The United Methodist Publishing House (UMPH) 2009–2012 ...

Financial Administration 639

All of our work is focused on the imperative mis-sion to make disciples of Jesus Christ for the transfor-mation of the world.

For 222 years the publishing enterprise hasremained completely self-sustaining through sales with-out the use of any general church funds and over the lastfifty years contributed nearly $50 million to supportclergy and their dependents’ pensions in the jurisdic-tional and central conference annual conferences.

Overall UM church membership and attendance inNorth America are declining. As a consequence, the nat-ural markets for congregational resources that have beenthe mainstay of UMPH’s ministry for decades areshrinking. In adapting to these realities and reaching outto new customers, UMPH continues to play a centralrole in resourcing churches and has maintained marketshare in several categories despite the overriding down-ward trends in the larger UM connection.

Sales for the four-year period covered in this reportwere $373,160,000. Net Operating Revenue was$2,208,000 and Net Revenue was $3,668,000. Thoughthe global financial crisis in 2008–2009 created an assetshortfall for funding all future liabilities in the definedbenefit pension plan for UMPH staff, a carefully pre-pared and practical schedule is in place to leverageUMPH’s strong balance sheet and annual earnings andto return the plan to fully funded status.

Aggressive efforts by UMPH to offer new products,reach and serve more customers, sustain market share inUM churches, grow selected product lines, and controlcosts resulted in a positive bottom line (net operatingrevenue) each year of the quadrennium. This wasaccomplished despite declines in worship and Sundayschool attendance in UM churches, changing patterns incongregations, overall declines in both the religion andsecular bookselling industries, and the global recessionof 2008–2009.

UMPH provides a rich variety of products forteaching and learning, scholarship, applied theology andprofessional ministry, leadership development, Christianliving, music and worship, and support for the missionand ministries of congregations.

A major effort this quadrennium has been the newEnglish-language translation from the original texts andpublication of the Common English Bible (CEB). TheCEB was conceived and managed by UMPH, employinga diverse team with more than 117 scholars from 22 faithtraditions. This bold translation is crafted to meet theneeds of contemporary Christians as they grow in rela-tionship with God through Jesus Christ.

Other major ventures include a new line of books thatprovide inspiration, modeling, and guidance for Christianliving; resources for congregational life (building on thesuccess of DISCIPLE, Enough, and Transformed Giving);digital access to a broader collection of music (Worship& Song) for congregational worship; digital textbooksfor seminary and college use; and more.

Strategic work continues to sustain the Cokesburyretail system as a complementary, multi-channel sellingorganization that integrates the work of our retail stores,catalog and telephone order department, on-site eventssales at conferences and other meetings, and theCokesbury.com Internet store. Our Cokesbury salesforce has been expanded with the addition of KeyAccount Managers and Cokesbury Sales Representativeswho live in the regions they serve and travel to meet withpastors, educators, and leaders in local churches.

To attract and delight tens of thousands of cus-tomers, UMPH is making major investments to enhancethe appeal and ease of use of Cokesbury.com. We arealso forging distribution agreements with additionalpartners such as Church Publishing, Inc. (EpiscopalChurch). Through these and other initiatives, we seek tooffer a broad array of quality products and reach out toserve more customers in more places.

The global financial collapse in 2008–2009 led tosuspension of development of a new United Methodisthymnal. An assessment will be made and brought to the2016 General Conference about the merits of restartingthe hymnal revision process.

UMPH is investing millions of dollars in digitalinfrastructure, product development, and marketing thatwill place UMPH/Abingdon Press/Cokesbury in theforefront of the digital world of publishing and retailing.

The United Methodist Publishing House (UMPH)2009–2012 Summary Report

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640 DCA Advance Edition

MinistryMatters.com, UMPH’s ecumenical ministryInternet resource site, launched in April 2011. During itsfirst three months, it received nearly 100,000 visits fromover 51,000 unique visitors in 161 countries.

For two centuries the Publishing House has madehuge and sometimes risky changes in ministry models,

products, technologies, distribution channels, and budg-

ets to keep pace with and anticipate the shifting needs of

churches, leaders, and Christian pilgrims. We can do no

less now as we strive to help more people in more places

come to know God through Jesus Christ, learn to love

God, and choose to serve God and neighbor.



IntroductionThe ending of one quadrennium and the beginning

of another give rise to prayerful reflections about currentrealities and hopeful expectations about the future of theChurch’s publishing and retailing ministry.

All our work is focused on the imperative missionto make disciples of Jesus Christ for the transformationof the world. And as we employ the tools and capabili-ties of our publishing and retailing ministry, we aremindful that reports of current events and the state of ourindustry compel us to give renewed focus to makingquick adaptive changes with emphatic emphasis onachieving better outcomes.

We take stock in the midst of major disruptions inthe social and technological realms, accompanied byeconomic pressures born of the recent and deep world-wide recession. Together they underscore that it is every-one’s concern to find alternate ways to do new thingsand to relinquish infatuations that make us captive topreviously useful but no longer effective approaches.

The United Methodist Publishing House (UMPH)is 222 years old and counting. UMPH and its predeces-sor organizations have been good stewards, faithful toour mission while also adapting and reforming over andover again. From filling saddle bags full of books tonegotiating multi-million-dollar FedEx contracts, fromproducing filmstrips for Sunday schools to initiatingchurch-wide distribution of TV satellite dishes and nowsophisticated Internet downloads, UMPH has repeatedlyupset the status quo in order to seize each era’s opportu-nities and meet the needs of a changing Church in avibrant world.

Over two centuries the boards and staff members ofthe Publishing House have made huge and sometimesrisky changes in ministry models, products, technologies,distribution channels, and budgets to keep pace with andanticipate the shifting needs of their constituencies.

Paragraph 1613 in The Book of Discipline says:

The objectives of The United MethodistPublishing House shall be: the advancement ofthe cause of Christianity throughout the world

by disseminating religious knowledge and use-ful literary, scientific, and educational infor-mation in the form of books, tracts,multimedia, and periodicals; the promotion ofChristian education; the implementation of anyand all activities properly connected with thepublishing, manufacturing in a variety ofmedia, and distribution . . . including the ecu-menical outreach of Christianity. . . .

The Book of Discipline uses the term shall more thanthree times as often as the word may (4,863 vs. 1,382)when describing mandates and guidelines for the Church’sministry. Yet the Discipline’s longstanding assignment toUMPH provides a wonderfully expansive, open-ended,and far-reaching declaration to go and make disciples byserving more people in more places in more ways!

We experience the exhilaration of fashioning cre-ative alternatives to past practices and launching newventures even as we grapple with myriad challenges. Weadjust to the “new normal,” where, for example, churchbulletin sales generate half the income we once couldrely on as a predictable pattern. But as we eagerly andpassionately strive to serve “the Church that is becom-ing,” we can’t and don’t expect to rely on “old world”products to generate income needed to sustain our min-istry in the future.

A stark reality and challenge is that overall UnitedMethodist membership and attendance in North Americaare declining. As a consequence, the natural markets forcongregation-based resources that have been the mainstayof UMPH work for decades are shrinking. Nevertheless,UMPH plays a central role in resourcing our churches andhas maintained market share in several categories despitethe overriding downward trends in The UMC.

While sales volumes of some important traditionalproduct categories remain stagnant or contract, we arebusy introducing new ones. All the while we are hum-bled to acknowledge that often the relative success ofproducts generated in a highly competitive and seg-mented marketplace are dwarfed by the loss of muchhigher margins that came from more robust sales of tra-ditional offerings such as dated curriculum and churchsupplies—products that have previously been key incovering UMPH’s operating costs.

The United Methodist Publishing House (UMPH)2009-2012



A primary example of our work in new ventures isthe publication of the complete Common English Bible(CEB). As a fitting recognition of the increasing impor-tance of digital delivery systems, the very first “copies”of the completed text were available in e-book editionsfor all current mobile devices.

The Common English Bible is offered to the entireChurch. It is a bold new translation crafted to meet theneeds of Christians as they build a strong and meaning-ful relationship with God through Jesus Christ.

Translators and reading specialists labored with 77reading groups from more than a dozen denominationsto ensure a smooth and natural reading experience. Easyreadability enhances church worship and participationas well as personal Bible study. It encourages childrenand youth to discover the Bible, perhaps for the veryfirst time.

To achieve this result, The United MethodistPublishing House conceived and managed plans for theCEB to be developed by a diverse team with over 117scholars—men and women from 22 faith traditions inAmerican, African, Asian, European, and Latino com-munities. This new translation of ancient words has anuncommon relevance for many Bible readers—fromchildren to scholars.

The Common English Bible is also a distinct newpublishing imprint for Bibles and reference productswith offices in Nashville, Tennessee. The CommonEnglish Bible Committee consists of publishers from:the Christian Church (Disciples of Christ) (ChalicePress); Presbyterian Church U.S.A. (Westminster JohnKnox Press); Episcopal Church (Church Publishing,Inc.); United Church of Christ (Pilgrim Press); and TheUnited Methodist Church (Abingdon Press).

Another area of intense work that helps us increaseour capacity to serve the church that is becoming isdigital technologies. Late in 2007 the first Kindle wasintroduced, representing the first major change in thedelivery of books since 1440. Even when that initialversion sold out in five hours few would have predictedthat by May 2011, Amazon would announce that overthe previous year they sold more Kindle books than printeditions. Yet we are pleased that in that same periodUMPH adapted quickly to the new reality and announcedlast May that approximately 30 percent of the units in ourown new Abingdon Fiction line were sold as e-books!

We are now in the midst of a major, multi-milliondollar investment in digital infrastructure, product devel-opment, and marketing that will place UMPH/AbingdonPress/Cokesbury in the forefront of the digital world ofpublishing and retailing for years to come.

Other major new ventures include the launching ofa new line of books (in both print and digital formats)that will appeal within and beyond The UMC by pro-viding inspiration, modeling, and guidance for Christianliving; an emphasis on resources for congregational life(building on the success of DISCIPLE, Enough, andTransformed Giving), new digital access to a deeper,broader collection of music for congregational singingand choirs; digital textbooks for seminary and collegeuse; and more.

Meanwhile, we are forging agreements with newpartners such as Church Publishing, Inc. (EpiscopalChurch), who give us expanded products to offer andwho can lead us to new customers to serve.

We also continue to vigorously pursue every avenuefor accessing more cost-competitive services from ven-dors, achieving greater internal efficiencies, and fash-ioning lower cost processes. Those efforts have beeninstrumental in generating positive bottom-line financialperformance every year of this quadrennium, and wecontinue to pursue more savings with increasing deter-mination and an ever greater sense of urgency.

One decision necessitated by the global financialcollapse in 2008–2009 was to suspend work on devel-oping a new United Methodist hymnal. A report fromthe Hymnal Revision Committee can be found on page378 of the Advance Edition of the Daily ChristianAdvocate.

A continuing assessment will be made in light ofadvances in digital technologies, the publication this quad-rennium of additional music resources—especiallyWorship & Song—and other factors to determine if a pro-posal to restart the hymnal revision process might bebrought to the 2016 General Conference for consideration.

Meanwhile, we will continue to find new productsto serve existing and new customers. We will find newways to control costs, adjust for unexpected expenses,and assure the long-term viability of The UMC’s ecu-menically focused publishing and retailing ministry. Wewill give God thanks when traditional methods continueto deliver results even as we aggressively search for new



ways to serve, given the unrelenting march of change inthe culture and the Church.

The current board and staff are not the first genera-tion to comprehend that our responsibility is to readyourselves to serve the Church that is, but even more sothe Church that is becoming. We might fear that we willbe inhibited by our history; but using eyes to see, mindsto comprehend, and hearts to embrace our heritage, wediscover instead paths to our future.

All of this adds up to the continuing thrilling ridewe call United Methodist publishing and retailing. Withprayerful hearts, earnest study, and serious reflection,we embrace both what perplexes and delights us as onepiece. And we know that we are not navigating thebreathtaking rapids by depending only on our own witsand abilities. Anticipating and trusting in God’s grace,seeking the Spirit’s leading, and with confidence aboutthe transforming difference working with others we canmake in people’s lives and in the world, we pray forGod’s sustaining help so that we will find the ingenuityand strength to stay the course.

PublishingThe publishing program of UMPH is designed to

provide to The United Methodist Church and the ecu-menical community a wide variety of resources that willhelp more people in more places know God throughJesus Christ, learn to love God, and choose to serve Godand neighbor.

The entire publishing enterprise includes variedofferings for teaching and learning, scholarship, appliedtheology and professional ministry, leadership develop-ment, Christian living, music and worship, and supportfor the mission and ministries of congregations.

This work that resources tens of thousands ofchurches and hundreds of thousands of individuals isfully self-supporting through sales. The work includesresearching customer needs; developing staff skills;identifying and partnering with authors, educators, andother publishers; maintaining the infrastructure for prod-uct development; keeping current with digital technol-ogy and information systems; and assuming thefinancial risks associated with production, maintaininginventory, and launching new products. UMPH accom-plishes all of this without the use of any general Churchfunds and over the last fifty years contributed nearly$50 million to support clergy and their dependents’ pen-

sions in the jurisdictional and central conference annualconferences.

During the quadrennium hundreds of new productswere published under the Abingdon Press imprint in theareas of theology, leadership, biblical studies, small-group studies, program resources, Christian living, and anew category, Abingdon Fiction. In addition, more thana thousand new Abingdon Press church supplies andnew music resources were produced for use in UnitedMethodist churches and beyond. These and other prod-ucts in print, digital, and video formats were developedand offered through both the multi-channel Cokesburysystem (stores, call center, on-site sales at events, andCokesbury.com) and the trade (other retail vendors andInternet sites).

The teaching and learning staff developed anddelivered several hundred new and revised curriculumproducts under the Cokesbury imprint each year for usein Sunday school, Vacation Bible School, and other set-tings. Additionally, other work groups completed offi-cial resources such as The Book of Discipline and TheBook of Resolutions, published under The UnitedMethodist Publishing House imprint, following the 2008General Conference.

Bible, Leadership, and Theology

The publishing team for Bible, Leadership, andTheology advances the love of God and neighborthroughout the world by disseminating Bibles and booksabout the Bible, God, and the daily practice of ministryin print and digital formats. In 2011 UMPH released acompletely new Bible translation, the Common EnglishBible, which appears under a new ecumenical imprint,Common English Bible. This work, whichincluded English-speaking scholars from the UnitedStates, Canada, United Kingdom, Australia, and SouthAfrica, is the first English-language Bible translationproduced in the history of Methodist publishing. TheCEB has been very well received by the churches, Biblescholars, educators, and leaders across 24 denomina-tions. Due in part to publicity for the translation in tele-vision and new media, such as Time magazine and USAToday, 500,000 units of the Common English Biblewere in print at the point of publication in August 2011.The next quadrennium will involve a significant empha-sis on gift and pew Bibles in congregations among sev-eral denominations.

During the quadrennium, work began on lay-ori-ented reference products that will be based on the new



translation, such as the CEB Bible Dictionary; the CEBConcordance; and the CEB Bible Map Guide, whichsold out a first printing of 5,000 before it was published.In addition to more than fifteen different formats ofBibles produced each year, approximately thirty-fivenew books for church leaders, seminarians, college stu-dents, and religion scholars are published by AbingdonPress annually. The best-selling leadership book duringthe last quadrennium was Five Practices for FruitfulCongregations, by Robert Schnase, with upwards of130,000 copies sold.

Christian Living and Abingdon Fiction

The Christian Living and Abingdon Fiction teampublishes books that inform and enlighten, all whileinspiring readers to move toward a closer walk withChrist. The publications speak to the realities of readers’lives. This team seeks authors with a clear voice andsomething important to say as well as qualified, creden-tialed experts whose knowledge and insight provide theexcellence of thought and expression readers expectfrom Abingdon Press. In categories ranging from per-sonal and spiritual growth to family and relationships,Christian Living titles provide readers with informationand encouragement from a Christian perspective.

Abingdon Fiction was launched in 2009. Thesetitles are creative and uplifting stories that often helpreaders experience Christ in a new way. From both first-time and established authors, Abingdon Fiction titleshave received critical and commercial acclaim. Throughstory, some readers are better able to understand God’sgrace and love than when it is presented in a nonfictionformat. While the categories range from romance towestern, each title at its core is about the main charac-ter’s faith and God’s faithfulness.

Examples of widely read titles include the fictionwork A Simple Amish Christmas, with sales of over20,000 copies in nine months, and the Christian Livingtitle, The Cure for the Chronic Life, with salesapproaching 28,000 copies in just 10 months.

Church School Publications/Teaching andLearning

The children’s, youth, adult, Vacation Bible School,and Korean- and Spanish-language curriculum teamswork to support the teaching and learning needs of con-gregations with the same mission in front of us: to helpmore people in more places come to know God throughJesus Christ, learn to love God, and choose to serve Godand neighbor. We do this through publication of a num-

ber of curriculum and study resources for children,youth, and adults in a variety of settings such as Sundayschool, small groups, and fellowship times; in multipleformats including print, video, and download; and inlanguages including English, Spanish, and Korean. Weattend to this task by discerning the teaching and learn-ing needs in local congregations, then planning for anddeveloping or acquiring resources that persons in thesechurches will choose, use, and value. We do this in sucha way that we can continue the self-supporting ministryof UMPH that receives no general Church funds.

Outstanding titles include sales of over 1 millionunits of the children’s curriculum Rock Solid: Building aHeart of Faith and nearly 1.5 million units of the AdultBible Studies quarterly.

Our work is specifically outlined in The Book ofDiscipline in the language about the CurriculumResources Committee (see paragraphs 1122.2, 1122.3,and 1124).

Program Publishing

The Program Publishing unit of Abingdon Pressserves congregations and their leaders by publishing tosupport congregation-wide initiatives, special ministries,and other church events. The purpose is to aid leaders asthey plan and implement critical work for the congrega-tion and its mission.

Congregation-wide initiatives include stewardship,prayer, leadership development, church growth, andmission. Special ministries are areas that serve a specificneed or group within the congregation beyond Christianeducation, such as support and recovery, grief, men’sand women’s groups, and in-depth Bible study.Resources for seasonal church family events for Adventand Lent that involve worship, study, and devotion arealso areas of focus.

Program publishing in these areas of ministryinclude tools and materials for pastors, leaders, teachers,families, and individuals. Program tools include strate-gic planning helps, plans for worship emphasis, smallgroup reading and video for all ages, and individualstudy and reading.

The most widely used studies this quadrenniumincluded:

Enough by Adam Hamilton. A small group studyabout faith, finances, and generosity used by more than5,000 congregations.

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24 Hours That Changed the World by AdamHamilton. A look at the last 24 hours in the life of Jesus,with more than 161,000 units used by 10,000 localchurches.

Transformed Giving by John Ed Mathison.A church-wide study and campaign focusing the entirecongregation on prayers, presence, gifts, and service.With total sales of 200,000 units, this resource, origi-nally published in 2006, has remained strong. Salessince 2009 exceed 48,000 units.

Three Simple Rules Program Resources by RuebenJob. Based on his best-selling book with combined salesof over 340,000 copies of the book and program guides

Five Practices Program Resources by RobertSchnase. A family of resources providing tools forchurch leadership teams based on the book, FivePractices for Fruitful Living with combined book andprogram materials having reached more than 5,000 con-gregations.

Worship, Music, Church Supplies

The output of this team supports the work of con-gregations primarily in the worship setting. The needsvary from lyrics to visually project in the worship set-ting, one of the new musical selections from Worship &Song, a bulletin for Ash Wednesday, or a worship plan-ning calendar. Hundreds of new products are developedannually to support and enhance the worship experience.

Notable sales include nearly 60,000 copies of vari-ous editions of Worship & Song in the first five monthssince publication and approximately 3.3 million unitsfor the Weekly Church Bulletin subscription service.

Retail MinistryStrategic work continues to sustain through the

Cokesbury retail system a complementary, multi-channelselling organization with a cohesive marketing and mer-chandising strategy. The system-wide selling and serviceorganization provides a foundation for adapting to chal-lenges such as the recent worldwide economic crisis, andthe advent of increased channel migration by customerswho are relying less on traditional retail brick and mortarstore sites, along with steep declines in institutional pur-chases of traditional church supplies and furnishings.

At this writing Cokesbury operates 58 full line andseminary bookstores. As a part of the ongoing adjust-

ments necessary for a self-sustaining ministry, UMPHopens new Cokesbury stores and closes those that are nolonger viable. Between January 2008 and January 2011,UMPH made the difficult decision to close 15 stores. Ineach instance market conditions and changes in cus-tomer purchasing habits contributed to financial resultsthat were unsustainable.

Many of the regions where stores were located con-tinue to be supported through local, full-time Cokesburysales representatives who meet personally with churchesand manage sales at some conferences and otherevents. Churches in each market where stores closedwere immediately assigned a customer relationship teammember from the Cokesbury catalog and phone salesdepartment, and all churches have access to Christianeducation experts via Curric-U-Phone (1-800-672-1789).

During the same period, four new Cokesbury storeswere opened. One notable case was in August of 2010when Cokesbury partnered with the Baltimore/Washington Annual Conference to open a store locationat the newly constructed conference office facility.

Cokesbury University, a key training tool for salesstaff, now includes an internal blog that is used toquickly update front line personnel on promotion spe-cials, revised offers, new and fast-moving products, andproduct status updates. Cokesbury uses webinars to pro-vide training on key products.

The Cokesbury sales force has been expanded withthe addition of Key Account Managers in most of ourstore locations, each of whom has the responsibility ofvisiting and serving the local churches in their areas.In markets where there is not a Cokesbury store site,we are increasingly serving the needs of the local churchesby deploying regionally based Cokesbury SalesRepresentatives.

In 2010, a new merchandising team was created.This team is making the best use of new supply chainmanagement technology to serve a wide array of cus-tomers—both seekers and church leaders from manydenominations. We continue to explore new ways tomeet our customers’ wide range of needs and positionCokesbury more effectively as their “one stop shoppingplace.” New merchandise assortments will appear in thestores and will be visible in our catalogs and atCokesbury.com. For example, Cokesbury seminarybookstores now offer cash-strapped seminary students



the option to purchase used books at attractive prices. Atthe same time, we have made adjustments in our dis-count structure to create a more competitive price posi-tion versus other e-tailers.

A consolidated purchasing project was completedin 2011. This includes a software tool designed to helpus deliver a consistent product assortment, assure bettermargins, and manage our inventory investment. A sig-nificant advantage is that the new approach allows front-line staff to focus on serving customers versus spendingtime with “backroom” functions required for inventoryrecordkeeping and replenishment.

Concerted ongoing efforts to enhance its appeal andutility mark our approach to Cokesbury.com—our pri-mary Internet based sales site. We’ve employed a multi-year, comprehensive program covering four essentialareas of user experience: pricing, ease of use, downloadand search speed, and graphic treatment. The fundamen-tals of competitive pricing, reliable browse-and-searchfunctionality, and appealing site graphics are being con-tinuously addressed to ensure a dynamic satisfyingshopping experience.

Upgrades to Cokesbury computing software forcustomer relationship management began in 2009 andcontinue to move forward to keep pace with the chang-ing expectations of customers and the opportunitiesafforded by new technologies. Specifically, theseupgrades allow for more efficient customer list manage-ment for direct mail and e-mail campaigns and serve asa repository for tracking total account purchases, evenwhen one church chooses to maintain multiple accounts.The result is a more efficient direct sales organizationthat mails 2.5 million catalogs and e-mail promotions totens of thousands of customers each year.

