United Methodist Personal Investment Plan
November 2013
Vol. II, Issue 1
Participant Contribution Limits Increase for 2014
The IRS recently announced the retirement plan contribution limits for 2014. Participants will be able to make before-tax contributions of up to $17,500 or $23,000 if they are age 50 or older—unchanged from 2013. Participants who have 15 or more years of service with a “qualified organization” also may be able to contribute up to an additional $3,000 (subject to a $15,000 lifetime limit and other rules).
Total contributions—including annual before-tax and after-tax contributions, and plan sponsor contributions—may not exceed the lesser of participant taxable compensation or $52,000 for 2014 (a $1,000 increase from 2013). The additional contributions for participants based on years of service do not count toward this limit. (Note: Clergy housing, if applicable, is excluded from compensation for this calculation.) Participants can contact the General Board for help determining how much they can contribute.
Investing through Multiple Plan Vendors
If you offer more than one 403(b) plan option to participants, the IRS limits apply across all plans. Please ensure that participants consider their total annual contributions when assessing compliance with the IRS limits. If any participant exceeds the contribution limits and it isn't corrected, the participant and the plan could be penalized. Deferrals exceeding IRS limits must be withdrawn by April 15 following the year in which they were made.
If you offer plans from more than one 403(b) vendor, please fill out the Information Sharing Agreement. If you have a participant who has made excess contributions, the IRS offers guidance for employers and participants. The General Board also can help you bring your plan into compliance. Contact the General Board with questions and concerns.
Promoting Increased UMPIP Contributions
Now is a good time to talk to participants about increasing their contributions to UMPIP. Those who are contributing a flat-dollar amount may consider changing to a percentage approach, so that their contributions will increase along with changes in income.
Participants who are considering contribution changes might want to run—or rerun—their retirement income projections using the Retirement Readiness Tool. This will allow them to see how changes to their contribution rate will impact their retirement goal. Ernst & Young can also help participants determine how much to contribute to meet retirement goals.
Participants may begin contributing or change their contribution amount or rate at any time by submitting a Before-Tax and After-Tax Contributions Agreement. Once you receive this form, make the appropriate payroll changes then submit a copy of the form to the General Board as instructed on the bottom of the form.
Explore Other Services Offered Through the General Board
We rely on our partnership with you to provide valuable services to clergy and lay employees of The UMC and UMC-affiliated organizations. Those offerings extend beyond UMPIP to other services designed both to support participants, and provide options to you, our plan sponsors. Following is information about Wespath investment services and the UMLifeOptions life and long-term disability (LTD) plan—also available through the General Board. We hope you take this opportunity to learn more about the General Board and consider expanding your relationship with us.
Wespath Provides Performance
In 2011, the General Board’s investment services division was rebranded. Despite its new name—Wespath—the investments division continues to build on the more than 100-year-old tradition of investing plan assets that help secure the retirement futures of our participants. Wespath offers investment management services that are tailored to meet the investment needs of participants, annual conferences, foundations, educational institutions, hospitals and healthcare organizations, and endowment funds.
Investing through Wespath provides United Methodist-affiliated organizations and institutions access to the General Board funds, which have a proven track record of historically yielding strong investment returns compared to mutual funds with similar investments. The General Board also charges lower management and administration fees compared to mutual funds with similar investments, and does not charge front-end loads (i.e., sales commissions) or back-end fees (i.e., redemption fees).
Learn more about fees (i.e., expense ratios) and performance on the Wespath website at www.wespath.com. To invest your organization’s assets, contact Wespath at 1-847-866-4100.
UMLifeOptions Offers Choices, Flexibility
The General Board also offers life and long-term disability (LTD) coverage through UMLifeOptions. The program provides maximum flexibility—allowing you to establish your own eligibility criteria and coverage levels, and select plan features (e.g., the optional Accidental Death and Dismemberment benefit).
UMLifeOptions plans feature:
- comprehensive LTD replacement income
- up to 3% of the plan sponsor’s contribution paid to your participants’ United Methodist Personal Investment Plan (UMPIP) account during disability leave
- premium waivers and return-to-work incentives for LTD
- plan portability and convertibility for life insurance
- customizable death benefit levels
- accelerated death benefit in the case of terminal illness
- opportunities for participants to purchase additional life insurance
The UMLifeOptions plans are fully insured and are administered by Unum—a leading LTD and life insurance underwriter. Learn more about UMLifeOptions on the General Board website or contact Carrie Persivale, welfare plans manager, at 1-800-870-4442, ext. 4050 or cpersivale@gbophb.org.
Website Redesign
The General Board recently unveiled a redesign of our website at www.gbophb.org. We believe the new site is cleaner, more streamlined and more visually appealing, with balanced visuals and information. The navigation is more accessible, with information presented under the General Board’s three main service lines: Retirement, Investments and the Center for Health.
This first release is focused on the visual aspects of the website’s design. In 2014, the website’s content will be audited and reimagined, with shorter, more concise articles planned for the second release.
This website should not be confused with Benefits Access, our online participant account management system.
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