectancy, we must make adjustments.
• Recovery of Excess Payments – Overpayments occur when the payout value is above the unit value. Whenever there are overpayments, usually to support the guarantees, they must be accounted for in the calculation of future annuity payments.
• Adjustment for MMBB Reserve – In 2015, MMBB’s Board of Managers voted to create an Annuity Reserve to address unexpected volatility in the markets, potential adjustments based on mortality experience and to support the annuity guarantees. The 2025 annuity payout reflects a portion of the excess returns being allocated to the Annuity Reserve.

The 2025 payout value of $77.42 is $4.33 (or 5.9 percent) more than the 2024 payout value of $73.09. The $4.33 increase takes into account a 2.4% cost-of-living adjustment of the 2024 payout value of $73.09 (or $1.75) plus the aforementioned 50% of the excess return (or $2.58).  

The Annuity Fund is fully funded as of September 30, 2024, and remains invested in a diversified portfolio designed to address both up and down markets as well as a long-term time horizon. While there will be an increase in your monthly annuity, MMBB understands that financial challenges may remain.

First, MMBB has emergency funds available to assist if you find yourself making choices about purchasing food, prescription drugs or medical services or necessary home repairs.

Second, we invite you to contact our financial planning specialists, who are all certified financial planners. They will work with you to help you manage your financial resources, so you can continue meeting your goals in retirement.

Whether for emergency assistance or financial planning or to speak with someone to understand the annuity payout even more, we urge you to get in touch with one of MMBB’s Senior Benefits Specialists at 800.986.6222 or [email protected].

We are here to assist you with just about any element of your financial well-being.

See more details about the Annuity Payout in the 2025 Annuity Payout webinar.  

Have you logged into the Member Portal see your individualized Report of Annuity Payment? You can access your report at www.mmbb.org/members.