Cokesbury has had longstanding retail distributionarrangements with the Presbyterian Church (U.S.A), theChristian Church (Disciples of Christ), and others. In2011 Cokesbury teamed up with Church Publishing,Inc., to provide all retail marketing and distribution asthey serve their own Episcopal Church and broader reli-gious community. Increasingly, Cokesbury is seen as thesource of products and services for the broad Christiancommunity, and we are working closely with Episcopal,Disciples, Presbyterian, Full Gospel Fellowship, UCC,CME, AME, AMEZ denominations, and nondenomina-tional partners. This, along with other strategic partner-ships and investments, positions Cokesbury tostrengthen and extend its role as the one-stop shopping

place for ecumenical resources services for students andscholars, participants and leaders of a wide array ofChristian denominations, and all who want to knowmore about Christian faith and ministry.

Digital Infrastructure & OutreachAgainst the backdrop of fast-moving forces of

changes in technology and delivery of content in multi-ple formats, on varying platforms, and through dozensof channels of distribution, UMPH has undertaken sev-eral large projects this quadrennium. Chief among thosewas the identification of the need for a new state-of-the-art digital asset management system to replace a simi-larly comprehensive and sophisticated system installedin 2003 and which by 2008 was obsolete.

We needed a system to support both rapidly chang-ing requirements for a tightly controlled environment forthe storage, sharing, and dissemination of files of digitalcontent of all types and the increasingly complicatedworkflows required for development, preparation, anddelivery of content in multiple formats. In addition to thenew digital asset and workflow management system, anew royalty management program was required in orderto effectively administer complex, multi-format andmulti-channel royalty agreements. These two majorprojects represented $1.2 million of capital investmentand thousands of person hours to put into place.

UMPH is now executing a “digital first” publishingworkflow that offers a full range of decision points aboutthe most effective publishing platforms for each prod-uct—from acquisition for use as exclusive content onthe UMPH-developed website MinistryMatters.comand/or as digital-only versions available on e-readers, toalternative print-on-demand formats or when requiredtraditional print-first hardcover or paperback books.Intensive business planning helps us understand thepotential reach and financial efficacy of each publishingapproach and employ a full range of options supportedby new technology and digital distribution relationships.To control costs so that we may offer products at lowerprices, we have also negotiated aggressive contractswith the top print-on-demand and traditional printersand binders.

MinistryMatters.com, UMPH’s ecumenical min-istry Internet resource site, launched in April 2011.During its first three months it received nearly 100,000visits from over 51,000 unique visitors in 161 countries.



Ministry Matters is a blend of magazine, easy access toreference resources, and social networking. Its missionis threefold: to equip, connect, and inspire church lead-ers, both clergy and laity across denominational bound-ary lines.

The most popular feature of Ministry Matters so farhas been “This Sunday,” a weekly collection ofresources centered on the Revised Common Lectionary.The website also functions as a digital publishing plat-form for Abingdon Press and other UMPH imprints, giv-ing UMPH the opportunity to publish content quickly,explore themes based on user feedback, easily distributeexcerpts of longer works for consumer sampling, andsell digital content direct to consumers through the uni-versal e-pub format.

UMPH (using our trade names of Abingdon Pressand Cokesbury) continues to increase our presence onsocial networking sites such as Facebook and Twitter, aswell as building our own community withinMinistryMatters.com.

Financial OverviewAggressive efforts by UMPH to offer proven and

new products, reach and serve more customers, sustainmarket share in UMC churches, grow selected productlines, and control the cost of goods and operatingexpenses resulted in UMPH achieving a positive bottomline (net operating revenue) each year of the quadren-nium. This was accomplished despite declines in wor-ship and Sunday school attendance in UM churches;changing patterns in congregations related to purchaseof hymnals and special merchandise (choir robes, pewcushions); stiff competition in pricing for selectedchurch resources, furnishings, etc.; overall declines inboth the religion and secular bookselling industries; andthe global recession of 2008–2009.

Cumulative sales for the 2008–2011 period were$373,160,000. Cost of goods sold of $177,505,000 andexpenses of $193,447,000 resulted in Net OperatingRevenue of $2,208,000. Non-operating expenses of$6,052,000 and investment earnings of $7,512,000resulted in a total Net Revenue of $3,668,000. Duringthis period $5,356,000 was spent from invested reservesfor ministry growth and expansion through research anddevelopment activities for new products and services.

The UMPH balance sheet shows assets and liabili-ties at the beginning of the quadrennium of $105,378,000

and $97,047,000 at the end, representing a decline of$8,331,000. The key asset changes were strategic reduc-tions in inventories of $8,943,000 to achieve greater effi-ciencies and assume less risk, and reductions in accountsreceivable of $4,098,000 due to both better collectionsand reduced sales. Meanwhile, invested reservesincreased by $11,272,000. The key liability change wasrelated to the 2008–2009 economic and financial mar-kets downturn that contributed to an increase inaccrued pension liabilities of $33,589,000. Togetherthese asset and liability changes resulted in a decline inunrestricted net assets of $31,445,000 during the period.

Pensions & Conference ClaimantsThe 2008–2009 world financial crisis reduced

UMPH defined benefits pension plan assets, creating asignificant funding gap for long-term pension liabilities.As a result, the Board of UMPH voted both to freeze thelongstanding staff defined benefit pension plan and todiscontinue Conference Claimants contributions untilthe UMPH staff fund is once again adequately funded.In 2010 the staff plan was frozen and is not incurringnew liabilities. Current funding policy provides a plan toclose the funding gap within 7 years or sooner, depend-ing on financial market performance and other factors.Meanwhile, annual contributions are being made basedon UMPH fiscal year performance to employee 403(b)pension plans.

PersonnelUMPH employs approximately 700 staff members

who deliver quality services and products through 58Cokesbury stores, the Cokesbury and Abingdon Presstelephone and Cokesbury.com order centers, and125–150 sales displays at conferences and events acrossthe United States each year. In 2007, compensation spe-cialists of PricewaterhouseCoopers were engaged at thedirection of the Board of UMPH to review executivestaff positions to assure that both the base and the incen-tive pay were set at the appropriate level in comparisonto each other and to the ranking and pay scales of simi-lar positions for comparable publishing, retail, and non-profit organizations. The research performed by theconsultants showed that UMPH’s pay fell well belowmarket norms, with all of the executive-staff jobs fallingunder the levels for the 25th percentile (meaning that 75percent of the same jobs in similar industries and organ-izations of comparable size and dollar volume payhigher rates than UMPH). The elected Board of UMPHannually reviews and approves all executive staff pay



and sets the midpoint of pay at the 25th–50th percentile ofthe market as the benchmark for determining pay deci-sions. In accordance with its disciplinary responsibili-ties, UMPH reports the current salaries of the executivestaff: Neil M. Alexander, President and Publisher—$276,614; Audrey Kidd, Executive Vice President ofRevenue and Operations—$220,646; Larry Wallace,Senior Vice President/CFO—$191,380; EdwardKowalski, Senior Vice President of Marketing andSales—$164,681; Alyce Meadors, Vice President of

Human Resources—$132,684; Tammy Gaines, VicePresident of Business Operations—$124,826. As withmost UMPH personnel, the executive staff members areeligible for incentive compensation as approved by theBoard of UMPH annually based on UMPH and individ-ual performance.

Edward W. Kelley, Jr. Neil M. AlexanderChair of the Board President and Publisher

2009–2012 Board of The United Methodist Publishing House

Council of BishopsChristian Alsted Copenhagen, DenmarkAlfred W. Gwinn, Jr. Garner, NCJ. Michael Lowry Ft. Worth, TX

North Central JurisdictionJames C. Bushfield Indianapolis, INLinda Johnson Crowell Oakwood Village, OHBrian K. Milford Atlantic, IADennis M. Oglesby, Jr. Minneapolis, MNJames Preston Chicago, ILThomas F. Tumblin Nicholasville, KY

Northeastern JurisdictionRuth A. Daugherty Lancaster, PARobert W. Higginbotham, Jr. Cranberry Township, PAW. Garey Hope Columbus, NJEdward W. Kelley, Jr. Washington, DCMaidstone Mulenga Cicero, NYGregory C. Myers Hazelton, PA

South Central JurisdictionYoung-Ho Chun Overland Park, KSRoberto L. Gómez McAllen, TXZan W. Holmes, Jr. Dallas, TXEric McKinney Georgetown, TXBarbara J. Ruth Austin, TXKim D. Wheless Houston, TXJerry Ruth Williams Chesterfield, MO

Southeastern JurisdictionMonica S. Christian Henderson, TNCornelia A. Clark Franklin, TNR. Carl Frazier, Jr. Cary, NCWilliam S. Hatcher Statesboro, GAJ. N. Howard S. Pittsburg, TNJohn Ed Mathison Montgomery, AL



Betty Moss McGuirt Pawleys Island, SCCarol Y. Toney Madison, ALSusie Wolf Kenbridge, VA

Western JurisdictionJanine DeLaunay Tigard, ORSunyoung Lee San Pedro, CA

Central ConferencesEliseo C. Balisi Cauayan City, Isabela, PhilippinesKlaus Ulrich Ruof Frankfurt, Germany

Additional MembersDavid F. Crane Nashville, TNShinya Goto Madena, CAWalter L. Kimbrough Atlanta, GAStephen P. Readus Country Club Hills, ILAkwiasdi K. Revels Olin, NCJeffery L. Tribble, Sr. Decatur, GA

Ex OfficioNeil M. Alexander Nashville, TN



¶613.

Petition Number: 20622-FA-¶613-G; Lomperis, JohnS.A. - Arlington, VA, USA.

Campus Ministry Programming

AMEND ¶613 by ADDING an additional num-bered item at the end of the present paragraph:

21. To ensure that no annual conference board,agency, committee, commission, or council shall giveUnited Methodist funds to support any campus ministrythat through its official, public programming or a formalcaucus affiliation affirms sexual relations outside thebond of marriage between one man and one woman.This provision shall not prevent any conference-sup-ported campus ministry from sponsorship of eventsdevoted to dialogue or education, provided that theChurch’s official teaching is fairly and equally repre-sented, and that the Church’s teaching is also defendedby a leader of the campus ministry.

Rationale: Campus ministries should not serve as stumbling

blocks but rather help participating students in strivingto live holy lives in the face of contrary pressures.Campus ministries that oppose our teaching, drivingaway faithful students, should not force all conferenceUMs to fund them but should find their own support.

¶613.

Petition Number: 20637-FA-¶613-G; Lomperis, JohnS.A. - Arlington, VA, USA.

Prohibit Support of Cohabitation

AMEND Discipline ¶ 613 by adding a twenty-firstitem at the end of the list:

¶ 613 Responsibilities—The council shall haveauthority and responsibility to perform the followingfunctions:

1. ...21. To ensure that no annual conference employee

is offered intimate domestic partner benefits that conflictwith our Church’s stand of only affirming sexual rela-tions within the bond of marriage between one man andone woman.

Rationale: In recent years, multiple annual conferences have

taken steps to provide benefits for intimate domesticpartners with whom lay employees cohabit outside ofmarriage. Some have argued that it is not clear if ¶612.19applies. Our church must stop offering support tolifestyles directly contrary to our biblical Christian ethics.

¶613.

Petition Number: 20682-FA-¶613-G; Hester, John W. -Salem, SC, USA.

Remarriage after Divorce

Add new sub-paragraph after ¶ 613.20 as follows:To ensure that no annual conference board, agency,

committee, commission, or council shall give UnitedMethodist funds to any caucus or group, or otherwiseuse such funds to promote the acceptance of remarriageafter divorce.

Add new sub-paragraph after ¶ 806.9 as follows:It shall be responsible for ensuring that no board,

agency, committee, commission, or council shall giveUnited Methodist funds to any caucus or group, or oth-erwise use such funds to promote the acceptance ofremarriage after divorce.

Rationale: Jesus Christ our Lord and Head of the Church crit-

icized the religious leaders of his day for their hypocrit-ical manner of applying God’s Law. Jesus never taughtagainst homosexuality nor same-sex marriage. He didteach against remarriage after divorce, and he called itthe sin of adultery.

Let us therefore...

¶613.

Petition Number: 20807-FA-¶613-G; Zilhaver, Robert F.- DuBois, PA, USA.

Administrative and Judicial Financial Policies

Add new subparagraph after ¶613.20: In coopera-tion with the Conference Board of Ordained Ministryand the resident bishop, establish funding policies to

Proposed Amendments to the Book of Discipline

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ensure proper administrative and judicial processes andprocedures. All financial policies shall apply equally toall parties.

Rationale: Clarify responsibilities of financial costs for admin-

istrative and judicial procedures and clarify who has pol-icy making authority.

¶613.

Petition Number: 20894-FA-¶613.13-G; Thomas, H.O.Tom Jr., VA, USA for Evangelical Fellowship in VirginiaAnnual Conference.

CCFA Personnel Policy

Amend ¶613.13 as follows:¶613.13. To establish uniform and equitable poli-

cies and practices in the employment and compensationof personnel, in consultation and cooperation with otherconference agencies that employ staff, unless the annualconference has designated another agency to carry thisresponsibility. These policies and practices shall be inaccordance with the Social Principles (¶162 A, E, F, andI) and the expectation that employed program staff shallbe, among other things, persons of genuine Christiancharacter who love the church, are morally disciplined,are dedicated to the practice of fidelity in heterosexualmarriage and celibacy in singleness, are committed tothe mandate of inclusiveness, and are loyal to the ethicalstandards of The United Methodist Church. In addition,the council shall ...

Rationale: The annual conference expects no less of employed

program staff than local churches do of its church councilmembers. Employed program staff in conference positionsshould model exemplary Christian character and be moralwitnesses. The amended statement strengthens the expec-tations the annual conference has of employed personnel.

¶613.

Petition Number: 20500-FA-¶613.15-G; Erbele, W.Terence - Ketchikan, AK, USA for Alaska AnnualConference.

Risk Management

Move ¶613.15 to a new place in the Discipline sothat it becomes a new ¶2512.8.

Rationale: Many insurance matters within the conference

relate to real property, which is managed by the Board ofTrustees. Similarly, the Board of Trustees is most oftenthe legal entity of the conference, or its representative,and will be involved in any matters of liability, particu-larly those that involve litigation.

¶613.

Petition Number: 20029-FA-¶613.20-G; Lyon, Louie,AZ, USA for Desert Southwest Annual Conference;Sachen, Kristin L. - San Francisco, CA, USA forCalifornia-Nevada Annual Conference; Oduor, RalphR.R. - Lawrence, MA, USA for New England AnnualConference; Ruggles, Bruce - Minneapolis, MN, USAfor Minnesota Annual Conference; Shaffer, John J. -Stanwood, WA, USA for Pacific Northwest AnnualConference; Ryder, Jack E. - LaGrange Park, IL, USAfor Northern Illinois Annual Conference; Hermes,Steven E. - Kalispell, MT, USA for Yellowstone AnnualConference; Myers, Kevin Rice - Sun Prairie, WI, USAfor Wisconsin Annual Conference. 14 similar petitions.

Removal of Language

Delete ¶613.20:¶613 Responsibilities20. To ensure that no annual conference board, agency,

committee, commission, or council shall give UnitedMethodist funds to any gay caucus or group, or otherwiseuse such funds to promote the acceptance of homosexual-ity or violate the expressed commitment of the UMC “notto reject or condemn lesbian and gay members and friends”(¶ 161.F). The council shall have the right to stop suchexpenditures. This restriction shall not limit the Church’sministry in response to the HIV epidemic, nor shall it pre-clude funding for dialogs or educational events where theChurch’s official position is fairly and equally represented.

Rationale: The Constitution of The United Methodist Church

acknowledges the sacred worth of everyone. All are eli-gible to participate fully in the local church. This restric-tion of spending money ignores that fact. Each AnnualConference can monitor its budget.

¶613.

Petition Number: 20851-FA-¶613.20-G; Brandly, Dale -Bellbrook, OH, USA.


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Funding

AMEND (both): ¶¶613.20 & 806.9 – To ensure that no annual conference board, agency,

committee, commission or council shall give any UnitedMethodist funds to any gay caucus or group, or other-wise use such funds to promote the acceptance of homo-sexuality or lesbianism. Further, in like manner, UnitedMethodist funds may not be used to violate theexpressed commitment of The United Methodist Church“not to reject or condemn lesbian and gay members andfriends.” Support of this UMC commitment wouldinclude, but not be limited to, the steadfast resolution notto financially, privately or publicly, support any activi-ties related to or involving anti-gay or anti-lesbian cau-cuses, groups or demonstrations.

Rationale: I am recommending that the first long sentence in

both these paragraphs [613.20 + 806.9] be made two dis-tinct sentences. The first of the two separate sentencesprohibits the disbursement of “...United Methodist fundsto any gay caucus or group, or otherwise use such fundsto promote the acceptance of...

¶613.

Petition Number: 20338-FA-¶613.7; Kumar, A. MosesRathan - Nashville, TN, USA for General Council onFinance and Administration.

Accessibility

Amend ¶ 613.7 as follows:To assist advise local churches in about making their

church buildings, facilities, and programs accessible.Rationale: This proposed change helps clarify that the annual

conference has no financial obligation to local churchesin this regard, but can provide consultation regardingaccessibility issues.

¶614.

Petition Number: 20593-FA-¶614-G; Eckert, Jerry - PortCharlotte, FL, USA.

Line Items

Amend by addition to ¶ 614 by insertion of a twosentence paragraph:

¶ 614. BudgetsThe council shall recommend to the annual confer-

ence for its action and determination budgets of antici-pated income and proposed expenditures for all funds tobe apportioned to the churches, charges, or districts.56

The council shall prepare, as noted below, a budgetfor the annual conference which includes line items, thatis, specific amounts for administrative and programcosts for every board, agency, cause, program, institu-tion, mission and conference benevolence. Line itemsshall be before the annual conference prior to its vote onthe whole conference budget.

Prior to each regular session of the annual confer-ence, the council shall make a diligent and detailedstudy of the needs of all the conference agencies andcauses asking to be included in the budget of any confer-ence fund. The chairperson of each conference agency,or other duly authorized representative, shall haveopportunity to represent the claims of that agency beforethe council.

Rationale: The current pattern of offering a general budget and

trusting conference officers to take care of the detailsprovides no protection from their neglecting, jeopardiz-ing, and excluding ministries desired by the annual con-ference, contrary to Paragraph 613.3a) which demands“that none may be neglected, jeopardized, or excluded “.

¶614.

Petition Number: 20339-FA-¶614.1b; Kumar, A. MosesRathan - Nashville, TN, USA for General Council onFinance and Administration.

Episcopal Fund Apportionment

Amend ¶ 614.1b as follows:The council shall report to the annual conference at

each session the percentage approved by the GeneralConference as the basis for the Episcopal Fund appor-tionment to the annual conference under the methodol-ogy approved by the General Conference and shallinclude in its recommended clergy support budget theamount determined by the treasurer of the GeneralCouncil on Finance and Administration as necessary tomeet this apportionment.

Rationale: The existing language refers to a former methodol-

ogy for apportioning the Episcopal Fund to annual con-ferences which is no longer in use.


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¶615.


Apportionment

Amend ¶ 615.1as follows:The council, on receiving from the General Council

on Finance and Administration a statement of theamount or methodology for apportioning apportioned tothe annual conference for the several general funds asauthorized by the General Conference, shall apportionthe same to the several districts, charges, or churches bywhatever method the conference may direct, but withoutreduction. The council shall make every effort for thefull payment of these apportionments as a part of theChurch’s shared financial covenant.

Rationale: This legislation would allow the annual conferences

to employ a revenue-based formula to apportion generalChurch funds in the future if such a change is consideredappropriate.

¶624.

Petition Number: 20768-FA-¶624; Moore, Karen - BigPine, CA, USA for National Association ofCommissions on Equitable Compensation.

Salary Arrearage

Amend ¶ 624 and ¶ 625.2d as follows:¶ 624. Payment Obligation – 1. Each church or

charge has an obligation to pay the full minimum com-pensation as adopted by the annual conference, andapproved by the charge conference, to its pastor(s). If itbecomes apparent that a church or charge will be unableto so provide the compensation approved by the chargeconference, the church or charge SPRC Chair, FinanceChair, or Treasurer, shall immediately notify, both inwriting and verbally, the pastor, the DistrictSuperintendent and congregation. This communicationshall indicate indicating all avenues explored to meet thesalary, including requesting consideration for a short-term emergency subsidy grant from the EquitableCompensation Fund (¶625.7). If it becomes necessary tomodify a pastor’s compensation, it shall occur at the endof the conference appointment year.

2. Any pastor who does not receive a full scheduledpayment of the approved compensation shall immedi-ately report such, in writing, to the church or chargeSPRC Chair, Church Council Chair, and DistrictSuperintendent. Failure to report in a timely fashion mayresult in surrender of any/all arrearage claims, subject tothe Annual Conference Arrearage Policy (¶625.2.d).

¶ 625. Equitable Compensation – 1. There shallbe...

2. It is the purpose of the commission on equitablecompensation to support full-time clergy serving as pas-tors in the charges of the annual conference by: (a) rec-ommending conference standards for pastoral support;(b) administering funds to be used in base compensationsupplementation; and (c) providing counsel and advi-sory material on pastoral support to district superintend-ents and committees on pastor-parish relations; and (d)submitting an arrearage policy to be adopted by theannual conference. For pastors receiving equitable com-pensation, once the base compensation supplementationhas been paid by the annual conference, and the mini-mum base compensation and base compensation supple-mentation has been received by the pastor, the annualconference shall have no further financial obligation orresponsibility to the pastor, the charge or anyone elseregarding the pastor’s compensation.

Rationale: The Discipline protects the rights of the elder to

receive not less than minimum base compensation.When the local church, which sets the compensation,cannot pay the minimum, then the annual conferenceprovides subsidy grants so that the elder’s claim on min-imum base compensation is protected. With a greaterfrequency...

¶624.

Petition Number: 20828-FA-¶624-G; Moore, Karen -Big Pine, CA, USA for National Association ofCommissions on Equitable Compensation.

Global Compensation Equity

Create new section to ¶ 624 as follows:624.2 A church paying more than twice the mini-

mum base compensation to a pastor under appointment,shall contribute to the central conference pension initia-tive 10% of the amount exceeding twice the minimumbase compensation. This contribution shall be consid-ered missional giving and not count as part of apportion-ment calculations.


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Rationale: Pastoral compensation in the United Methodist

Church is not equitable, especially when we comparehigh salaries in the US with those of CentralConferences. This petition seeks to redress that situationby shifting resources from affluent congregations tothose dedicated pastors in ministry with the poor aroundthe world.

¶625.

Petition Number: 20820-FA-¶625.2-G; Boardman,Hollis - Orlando, FL, USA.

More Equitable Salary

Amend ¶ No. 625.2It is the purpose of the commission on equitable

compensation to support full-time clergy serving as pas-tors in the charges of the annual conference by: (a) rec-ommending conference standards for equitable pastoralsupport by identifying a base compensation amount anda maximum compensation amount which will be nomore than twice the base compensation; (b) administer-ing funds to be used within the annual conference inbase compensation supplementation and as gifts for basecompensation supplementation in annual conferenceswith greater need as determined by the annual confer-ence with guidance from the General Council onFinance and Administration; and (c) providing counseland advisory material on pastoral support to districtsuperintendents and committees on pastor-parish rela-tions. Once the base compensation supplementation hasbeen paid by the annual conference, the annual confer-ence shall have no further obligation or responsibility tothe pastor, the charge or anyone else regarding the pas-tor’s compensation; and (d) administering fundsreceived when a charge votes to exceed the recom-mended maximum compensation amount to compensatea pastor- in that case the charge will pay the sameamount above the maximum compensation to theEquitable Compensation Fund for the support of pastorsreceiving compensation below the base compensationamount either within the annual conference or as a giftto an annual conference with greater need.

