Pension Plans & Retirement Information
The New Mexico Conference participates in the Pension Plans of The United Methodist Church.
* Clergy Security Retirement Program (CRSP) - All clergy appointed full-time or part-time to a New Mexico Annual Conference charge or position on the conference staff participate in the Clergy Retirement Security Program (CRSP). The plan provides a core benefit at retirement with two components:
- Defined Benefit: A monthly payment, payable for life, calculated by multiplying 1.25% times the annual Denominational Average Compensation (DAC) at the time of retirement multiplied by the years of credited service after January 1, 2007 then divided by 12.
- Defined Contribution: A cash distribution from an account balance held in each clergyperson’s name. This account balance is determined by the amount contributed and accumulated earnings.
2013 Church Contribution Rate for CRSP:
CRSP Defined Benefit rate shall be 13.00% of plan compensation
CRSP Defined Contribution rate shall be 3% of plan compensation
(The contribution base for calculating pension shall be a clergy
person’s plan compensation, which is salary plus housing).
* Ministerial Pension Plan (MPP) – Provides benefits to clergy with service after December 31, 1981 through December 31, 2006. MPP was replaced by the Clergy Retirement Security Program, effective January 1, 2007. However, if you have an MPP account, it will continue to be invested, and you will receive benefits from the plan upon retirement.
* Pre-82 - Provides pension benefits to clergy with service prior to January 1, 1982. This benefit is based on the conference-approved ‘Past Service Rate’ (PSR) multiplied by the years of credited service prior to 1982.
* United Methodist Personal Investment Plan (UMPIP) - Provides retirement benefits and savings opportunities to clergy and lay employees of United Methodist churches, church-related organizations and general agencies. This plan is governed by section 403(b) of the Internal Revenue Code. Contributions are allowed by payroll deduction only. Personal contributions must be sent by the salary-paying unit to the General Board of Pension and Health Benefits. Churches may offer the United Methodist Personal Investment Plan as a retirement savings vehicle for their lay employees. This can be done with or without employer contribution. The local church determines eligibility criteria as well as contribution level.
* Retirement Information – Are you ready to retire, but not sure what to do as you approach retirement? Please visit the General Board of Pension and Health Benefits retirement website for helpful information and additional links at http://www.gbophb.org/retirement
- Information on Medicare, http://www.medicare.gov/
- Information on Social Security Administration, http://www.ssa.gov/
*Hark Newsletter - Hark is a quarterly newsletter that highilights topics related to retirement and financial planning. Click here for the current issue: October 2012 Hark Newsletter