| Brethren Pension Plan FAQs Am I just a number to Pension Plan staff? No. Benefits are administered directly by Brethren Benefit Trust. BBT staff are people of faith who share the values upheld by the Church of the Brethren. They know many plan members by name and are responsive to client concerns.
No. Employer contributions are tax deferred: Plan members do not pay income tax on this money or on their investment income until it is received as a benefit. Employees may also choose to have their contributions tax deferred: Ordained clergy receiving an annuity may reduce their federal tax liability by the amount of their qualified housing costs.
Yes. As a defined contribution plan, employer contributions are set. However, a benefit can be further enhanced when:
Absolutely. There are five fund choices:
Plan members have the privilege of allocating contributions among all four funds in any combination. Contributions may be shifted as often as once a month. Fund selection/Fund transfer sheets are available online. The performance of a person's account will vary depending on contribution allocations, the number and timing of transfers, and the performance of the markets in which a person's funds are invested.
Yes. At retirement, members have four choices:
Spouse options provide a benefit for the plan member and spouse as long as both live.
Yes. Retirees need never worry that their annuity money will be exhausted. When an annuitant lives longer than expected and depletes his or her account, funds are added to that account from the Retired Benefits Fund. The Pension Plan is fully funded. This means the annuity reserve is equal to the total dollar amount necessary to pay the entire expected benefit for all annuitants. Strong investment returns often make extra one-time payments possible. These are made in the form of a 13th check and are usually sent in December.
Yes. Although there are never guarantees that investments will have excellent returns, Pension Plan investments are managed by six professional fund managers that have extensive experience in handling church pension assets. The managers work under strict performance and social responsibility guidelines and are monitored by BBT's chief financial officer and the Board's Investment Committee.
Once vested, members do not lose their pension benefits if they leave their jobs prior to retirement. The employer portion of their pension account remains in the Plan to fund an annuity for them at a later date. Personal contributions and the related investment return may remain or be withdrawn once a year after a member leaves the job. |