Rationale: Pastoral compensation in the United Methodist

Church is not equitable within an annual conference orwhen we compare salaries in the US with those ofCentral Conferences. This petition seeks to redress thatsituation by shifting resources from affluent congrega-

tions to pastors in ministry with the poor around theworld...

¶638.

Petition Number: 20341-FA-¶638.4a; Kumar, A. MosesRathan - Nashville, TN, USA for General Council onFinance and Administration.

Episcopal Residence

Amend ¶ 638.4a as follows:To make recommendations to the annual confer-

ence(s) regarding the purchase, or sale, or rental of anepiscopal residence.

Rationale: This change reflects the requirement that bishops

must now live, by action of the General Conference, inthe episcopal residence owned by the annual confer-ences within that episcopal area and provided to them.At one time, episcopal residences were rented as well asowned, but that option is no longer...

¶639.

Petition Number: 20412-FA-¶639; Ward, Hope Morgan- Jackson, MS, USA for Church Systems Task Force;Boigegrain, Barbara - Glenview, IL, USA for GeneralBoard of Pension and Health Benefits.

Retiree Health and Connectional Service

Amend ¶639 of The Book of Discipline by addingthe following subparagraph immediately following sub-paragraph ¶639.6:

Health Coverage for Retired Clergy withConnectional Service—Honoring the connectionalnature of The United Methodist Church, each annualconference shall ensure that its policies that base retireehealth benefits eligibility on years of participation in theannual conference health plan shall include participationin other conferences’ or in general agencies’ healthplans for purposes of eligibility, i.e., participation orcoverage in the plan or an equivalent exchange-type ormultiple employer plan. Annual conference policies thatbase such eligibility on years of service or years withpension benefits from the annual conference shallinclude service, or service with pension benefits, asapplicable, from other annual conferences or general


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agencies for purposes of eligibility, i.e., participation orcoverage in the plan or an equivalent exchange-type ormultiple employer plan.

For purposes of funding such health benefits inretirement, however, each annual conference shall onlycontribute that amount which it would otherwise havecontributed had the individual retired with the number ofyears of creditable service (without consideration of theextra-conference service) in that particular annual con-ference.

If a clergyperson retires from an annual conferencethat maintains a group health care plan for retirees, theclergyperson will be eligible for coverage based on theyears of service within and outside of the annual confer-ence. He or she shall only be eligible for funding of thecost of those benefits based on the years of servicewithin that annual conference. And, he or she may beeligible for funding from the other annual conference orgeneral agency in which he or she served during his orher ministry. The funding from such other annual con-ference or general agency shall be determined under thatannual conference or general agency’s policies, based onyears of service within that annual conference or generalagency (not counting service elsewhere). Fundingamounts shall be forwarded, in a manner agreeable toeach annual conference or general agency, to the annualconference through which the individual is covered as aretiree, the individual, an insurance company or interme-diary, or a health reimbursement arrangement adminis-trator. Such funding, in aggregate, may not exceed thevalue of 100% of the premium or cost of coverage forthe effected clergyperson (in such event funding will bereduced pro rata for each affected annual conference).

A clergyperson retiring from an annual conferencewhich does not maintain a retiree group health plan mayreceive funding from each annual conference (or generalagency) with which he or she had service to qualify forretiree funding of health benefits in the form of astipend, grant or contributions to a health reimbursementarrangement, to use toward the cost of health coveragehe or she may have access to through the annual confer-ence from which he or she retired, or that the personmay acquire individually. Such stipend or contributionwould be based solely upon each annual conference’spolicies regarding funding of health premiums or fixed-dollar contributions toward retiree health coverage.

Rationale: Unlike clergy pension benefits, for which confer-

ences apportion financial responsibility, retiree healthbenefits are provided solely by the conference fromwhich the clergyperson retires, based on the rules of thatconference. This petition minimizes the concerns about

retiree health coverage becoming a barrier to extra-con-ference (connectional) service.

¶639.

Petition Number: 20418-FA-¶639; Boigegrain, Barbara- Glenview, IL, USA for General Board of Pension andHealth Benefits.

AC Health Plans

Amend the subparagraphs of ¶639 of The Book ofDiscipline shown below as follows:

5. Reports to and Responsibilities Regarding theGeneral Board–The board shall have the powers andresponsibilities with respect to the General Board ofPension and Health Benefits described in ¶1506 andshall report to the General Board of Pension and HealthBenefits immediately following the session of the con-ference, in such form as required by the general board,the names and years of service approved for pre-82 pen-sion credit for each eligible person and the names andaddresses of clergy who are members of funds, plans, orprograms administrated by the general board.

In addition, the board or authorized agency shalldevelop and maintain health and wellness programs forthe annual conference’s full-time clergy and full-timelay employees.

Moreover, annually, the board or other authorizedagency shall submit, annually, its group health care plandata, to the extent the board maintains a group healthcare plan, de-identified as necessary, including, but notlimited to, financial soundness, claims experience andother cost drivers, plan designs and coverage, and eligi-bility criteria to the General Board of Pension andHealth Benefits pursuant to ¶ 1506.

6. Annual Conference Retiree Health Care Access –The board or other agency authorized by the annual con-ference shall respect the health and wholeness of theannual conference’s clergypersons and lay employees,who, in the case of clergy, have retired in accordancewith ¶358.1, ¶358.2(b), ¶358.2(c), or ¶ 358.2(d) otherthan as applied to ¶358.2(a) of The Book of Disciplineand, in the case of lay employees of the annual confer-ence, who have retired in accordance with the annualconference’s retirement policy, and are eligible forMedicare, and their spouses., The board or agencyshallby provideing access to Medicare supplement plansand prescription drug coverage plans. Access for retireesand their spouses may include, but shall not be limitedto (i) sponsoring an employer retiree health care plan


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that supplements Medicare; (ii) participating in a multi-ple employer retiree health care plan that supplementsMedicare; (iii) securing individuals’ eligibility undergroup contracts with Medicare supplement planproviders or exchanges; (iv) subsidizing the costs ofcoverage for retired clergypersons and retired layemployees and their spouses to enrolled in MedicarePart D plans or Medicare Advantage plans; (v) providingsubsidies toward or group relationships with providersof individual Medicare supplement and other retireecoverage policies; and (vi) providing fixed dollar retireehealth benefits through health reimbursement arrange-ments, stipends or otherwise. Providing access does notcompel an annual conference to fund such coverage (i.e.,coverage can be retiree-pay-all); however, an annualconference may fund or subsidize the cost of coverage,e.g., through premium payment, premium reimburse-ment, contributions to a health reimbursement arrange-ment, stipend or grant, for its retired clergy and layemployees in its discretion. Additional eligibility may bedetermined by the annual conference; for example, forearly retirees and surviving dependents.

The board or other authorized agency shall submithealth plan data, de-identified as necessary, including,but not limited to, financial soundness, claims experi-ence and other cost drivers, plan designs and coverage,and eligibility criteria to the General Board of Pensionand Health Benefits pursuant to ¶ 1506.

7. Annual Conference Group Health Care Plans –The board or other agency authorized by the annual con-ference shall sponsor or participate in a group healthcare plan that covers the annual conference’s full-timeclergy and its full-time lay employees in the UnitedStates. Clergy appointed to an appointment extendingthe ministry of the local United Methodist church under¶344.1, except those serving in positions for which theannual conference is responsible under ¶344.1a(1), andlay employees who are not employees of the annual con-ference, such as lay employees of local churches and layemployees of district and jurisdictional offices, need notbe covered under the preceding sentence. For the pur-pose of this paragraph, group health care plan shallmean a health insurance plan, group health care plan, ormultiple-employer health care plan that covers benefitsfor major medical and hospitalization expenses. Theboard or authorized agency may recommend additionaleligibility for its group health care plan in its discretion.

Alternatively, in the event that federal law or statelaw governing health care plans and health insuranceestablishes coverage options for those persons withoutemployer-provided coverage that ensure access, regard-less of health status or condition, to affordable coverage

through health insurance exchanges, connectors, single-payer systems, or other mechanisms, the board maycease maintaining its group health care plan to the extentsuch coverage is available to its clergy and lay employ-ees. In such event, the board nevertheless shall providecontinued administrative support (e.g., through cafeteriaplans, employer-adopted exchange plans, or health reim-bursement arrangements) for participation in theexchanges or alternative systems, and recommend anappropriate and adequate level of Church financial sup-port (e.g., in the form of local church, employer orannual conference contributions toward premiums, addi-tional compensation, or apportionments) of full-timeclergy and full-time lay employees of the conferencetoward the purchase of such coverage through thesealternative mechanisms to the extent individuals’ cover-age may not be subsidized by government agencies, par-ticularly considering (a) the tax advantages ofemployer-provided financial support toward health carecoverage, and (b) the reduced availability of governmentsubsidies for clergy whose compensation is near orabove denominational average compensation.

In addition, the board or authorized agency shallprovide and maintain health and wellness programs forthe annual conference’s full-time clergy and full-timelay employees.

Rationale: The denomination’s value of ensuring access to

comprehensive health coverage for clergy and layemployees of annual conferences is preserved, but withnecessary accommodation for the changing federal andstate legal landscape, which is creating new options forcoverage beyond the traditional employer group healthplan model.

¶639.

Petition Number: 20873-FA-¶639.2a-G; Seilheimer,David A. - San Antonio, TX, USA.

Conference Board of Pension Membership

¶ 639. 2. Membership-a) It is recommended ... is amember of the General Board of Pension and HealthBenefits. If no clergy member of the conference or laymember of a church within the conference is a memberof the General Board of Pension and Health Benefits,the General Board of Pension and Health Benefits mayassign a staff member as an ex officio member of theboard with voice but not vote. Active and retired partic-ipants ...


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Rationale: This addition would ensure that a resource is avail-

able to the conference board of pensions from theGeneral Board of Pension and Health Benefits toaddress pension and benefit questions as they arise atconference board of pension meetings and promotecloser alignment between the conference board of pen-sions and...

¶806.

Petition Number: 20348-FA-¶806; Kumar, A. MosesRathan - Nashville, TN, USA for General Council onFinance and Administration.

Audit Language

Amend ¶ 806.6 as follows:It shall establish and conduct the internal auditing

functions for all agencies treasuries receiving generalChurch funds (see ¶ 810.2).

Amend the first sentence of ¶ 806.12 as follows: The Committee on Audit and Review (¶ 805.4b), on

behalf of the council, shall monitor the compliance ofagencies treasuries receiving general Church...

Rationale: This change tracks the language used in ¶ 805.4b,

which states the General Council on Finance andAdministration Committee on Audit and Review shall“review audits of all treasuries receiving general Churchfunds.”

¶806.

Petition Number: 20624-FA-¶806-G; Lomperis, JohnS.A. - Arlington, VA, USA. 13 similar petitions.

End Pro-Choice Political Expenditures

Add new sub-paragraph after ¶ 806.9 and re-num-ber as needed:

10. It shall be responsible for ensuring that noboard, agency, committee, commission, or council shallprovide United Methodist funds to, or shall join, anypro-choice political lobby (including the ReligiousCoalition for Reproductive Choice) or violate theexpressed commitment of The United Methodist Churchto “oppose the use of late-term abortion known as dila-tion and extraction (partial-birth abortion) and call for

the end of this practice [with rare exceptions]”(Paragraph 161J). The council shall have the right tostop such expenditures and end such memberships.

Rationale: United Methodists are not of one mind on the poli-

tics of abortion. Therefore, no official United Methodistinstitution should give funds, or join, an organizationthat lobbies for abortion rights and their expansion. Thisaction respects the consciences of United Methodists.

¶806.

Petition Number: 20364-FA-¶806.1-G; Kumar, A.Moses Rathan - Nashville, TN, USA for GeneralCouncil on Finance and Administration.

Fund Budgets

Delete ¶ 806.1b and ¶ 806.1c and replace with thefollowing:

In the case of the World Service Fund, MinisterialEducation Fund, Black College Fund, Africa UniversityFund, and Interdenominational Cooperation Fund, theGeneral Council on Finance and Administration and theConnectional Table shall proceed in the following man-ner to develop budget recommendations as they relate toallocations to the general program agencies of theChurch and funding level recommendations:

(1) The General Council on Finance andAdministration shall establish the estimated amountavailable for distribution from the World Service Fundamong the general program agencies and through theother funds.

(2) The Connectional Table will review the pro-gram priorities, missional priorities, and special pro-grams and the estimated amount available to the generalprogram agencies, and then establish the amounts to bedistributed to those agencies from the annual WorldService allocation. The Connectional Table will reviewboth the funding priorities and the estimated amountavailable to the other funds and then establish theamounts to be distributed to each.

(3) The General Council on Finance andAdministration will review the recommended alloca-tions to the several general program agencies within thetotal sum of the World Service Fund budget, and thefunding levels for each of the other listed apportionedfunds. When the General Council on Finance andAdministration and the Connectional Table agree, theseallocations and total sum will be included in the WorldService budget and the funding levels of all these listed


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general apportioned funds will be recommended to theGeneral Conference by the General Council on Financeand Administration.

Rationale: This change eliminates duplicative language related

to the process for development of the proposed quadren-nial budgets for the five listed general apportionedfunds. This process allows the Connectional Table tomake recommendations on the allocation within theWorld Service Fund and among the other four fundsbased on the General...

¶806.

Petition Number: 20516-FA-¶806.1-G; Hillard, Paul D.Jr. - Tuscaloosa, AL, USA for North Alabama GeneralConference Delegation.

Budget

Amend ¶806.1 to read:It shall submit to each quadrennial session of the

Conference, for its action and determination, budgets ofexpense for each of the general funds of the Church, aslisted or defined in ¶810.1, and such other general fundsas the General Conference may establish. The totalamount of the proposed quadrennial budget shall notexceed 1% of the sum of local church income for thefirst two years of the current quadrennium and the lasttwo years of the next preceding quadrennium. It shallalso make recommendations regarding all other fundingconsiderations to come before General Conference.

Rationale: The 2004-2006 General Conference apportion-

ments averaged 2.43% of all local church expenditures.Actual payments represented 2.10% of local churchexpenditures. A General Conference quadrennial budgetof no more than 1% of local church income for the stated4-year period is consistent with what we ask persons todo on the...

¶806.

Petition Number: 20695-FA-¶806.1-G; Stryker, Richard- Alexander City, AL, USA.

Apportionment Based on LC Income Percentage

Add new paragraphs before ¶ 806.1:

In order to support the districts, annual conferencesand the general funds of the general Church, each localchurch shall give ten percent of general budget incometo the Annual Conference.

Likewise, each Annual Conference shall contributethirty percent of the giving received from local churchesto the general funds of the Church, as listed or definedin ¶ 810.1.

Amend ¶ 806.1:It shall submit to each quadrennial session of the

General Conference, for its action and determination,budgets of expense for each of the general funds of theChurch, as listed or defined in ¶ 810.1, and such othergeneral funds as the General Conference may establish.It shall also make recommendations regarding all otherfunding considerations to come before GeneralConference. Actual receipts for each fund for the qua-drennium then ending and projection of expectedincome based on Conference percentages shall be thebasis for all budgeting procedures and comparisons forthe coming quadrennium.

Amend ¶ 808.1:The treasurer of the General Council on Finance

and Administration shall, not less than ninety days priorto the session of each annual conference or as soonthereafter as practical, transmit to the presiding bishopthereof, to the president of the conference council onfinance and administration, and to the conference treas-urer a reminder of the percentage of income expectedfrom the annual conference to be used in support ofstatement of the apportionments to the conference forthe World Service Fund, the General AdministrationFund, the Episcopal Fund, the InterdenominationalCooperation Fund, the Ministerial Education Fund, theBlack College Fund, the Africa University Fund, andsuch other funds as may have been apportioned by theGeneral Conference.

Amend ¶ 811.4:The percentage of asking in support of apportion-

ments for all apportioned all general Church funds, asapproved by the General Conference, shall not be sub-ject to reduction either by the annual conference or bythe charge or local church (¶ 615.1).

Rationale: Resources for the joint ministries of The United

Methodist Church is best funded by receiving a monthlytithe, 10% of current income, from the local congrega-tions. Local churches will financially bless the GeneralChurch based on the blessings received from God. Inthis, the General Church will model biblical steward-ship...


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¶806.


Review of Treasury Budgets

Amend ¶ 806.4 as follows:It shall require annually one month in advance of its

annual meeting, or as is deemed necessary, and in suchform as the council may require, statements of proposedbudgets of all treasuries or agencies receiving generalChurch funds (see ¶ 810.2). It shall review the budget ofeach agency treasury receiving general Church funds inaccordance with guidelines that it shall establish andcommunicate to the agencies, including the relationshipbetween administration, service, and promotion, andconsideration of evaluations from the ConnectionalTable on the missional effectiveness of the general pro-gram-related agencies and connectional structures of theChurch. In the interest of sound fiscal management, thecouncil will ensure that expenditures of agencies receiv-ing general Church funds do not exceed receipts andavailable reserves, and this within a budget approved bythe council.

Rationale: There is a need to review spending plans for treas-

uries receiving general Church funds in the light of theireffectiveness in accomplishing their defined goals andobjectives. The Connectional Table is charged with eval-uations of the work of the programmatic general agen-cies. By providing their evaluations of the agencieswork...

¶806.

Petition Number: 20030-FA-¶806.9-G; Lyon, Louie,AZ, USA for Desert Southwest Annual Conference;Sachen, Kristin L. - San Francisco, CA, USA forCalifornia-Nevada Annual Conference; Oduor, RalphR.R. - Lawrence, MA, USA for New England AnnualConference; Ruggles, Bruce - Minneapolis, MN, USAfor Minnesota Annual Conference; Shaffer, John J. -Stanwood, WA, USA for Pacific Northwest AnnualConference; Ryder, Jack E. - LaGrange Park, IL, USAfor Northern Illinois Annual Conference; Hermes,Steven E. - Kalispell, MT, USA for Yellowstone AnnualConference; Myers, Kevin Rice - Sun Prairie, WI, USAfor Wisconsin Annual Conference. 14 similar petitions.

Removal of Language

Delete ¶806.9 and re-number the remaining text:¶806 Fiscal Responsibilities

9. It shall be responsible for ensuring that noboard, agency, committee, commission, or council shallgive United Methodist funds to any gay caucus or group,or otherwise use such funds to promote the acceptanceof homosexuality or violate the expressed commitmentof The United Methodist Church “not to reject or con-demn lesbian and gay members and friends “ (¶ 161.F).The council shall have the right to stop such expendi-tures. It shall not limit the Church’s ministry in responseto the HIV epidemic.

Rationale: The Constitution of The United Methodist Church

acknowledges the sacred worth of everyone. All are eli-gible to participate fully in the local church. This restric-tion of spending money ignores that fact. Our GeneralAgencies can spend their funds as they see best.

¶806.

Petition Number: 20941-FA-¶806.9-G; Carlsen,Jonathan - Arcadia, FL, USA.

Funding Non-Christian Practices

Amend ¶ 806.9:9. It shall be responsible for ensuring...acceptance

of homosexuality. or violate the expressed commitmentof The United Methodist Church “not to reject or con-demn lesbian and gay members and friends (¶ 161.F).The council shall also ensure that no Church funds shallgo to support agency lawsuits against other Christians orto support organizations promoting the acceptance ofpartial-birth abortion or to support other practicesdeclared by the Church to be contrary to Christian teach-ing. The council shall have the right to stop such expen-ditures.19 It shall not limit the Church’s ministry inresponse to the HIV epidemic.

Rationale: The deleted language, added in 2008, could subvert

the preceding restriction against funding pro-homosex-ual activities. Funding groups advocating partial-birthabortion and other practices contrary to Christian teach-ing undermines our witness and wastes church funds onunworthy causes. The General Rules forbids lawsuitsagainst Christians (¶ 103).


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¶807.


Data Collection

Delete ¶ 805.4c and insert a new ¶ 807.15 as fol-lows, renumbering accordingly:

To establish and supervise definitions and policiesregarding the collection, processing, and distribution ofthe official data of the denomination in collaborationwith the Council of Bishops and in consultation with thegeneral agencies. All official printed forms and materi-als devised for the collection of this information andavailable for sale shall be printed and published throughThe United Methodist Publishing House.

(The provisions of ¶ 807 shall be effective at theconclusion of the 2012 General Conference.)

Rationale: Through this legislation, GCFA will retain its over-

sight of the official data of the Church, while allowingthe Council to adapt its structure and processes throughinternal Council policy, rather than Disciplinary provi-sions. This allows for the development of partnershipswith the Council of Bishops and other data users with...

¶807.


Conference Chancellors Association

Insert a new ¶ 807.22 as follows and renumberaccordingly:

To provide guidance and consultation to the UnitedMethodist Church Conference Chancellors Associa-tion and to encourage annual conference chancellor par-ticipation in that organization. The council may providesuch staff and in-kind services to the association as itdeems appropriate.

Rationale: This addition reflects the recent establishment of the

chancellor’s association and the role of the GeneralCouncil on Finance and Administration in providingappropriate guidance and assistance in a manner consis-tent with its work with other associations of UnitedMethodist members in financial and administrative roles.

¶807.

Petition Number: 20909-FA-¶807.10-G; Thomas-Sano,Kathleen A., USA for National Federation of Asian-American United Methodists.

UM Insignia

¶ 807.10. To supervise the use of the official United

Methodist insignia and preserve the integrity of itsdesign, in cooperation with the General Commission onCommunication. It shall maintain appropriate registra-tion to protect the insignia on behalf of the denomina-tion. The insignia may be used by any official UnitedMethodist agency, including local churches, to identifyUnited Methodist work, programs, and materials. Theuse indicates the identity of The United MethodistChurch, with the cross proclaiming Jesus Christ is itsfoundation, and the two flames descending to one pointcelebrating its origin when two denominations becameone, and affirming its readiness to go forth to the ends ofthe earth to all people to make disciples of Jesus Christfor the transformation of the world, as the anointing ofthe Holy Spirit with “divided tongues of fire” sent forththe apostles speaking the language of people where everthey went. In order to...

Rationale: The current paragraph does not indicate the mean-

ing of the insignia when it is used. The cross clearly sayswe raise high the cross of Jesus Christ our Lord becausehe is our foundation. The two flames descending to onepoint appropriately indicate our origins when twodenominations became one...

¶807.

Petition Number: 20942-FA-¶807.11-G; Carlsen,Jonathan - Arcadia, FL, USA.

Use of “United Methodist” Name

Amend ¶¶ 807.11 and 1806 as shown:Amend ¶ 807.11:11. To supervise the use of the name “United

Methodist” and maintain the appropriate registrations ofthis name on behalf of the denomination. The councilshall further coordinate with the General Commissionon Communication in carrying out ¶ 1806.22 on theproper use of the name “United Methodist.” When thecouncil becomes aware of the omission “United” from


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“United Methodist” in any situation, the council shallnotify, it shall notify the commission which shalladmonish the responsible parties that this is unaccept-able usage. When general agencies and affiliated agen-cies repeatedly violate this policy, the council shall havethe power to withhold church funds until they comply.The council shall further report to the Church twice ayear in The Interpreter about agencies’ and others’ com-pliance with this policy.

Add new subparagraph 1806.22 after ¶ 1806.21:22. Because the omission of “United” from “United

Methodists” betrays the spirit of the 1968 Plan of Union,implies that the union was a corporate takeover, andneedlessly offends former Evangelical United Brethren,the commission shall, in coordination with the GeneralCouncil on Finance and Administration (¶ 807.11) topromote the proper use of the name “United Methodist.”When the commission or the council becomes aware ofthe omission “United” from “United Methodist” in thechurch or secular press, in advertisements, in other churchpublications, or elsewhere, shall notify the responsibleparties that this is unacceptable usage. The commissionshall also notify the editors of the Associated PressStylebook and the UPI Stylebook about this policy andshall develop teaching materials explaining the policy andthe reasons for it. Twice a year the commission shallpublish the council’s report in The Interpreter on com-pliance with this policy by church agencies and others.

Rationale: These paragraphs codify a 2004 General

Conference policy enacted in Resolution 8007 (TheBook of Resolutions, 2008, p. 918), which chargedUMCom with enforcing it. But UMCom regularlyignored omissions of “United” by the UM Reporter(almost weekly) and others. Joint UMCom-GCFAenforcement will insure better accountability.

¶807.


Efficiency in Operating Systems

Delete ¶ 807.12 and amend ¶ 811.2 as follows:It may withhold approval of any item or items in the

budget or budgets receiving general Church funds (see¶ 810.2) that in its judgment represent unnecessaryduplication of administrative functions; and services.Such functions and services shall include, but not be

limited to, accounting, databases, equipment, humanresources, information technology, maintenance, andmeeting planning. Iin cooperation with and on recom-mendation of the Connectional Table, it may withholdapproval of any such item that represents unnecessaryduplication of program within an agency or between twoor more agencies. If the council finds that there is suchduplication in existing activities, it shall promptly directthe attention of the agencies involved to the situation andshall cooperate with them in correcting the same, and itmay decline to supply from general fund receipts moneyto continue activities that have been held to duplicateeach other unnecessarily or plainly violate the principleof correlation as applied to the total benevolence pro-gram of the Church.

Rationale: The requirements set forth in ¶ 807.12 are not well

defined and difficult to enforce. These issues can beaddressed more directly in ¶ 811.2.This change providesmore specificity and greater clarity on potential areas ofduplication which the General Council on Finance andAdministration may need to address for...

¶807.


Review of Policies and Pay Equity

Amend ¶ 807.13b as follows:b) The Committee on Personnel Policies and

Practices (¶ 805.4d) shall: (1) prepare quadrennially,review annually, and recommend to the council anappropriate salary schedule, based upon responsibilities,for personnel of the councils, boards, and commissionsrepresented on the committee; and (2) develop and rec-ommend to the council a schedule of benefits for anemployee benefit program for personnel of agencies rep-resented on the committee and any changes requiredthereto from time to time.;

(c3) The Committee on Audit and Review shall:(1) receive from agencies and institutions receiving gen-eral Church funds (see ¶ 810.2) statements regardingtheir compliance with the policiesy stated or referencedin ¶¶ 807.13a and 811.1; and (24) receive from all gen-eral agencies information necessary to evaluate payequity. Based on these statements, and in consultationwith and upon the advice of the General Commission onReligion and Race and the General Commission on the


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Status and Role of Women, the committee shall preparefor the General Council on Finance and Administrationreports and recommendations deemed appropriate bythe committee, in accordance with the procedures setforth in ¶ 806.12.

d) In the event it is determined by the council thatan agency or institution receiving general Church fundsis not in compliance with the policies stated or refer-enced in ¶¶ 807.13a and 811.1equal employment oppor-tunity policies and the salary and employee benefitschedules established by the committee, the councilshall notify in writing the agency so named and suspend,after a three-month period of grace, an appropriateamount of future funding until the agency or institutioncomplies.

Rationale: This change moves the review of pay equity report-

ing away from two of the agencies involved with estab-lishing the policies and procedures to the committee thatis designed to evaluate compliance with establishedpolicies and procedures. The General Commission onthe Status and Role of Women and the GeneralCommission...

¶807.

Petition Number: 20893-FA-¶807.13a1-G; Thomas,H.O. Tom Jr., VA, USA for Evangelical Fellowship inVirginia Annual Conference.

GCFA Personnel Policy

Amend ¶807. 13. a) (1) as follows:¶807. 13. a) The council shall: (1) require each gen-

eral agency as listed in ¶805.4d, including itself, to fol-low uniform policies and practices in the employmentand remuneration of personnel, recognizing differencesin local employment conditions (these policies and prac-tices shall be consistent with the Social Principles andresolutions of The United Methodist Church with theexpectation that employed program staff shall be, amongother things, persons of genuine Christian character wholove the church, are morally disciplined, are dedicated tothe practice of fidelity in heterosexual marriage andcelibacy in singleness, are committed to the mandate ofinclusiveness, and are loyal to the ethical standards ofThe United Methodist Church); and (2) be authorized togather ...

Rationale: Employed program staff in denominational posi-

tions represents our Church and should model exem-

plary, Christian character to the church and general pub-lic. The global United Methodist community has a com-pelling interest in its employees’ witness and character.The amended statement strengthens the guidelines forthe employment of personnel.

¶807.


Official Church Data

Amend ¶ 807.15 as follows:To maintain the exclusive database for the Church

and the general agencies receiving general Church funds(see ¶ 810.2)an accurate record of the official datamailaddresses of all: bishops; ordained and consecrated min-isters in effective relation; local pastors, includingretired ordained ministers serving charges; charges,local churches, parishes, fellowships, and new churchstarts; and such lists of general, jurisdictional, and con-ference boards, commissions, and committees, and offi-cers of same, and of such other officers as the councilmay determine necessary. No one other than authorizedbodies or officers of the Church shall be permitted to usethese records. (The provisions of ¶ 807 shall be effectiveat the conclusion of the 2012 General Conference.)

Rationale: This petition seeks to establish one centralized data-

base for the contact information for local churches,clergy and leadership of The United Methodist Church.Currently, several agencies request the same or similarpieces of information from local churches and annualconferences. The intent is to standardize the request toacquire this...

¶807.


Assisting Other Church Entities

Amend ¶ 807.17 by addition of a last sentence, asfollows:

In accordance with ¶ 810.1, any assistance or


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resources provided by the council hereunder shall be in-kind and not a direct grant of funds.

Rationale: Paragraph 810.1 restricts the use of general Church

funds by the General Council on Finance andAdministration for purposes specifically authorized bythe General Conference in fulfillment of its fiscalresponsibilities. They are restricted assets and are notfunds of the local churches, annual or jurisdictional con-ferences, or other units...

¶807.


Undesignated Gifts

Amend ¶ 807.3 as follows:When the use to be made of any such donation,

bequest, or devise is not otherwise designated, the sameshall be added to and become a part of the “PermanentFund” of The United Methodist Church World Servicecontingency fund (¶ 806.1.e). Amounts held in the“Permanent Fund” of The United Methodist ChurchThis fund shall be held and administered by the council,as the General Conference shall direct.

Rationale: Directing these undesignated gifts to the World

Service contingency fund provides greater flexibility inresponding to a wider range of unanticipated needswithout having to obtain General Conference approval,while still providing accountability and oversight to theGeneral Council on Finance and Administration and theConnectional Table.

¶807.


Headquarters Review

Amend ¶ 807.7 as follows:To act in concert with the Connectional Table to

establish a procedure for making a quadrennial review...

Rationale: The General Council on Finance and Administra-

tion will develop a procedure that includes consultationwith the Connectional Table at appropriate points in theprocess of developing a report to General Conference onthe implications of any change in the location of a gen-eral agency’s headquarters. Most of the analysis of...

¶807.


Deletion

Delete the last sentence of ¶ 807.8.Titles to historic sites and heritage landmarks, and

such historical properties as may be acquired in thefuture, shall be held by the General Council on Financeand Administration.

Rationale: The requirement that the General Council on

Finance and Administration hold title to all historic sitesand landmarks throughout the denomination is no longerpractical or advisable.

¶810.


Audits

Add the following language to the end of ¶ 810.1:The General Council on Finance and Administra-

tion’s Committee on Audit and Review shall review theinternal and external audits of these funds and report theresults of its findings to the treasuries receiving thesefunds, the General Council on Finance and Administra-tion, and/or any other entity it deems appropriate. Theprovisions of ¶ 806.12 shall apply to this function of theCommittee on Audit and Review.

Rationale: The added language clarifies that the General

Council on Finance and Administration’s Audit andReview Committee shall monitor compliance with theuse of all of these general Church funds.


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¶811.

Petition Number: 20059-FA-¶811.1-$-G; Hawkins, ErinM. - Washington, DC, USA for General Commission onReligion and Race.

CEID Policy Committee

Amend ¶ 811.1 as follows:¶ 811. General Policies—1. The General Council

on Finance and Administration is authorized to withholdapproval of a portion or all of the budget of any agencyor any Church-related institution receiving generalChurch funds (see ¶ 810.2) until such agency or Church-related institution certifies shall submit to the council inwriting that it has its established and complied with apolicy policies of: (a) recruiting, employing, utilizing,recompensing, and promoting professional staff andother personnel without regard to race, color, ethnicity,age, or sex; gender; (b) fulfilling its duties and responsi-bilities in a manner that does not involve segregation ordiscrimination on the basis of race, ethnicity, age, or sexgender; and (c) insofar as possible, purchasing goodsand services from vendors who are in compliance withsuch policies as are described in sections (a) and (b) ofthis paragraph. In the fulfillment of this directive, thecouncil shall take the following steps: to ensure that con-cerns of the General Commission on Religion and Raceand the General Commission on the Status and Role ofWomen are represented: (1) consult collaborate with thetwo commissions General Commission on Religion andRace and the General Commission on the Status andRole of Women in the development of a certificationform to be submitted to the council by agencies andinstitutions receiving general Church funds; (2) sharereview copies of such certifications with the two com-missions; (3) receive and consider in consultation andwith the two Commissions determine adequate recom-mendations from either of the two commissions regard-ing possible noncompliance with these policies byagencies and institutions receiving general Churchfunds; and (4) when recommendations for withholdingfunds are received from one or the two commissions,consult further with them in order to jointly determinefinal resolution. in collaboration with the GeneralCommission on Religion and Race, and the GeneralCommission on the Status and Role of Women, theGeneral Council on Finance and Administration shalldetermine fair and just recommendations for withhold-ing funds from agencies and church related institutionsthat are non-compliant.

Rationale: The legislation establishes GCORR and GCSRW as

partners with GCFA in determining fair and just recom-mendations for withholding funds from agencies andChurch- related institutions that are non-compliant increating and/or implementing their CEID policies.

It further ensures that policies of compliance will besubmitted.

¶816.

Petition Number: 20690-FA-¶816-G; Love, Julie -Crestwood, KY, USA for Kentucky Annual Conference.

MEF Retained by AC

Amend ¶ 816 as follows:¶ 816. The Ministerial Education Fund—The coun-

cil shall recommend to the General Conference...1. Of the total money raised in each annual confer-

ence for the Ministerial Education Fund, 25 40 percentshall be retained by the annual conference that raised it,to be used in its program of ministerial education asapproved by the annual conference and administeredthrough its Board of Ordained Ministry...

2. Of the total money raised in each annual confer-ence for the Ministerial Education Fund, 75 60 percentshall be remitted by the conference treasurer to the treas-urer of the council for distribution to the General Boardof Higher Education and Ministry for support of minis-terial education and shall be administered by thatboard...

Rationale: While the recent changes in the made by GBHEM

in the distribution of the funds relating to the accounta-bility of MEF monies are to be applauded, this changewill allow the annual conferences raising the funds toactually have more ability to fund seminary education inaccessible ways. In many...

¶816.

Petition Number: 20456-FA-¶816.2-G; Johnson,Carolyn E. - West Lafayette, IN, USA for IndianaAnnual Conference.

Ministerial Education Fund

Amend ¶ 816.2a:


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a) At least 75 50 percent of the amount received bythe divisions shall be distributed to the theologicalschools of The United Methodist Church in the UnitedStates on a formula established by the General Board ofHigher Education and Ministry...

Add new sub-paragraph ¶ 816.2b:b) At least 25 percent of the amount received by

the divisions shall be distributed to theological schoolsand ministerial education programs of the central con-ferences on a formula established by the General Boardof Higher Education and Ministry after consultationwith the central conferences.

Renumber the present ¶ 816.2b and make it¶ 816.2c.

Delete the present ¶ 816.2cRationale: The rapid expansion of the Global Church has pro-

duced great need for ministerial education. The AfricaEducational Initiative, authorized by General Confer-ence 2008, has been unsuccessful in raising funds forministerial education in Africa (at the end of 2010 only$20,000 had been disbursed to help in ministerial educa-tion in...

¶816.

Petition Number: 21088-FA-¶816.2-G; Jen, SheriffSangari - Taraba State, Nigeria for Nigeria AnnualConference.

Global Formula for Distribution of MEF

Amend ¶ 816.2 as follows:¶ 816.2 of the total money raised in each annual

conference for the ministerial education fund, 75 percent shall be remitted by the conference treasure to thetreasurer of the council for distribution to the generalboard of higher education and ministry for support ofministerial education and shall be administered by thatboard. It shall be distributed as follows:

a). At least 75 per cent of the amount received bythe divisions shall be distributed to the theologicalschools of the United Methodist Church, as described inparagraph 1422, on a global formula established by thegeneral board of higher education and ministry afterconsultation with the theological schools. All moneyallocated to the theological schools shall be used for cur-rent operations, not for physical expansion.

Amend ¶ 1422.4 by adding a new section (c):(c) The schools of theology and programs of clergy

training established under sub-paragraph 4 shall receive

financial support for the current operating expensesfrom the annual conferences in the connection throughthe Ministerial Education Fund (¶ 816.2).

Rationale: The United Methodist people want their contribu-

tions to the MEF allocated equitably and proportionallyto ALL United Methodist schools of Theology and pas-toral training. There are several United Methodist semi-nary schools in Africa.

¶816.

Petition Number: 20769-FA-¶816.2a; McCracken, Sky -Paducah, KY, USA.

Supporting UM Candidates for Ministry

¶ 816. The Ministerial Education Fund-The council...

1. Of the total ...2. Of the total money ...a) At least 75 percent of the amount received by the

divisions shall be distributed to the theological schoolsof The United Methodist Church on a formula estab-lished by the General Board of Higher Education andMinistry after consultation with the theological schools.United Methodist Theological Schools where less than50% of the regular rank faculty are United Methodistwill forfeit 1/3 of their Ministerial Education fundingwhich will go back to the General Board of HigherEducation and Ministry to be distributed as scholarshipaid directly to certified candidates for United Methodistordained ministry enrolled in United Methodist institu-tions of theological education that have been approvedby the Commission on Theological Education. Allmoney allocated to the theological schools ...

Rationale: Forming and equipping leaders for our church

requires seminary faculty members deeply grounded inand committed to our Wesleyan theology and practice.The percentage of United Methodist faculty at many ofour schools of theology has decreased significantly,making it more difficult to preserve a Wesleyan identityand ecumenical spirit...

¶816.

Petition Number: 20770-FA-¶816.2a; McCracken, Sky -Paducah, KY, USA.


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Supporting UM Candidates for Ministry

Amend ¶816.2a as follows:a) At least 75 percent of the amount received by the

divisions shall be distributed to the theological schoolsof the United Methodist Church and as scholarship aiddirectly to candidates for ordained ministry who are stu-dents at United Methodist theological schools on a for-mula established by the GBHEM after consultation withthe theological schools.

Rationale: Ministerial education funds have a clear, obvious

purpose - funding ministerial education. Yet the moneygoes to the theological schools and not to the students asdirect aid. Students are entering ordained ministry bear-ing 10 of thousands of dollars in seminary debt whileearning among the lowest salaries in our...

¶817.


Episcopal Health Plans

Amend subparagraph ¶817.9 and ¶817.10 to read asfollows:

9. Episcopal Group Health Care Plan—TheGeneral Council on Finance and Administration shallsponsor or participate in a group health care plan thatcovers bishops elected by jurisdictional conferences, inthe United States. For the purpose of this paragraph,group health care plan shall mean a health insuranceplan, group health care plan, or multiple-employerhealth care plan that provides benefits for major medicaland hospitalization expenses. The General Council onFinance and Administration may recommend additionaleligibility for the group health care plan in its discretion.

Alternatively, in the event that federal law or statelaw governing health care plans and health insuranceestablishes coverage options for those persons withoutemployer-provided coverage that ensure access, regard-less of health status or condition, to affordable coveragethrough health insurance exchanges, connectors, single-payer systems, or other mechanisms, the GeneralCouncil on Finance and Administration may ceasemaintaining its group health care plan for bishops to theextent such coverage is available to the bishops. In suchevent, the General Council on Finance andAdministration nevertheless shall provide continued

administrative and financial support of bishops towardthe purchase of such coverage through these alternativemechanisms to the extent individuals’ coverage may notbe subsidized by government agencies, i.e., becausetheir compensation exceeds certain thresholds, particu-larly considering the tax advantages of employer-pro-vided financial support toward health care coverage.

In addition, the Council of Bishops shall developprovide and maintain health and wellness programs forbishops. Moreover, annually, the General Council onFinance and Administration shall submit Episcopalhealth plan data, to the extent the General Council onFinance and Administration maintains a group healthcare plan for bishops, de-identified as necessary, includ-ing, but not limited to, financial soundness, claims expe-rience and other cost drivers, plan designs and coverage,and eligibility criteria to the General Board of Pensionand Health Benefits.

10. Episcopal Retiree Health Care Access—TheGeneral Council on Finance and Administration shallrespect the health and wholeness of retired bishops inthe United States and their spouses by facilitating accessto Medicare supplement plans and prescription drugcoverage plans. Access for retirees and their spousesmay include, but shall not be limited to (i) sponsoring anemployer retiree health care plan that supplementsMedicare; (ii) participating in a multiple employerretiree health care plan that supplements Medicare; (iii) securing individuals’ eligibility under group con-tracts with Medicare supplement plan providers orexchanges; (iv) subsidizing the costs of coverage forretirees and their spouses to enrolled in Medicare Part Dplans or Medicare Advantage plans; (v) providing subsi-dies toward and group relationships with providers ofindividual Medicare Supplement and other retiree cover-age policies; and (vi) providing fixed dollar retireehealth benefits through health reimbursement arrange-ments, stipends or otherwise. On or before December31, 2008, tThe General Council on Finance andAdministration must submit a generally accepted finan-cial valuation, such as in accordance with Statement ofFinancial Accounting Standard No. 106, as amended, ofits projected medical liabilities for the retired populationcovered by the Episcopal Group Health Care Plan to theGeneral Board of Pension and Health Benefits, and mustsubmit a similar report biannuallybiennially thereafter.On or before December 31, 2010, the General Councilon Finance and Administration must create a plan toaddress the funding requirements of its projected futuremedical liabilities for the population covered by theEpiscopal Group Health Care Plan. On or beforeDecember 31, 2008, the General Council on Finance


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and Administration shall document in writing its policyregarding the portability of retiree health care eligibility,coverage, cost-sharing, and benefits and communicatethe policy to new and current bishops in the UnitedStates. For the purpose of this paragraph, portabilityencompasses credit given to clergy for service within thedenomination prior to becoming a bishop toward (i) eli-gibility for health care coverage in retirement and (ii)accrual of employer subsidies toward or employer cost-sharing of the cost of health care coverage.

Rationale: The denomination’s value of ensuring access to

comprehensive health coverage for bishops is preserved,but with necessary accommodation for the changing fed-eral and state legal landscape, which is creating newoptions for coverage beyond the traditional employergroup health plan model.

¶817.

Petition Number: 20642-FA-¶817-$-G; Pogue, Creed -Estell Manor, NJ, USA.

Episcopal Funding

Amend Paragraph 817 as follows:¶ 817. Purpose—1. The Episcopal Fund...2. Requirements—The council shall recommend to

each quadrennial session of the General Conference forits action and determination: (1) the amounts to be fixedas salaries of the effective bishops in the central confer-ences or a formula by which the council shall fix thesalaries; (2) a schedule of such amounts as may bejudged adequate to provide for their office expense inthe central conferences; (3) provision for an annualoperating budget for the Council of Bishops, includingthe offices of the secretary and the ecumenical officer ofthe Council of Bishops; (4) guidelines governing thepayment of bishops’ travel expenses, including all travelauthorized by the Council of Bishops; (5) the minimumamounts to be fixed as annual pensions for the supportof retired bishops and/or the method by which theirannual pensions shall be determined; and (6) provisionsfor allowance for the surviving spouses and for the sup-port of minor children of deceased bishops; and (7) abonus of up to 10% of the Denominational AverageCompensation if the annual conference(s) in their epis-copal area paid their general church apportionments infull and a bonus of 5% of the DAC if the annual confer-ence(s) in their episcopal area increased their member-ship. From the facts in hand, the council shall estimate

the approximate total amount required annually duringthe ensuing quadrennium to provide for the items ofepiscopal support mentioned above and shall report thesame to the General Conference. This amount as finallydetermined shall be the estimated episcopal budget. Theadministration of the Episcopal Fund budget as deter-mined by the General Conference shall be under thedirection and authority of the General Council onFinance and Administration, including annual fiscalstatements and audits. Nothing in this paragraph shallpreclude the annual conference or conferences of anepiscopal area from including in their budgets amountsfor an area expense fund.

The annual conference(s) within each episcopalarea in the jurisdictional conferences shall be directlyresponsible for paying the salary of their residentialbishop as well as adequate housing and office expenses.The salary shall be 190% of the DenominationalAverage Compensation as calculated by the GeneralBoard of Pensions and Health Benefits. The annual con-ference(s) shall provide $10,000 a year for the episcopalresidence plus at least any amount for the episcopal res-idence in the annual conference budget the previousyear. Additionally, the annual conference(s) in eachepiscopal area will provide $80,000 for episcopal officeexpenses plus at least any amount for the episcopaloffice in the annual conference budget the previous year.

3. Proportionality—The amount...4. Bishops’ Salaries—The treasurer of the General

Council on Finance and Administration shall remitmonthly to each effective bishop in the central confer-ences one-twelfth of the annual salary as determined bythe General Conference, less such deductions or reduc-tions from the salary as each bishop may authorize.Allowances for retired bishops and for the survivingspouses and minor children of deceased bishops shall bepaid in equal monthly installments.

5...Rationale: Instead of annual conferences sending money to

GCFA and GCFA sending it back, this responsibilityshould be devolved to the annual conferences in thejurisdictions. Also, there should be a performance bonusfor meeting apportionment and membership goals.Accountability is very important.

¶817.



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COB Salaries

Amend ¶ 817.2 as follows:The council shall recommend to each quadrennial

session of the General Conference for its action anddetermination: (1) the amounts to be fixed as salaries ofthe effective bishops or a formula by which the councilshall fix the salaries; (2) a schedule of such amounts asmay be judged adequate to provide for their officeexpense; (3) provision for an annual operating budgetfor the Council of Bishops, including the salaries andoffices office and travel expenses of the executive secre-tary and the ecumenical officer of the Council ofBishops...

Rationale: The purpose of this change is to clarify that the

Episcopal Fund is to provide for the salaries andexpenses for the Council of Bishops Ecumenical Officerand Executive Secretary.

¶817.


Housing Grants for Episcopal Areas

Amend ¶ 817.5 as follows:The General Council on Finance and Administra-

tion shall provide an annual grant from the EpiscopalFund to share in the costs of providing an the episcopalresidence owned by the annual or central conference(s)in the episcopal area., Tthe amount of such grant is to beapproved by the General Conference on recommenda-tion of the council. The treasurer of the General Councilon Finance and Administration shall remit the annualhousing grant to the respective annual or central confer-ence(s) in the episcopal area. office designated by theepiscopal residence committee to receive such housingpayments.The treasurer shall also remit periodic install-ments of the amount approved by the council as officeexpenses to each bishop, or to the office designated bythe bishop to receive such payments.

Rationale: This change makes clear that this housing grant

from the Episcopal Fund shall only be used to maintainthe official episcopal residence owned by the annualconference(s) in the respective episcopal areas.

¶823.


Gift Vouchers

Delete the second sentence in ¶ 823.8.A special gift voucher for contributions to the offer-

ings will be issued when appropriate.Rationale: Special gift vouchers are no longer used, so the ref-

erence to them should be deleted.

¶1502.

Petition Number: 20423-FA-¶1502.4b; Boigegrain,Barbara - Glenview, IL, USA for General Board ofPension and Health Benefits.

Committee Membership

Amend ¶1502.4.b) as follows:A committee on audit and review shall be elected

by the general board. At least one half of the members ofthis committee shall not be members of the generalboard. The committee ... (Effective at the conclusion ofGeneral Conference 2012)

Rationale: This change will align this paragraph with the

Illinois Not-for-Profit Corporation Act (805 ILCS105/108.40). In addition, this deletion will eliminate anyconflict or redundancy with ¶1502.4. f), which also pro-vides for at-large committee members on general boardcommittees.

¶1503.

Petition Number: 20424-FA-¶1503.2; Boigegrain,Barbara - Glenview, IL, USA for General Board ofPension and Health Benefits.

Name of Corporate Trustee

Amend ¶1503.2 as follows:b) The general board is authorized and empowered

in its discretion to cause its general trust operations to beconducted through a corporation, the name of whichshall the General Board of Pension and Health Benefits


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of The United Methodist Church, Incorporated inMissouri UMC Benefit Board, Inc.

Rationale: The name of the trustee corporation has changed.

¶1504.

Petition Number: 20841-FA-¶1504-!; Schmitt, John -Kingman, KS, USA.

Health Care Plan

Add to the end of current ¶ 1504.21:That a national, regional, or jurisdictional health

insurance plan may be adopted by the voting body ofthose entities. That a national plan be administered byThe General Board of Pensions and Health Benefits.

Add a new ¶1504.22:a-That a National Health Insurance Plan be formu-

lated and obtained for all UMC in the United States andadministered by the General Board of Pensions andHealth Benefits.

b-All health insurance shall be pro-rated among allUMC churches in the United States in the followingmanner:

c-An equitable billing system shall be implementedaccording to the following formula:

Churches will be billed based on attendance by thisformula as a percentage of the health insurance total billfor each Annual Conference.

Churches with 50 or fewer participating worshipers.2.5%

Churches with 50-100 participating worshipers.3.5%

Churches with 100-200 25%Churches with 200-400 30%Churches with more than 400 40%Pastors will be billed based on income by this for-

mula:Pastors with a cash income of $25-$35,000

2% of salary Pastors with a cash income of $35-$45,000

2.5% of salaryPastors with a cash income of $45-$55,000

3.0 % of salaryPastors with a cash income of $55-$75,000

3.5 % of salaryPastors with a cash income above $75,000

4.0% of salary

Retired PastorsAge 59 1/2-64 will pay no more than $100 per

month in 2012 U.S. dollar valuesAge 65-70 will obtain supplemental insurance to

Medicare and the General Conference shall provideaccess to such policies.

Above age 70 the Annual Conference to which thepastor belongs will pay 1/2 of the annual costs.

If a time ever comes when Medicare is either nolonger available or so severely curtailed in its coverageas to leave large gaps in coverage, the GeneralConference will make a full coverage policy available toretired United Methodist pastors which covers all gaps.

This plan shall be implemented beginning no laterthan one year after the 2012 General Conference.

¶1504.


Update Plan Name

Amend ¶1504.1 as follows:To operate, manage and administer the mandatory

benefit funds, plans, and programs established by theGeneral Conference: ... (b) the Staff Retirement BenefitsProgram, amended and restated effective January 1,2007, as the Retirement Security Program for GeneralAgencies of The United Methodist Church, amendedand restated effective January 1, 2010, as the RetirementPlan for General Agencies; ...

¶1504.

Petition Number: 20652-FA-¶1504.1-G; Paige, Peggy -Iron Mountain, MI, USA for UM Rural Fellowship.

Equitable and Sustainable Pensions

Amend ¶1504.1 by addition as follows:¶1504.1 To operate, manage, and administer the

mandatory benefit funds, plans, and programs estab-lished by the General Conference so that the distributionof funds is both equitable and sustainable. . . .

Rationale: The addition of this phrase makes this an explicit

requirement of the GBOPHB. Escalating pension costs


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have created problems in carrying out ministry and mis-sion locally. In addition, all clergy service is equallyvaluable in and clergy should not receive less in pensioncontributions because they receive less in compensa-tion...

¶1504.


Name of Corporate Trustee

Amend ¶1504.11 as follows:To order and direct ...held by the General Board of

Pension and Health Benefits of The United MethodistChurch, Incorporated in Missouri UMC Benefit Board,Inc., ...

Rationale: The name of the corporate trustee has changed.

¶1504.


Allocation of Benefits Costs

Amend ¶1504.8 as follows:8. To administer a clearinghouse for the allocation

of pension responsibility The general board shall havethe authority to allocate the costs of the mandatory ben-efits plans among the annual conferences situated withinthe boundaries of the United States and Puerto Rico, inaccordance with the principle of divided annuity respon-sibility terms of the appropriate benefits plan, and forthe collection and distribution of pension funds relatedto such responsibility.

a) For each beneficiary involved in the operation ofthe clearinghouse, the general board shall determine thedivision of responsibility on account of approved servicerendered.

b) The general board shall have authority to deter-mine the liabilities allocated to and contributions duefrom pension responsibility of each annual conference,in accordance with the terms of the appropriate plan.principle of divided annuity responsibility, and

b) The general board shall have the authority tocollect from each annual conference, as determined onthe basis of their respective pension programs, theamount required by the clearinghouse to provide thepension benefits related thereto pursuant to the terms ofthe appropriate benefits plan. Each annual conferenceshall provide funds to meet its annuity benefit responsi-bilityies to beneficiaries clergy serving the annual con-ference, and their spouses, as applicable, who aremembers of other annual conferences on the same basisas it provides pension payments for beneficiaries relateddirectly to itself.

c) The general board is authorized and empoweredto make all the rules concerning details that may be nec-essary to implement the foregoing for the operation ofthe clearinghouse.

Rationale: This paragraph requires updating. Allocation of

pension responsibility is a concept of the pre-82 retire-ment plan and does not contemplate benefits other thanpensions, such as the death and disability benefits of theComprehensive Protection Plan. The Discipline shouldbe clear that the General Board may determine liabilitiesallocated to...

¶1506.


Conference Funding Plans

Revise current ¶1506.8 as follows and delete¶1506.25:

8. On or before July 15, 2002, Each annual confer-ence shall develop, adopt and implement a formal com-prehensive funding plan or plans for retiring its pre-1982pension funding all of its benefit obligations. This fund-ing plan must result in the retirement of its pre-1982pension obligations on or before December 31, 2021.The funding plan shall identify any funds which havebeen designated by the annual conference and protectedfor the exclusive purpose of retiring its pre-1982 pensionobligations. The funding plan or plans shall: (a) addressthe funding for both the existing and incremental liabil-ities incurred by future increases in the past service rate,(b) be submitted annually to the General Board ofPension and Health Benefits for review and be approvedannually by the annual conference, following the receiptand inclusion of a favorable written opinion from the


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General Board of Pension and Health Benefits, and (c)be published along with the written opinion of theGeneral Board of Pension and Health Benefits in thejournal of the annual conference. In addition, theGeneral Board of Pension and Health Benefits shallpresent a quadrennial report to General Conference con-cerning the long-term pension and retiree medical bene-fit liabilitiesy of the denomination. In order to assist theGeneral Board of Pension and Health Benefits in thepreparation of this report, Therefore, each annual con-ference shall provide to the General Board of Pensionand Health Benefits information periodically requestedby the General Board of Pension and Health Benefitsconcerning the long-term pension and retiree medicalobligations of the particular annual conference.(Effective at the conclusion of General Conference2012)

Rationale: This paragraph will expand pre-82 funding plans to

include all benefit plans and liabilities and improve thefunding plans by requiring a favorable opinion.

¶1506.


Pension Provisions Moved from Discipline to CRSP

1. Delete the following subparagraphs of ¶1506 ofthe Book of Discipline, which are relocated to theClergy Retirement Security Program (or other clergypension program approved by General Conference2012) (“CRSP”) as provided at the end of this petition(or already covered in CRSP), effective on the day afterGeneral Conference 2012, and re-number and re-letterthe subparagraphs of ¶1506 appropriately:

¶1506.2a); ¶1506.2b); ¶1506.2c); ¶1506.3;¶1506.3a); ¶1506.3b); ¶1506.3c); ¶1506.3d); ¶1506.4a);¶1506.4b); ¶1506.4d); ¶1506.4e); ¶1506.4h); ¶1506.4i);¶1506.5a); ¶1506.7; ¶1506.9; ¶1506.13d); ¶1506.15a);¶1506.15b); ¶1506.15c); ¶1506.17; and ¶1506.23;

2. Amend the subparagraphs of ¶1506 of the Bookof Discipline shown below as follows:

¶ 1506. Powers, Duties, and Responsibilities ofAnnual Conferences – 1. The annual conferences havethe following powers, duties, and responsibilities withrespect to clergy benefit plans administered by theGeneral Board of Pension and Health Benefits: (a) exe-cuting an adoption agreement, including making any

optional elections; (b) enrolling clergy; (c) making con-tributions; (d) determining the appointment status of aclergyperson for a given period, including the classifica-tion of the clergyperson and his or her full-time or part-time status; (e) reporting on a clergyperson’scompensation; (f) determining a clergyperson’s confer-ence relationship status, including the terminationthereof; (g) determining a clergyperson’s leave ofabsence status; (h) reporting on any waivers of plan par-ticipation made by a clergyperson; and (i) determiningthe retirement status of a clergyperson, including deter-mining how many years of service a clergyperson hasearned toward the number prescribed in the Book ofDiscipline to qualify for retirement. (Effective at theconclusion of General Conference 2012)

2. The annual conference, on recommendation ofthe conference Board of Pensions, shall determine theadmissibility and validity of pre-January 1, 1982 serviceapproved, or compensation considered, entering the con-tribution base, for pension credit and the payments, dis-allowances, and deductions thereunder, subject to theprovisions of the Discipline, and the rules and regula-tions of the pension and benefit funds, plans, and pro-grams of The United Methodist Church. ... (Effective atthe conclusion of General Conference 2012)

5b) On recommendation of If the conference boardof pensions so recommends, a pension shall be payableon account of pension credit for service prior to 1982 foran ordained minister from another Christian denomina-tion who shall have rendered not less than four consecu-tive years of full-time service with pension credit forservice prior to 1982 or with full participation in theComprehensive Protection Plan since 1981, or a combi-nation thereof, in one annual conference while qualifiedunder ¶ 346.2, who has attained the age of voluntaryretirement for a conference clergy member. (See also§3c above.) (Effective at the conclusion of GeneralConference 2012)

6. The annual conference, on recommendation ofthe conference board of pensions, shall have the powerto revise, correct, or adjust a clergyperson’s record ofpension credit as set forth in his or her service record toalign such record with the Discipline and SupplementOne of the Clergy Retirement Security Program (or anysuccessor clergy pension or retirement plan or program).Prior to the revision of such record, the General Boardof Pension and Health Benefits may be requested toreview relevant data and report its findings thereon.Such revisions, corrections, and adjustments shall bepublished in the journal of the annual conference inanswer to Business of the Annual Conference questionsand shall be reported to the General Board of Pension


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and Health Benefits by the conference board of pen-sions. ... (Effective at the conclusion of GeneralConference 2012)

10. The responsibility for pension for serviceapproved for pension credit under Supplement One ofthe Clergy Retirement Security Program (or any succes-sor clergy pension or retirement plan or program) shallrest with the annual conference in which the service wasrendered; provided, however, that in the event of merg-ers, unions, boundary changes, or transfers of churches,such responsibility shall rest with the successor annualconference within whose geographical boundaries thecharge is located. ... (Effective at the conclusion ofGeneral Conference 2012)

15.d) Clergy members in full connection, provi-sional members, and associate members in an annualconference who voluntarily withdraw from the ministryof The United Methodist Church to enter the ministry ofanother church or denomination, on the attainment ofage sixty-two and on recommendation of the conferenceboard of pensions and a three-fourths vote of those pres-ent and voting in any annual conference in whichapproved service was rendered prior to January 1, 1982,or the legal successor, may be recognized and grantedpensions on account of approved pension service ren-dered in that conference. If pension begins prior to theage at which retirement under ¶ 356.2c could haveoccurred, then the provisions of ¶ 1506.4i shall apply. ...(Effective at the conclusion of General Conference2012)

18. Pension and benefit contributions are theresponsibility of the Plan Sponsor for participants in theMinisterial Pension Plan, (amended and restated effec-tive January 1, 2007 as the Clergy Retirement SecurityProgram (or any successor clergy pension or retirementplan or program) and the Comprehensive ProtectionPlan. Unless otherwise determined by vote of theannual, missionary, or provisional conference, the treas-urer of a local church or pastoral charge shall remit suchcontributions related to the participant’s compensationthat is provided from local church funds to the PlanSponsor. If compensation from the local church or pas-toral charge is supplemented from other church sources,pension and benefit contributions related to such supple-ments shall be paid from that same source. If the entirecompensation for a participant is from a salary-payingunit other than a local church or a pastoral charge, theunit responsible for compensation shall remit the pen-sion and benefit contributions to the Plan Sponsor.Nothing in this paragraph shall be understood as pre-venting an annual, missionary, or provisional conference

from raising part of all of the annual contributions forthe pension program of its pastors of Clergy RetirementSecurity Program (or any successor clergy pension orretirement plan or program) or the ComprehensiveProtection Plan by an apportionment to the churches ofthe conference and remitting payments to the GeneralBoard of Pension and Health Benefits on behalf of allthe pastors covered; there is no time limit on this provi-sion. (Effective at the conclusion of General Conference2012)

19. Effective January 1, 2007, pension contribu-tions will be determined in accordance with the provi-sions of the Clergy Retirement Security Program (or anysuccessor clergy pension or retirement plan or program).Actual compensation, limited by 200 percent of thedenominational average compensation, is the basic con-tribution base of the Comprehensive Protection Plan. ...

(Effective at the conclusion of General Conference2012)

21. The annual conference board of pensions, inconsultation with the General Board of Pension andHealth Benefits, shall have the responsibility to enrollclergy of the annual conference in the MinisterialPension PlanClergy Retirement Security Program (orany successor clergy pension or retirement plan or pro-gram) and the Comprehensive Protection Plan in accor-dance with the provisions of such plans. (Effective at theconclusion of General Conference 2012)

22. Optional provisions contained in theMinisterial Pension Plan, amended and restated effectiveJanuary 1, 2007, as the Clergy Retirement SecurityProgram (or any successor clergy pension or retirementplan or program), and Comprehensive Protection Planmay be adopted by vote of the annual conference subse-quent to the receipt of a recommendation from the con-ference board of pensions. Effective January 1, 2007,contributions and credited service are determined inaccordance with the provisions of the Clergy RetirementSecurity Program (or any successor clergy pension orretirement plan or program). (Effective at the conclusionof General Conference 2012)

3. Make the following revisions to the ClergyRetirement Security Program (and any successor clergypension or retirement plan or program approved byGeneral Conference 2012) (“CRSP”), including anyneeded revisions to section numbering, formatting, pag-ination, or Table of Contents, effective on the day afterGeneral Conference 2012 (or, in the case of the revisionsto any such successor plan or program, effective on theeffective date of any such successor plan or program):

a. Amend the first sentence of CRSP Section A2.21as follows:


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As used in Supplement One, and as further definedin Section S1.4.1, a Pre-82 Participant’s or retired Pre-82 Participant’s years and fractions of years of service,measured to the nearest quarter-year, rendered beforeJanuary 1, 1982, with pension credit in a Conference, asevidenced by the Pre-82 Participant’s service recordmaintained by the Administrator.

b. Add the following new CRSP Section S1.3.9 fol-lowing Section S1.3.8:

S1.3.9 Liability for Students. A Pre-82 SponsorConference’s funding responsibility for a Pre-82Participant who was Appointed to attend school before1982 was allocated to the Conference or Conferences inwhich the Pre-82 Participant first thereafter rendered sixyears of service under Appointment: to a Local Church,to Conference staff, as a district superintendent, orbeyond the Local Church normally considered to be eli-gible for Approved Service by the Conference. The fore-going allocation procedure continued through December31, 1987. Thereafter, any unallocated years of ApprovedService were assigned on a pro rata basis to theConference or Conferences in which service normallyconsidered to be eligible for Approved Service was ren-dered under Appointment: to a Local Church, toConference staff, as a district superintendent, or beyondthe Local Church. Notwithstanding the foregoing, how-ever, such allocation did not apply in cases where pen-sion payments were in effect before January 1, 1985, onthe basis of the allocation of responsibility under previ-ous rules.

c. Amend CRSP Section S1.4.1 as follows:S1.4.1 Approved Service.(a) A Pre-82 Participant’s Approved Service will

be the same under the Pre-82 Plan as it was as of January1, 1982, determined under supplement one to MPP orunder the Prior Plans, including the following servicerendered for a Pre-82 Sponsor before January 1, 1982:.

(i) By a Pre-82 Participant who was a ProvisionalMember, who was in the effective relation as anAssociate Member, or who was a member in full con-nection in a Conference:

(A) as pastor, associate or assistant pastor, or otherClergyperson in a pastoral charge;

(B) as district superintendent, presiding elder,Conference president, Conference superintendent, orother full-time salaried official of the Conference;

(C) under appointment beyond the Local Church toan institution, organization, or agency that in the judg-ment of the Conference rendered to it some form ofservice, direct or indirect, sufficient to warrant ApprovedService, or to a community church, or as a Conference-approved evangelist; provided, however, that such insti-

tution, organization, agency, community church, orevangelist paid such apportionments as the Conferencerequired;

(D) as a student appointed to attend school, butonly if the Pre-82 Participant later served with ApprovedService in a Conference or Conferences for three ormore years under Appointment other than to attendschool, such Approved Service as a student not toexceed three years; provided, however, that all years forwhich Approved Service was given under legislation ineffect before the 1972 General Conference, on accountof appointment to attend school, will be counted indetermining the pension claim thereon; and providedfurther, that if a Pre-82 Participant is again appointed forsix consecutive years as a clergy member in full connec-tion with Approved Service in a Conference orConferences other than under Appointment to attendschool, Approved Service will be given for up to, but notmore than, three additional years under Appointment toattend school if the Pre-82 Participant later served withApproved Service in a Conference or Conferences forthree or more additional years under Appointment otherthan to attend school;

(E) as a Pre-82 Participant on sabbatical leave, pro-vided that not less than five of the 10 years just preced-ing the granting of such leave were served withApproved Service in the Conference that grants the sab-batical leave; and

(F) as a Pre-82 Participant on disability leave afterthe 1968 Uniting Conference, not to exceed 15 years ofApproved Service.

(ii) By a person classified by the Conference boardof ordained ministry as eligible to be appointed as a Full-Time Local Pastor, and by an approved supply pastorbefore the United Methodist Church union in 1968, as apastor or assistant pastor of a pastoral charge in Full-Time service under Appointment; provided, however,that such Approved Service will be conditional and sub-ject to provisions hereinafter stated in this Section S1.4.1.

(iii) By an ordained minister from anotherChristian denomination who has not attained the age ofmandatory retirement for a Conference clergy member,who has not retired from the denomination, and who isapproved by the Conference on recommendation of theConference board of ordained ministry as provided inDiscipline ¶346.2 who renders Full-Time service underAppointment as a pastor or assistant pastor subject toprovisions hereinafter stated in this Section S1.4.1.

In calculating fractions of years of service forApproved Service earned before January 1, 1982, thefollowing formula will be used:


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(1) Any period of up to and including 45 days willnot be counted;

(2) Forty-six days up to and including 136 dayswill be counted as one-quarter of a year;

(3) One hundred thirty-seven days up to andincluding 228 days will be counted as one-half of a year;

(4) Two hundred twenty-nine days up to andincluding 319 days will be counted as three-quarters ofa year; and

(5) Three hundred twenty days up to and including365 days will be counted as one year.

(b) The following provisions apply for service ren-dered before January 1, 1982 in determining the grant-ing of Approved Service, eligibility for pension, andallocation of funding responsibility:

(i) Normal Conditions. The normal conditionsrequired of a Pre-82 Participant for full ApprovedService are:

(A) to be Appointed on a Full-Time basis;(B) not to be attending school as a regular student

except as provided in Section S1.4.1(a)(i)(D);(C) not to be on a Leave of Absence;(D) not to be substantially employed in work other

than that to which he or she is Appointed; and(E) to receive not less Compensation per annum

from all United Methodist Church and/or Conference-related sources than that provided in the schedule ofequitable salaries adopted by the Conference for personsin this Pre-82 Participant’s classification.

(ii) Proportional Pension Credit. Effective as of theclosing day of the 1980 annual conference session, prorata Approved Service may be granted to personsappointed to less than Full-Time service under the pro-visions of Discipline ¶338.2 by a three-fourths vote ofthose present and voting in the annual conference ses-sion on recommendation of the Conference board ofpensions. Such Approved Service will be granted in one-quarter year increments; provided, however, that no oneindividual receives in excess of one year of ApprovedService per annum.

(iii) Full Pension Credit. Full Approved Servicemay be granted for persons not meeting some or all ofthe above conditions by a three-fourths vote of thosepresent and voting in the annual conference on recom-mendation of the Conference board of pensions.

(iv) Chaplain Service. Service as a chaplain onfull-time duty before January 1, 1947 will be recognizedas Approved Service.

(v) Local Pastor Service. Service of a Local Pastorbefore 1982 may be approved for pension credit only byvote of the annual conference, on recommendation of

the Conference board of pensions, after consultationwith the district superintendents. If such credit isgranted, it should be included under the Discipline ques-tion: “What other personal notation should be made?” inthe Conference journal.

(vi) Conference Approval. Upon recommendationof the Conference board of pensions and by a three-fourths vote of those present and voting in the annualconference, Approved Service may be granted to aclergy member in full connection, a ProvisionalMember, or an Associate Member of the Conference onaccount of Full-Time service previously rendered as anapproved Local Pastor or approved supply pastor to aninstitution, organization, or agency, which in the judg-ment of the annual conference rendered to it some formof service sufficient to warrant the granting of ApprovedService; provided, however, that such institution, organ-ization, or agency shall accept and pay such apportion-ment as the Conference may require.

(vii) Local Pastor or Supply Pastor Service.Approved Service will be awarded for Service before1982 as a Full-Time Local Pastor or supply pastor if:

(A) the Local Pastor or supply pastor was admittedas an Associate or Provisional Member or member infull connection in a Conference and was later placed inthe Retired relation by the Conference; or

(B) the Local Pastor or supply pastor rendered noless than four consecutive years of full-time service withApproved Service for Service before 1982 or with fullparticipation in the Comprehensive Protection Plansince 1981, or a combination thereof, in one Conference.

(viii) Other Denomination Clergy. If the Confer-ence board of pensions so recommends, ApprovedService will be awarded to an ordained minister fromanother Christian denomination who rendered not lessthan four consecutive years of Full-Time Service before1982 or who had full participation in the Comprehen-sive Protection Plan since 1981, or a combinationthereof, in one Conference while qualified underDiscipline ¶346.2.

d. Amend CRSP Section S1.4.2(c) as follows:(1) Early Retirement Date, the amount of his or her

Past Service Benefit, or later increases, will be actuari-ally reduced by the lesser of:adjusted as provided in¶1506.4i) of the Discipline

(A) 0.5% per month or fraction of a month of thePre-82 Participant’s age less than 65 years attained onthe date the actuarially reduced Past Service Benefit is tocommence (or the date of such Past Service RateAmount increase); or

(B) 0.5% per month for each month of differencebetween:


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(I) the assumed date at which the Pre-82Participant would have completed 40 years of Serviceunder Appointment; and

(II) the Pre-82 Participant’s actual Annuity StartingDate for the actuarially reduced Formula Benefit, or dateof a Past Service Rate Amount increase; or

(2) Late Retirement Date, the amount of his or herPast Service Benefit will be actuarially adjusted toreflect the delay from his or her Normal Retirement Dateto his or her Late Retirement Date. Such actuarialadjustment will be on an Actuarially Equivalent basisdetermined pursuant to procedures developed by theAdministrator.

Effective at the close of the 1988 GeneralConference, if a Conference grants a deferred retirementin accordance with Discipline ¶358.2e), the actuariallyreduced Formula Benefit will be calculated from thedeferred Retirement Date. Such actuarially reducedFormula Benefit will be calculated by the Administratorand allocated pro rata to the Conference or Conferencesthat are charged with the funding responsibility.

Rationale: This petition deletes from the Discipline and moves

into the official clergy pension plan document a portionof current ¶1506 to eliminate duplication. The remainderof ¶1506 is either left as is or is revised to clarify annualconference responsibilities with respect to benefit plans.

¶1506.

Petition Number: 20722-FA-¶1506.12; Pogue, Creed -Estell Manor, NJ, USA.

Excess Pre-1982 Balances

Amend Paragraph 1506.12 as follows:12. An annual conference may not make any

arrangement with a life insurance company for the pur-chase of annuities for the benefit of individual effectiveor retired clergy or take any steps to nullify, in whole orin part, the pension plans and programs of The UnitedMethodist Church by making contracts with outside par-ties. Annual conferences that have fully funded theirpre-1982 pension obligations may by vote of the annualconference withdraw their balance to create an annuity.They may retain any excess balance for ministry andmission as designated by the annual conference.

Rationale: Annual conferences that have fully met their pre-

1982 obligations should be allowed to use excess bal-ances for ministry and mission in a hurting world.

¶1600.

Petition Number: 20847-FA-¶1600-G; Fellers, James -Gresham, OR, USA.

Unlimited Electronic Access to BOD and BOR

Add a new ¶ after current ¶1642 as follows:The Discipline of The United Methodist Church and

The Book of Resolutions - In addition to bound and elec-tronic copies made available for sale to the public, theboard shall make available for download without chargeThe Discipline of the United Methodist Church and TheBook of Resolutions of the United Methodist Church.

Rationale: General Conference legislation is the product of an

open, democratic process that is ‘owned’ by everyUnited Methodist. Each member of our church shouldbe able to quickly access this legislation in order tounderstand the covenant relationship that binds togetherand orders the life of people called United Methodist...

¶1613.

Petition Number: 20467-FA-¶1613-G; Wilson, LauraCean - Worthington, OH, USA for West Ohio AnnualConference.

Free Electronic Availablility of BOD and BOR

Amend ¶ 1613 of The Book of Discipline as fol-lows:

Objectives—The objectives of The UnitedMethodist Publishing House shall be: the advancementof the cause of Christianity throughout the world by dis-seminating religious knowledge and useful literary, sci-entific, and educational information in the form ofbooks, tracts, multimedia, electronic media, and period-icals; the promotion of Christian education; the promo-tion of the free electronic availability of the governingand guiding documents of The United MethodistChurch, including The Book of Discipline of the UnitedMethodist Church and The Book of Resolutions of TheUnited Methodist Church; the implementation of anyand all activities properly connected with the publishing,manufacturing in a variety of media, and distribution ofbooks, tracts, periodicals, materials, and supplies forchurches and church schools, including the ecumenicaloutreach of Christianity, and such other activities as theGeneral Conference may direct.


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Rationale: The Book of Discipline and The Book of Resolutions

govern and guide the common Christian ministries ofThe United Methodist Church throughout the denomina-tion. They should be free and widely available to thegeneral public, especially for clergy and laity and semi-nary students/candidates for vocations in licensed andordained ministry.

¶2500.


Health and Welfare Ministries RelationshipStatements

Delete ¶¶ 633.4b(27) and 1327.3a(4) and insert anew ¶ 2517, as follows:

2517. Responsibilities of Annual ConferenceTrustees related to Health and Welfare institutions.

1. The annual conference shall designate a bodywhich shall be responsible for establishing and main-taining the annual conference’s relationship statementswith related health and welfare organizations. If theannual conference does not designate a body for thispurpose, the responsibility shall rest with the annualconference board of trustees. A related health and wel-fare organization is any organization that:

a) Provides health or welfare services;b) Is located within the bounds of the annual con-

ference; andc) Either(1) Seeks, or already has, a relationship or connec-

tion with an annual conference, regardless of whetherthe relationship or connection is formal or informal, offi-cial or unofficial, or does or does not involve any finan-cial or legal commitments; or

(2) Markets, publicizes, or promotes itself as hav-ing a connection to the annual conference or to thedenomination or uses the official United Methodistinsignia or the term “United Methodist” in any way.

2. The body designated by the annual conferenceshall consult with the conference chancellor and the con-ference Health and Welfare Committee (or equivalentstructure) in the development of relationship statements.

3. The body designated by the annual conferenceshall provide the General Council on Finance andAdministration with current copies of all of the confer-ence’s relationship statements.

4. If the annual conference has a relationship witha related health and welfare organization, the legal andfinancial relationships between the annual conferenceand the health and welfare organization must be memo-rialized in a clearly stated document describing suchrelationships. This relationship statement shall:

a) Not purport to name as a party “The UnitedMethodist Church” and/or any general agency of “TheUnited Methodist Church;”

b) Require the health and welfare organization toacquire approval from the General Council on Financeand Administration if the health and welfare organiza-tion wishes to use the official United Methodist insigniaor the term “United Methodist” in its name, missionstatement, publications, or promotional or marketingmaterial;

c) Acknowledge that the annual conference shallnot be legally responsible for the debts, contracts orobligations, or for any other financial commitments ofany character or description created, undertaken, orassumed by the health and welfare institution, absent theexpress consent of the annual conference;

d) Require the body designated by the annual con-ference and the health and welfare institution to reviewthe relationship statement at least every four years; and

e) Comply with any further requirements adoptedby the General Council on Finance and Administration,in consultation with the United Methodist Association ofHealth and Welfare Ministries.

5. The body designated by the annual conferencemay encourage or require the health and welfare organ-ization to:

a) Hold membership in the United MethodistAssociation of Health and Welfare Ministries;

b) Pursue accreditation in one of the industry rec-ognized, national accreditation bodies appropriate tofaith-based organizations; or

c) Utilize the programmatic standards, self-study,and peer review appropriate to Church-related institu-tions and programs available to them through organiza-tions that will promote excellence in Christian ministryand mission and enhance the quality of services offered.

6. If the body designated by the annual conferenceterminates, decides not to renew, or is unable, after rea-sonable efforts, to agree to, a relationship statement witha health and welfare organization, it shall report suchtermination, non-renewal, or inability to agree at thenext session of the annual conference. This report shallthen be published in the annual conference journal.

Rationale: These changes provide general guidelines and

requirements for relationship statements for health and


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welfare organizations related to the annual conference.These relationship statements help protect the annualconference’s property and assets.

¶2509.

Petition Number: 20826-FA-¶2509.2-G; Norris, William- Wilmington, NC, USA.

Conflict Resolution and Lawsuits

Amend Discipline ¶ 2509.2 as follows:Any denominational unit authorized to hold title to

property and to enforce trusts for the benefit of thedenomination may bring suit in its own name to protectdenominational interests, provided, however, that nodenominational unit may bring suit in any civil jurisdic-tion until it has complied with steps a) through g) below:

a. Corporately pray within the denominational unitseeking God’s wisdom and strength to deal appropri-ately with the perceived conflict.

b. Consult with JUSTPEACE (Section 2406) forassistance in developing means of resolving the conflictshort of filing a civil suit.

c. Document in writing that the denominationalunit has contacted the other party personally, and notthrough an outside attorney, explained the unit’s griev-ances, and offered Christian mediation in lieu of legalaction.

d. Document that the other party has specificallyrefused Christian mediation.

e. Provide a written scriptural justification for thesuit with due consideration of the other party’s situationand potential negative impacts on the other party, signedby at least two managing personnel of the denomina-tional unit, and approved by the highest level official ofthe denominational unit.

f. If the other party includes professing members orclergy of the UMC, or entities owned or managed byprofessing members or clergy of the UMC, consult withofficers of the Connectional Table (Section 906.3) toassure that the suit is necessary to protect denomina-tional interests, that risk to the denomination of filingthe suit is justified, and that filing the specific suit isconsistent with other denominational policies andactions regarding members and clergy.

g. Prior to filing any suit, or immediately upon fil-ing a suit in cases where the highest level official of thedenominational unit determines that exigencies of thecase require more immediate action, submit a summary

of the grievance and the justification for a lawsuit to theCouncil of Bishops if the unit is a general agency or aunit defined in Section 703, jurisdiction, or annual con-ference; or to the presiding bishop if the unit is a districtconference, a charge conference or a local church.

Rationale: As affirmed by Scripture, the Church is bound to

higher principles in resolving disputes with otherChristians than are required within civil legal systems.This resolution assures our compliance with thesehigher principles by delineating specific proceduralsteps required before bringing a civil suit related to aChristian controversy. The...

¶2513.

Petition Number: 20674-FA-¶2513; Shultz, Paul - IowaCity, IA, USA.

Foundations and Campus Ministry

Amend ¶ 2513 (2) and (3) as follows:2. The promotion of planned-giving programs on

behalf of local churches, conference campus ministryunits, conferences, and general Church boards and agen-cies;

3. Furnishing counsel and guidance to localchurches and conference campus ministry units withregard to promotion and management of permanentfunds, and

◊ ◊ ◊ ◊ ◊

Proposed Non-Disciplinary LegislationPetition Number: 20408-FA-NonDis; Ward, HopeMorgan - Jackson, MS, USA for Church Systems TaskForces; Boigegrain, Barbara - Glenview, IL, USA forGeneral Board of Pension and Health Benefits.

Voluntary Transition Program

Amend the Comprehensive Protection Plan as fol-lows:

Add the following new Article VI and renumber thesubsequent Articles as necessary.

ARTICLE VI – VOLUNTARY TRANSITIONPROGRAM

6.01 In General. The purpose of the VoluntaryTransition Program (Program) described in this Article


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VI is to enable The United Methodist Church to providetransitional benefits to certain clergypersons (deaconsand elders) (“Clergy members”) in full connection andin good standing who agree to exit ministry. TheTransition Benefits under this Program are employeewelfare benefits, specifically unemployment or sever-ance benefits, described in §3(1) of the EmployeeRetirement Income Security Act of 1974 (ERISA) pro-vided through a church plan as defined in §3(33) ofERISA.

6.02 Sunset of Program. Notwithstanding any-thing to the contrary in the Plan, this VoluntaryTransition Program will begin effective January 1, 2013and remain in effect through December 31, 2020, atwhich time it will terminate. The Voluntary TransitionProgram will no longer be available as a benefit programunder the Plan as of January 1, 2021. Notwithstandingthe foregoing, Transition Participants who are receivingTransition Payments on December 31, 2020 shall remaineligible for Transition Benefits beyond January 1, 2021for the appropriate number of weeks as determined bythis Article. The Administrator shall have the authorityto accelerate Transition Payments due after December31, 2020 for administrative ease to a date on or beforeDecember 31, 2020.

6.03 Definitions. For purposes of this Article, thefollowing special definitions shall apply:

a. “Transition Benefits” means severance benefits(“Transition Payments”), death benefits continuation,health plan continuation coverage, and outplacement andcareer counseling services (“Transition Services”) asdescribed in Section 6.05 of the Plan. TransitionBenefits shall not include those Plan benefits describedin Section 6.05g.

b. “Transition Participant” means an ActiveParticipant in the Plan as of the date of Separation fromService who satisfies the requirements of Section 6.04of the Plan. In no event shall a Retired Participant in thePlan be considered a Transition Participant.

c. “Separation from Service” means the end of anActive Participant’s appointment that results in theActive Participant’s severance from employment underthe common-law test for employment status with theSalary-Paying Unit, or results in the Active Participantno longer serving in any capacity at the Salary-PayingUnit. The date of Separation from Service is generallythe last day for which the Active Participant receivedcompensation or remuneration for services performed.

6.04 Eligibility. a. Generally. To be considered a Transition

Participant eligible for this Voluntary Transition

Program, an individual must be an Active Participant inthe Plan under the terms of Section 3.01a(3)(i); i.e., aClergy member in full connection, as of the date ofSeparation from Service. However, Active Participantswho are bishops, provisional members, members ofOther Methodist Denominations, members of the PuertoRico Methodist Church, or clergypersons of otherdenominations may not be Transition Participants; suchindividuals are not eligible for Transition Benefits.Active Participants enrolled through special arrange-ments under Section 3.02 or Section 3.03 of the Planmay not be Transition Participants; such individuals arenot eligible for Transition Benefits.

b. Minimum Service. A Transition Participant musthave served at least five years as a Clergy member in fullconnection with an Annual Conference or more than oneAnnual Conference, and must have been covered as anActive Participant in the Plan for at least five yearsimmediately preceding Separation from Service to beeligible for Transition Benefits under this VoluntaryTransition Program.

c. Not Within Two Years of Retirement. An ActiveParticipant may not be a Transition Participant if he orshe is within two years of eligibility to enter the retiredrelationship under ¶358.2(b) or ¶358.2(c) of The Book ofDiscipline. Such individuals shall not be eligible forTransition Benefits.

d. Conference Agreement. To be eligible for bene-fits under the Voluntary Transition Program, i.e., tobecome a Transition Participant, an Active Participantshall consult with his or her district superintendent, thebishop, and conference relations committee of theAnnual Conference board of ordained ministry. Only ifthe Active Participant, bishop, district superintendent,and conference relations committee of the board ofordained ministry agree that the Active Participant shallbecome a Transition Participant upon Separation fromService, and that Transition Benefits under the VoluntaryTransition Program are appropriate, will the Plan paysuch benefits.

e. Termination and Withdrawal. The ActiveParticipant must incur a Separation from Service andagree to surrender his or her credentials and terminatehis or her membership in the Annual Conference, assoon as administratively feasible, but no later than thenext following session of the Annual Conference, to bea Transition Participant. A Transition Participant maynot be granted sabbatical leave under ¶352 of The Bookof Discipline, voluntary or involuntary leaves of absenceunder ¶354 and ¶355 of The Book of Discipline, incapac-ity leave under ¶357 of The Book of Discipline, or placed


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on honorable location under ¶359 of The Book ofDiscipline, or administrative location under ¶363 of TheBook of Discipline.

(i) The Active Participant must agree, as part of (iv)below, to withdraw from the ordained ministerial officein accordance with ¶360.2 (a) of The Book of Discipline,and so withdraw;

(ii) The Active Participant must surrender his orher credentials;

(iii) The Active Participant must terminate his orher relationship with the Annual Conference; and

(iv) The Active Participant must execute aVoluntary Transition Program agreement (a severanceagreement) approved by the Annual Conference and theAdministrator that acknowledges understanding of theterms of this Voluntary Transition Program and themeaning of his or her withdrawal, and that binds theActive Participant to withdraw and surrender creden-tials.

Any Active Participant who receives TransitionPayments and, for any reason, does not satisfy therequirements of this Section 6.04e shall be required torepay the Transition Payments received under thisProgram. Such amount shall be considered an overpay-ment under this Plan.

6.05 Benefits.a. Commencement Date. A Transition Participant

will not be eligible to begin receiving TransitionBenefits as long as he or she is receiving a salary fromhis or her Salary-Paying Unit. Transition Benefits willbegin no later than the 15th day of the month that fol-lows the month in which the Administrator approvessuch benefits, but no earlier than the date of Separationfrom Service.

b. Transition Payments. A Transition Participantwill be paid Transition Payments in accordance with thefollowing formula: two weeks of Transition Payments,equal in value to two weeks’ worth of the TransitionParticipant’s Plan Compensation as of the date ofSeparation from Service, for each full year of continu-ous service in the Annual Conference or AnnualConferences (with partial years not counted), limited toa maximum of twenty-six weeks. In no event willTransition Payments exceed twenty-six weeks. At itsdiscretion, the Administrator may pay TransitionPayments in a single lump-sum payment to theTransition Participant; or the Administrator instead maypay Transition Payments monthly, semi-monthly, orbiweekly. The Administrator shall have the authority toadjust the timing of Transition Payments as necessary tocomply with applicable laws governing severance, post-employment payments, and deferred compensation,

including §409A of the Code. If the TransitionParticipant dies while receiving Transition Payments,the Administrator may accelerate any remainingTransition Payments by paying such amount in a lump-sum to the estate or Beneficiaries of the TransitionParticipant.

c. Health Insurance Continuation Coverage.Clergypersons terminating their Annual Conferencerelationship generally are eligible for continuation cov-erage (COBRA-like coverage) under their AnnualConference’s group health plan, if they were covered insuch plan while serving; typically for a limited durationup to 18 months. Normally, a terminated ActiveParticipant, who was covered in the AnnualConference’s health plan, must pay the full cost of thiscoverage, meaning that he or she pays the “employeeportion” plus the portion that the Annual Conference orSalary-Paying Unit previously paid during active serv-ice. Under this Voluntary Transition Program, theAnnual Conference agrees that it will pay the “employerportion” (the Salary-Paying Unit portion) of the contri-bution or premium for continuation coverage under itsgroup health plan for eligible Transition Participants fora number of weeks equal to the number of weeks forwhich the Transition Participant is eligible for TransitionPayments, rounded up to the next nearest whole month.If the Annual Conference group health plan does notaccommodate such continuation coverage, the AnnualConference agrees to provide a stipend toward the pur-chase of individual health insurance in the market that isequal in amount to the lesser of the following: theamount that the Annual Conference or Salary-PayingUnit paid for its portion of the cost of group health plancoverage for the Transition Participant when theTransition Participant was in active service, or the equiv-alent percentage share of the cost of the average smallgroup market premium in the state in which theTransition Participant resides as published by theU.S. Department of Health and Human Services. Uponthe expiration of Transition Payments, TransitionParticipants shall remain eligible for continuation cover-age under the applicable group health plans in accor-dance with the terms of, and for a remaining number ofmonths as determined by, the group health plan or pol-icy in which they were enrolled and the terms of theAnnual Conference’s policies regarding cost sharing,generally at the Transition Participant’s own expense.

d. Death Benefits Continuation. A TransitionParticipant shall remain eligible for the death benefitsdescribed in Section 5.03d(1) of the Plan, only for thenumber of weeks following the Commencement Datedescribed in Section 6.05a equal to the number of weeks


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for which he or she is eligible for Transition Payments,rounded up to the next nearest whole month. Death ben-efits under Section 5.03d(1) payable on account of thedeath of a Transition Participant under this Section6.05d shall be paid to the Spouse or Beneficiary of theTransition Participant in accordance with Section 9.04of the Plan. Transition Participants are not eligible forany other death benefits under the Plan. The Spouse,Children, and Beneficiaries of a Transition Participantshall not be eligible for any other benefits under thePlan.

e. Transition Services. The Administrator willmake available to Transition Participants outplacementand career counseling services and assistance(“Transition Services”) for up to 90 days provided thatthe Transition Participant requests and begins utilizingTransition Services during the time in which he or she isreceiving Transition Payments. Generally, the TransitionServices provider and the particular services and assis-tance provided will be determined by the Administrator.In no circumstances shall the value of the TransitionServices be converted to or otherwise paid to aTransition Participant as cash or in any other manner.

f. Moving Expenses. The Annual Conference willagree to be responsible for providing the TransitionParticipant reimbursement of final moving expenses,limited to the reasonable average cost of relocationwithin the same geographic region, in accordance withapplicable Annual Conference policies.

g. Exclusion from Other Benefits. A TransitionParticipant, and the Spouse, Children, and Beneficiariesof a Transition Participant, shall not be eligible for anyother benefits under the Plan, including minimum sur-viving spouse annuity benefits described in Section5.01, surviving child benefits described in Section 5.02,death benefits described in Section 5.03 (other thanthose under Section 5.03d(1)), and disability benefitsdescribed in Section 5.04.

6.06 Return to Ministry. If a former TransitionParticipant returns to ministry through recertification atany time, he or she shall be required to repay theTransition Payments received under this VoluntaryTransition Program. Such amount shall be considered anoverpayment under this Plan as of the date the formerTransition Participant again becomes an ActiveParticipant in the Plan.

6.07 Appeals. With respect to the duties andresponsibilities of the Administrator as applied toTransition Benefits for any Transition Participant, theappeals procedure described in Section 7.09 and Section7.10 of the Plan shall apply. With respect to the determi-nations of the Annual Conference under Section 6.04d

and Section 6.04e, however, the Administrator does nothave the authority to hear appeals of such determina-tions, and shall not hear such appeals.

6.08 Procedures. The Plan Administrator shallestablish necessary procedures for the proper adminis-tration of this Program.

6.09 Powers and Responsibilities of the PlanAdministrator. The Administrator of the Plan shall bethe Administrator of this Program. The Administratorshall have the following powers, duties and responsibil-ities with respect to this Program, in addition to thosedescribed in Section 7.01 of the Plan.

a. Calculating and distributing TransitionPayments and certain other Transition Benefits toTransition Participants;

b. Completing necessary tax reporting and infor-mation returns related to Transition Payments;

c. Developing, maintaining and distributing neces-sary forms, documents and information for TransitionParticipants and Annual Conferences;

d. Determining and overseeing Transition Servicesand the provider thereof; and

e. Providing service support to TransitionParticipants and Annual Conferences.

6.10 Powers and Duties of the AnnualConference. The Annual Conference shall be the PlanSponsor of the Program and shall have the followingpowers, duties and responsibilities with respect to theProgram, in addition to those described in Section 7.03of the Plan.

a. Ensuring consultation between the ActiveParticipant and Annual Conference leadership about eli-gibility to become a Transition Participant and appropri-ateness of Transition Benefits;

b. Recommending to the Administrator whichActive Participants should be Transition Participantsupon Separation from Service;

c. Executing Voluntary Transition Program agree-ments to be signed by the Transition Participant, bishopand Annual Conference leadership as determined underSection 6.04d.

d. Overseeing the Annual Conference process forwithdrawal from ordained ministerial office under¶360.1 of The Book of Discipline, and surrender of cre-dentials;

e. Administering health insurance continuationcoverage and moving expense reimbursement underSection 6.05c and Section 6.05f; and

f. Submitting necessary and appropriate forms,information and evidence to the Administrator.

6.11 Delegation of Duties. The Adminis-trator, inits discretion, may delegate administrative duties with


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respect to the Voluntary Transition Program to a payingagent or service provider.

Amend Section 7.09 to read as follows: 7.09 Appeals from Denial of Claims. Except

with respect to Sections 6.04d and 6.04e of theVoluntary Transition Program (claims under those sec-tions are not subject to the determination of theAdministrator), Iif a claimant is denied benefits hereun-der the Plan, the claimant shall have the right to appealthe decision in accordance with the following proce-dures:

a. Intermediary Appeal Procedure. The Adminis-trator shall establish an intermediary appeals procedurecontaining no more than a three-level process.

b. Final Procedure.(1) There shall be an Appeals Committee of the

Administrator nominated by its President and elected bythe Administrator which shall hear and decide appealsafter the intermediary appeal procedure has been fol-lowed.

(2) The Appeals Committee decision shall be finaland not subject to action of the Administrator.

(3) After the final intermediary process has beencompleted and if the Participant’s claim is still fully orpartially denied, the claimant shall be advised thathe/she may, in writing, request a review by the AppealsCommittee of the decision denying the claim by filingwith the Appeals Committee, on forms supplied by it,within 90 days after such notice has been received by theclaimant.

(i) The Notice of Appeal shall be executed by theclaimant.

(ii) After filing the Notice of Appeal, the claimantmay submit issues and comments and other relevant,supporting documents to the Appeals Committee for itsconsideration.

(iii) If such Notice of Appeal is timely filed, theappeal will be heard by the Appeals Committee at itsnext meeting, unless special circumstances require anextension of time for processing, in which case theclaimant shall be so notified and the appeal will be heardat the subsequent meeting of the Appeals Committee.

(iv) To allow sufficient time for handling and pro-cessing, all Notices of Appeal and supporting documentsmust be filed with the Appeals Committee at least 30days prior to the next meeting of the AppealsCommittee, and no documents submitted to the AppealsCommittee after that time can or will be considered bythe Appeals Committee except by its leave and discre-tion.

(v) The claimant, his or her duly authorized repre-sentative, or a representative of the Plan Sponsor, may

request permission to appear personally before theAppeals Committee to present evidence with respect tothe claim, subject to conditions and time limitations setby the Appeals Committee, but the expense for any suchpersonal appearance must be borne by the claimant orthe Plan Sponsor.

(vi) The claimant shall be given written notice ofthe decision resulting from an appeal. Such notice shallinclude specific reasons for the decision, written in amanner calculated to be understood by the claimant, andspecific references to the pertinent Plan provisions onwhich the decision is based, and such written noticeshall be mailed to the claimant by the staff of theAdministrator within 15 days following the action by theAppeals Committee.

Rationale: Because the nature of the covenant between the

clergyperson and the Church and the significance of thecall to ministry may deter those who no longer feel thecall from exiting ministry, this petition creates a grace-filled path for clergy to exit ministry.

Petition Number: 20430-FA-NonDis; Boigegrain,Barbara - Glenview, IL, USA for General Board ofPension and Health Benefits.

Comprehensive Protection Plan Amendment

Make the following changes to the ComprehensiveProtection Plan (including any needed revisions to sec-tion numbering, formatting, pagination, or Table ofContents), effective January 1, 2013 except whereanother effective date is specified:

Amend Section 1.01 as follows:The Plan. The General Conference of The United

Methodist Church established a program providing cer-tain benefits for participating clergy and their benefici-aries, effective as of January 1, 1982, that has beenknown as the Comprehensive Protection Plan (here-inafter referred to as the “Plan”). Effective January 1,1997, the Plan was amended and restated. EffectiveJanuary 1, 2002, the Plan was again amended andrestated. Effective January 1, 2005, the Plan was againamended and restated. Effective January 1, 2007, thePlan was again amended and restated. Effective January1, 2009 (the “Effective Date”), General Conference2008 amended the Plan as provided herein. EffectiveJanuary 1, 2009, the Plan was again amended andrestated. Effective January 1, 2012, the Plan was againamended and restated. Effective January 1, 2013 (the“Effective Date”), General Conference 2012 amended


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the Plan as provided herein. This most recent statementof the Plan as amended constitutes the official plan doc-ument for the Plan.

Amend Section 2.05 as follows: 2.05 “Approved Conference-ControlledElective

Extension Ministry List” shall mean a list of extensionministries reported annuallyperiodically to theAdministrator by a Conference. By reporting any suchextension ministry, a Conference agrees to make contri-butions for Clergypersons under episcopal appointmentby that Conference’s bishop to that extension ministry.A Conference may add or remove extension ministriesto, or remove them from, the Approved Conference-ControlledElective Extension Ministry List annuallype-riodically as of a date specified from time to time by theAdministrator during such reporting period as theAdministrator may designate from time to time,. bButonce an extension ministry is reported for the ApprovedConference-ControlledElective Extension Ministry List,it will remain on the list until it is removed, prospec-tively, by a Conference as of a later annually specifieddate based on the Conference’s later report during a des-ignated annual reporting period.

Amend Section 2.14 as follows: 2.14 “Conference-ControlledElective Entity”

shall mean any extension ministry (such as an agency, acamp, or a foundation) that is on a Conference’sApproved Conference-ControlledElective Ministry List.

Amend Section 3.01a as follows:3.01 General Rule.a. A person shall be an Active Participant in this

Plan on a given date, subject to the rules for such per-sons described below, if, on such date, the person is eli-gible to participate in a “church plan,” as defined underSection 414(e) of the Code, and the person is:

(1) a bishop of The United Methodist Churchelected by a Jurisdictional Conference;

(2) a bishop of the Puerto Rico Methodist Church;(3) a Clergy member (including a deacon) who is (i) in full connection, (ii) a provisional member, (iii) an associate member of a Conference, or (iv) a clergy member or provisional member of an

Other Methodist Denomination appointed to a Confer-ence, in all cases serving under full-time episcopalappointment;

(4) a full-time local pastor of The UnitedMethodist Church or the Puerto Rico Methodist Churchunder episcopal appointment; or

(5) a clergy member of a central conference who isappointed to a Conference or General Agency servingunder full-time episcopal appointment; or

(5)(6) a clergyperson of another denomination andappointed to a charge of a United Methodist Church orthe Puerto Rico Methodist Church if such person is notparticipating in a similar program of the denominationto which such person belongs and is serving under full-time episcopal appointment;

provided that such a person in (3), (4), (5) or (56) isreceiving Plan Compensation at least equivalent to 60%of the applicable Conference Average Compensation or60% of the Denominational Average Compensation,whichever is less (in circumstances involving a personappointed to an extension ministry that is not aConference-Elective Entity, only the DenominationalAverage Compensation shall apply). Provided furtherthat the Church contributions required under this Plan onsuch person’s behalf are not delinquent under Section4.04 hereof, and that such person has satisfied the equiv-alent of either a certificate of good health or such othertests as provided for in Paragraph 315.8 of the Book ofDiscipline.

Amend Section 3.01d(1) as follows: (1) was an Active Participant in this Plan on or

after January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency orextension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least five of the ten years immediately pre-ceding such retirement, or (B) such person has or hadbeen an Active Participant in this ComprehensiveProtection Plan for at least twenty-five years;

Amend Section 3.01d(1) as follows:d. A person shall be a Retired Participant in this

Plan if the individual:(1) was an Active Participant in this Plan on or

after January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency orextension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least fivesix of the ten years immediately pre-ceding such retirement, or (B) such person has or hadbeen an Active Participant in this ComprehensiveProtection Plan for at least twenty-five years;


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Effective January 1, 2014, amend Section 3.01d(1)as follows:

d. A person shall be a Retired Participant in thisPlan if the individual:

(1) was an Active Participant in this Plan on orafter January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency orextension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least sixseven of the ten years immediatelypreceding such retirement, or (B) such person has or hadbeen an Active Participant in this ComprehensiveProtection Plan for at least twenty-five years;



(1) was an Active Participant in this Plan on orafter January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency orextension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least seveneight of the teneleven years imme-diately preceding such retirement, or (B) such personhas or had been an Active Participant in thisComprehensive Protection Plan for at least twenty-fiveyears;



(1) was an Active Participant in this Plan on orafter January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency orextension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least eightnine of the eleventwelve years

immediately preceding such retirement, or (B) such per-son has or had been an Active Participant in thisComprehensive Protection Plan for at least twenty-fiveyears;



(1) was an Active Participant in this Plan on orafter January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency orextension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least nineten of the twelvethirteen yearsimmediately preceding such retirement, or (B) such per-son has or had been an Active Participant in thisComprehensive Protection Plan for at least twenty-fiveyears;



(1) was an Active Participant in this Plan on orafter January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency orextension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least teneleven of the thirteenfourteen yearsimmediately preceding such retirement, or (B) such per-son has or had been an Active Participant in thisComprehensive Protection Plan for at least twenty-fiveyears;



(1) was an Active Participant in this Plan on orafter January 1, 1987, and during such period of partici-pation he or she retired and was eligible to receive a ben-efit on the date of retirement from the Clergy RetirementSecurity Program or, if serving a General Agency or

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extension ministry and not participating in the ClergyRetirement Security Program at the time of retirement,he or she retired at age 62 or older or with at least 30years of service, provided that (A) such person had beenan Active Participant in this Comprehensive ProtectionPlan for at least eleventwelve of the fourteenfifteenyears immediately preceding such retirement, or(B) such person has or had been an Active Participant inthis Comprehensive Protection Plan for at least twenty-five years;

Amend Section 3.02c as follows: c. A person described in Section 3.01a(3), (4), or

(5) or (6) who is otherwise eligible to become or con-tinue as an Active Participant, except for receiving lessthan the Plan Compensation described in Section3.01(a), may nevertheless do so, provided that (1) theperson involved is receiving the lesser of at least 25% ofthe Denominational Average Compensation or 25% ofthe applicable Conference Average Compensation, and(2) if the relevant Conference Board of Pensions hasmade special arrangements with the Administrator, pur-suant to an appropriate Adoption Agreement, to enrollpersons in that category into the Plan, in accordancewith Section 3.03 below.

Delete Section 3.02d in its entirety: d. A person described in Section 3.01a(2), (3), (4)

or (5) who is serving in the Puerto Rico MethodistChurch shall participate in the Plan, pursuant to the spe-cial arrangements that have been made with theAdministrator to enroll such persons into the Plan inaccordance with Section 3.03 below.

Amend §3.02d (which was 3.02e) to read as follows: d. A person described in Section 3.01a(3) who has

received an appointment beyond the local church, to aSalary-Paying Unit for which the Conference does notassume enrollment Plan Sponsor responsibility, maybecome an Active Participant in the Plan only if his orher Salary-Paying Unit has made special arrangementswith the Administrator, pursuant to an appropriateAdoption Agreement, to enroll persons in that categoryinto the Plan, in accordance with Section 3.03 below,and the Salary-Paying Unit then enrolls such person inthe Plan.

(1) Notwithstanding the general omission rules ofSection 3.04, if that individual is receiving the applica-ble Plan Compensation, as described in Section 3.01a,the terms of items (1) and (2) of Section 3.04b shallapply to such individual. In addition, the terms ofSection 4.01a shall apply to such individual.

(2) If that individual is not receiving the applicablePlan Compensation, as described in Section 3.01a, he or

she shall participate in the Plan with coverage limited asprovided in Section 3.03 and subject to the limitation ofSection 3.04b(3). In addition, the terms of Section 4.01bshall apply to such individual.

(3) If that individual is appointed to less than full-time service, he or she shall participate in the Plan sub-ject to the limitations of Sections 3.03 and 3.04b(3)and the terms of Section 4.01b shall apply to such individual.

Amend Section 5.03d as follows: d. Upon the death of an Active Participant or a

Retired Participant eligible for death benefit coveragehereunder, a benefit shall be paid as follows:

(1) For an Active Participant, the benefit shall be$50,000.

(2) For a Retired Participant, who has retired on orbefore December 31, 2012, the benefit shall be 30% ofthe Denominational Average Compensation in effect atthe time of death. For a Retired Participant, who hasretired on or after January 1, 2013, the benefit shall be$20,000.

Amend Section 5.03e as follows: e. A benefit payable due to the death of an Active

Participant shall be paid to the Beneficiary in a singlesum 12 equal monthly installments, unless provided,however, that the Beneficiary shall have the option toinstead elects to have the benefit paid in a 12 equalmonthly installments single sum. A benefit payable dueto the death of a Retired Participant shall be paid to theBeneficiary in a single-sum. Any benefit payable to theestate of a deceased Participant shall be paid in a singlesum.

Amend Section 5.03f as follows: f. Upon the death of the Spouse of an Active

Participant or a Retired Participant eligible for deathbenefit coverage hereunder, a single-sum spouse deathbenefit equal to 20% of the Denominational AverageCompensation at the time of death shall be paid to theParticipant. Upon the death of the Spouse of a RetiredParticipant, who has retired on or before December 31,2012 and is eligible for death benefit coverage hereun-der, a single-sum spouse death benefit equal to 20% ofthe Denominational Average Compensation at the timeof death shall be paid to the Participant. Upon the deathof the Spouse of a Retired Participant, who has retiredon or after January 1, 2013 and is eligible for death ben-efit coverage hereunder, a single-sum spouse death ben-efit equal to $15,000 shall be paid to the Participant.

Amend Section 5.03g as follows:g. Upon the death of: (1) a Surviving Spouse of a

deceased Active Participant or a deceased RetiredParticipant, who retired on or before December 31, 2012,


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(2) a Surviving Spouse who was receiving a pensionbenefit from a Conference on December 31, 1981, or (3) a Surviving Spouse of a bishop elected by aJurisdictional Conference or the Puerto Rico MethodistChurch, a death benefit shall be payable as follows. Thebenefit shall be a single-sum Surviving Spouse deathbenefit equal to 15% of the Denominational AverageCompensation at the time of death, and it shall be paidto the Beneficiary. Upon the death of a Surviving Spouseof a deceased Retired Participant, who retired on or afterJanuary 1, 2013, a single-sum death benefit equal to$10,000 shall be payable to the Surviving Spouse’sBeneficiary.

Amend Section 5.03i as follows: i. Upon the death of a Child of an Active

Participant, deceased Active Participant, or RetiredParticipant, or deceased Retired Participant, who retiredon or before December 31, 2012, and such Participantwho is, or was at the time of his/ or her death, eligiblefor death benefit coverage hereunder, and upon thereceipt of a death certificate for the Child:

(1) if the Participant survives the Child, a single-sum death benefit equal to 10% of the DenominationalAverage Compensation at the time of death shall be paidto the Participant; or

(2) if the Participant predeceases the Child, a sin-gle-sum death benefit equal to 10% of theDenominational Average Compensation at the time ofdeath shall be paid, in the following order of preference,to either:

(i) the Surviving Spouse of the deceasedParticipant, if the Surviving Spouse was the guardian ofthe Child at the time of the Child’s death, or if thedeceased Child was dependent upon the SurvivingSpouse; or

(ii) the guardian of the deceased Child, if any; or(iii) the person paying the funeral expenses of the

deceased Child.Upon the death of a Child of a Retired Participant

or deceased Retired Participant, who retired on or afterJanuary 1, 2013, and such Participant is, or was at thetime of his or her death, eligible for death benefit cover-age hereunder, and upon the receipt of a death certificatefor the Child:

(3) if the Participant survives the Child, a single-sum death benefit equal to $8,000 shall be paid to theParticipant; or

(4) if the Participant predeceases the Child, a sin-gle-sum death benefit equal to $8,000 shall be paid, inthe following order of preference, to either:

(i) the Surviving Spouse of the deceased Participant,if the Surviving Spouse was the guardian of the Child at

the time of the Child’s death, or if the deceased Childwas dependent upon the Surviving Spouse; or

(ii) the guardian of the deceased Child, if any; or(iii) the person paying the funeral expenses of the

deceased Child.Add a new subsection l to Section 5.03 that reads as

follows: l. On January 1, 2017, and on January 1, every

fourth year thereafter, the Administrator shall adjust thefixed-dollar death benefits for Retired Participants andtheir Children, and Surviving Spouses in Sections5.03d(2), 5.03f, 5.03g, and 5.03i, by increasing thoseamounts by no more than 2%, rounded to the next high-est $100, to reflect the rate of inflation over the four yearperiod as indicated by the consumer price index (CPI)published by the U.S. Bureau of Labor Statistics of theDepartment of Labor.

Amend Section 5.04c(1)(i) to read as follows:(1) General Amount. An annual disability benefit,

payable in monthly installments, shall be paid from theProtection Benefit Trust to the Participant in an amountequal to 70% of the annualized Plan Compensation forthat Participant for the Plan Year in which the first pay-ment becomes due and effective (with the annualizedPlan Compensation calculated as of the effective date ofthat first payment), provided that such annual disabilitybenefit generally shall not be less than 40% of theDenominational Average Compensation unless other-wise provided under the Plan.

(i) This disability benefit is a revised amount that isdifferent from the benefit under the prior restatement ofthe Plan. This revised benefit will be paid to personswho first become eligible for a disability benefit on orafter the Effective Date. Any persons already receivinga disability benefit before January 1, 2002on theEffective Date shall continue to receive the amount pre-viously awarded to them, which was based on 40% ofthe Denominational Average Compensation for the PlanYear in effect on the date of first payment (as adjustedfor the increases provided in Section 5.04c(3) below),for as long as they remain disabled or otherwise eligibleunder other provisions of the Plan.

Amend Section 5.04c(1)(iv) as follows: (iv) The application of the Social Security reduc-

tion described in Section 5.04c(7) shall not result in anannual disability benefit for a Participant that is less than40% of the Denominational Average Compensation forthe Plan Year in effect on the date of first payment(determined on pro-rata basis, as needed, for any partialyears of disability). Notwithstanding the foregoing, forParticipants described in Section 3.02c, annual disabilitybenefits may be less than 40% of the Denominational


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Average Compensation, i.e., when calculated as 70% ofPlan Compensation, and may be reduced to less than40% of the Denominational Average Compensation byapplication of the Social Security reduction described inSection 5.04c(7).

(v) Notwithstanding the foregoing, an annual dis-ability benefit for a Participant may be reduced to lessthan 40% of the Denominational Average Compensationin cases where the Administrator is offsetting or otherwiserecouping an overpayment to the Participant resultingfrom an award of Social Security benefits or otherincome.

Amend Section 5.04c(2) as follows:(2) Pension Credit. In addition, during the

Participant’s disability, an annual allocation from theProtection Benefit Trust, made in monthly installments,shall be credited to the Participant’s defined contributionaAccount in the applicable clergy retirement plan in anamount equal to the Plan Sponsor’s nonmatching andmatching contribution obligations with respect to theParticipant, limited in the aggregate to no greater than3% of the Participant’s compensation as defined by theapplicable clergy retirement plan, including anyincreases, imputed or otherwise, to such compensationas determined under the applicable clergy retirementplan. Notwithstanding the foregoing, effective January1, 2010, any allocation described in this Section5.04(c)(2) shall cease for any Participant who severs ter-minates or has terminated his or her Conference rela-tionship by (i) honorable location or administrativelocation as described in ¶359 and ¶363 60, (ii) with-drawal as described in ¶361, (iii) surrender of ministerialcredentials as described in ¶361 or ¶2719, (iv) a penaltyassessed by a trial court within the meaning of ¶2711.3,or (v) surrender of local pastor’s license as described in¶320 of The Book of Discipline, or terminates or has ter-minated his or her Conference relationship in any man-ner, thereby ceasing to be a member of the Conference,as of the date of such termination.

Amend Section 5.04c(3) as follows:(3) Annual Increases. The resulting dollar amount

of the benefits payable in accordance with Section5.04c(1) and (2) above shall be increased by 2% on July1 of each year through 1988, provided the benefit was ineffect on the previous December 31. Effective January 1,1990, this percentage increase shall be 3% on theanniversary date of the first payment of the disabilitybenefit and annually thereafter, provided the benefit wasin effect on the previous December 31. Effective January1, 1989, the amount of the benefit payable under (1) and(2) to persons receiving disability benefits on that date

shall be based upon the Denominational AverageCompensation for 1989. As of the Effective Date, theamount of the benefit payable to persons receiving ben-efits immediately prior to that date shall be the greaterof: (i) the amount based on the Denominational AverageCompensation in effect as of the Effective Date, or(ii) the existing disability benefit.

Amend Section 5.04c(7)(iv) as follows:(iv) If the Participant does not receive such Social

Security benefits, for any reason, then the benefitpayable under this Section 5.04 shall still be reduced, ona similar dollar-for-dollar basis, by looking to the hypo-theticalimputed benefits that the Participant would havereceived under the Social Security Act. For this purpose,it will be assumed that: (a) the Participant would havehad his or her application for Social Security disabilitybenefits approved, (b) the Participant would havereceived the maximum benefits available under SocialSecurity for that Participant’s circumstances and level ofcompensation, and (c) there would not have been anyretroactive award of Social Security benefits.

Amend Section 5.04c(7)(v) as follows: (v) For the application of the reduction described

in item (iv) above, it will be assumed that the paymentof hypotheticalimputed amounts began: (a) immediatelyafter the date the Participant refused to apply for SocialSecurity benefits, if the Participant has refused to apply,;(b) six months after the date the Participant’s disabilitywas determined by the Administrator to have com-menced, if the Participant has elected under CodeSection 1402(e) not to not be covered by Social Securityor the Participant is otherwise ineligible for SocialSecurity (e.g., too few quarters credited); or (c) 24months after the date the Participant’s disability wasdetermined by the Administrator to have commenced, ifthe Participant has applied for Social Security disabilitybenefits but has been denied such benefits, for a reasonother than having elected under Code Section 1402(e)not to be covered by Social Security. Notwithstandingthe applicability of the imputed amount to Participantsin clause (c), the Administrator shall begin applying thereduction described in Section 5.04c(7)(iv) above, after12 months of disability benefit payments to theParticipant, in all cases where the Participant has appliedfor Social Security benefits. The application of this off-set will reduce the likelihood of a substantial overpay-ment to the Participant as a result of a retroactive awardof Social Security benefits. In the event that theAdministrator applies this offset and the Participant isdenied benefits under the Social Security Act (for rea-sons other than those in clause (b), e.g., an election

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under Code Section 4102(e)), the Administrator shallmake the participant whole for this applied offset,between month 6 and month 24 of disability benefits, aswould be appropriate under clause (c), after theParticipant has exhausted Section 5.04c(7)(v)(c).

Amend Section 5.04c(8) as follows: (8) Other Income Offset. After the application of

the Social Security reduction described above in Section5.04c(7), the amount of the disability benefit payableunder this Section 5.04 shall also be reduced asdescribed below. (a) During the first 24 months of dis-ability, the disability benefit payable shall be reduced ona dollar-for-dollar basis when the sum of the amountsspecified in items (i), (iii), (iii), (iv) and (v) belowexceeds: (a) during the first 24 months of disability,100% of the Plan Compensation of the Participant at thetime the disability occurred, as increased annually by3%.; and (b) a After the first 24 months of disability,the amount of the disability benefit payable under thisSection 5.04 shall be reduced on a fifty cents on the dol-lar basis when the sum of the amounts in items (i), (ii),(iii), (iv) and (v) below exceeds 70% of the PlanCompensation of the Participant at the time the disabil-ity occurred, as increased annually by 3%.; and theamount of disability benefits payable shall be reducedon a dollar-for-dollar basis when the sum of the amountsin items (i), (ii), (iii), (iv) and (v) exceeds 100% of thePlan Compensation of the Participant at the time the dis-ability occurred, as increased annually by 3%. Theamount of this reduction shall be the amount by whichthe sum of items (i), (ii), (iii), (iv) and (v) exceeds theamount described in (a) or (b) as applicable.

Amend Section 5.04d as follows: d. Discontinuance of Disability Benefits. A

Participant’s disability benefit will be payable pursuantto paragraph (c) above, subject to the following:

(1) Medical Examinations. If the Participantrefuses to submit to a medical examination or deliverany related documentation, that, in either case, isrequested by the Administrator for purposes of verifyingthe continuance of disability, the disability benefits oth-erwise payable to the Participant may be suspended (andended), pursuant to Section 5.04d(56) below.

(2) Medical Treatment. If the Administrator deter-mines the Participant is not under the regular care andtreatment of a properly licensed physician with expertisein the appropriate medical specialty for the disablingcondition, the disability benefits otherwise payable tothe Participant under the Plan may be suspended (andended), pursuant to Section 5.04d(56) below.Regardless of the type of disabling condition, a physi-

cian who is a member of the Participant’s family is notan acceptable treating physician. For this purpose, amember of the family shall include parents, children,spouses, former spouses, siblings, mothers-in-law,fathers-in-law, brothers-in-law, sisters-in-law, andcousins.

(3) Administrator Determinations. If the Admin-istrator determines at any time that the Participant is nolonger disabled, payment of all disability benefits shallcease, as provided in Section 5.04d(4)(5) below (irre-spective of the period that has elapsed since theParticipant first became disabled).

(4) Mental Health Conditions. If the primary basisfor a disability benefit paid from the Plan is a “MentalIllness” (as defined in 5.04d(4)(iii) below), then all suchbenefits shall cease on the June 30 next following theexpiration of 24 months after the later of (a) theParticipant’s date of disability or (b) January 1, 2013 (if,in either case, they do not cease at an earlier date pur-suant to other provisions of the Plan), except in caseswhere the Participant meets one or both of the followingconditions described in (ii) and (iii) below.

(i) “Mental Illness” means a psychiatric or psycho-logical condition classified in the Diagnostic andStatistical Manual of Mental Health Disorders (DSM),published by the American Psychiatric Association,most current as of the start of a disability. Such disordersinclude, but are not limited to, psychotic, emotional orbehavioral disorders, or disorders relatable to stress. Ifthe DSM is discontinued or replaced, these disorderswill be those classified in the diagnostic manual thenused by the American Psychiatric Association as of thestart of a disability.

(ii) The Participant is confined to a hospital orinstitution on the June 30 that follows the end of the 24month period, benefits will continue during such con-finement. If the Participant remains disabled when dis-charged, benefits will continue for a recovery period ofup to 3 months. If the Participant becomes confined to ahospital or institution again at any time during the recov-ery period and remains confined for at least 14 consecu-tive days, benefits will continue during that additionalconfinement and for one additional recovery period upto 3 more months.

(iii) The Participant has a Mental Illness, which, inthe view of the Administrator, based on medical evi-dence is “severe” and not “returnable” based on gener-ally accepted psychiatric standards.

(iv) The Administrator will not apply the MentalIllness limitation in this Section 5.04d(4) to dementia ifit is a result of: (A) stroke; (B) trauma; (C) viral infec-


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tion; (D) Alzheimer’s disease; or (E) other conditionsnot listed which are not usually treated by a mentalhealth provider or other qualified provider usingpsychotherapy, psychotropic drugs, or other similarmethods of treatment.

(4)(5) General Time of Cessation. If the disabilitybenefits for a Participant are ended for the reasonsdescribed in Section 5.04d(3) (regarding Administratordeterminations), the cessation of benefits shall be sub-ject to the following provisions:

(i) In such a case, the payment of the disabilitybenefits shall cease as of the June 30 next following thefinal day of the regular session of such person’sConference, if the final day falls in the month of May orJune, or, otherwise, as of the last day of the month inwhich the closing day of such Conference sessionoccurs, based, in either case, on the session that occursat the time or immediately after the time (whichever isapplicable) of the date that the Administrator sends awritten notice to the Participant regarding the cessationof the disability benefits.

(ii) For a cessation of disability benefits that isinstead due to a lack of cooperation from the Participantthat is described in the Plan with reference to Section5.04d(56) below, the cessation shall be subject to theprovisions of Section 5.04d(56).

(5)(6) Suspensions and Related Cessations. If thedisability benefits for a Participant are to be suspended,due to a lack of cooperation from a Participant withregard to a requirement for benefits that is described inthe Plan with an express reference to this Section5.04d(56), the following provisions shall apply:

(i) Any such suspension shall become effective asof the last day of the month in which a 90-day periodexpires, with the 90-day period beginning on the datethat a written notice is sent from the Administrator to theParticipant explaining the required actions and thepotential benefit suspension.

(ii) If appropriate actions are then undertaken bythe Participant, conforming to the actions requested bythe Administrator and supplying (as needed) appropriatedocumentation on the relevant points, all within thenine-month period following the effective date of such asuspension, the disability benefits for that Participantshall be prospectively reinstated. In addition, if it isdemonstrated to the satisfaction of the Administratorthat the lack of cooperation from the Participant was dueto matters reasonably beyond the Participant’s control(such as incapacity without a guardian), theAdministrator may also make retroactive benefit pay-ments to the initial date of suspension.

(iii) If appropriate actions are not undertaken bythe Participant, however, or appropriate documentationis not supplied to the Administrator, all within the nine-month period following the effective date of such a sus-pension, the Participant’s rights to disability benefitsunder the Plan shall cease altogether, effective as of thelast day of that nine-month period.

(iv) Notwithstanding the foregoing, in the eventthat the Plan Administrator or its agents have receivedevidence that a Participant has committed fraud or mis-representation, the Plan Administrator shall have theauthority to suspend benefits immediately, and thepower and authority to investigate such fraud or misrep-resentation and terminate benefits for such Participant ifthe evidence supports a finding of fraud or misrepresen-tation.

Amend Section 5.04d(7) (which was 5.04d(6)) asfollows:

(67) Disability On Or Prior To Age 602. If theParticipant becomes disabled on or prior to the date heor she attains age 602, and such person is still receivingdisability benefits in the Conference year in which he orshe attains age 65, and the disability continues, then thebenefits will terminate on the June 30 that follows thedate on which the Participant reaches his or her SocialSecurity full retirement age under the Social SecurityActon June 30 next following such person’s 65th birth-day anniversary (if the final day of the regular session ofsuch person’s Conference falls in the month of May orJune, or, otherwise, on the last day of the month inwhich the closing day of such Conference sessionoccurs).

Amend Section 5.04d(8) (which was 5.04c(7)) asfollows:

(78) Disability On Or After Age 602. If theParticipant becomes disabled on or after the date he orshe attains age 602, and the disability continues, then thebenefits will terminate on the earlier to occur of (i) theJune 30 on or following the last day of eligibility estab-lished in the age benefit reduction table belowJune 30following the end of a five-year period from the date thedisability was determined to have begun (if the final dayof the regular session of such person’s Conference fallsin May or June, or, otherwise, on the last day of themonth next following the end of such five-year period inwhich the closing day of such Conference sessionoccurs); or (ii) June 30 following such person’s retire-ment date (if the final day of the regular session of suchperson’s Conference falls in May or June, or, otherwise,on the last day of the month in which the closing day ofsuch Conference session occurs).


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Age at CPP Disability DateBenefit Duration62 60 Months63 48 Months64 42 Months65 36 months66 30 Months67 24 Months68 18 Months69 or over 12 Months or until Age 72,

whichever occurs earlierAmend Section 5.04g as follows: g. Administrator Authority. The Administrator

shall have full authority to determine application proce-dures, eligibility for benefits, amounts of benefits, thecommencement or discontinuance dates of any benefitpayments, the development of any applicable earningstests, the offset and recovery of any overpayments, andany related matters, for the disability benefits providedunder this Plan. The Administrator shall similarly havefull authority to arrange for agents and service providersto assist with the administration of these disability ben-efits, and to offset or recover any overpayments of dis-ability benefits that are made from the Plan for anyreason, including any overpayments related to amountsreceived by a Participant under the Social Security Act.The Administrator, in the exercise of any of the aboveauthority, shall follow the provisions of the Plan andprinciples consistent with the Book of Discipline. Inaddition, if a claimant knowingly defrauds or deceivesthe Administrator by providing materially false, incom-plete or misleading information, the Administrator willdeny his or her claim and the claimant may be subject toprosecution and punishment to the full extent under stateand federal law. The Administrator has the full author-ity to pursue all appropriate legal remedies in the eventof fraud.

Add a new Section 5.04h that reads as follows: h. Return to Work Plans. The Administrator is

authorized to establish “Return to Work” processes tobetter transition claimants back into working. TheAdministrator may establish such programs involvingitself, Plan Sponsors and the claim administrator orother agent. In addition, to increase the effectiveness ofsuch programs, the Administrator may utilize the fol-lowing incentives and disincentives.

(1) Claimant Disincentives. The Administrator mayreduce a Participant’s disability benefits payable by 10%if the Participant has been identified as a candidate for aReturn to Work process and he or she refuses to partici-pate in such program.

(2) Plan Sponsor Incentives. The Administrator isauthorized to allocate an amount equal to the lesser of50% of the Participant’s Plan Compensation on the dateof disability or 40% of the Denominational AverageCompensation, annually, as a grant to a Conference orother Plan Sponsor as an incentive to reappoint or re-employ a Participant in a Return to Work process as ameans of assisting the Conference/Plan Sponsor in com-pensating the Participant. The grants will continue aslong as the Participant is disabled and otherwise eligibleunder the Plan and complies with the Return to Workprocess, ceasing on the June 30 that follows the end ofsuch disability.

Amend Section 7.11 as follows: 7.11 Limitation of Liability. All benefits hereun-

der are contingent upon, and payable solely from, suchcontributions as shall be received by the Trustee andinvestment results of the Trustee. No financial obliga-tions, other than those which can be met by the contri-bution actually received and the investment results, shallbe assumed by the Administrator or the Trustee. To theextent assets of the Plan attributable to a Participant’saccounts have been transferred to a trust as provided inSection 6.02c, all benefits to which the Participant isentitled under this Plan shall be provided only out ofsuch trust and only to the extent the trust is adequatetherefor. The members of the Administrator shall notpersonally be responsible or otherwise liable for thepayment of any benefits hereunder.

Amend Section 9.05 as follows: 9.05 Surviving Spouse Beneficiary Designation.

Each Surviving Spouse as provided in Section 5.03gmay designate, in such form as required by theAdministrator, a Beneficiary who is to receive theSurviving Spouse’s interest in the Plan in the event ofthe Surviving Spouse’s death, but the designation of aBeneficiary shall not be effective for any purpose unlessand until it has been filed by the Surviving Spouse withthe Administrator during the Surviving Spouse’s life-time in such form as required by the Administrator.

a. Each Surviving Spouse may designate, in suchform as required by the Administrator, a primary andcontingent Beneficiary who is to receive the SurvivingSpouse’s interest in the Plan in the event of theSurviving Spouse’s death. In the event a SurvivingSpouse’s designated primary Beneficiary is not available(for any reason such as one noted below in this Section9.05) as of the Surviving Spouse’s death, the death ben-efit under Section 5.03g hereof shall be paid to theSurviving Spouse’s designated contingent Beneficiary.The designation of Beneficiary shall not be effective forany purpose unless and until it has been filed by the


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Surviving Spouse with the Administrator during theSurviving Spouse’s lifetime.

b. A Surviving Spouse may, from time to time, insuch form as required by the Administrator, during theSurviving Spouse’s lifetime, change the Beneficiary.Notwithstanding the foregoing, the Beneficiary of aSurviving Spouse shall automatically be deemed to behis/her Spouse, and a Surviving Spouse may not desig-nate another person as a primary or contingentBeneficiary without the written consent of the Spouse ona form required by the Administrator. If the Spouse islegally incompetent to give consent, the Spouse’s legalguardian, even if such guardian is the Surviving Spouse,may give consent. Such consent shall not be required ifit is established to the satisfaction of the Administratorthat the required consent cannot be obtained becausethere is no Spouse, the Spouse cannot be located, or dueto other relevant facts and circumstances. A formerSpouse’s waiver shall not be binding on a new Spouse.

c. A Surviving Spouse may designate multipleBeneficiaries who will divide any benefit payable underSection 5.03g in equal shares, per capita, unless theSurviving Spouse clearly specifies another division. Anyelection made by a Surviving Spouse and consented toby his or her Spouse may be revoked by the SurvivingSpouse in writing without the consent of the Spouse,provided such revocation is filed by a form provided bythe Administrator and filed with the Administrator dur-ing the Surviving Spouse’s lifetime.

d. A Surviving Spouse’s divorce shall revoke anyBeneficiary designation in favor of the SurvivingSpouse’s Spouse made prior to the divorce. Until suchtime as a new designation is filed with the Administratorin accordance with the provisions of this Section, bene-fits will be payable as if the former Spouse had prede-ceased the Surviving Spouse.

e. In the event a Surviving Spouse shall not desig-nate a Beneficiary in the manner heretofore stated, or iffor any reason such designation shall be legally ineffec-tive, or if such Beneficiary predeceases the SurvivingSpouse, then the Beneficiary shall be deemed to be theestate of the deceased Surviving Spouse.

Amend Section 10.01 as follows: 10.01 Completion. A Plan Sponsor shall annually

complete an Adoption Agreement in which the PlanSponsor shall indicate the various elections which it isrequired to make pursuant to the provisions of the Plan.If a Plan Sponsor does not wish to make any changes toits prior year Adoption Agreement elections, it may electto have its prior year elections remain in full force andeffect for subsequent years until it completes a newAdoption Agreement. The Administrator may provide a

reasonable method for allowing such evergreen elec-tions.

Rationale: Make cost-saving plan design changes and make

technical corrections to the plan to match administrativepractices.


Clergy Retirement Security Program Amendments

Make the following revisions to the ClergyRetirement Security Program (“CRSP”), which is incor-porated by reference in ¶1504.1 of the Book ofDiscipline, (including any needed revisions to CRSP sec-tion numbering, formatting, pagination, or Table ofContents), effective on a date specified by the GeneralBoard of Pension and Health Benefits that is as soon assystems can reasonably be reconfigured to administer therevisions, which date is not later than January 1, 2014,except where another effective date is specified below:

1. Amend Section A1.3(d) and (f) as follows, effec-tive January 1, 2007:

(d) Supplement One, also formerly known as sup-plement one to MPP, also known (together with Part A,Supplement Two, and the Adoption Agreement for anyPlan Sponsor) as the Pre-82 Plan; ...

(f) Supplement Three, also known (together withPart A, Supplement Two, and the Adoption Agreementfor any Plan Sponsor) as MPP or the Ministerial PensionPlan; and

2. Amend Section A1.6 by adding the followingnew subsection (e) after subsection (d) and re-letteringthe successive subsections, effective June 1, 2012:

(e) Ordering of Contributions. If a Plan Sponsorowes Contributions for more than one Plan within theConsolidated DB Plan, as of the Due Dates for suchPlans that fall within any Plan Year, and if such PlanSponsor fails to make the full amount of Contributionsrequired of it by the Administrator by such Due Dates,then the Administrator will allocate such Contributionsas it does receive for such Plan Year first to the Pre-82Plan, next to the assets funding MPP annuities, and lastto the Core Defined Benefit Plan.

3. Amend Section A1.4(a)(iii) and (iv) and the adja-cent flush language as follows, effective January 1,2007:

(iii) The Pre-82 Plan, which is comprised of Part A,Supplement One, Supplement ThreeTwo, and theAdoption Agreement for any Plan Sponsor; and


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(iv) MPP, which is comprised of Part A,Supplement Two, Supplement Three, and the AdoptionAgreement for any Plan Sponsor.

Supplement Two provides a special benefit throughMPPthe Pre-82 Plan but is not a separate Plan.

4. Delete the last sentence of Section A2.38 as fol-lows, effective June 1, 2012:

An amount contributed to a Plan by a Plan Sponsoror other responsible party in accordance with SectionsB4, C4, S1.3, S3.3, and any other Section that calls forfunding the benefits provided for by the Program. AContribution may be made on behalf of a Plan Sponsorby CPP (as provided therein) or another source or entityas long as the amount contributed is clearly being paidon behalf of the relevant Plan Sponsor. Such aContribution will be credited as the source or entity mak-ing the Contribution specifies or, if such source or entitydoes not specify, then as the Administrator determines.

5. Amend Section A2.48 to substitute for“Clergyperson,” wherever it appears, effective January1, 2007:

Participant or Terminated Participant6. Add the following clause to all Sections where

“Associate Member” is also used, effective January 1,2007:

an affiliate member within the meaning of ¶¶344.4,369.1, or 586.4 of the Discipline,

7. Amend Section A2.55(b) as follows, effectiveJanuary 1, 2007:

(b) in the case of a:(i) Participant (other than a Bishop), the date on

which the Participant Retires; or(ii) Terminated Participant, the date on which the

Terminated Participant incurs a Termination ofConference Relationship or a Five-Year No Record ofAppointment; or

(iii) Participant who is a Bishop, the date specifiedin ¶¶408.2 or 408.3 of the Discipline,

8. Amend the second sentence of Section A2.63 asfollows, effective January 1, 2007:

In the case of a CPP Disabled Bishop or a Bishopon Incapacity Leave who, in either case, has not Retired,is not a Terminated Participant, and does not receivecontinued salary as a Bishop under ¶410 of theDiscipline, the annualized rate of Compensation ineffect for such Bishop at the end of the last month forwhich he or she last had received Compensation at thefull rate for Bishops, increased annually thereafter by3% per year until his or her Annuity Starting Date.

9. Amend Section A2.84 by adding the followingsentence after the first sentence, effective January 1, 2007:

Incapacity Leave for a Bishop would be grantedunder ¶410.1 of the Discipline.

10. Amend Section A2.90(a) as follows, effectiveJanuary 1, 2007:

In the case of a Participant, the Participant’s actualRetirement Date after having reached his or her NormalRetirement Date, but not later than the applicablemandatory retirement date specified in ¶358.1 or ¶408.1of the Discipline (if any); or

11. Amend Section A2.110(c) as follows, effectiveJanuary 1, 2007:

In the case of a Participant who is a Bishop, the firstday of the month next following the date specified in¶408.1 of the Discipline.earlier of:

(i) the Participant’s 65th birthday; or(ii) the date on which the Participant attains 40

years of service by adding:(A) the Participant’s years of service recognized in

accordance with ¶358.2c) of the Discipline; and(B) the Participant’s years of service assigned as a

Bishop in accordance with ¶406 of the Discipline.12. Add the following after the first sentence of

Section A2.146, effective January 1, 2007:In the case of a:(1) Beneficiary who is not the Participant’s or

Terminated Participant’s surviving Spouse, December31 of:

(i) the calendar year following the calendar year ofthe Participant’s or Terminated Participant’s death, ifbenefits are payable over the remaining life or lifeexpectancy of such Beneficiary; or otherwise

(ii) the calendar year containing the fifth anniver-sary (not including Distribution Calendar Year 2009) ofthe Participant’s or Terminated Participant’s death.

(2) Beneficiary who is the Participant’s orTerminated Participant’s surviving Spouse:

(i) if benefits are payable over the remaining life orlife expectancy of such surviving Spouse, then byDecember 31 of the later of:

(A) the calendar year immediately following thecalendar year in which the Participant or TerminatedParticipant died; or

(B) the calendar year in which the Participant orTerminated Participant would have attained age 70?; orotherwise

(ii) December 31 of the calendar year containingthe fifth anniversary (not including DistributionCalendar Year 2009) of the Participant’s or TerminatedParticipant’s death.

13. Amend Section A2.173 as follows, effectiveJanuary 1, 2009:


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Effective January 1, 2009, references to“USERRA” include the Heroes Earnings Assistance andRelief Tax Act of 2008 (the “HEART Act”) and servicepersons covered thereby, including recognition of con-tributions and benefits due under USERRA toParticipants who are treated as though they returned towork on the day before military-related death or disabil-ity, as provided under the HEART Act.

14. Revise the first sentence of Section A3.10 asfollows, effective January 1, 2013:

TheEach Plan Sponsors, jointly and severally, willindemnify the Administrator, the Trustee, and any otherperson or persons to whom the Plan Sponsor, Trustee, orAdministrator has delegated fiduciary or other dutiesunder the Program for, and hold them harmless fromand against, any and all claims, damages, liabilities,losses, costs, and expenses (including reasonable attor-neys fees and all expenses reasonably incurred in theirdefense if the Plan Sponsors fails to provide suchdefense) of whatsoever kind and nature that may beimposed on, incurred by, or asserted against them at anytime by reason of their service under the Program or theTrust, unless the same is determined to be due to grossnegligence, willful misconduct, or willful failure toact.such Plan Sponsor’s failure reasonably to fulfill itsduties under Section A3.6 or any other provision of theProgram.

15. Revise Section A4.3(a) as follows, effectiveJanuary 1, 2012:

Upon termination of the Consolidated DB Plan, anyassets remaining, after the satisfaction of all fixed andcontingent liabilities by the payment of all such liabili-ties due, the transfer, merger, or spin-off of such liabili-ties and appropriate assets to another plan, and/or theannuitization of any remaining liabilities with an insur-ance or annuity provider selected by the Administrator,may revert to the Plan Sponsors as provided in SectionA5.2in proportion to their liabilities; and

16. Revise Section A6.3 as follows, effectiveJanuary 1, 2012:

An Accountholder or a Recipient may name one ormore Beneficiaries for each Plan. Unless theAccountholder or Recipient otherwise specifies, how-ever, the applicable Beneficiary will be deemed to be theBeneficiary under the entire Program. AnAccountholder or a Recipient may revise his or herDesignated Beneficiary under the Program from time totime, but the most recently designated Beneficiary willbe deemed to be the Accountholder’s or Recipient’sDesignated Beneficiary under the entire Program.

17. Delete the last sentence of Section A7.5 as fol-lows, effective January 1, 2013:

In addition, a Pre-82 Sponsor’s AdoptionAgreement may not provide for a Past Service RateAmount that is less than 0.8% of the ConferenceAverage Compensation.

18. Add the following to the end of SectionB2.2(a), effective January 1, 2007:

Such 24-month period will not include anyperiod(s) during which a Participant is on a Leave ofAbsence.

19. Revise Section B2.2(b) as follows, effectiveJanuary 1, 2010:

(b) Part-Time Appointments. A Participant who isAppointed as described in Section B2.2(a)(i) to less thana Full-Time Appointment or otherwise qualified underSection B2.2(a) for Part-Time Credited Service willreceive Credited Service as follows:

(i) for one-quarter time Appointments, one-quarterof a Year of Credited Service for each one year compu-tation period specified in Section B2.1(b)(ii) (asadjusted below for Service of less than one year); pro-vided that no Credited Service is awarded to aParticipant who is Appointed on less than a quarter-timebasis;

(ii) for one-half time Appointments (or anyAppointment for less than one-half and more than one-quarter of Full-Time), one-half of a Year of CreditedService for each one year computation period specifiedin Section B2.1(b)(ii) (as adjusted below for Service ofless than one year);

(iii) for three-quarters time Appointments (or anyAppointment for less than three-quarters and more thanone-half of Full-Time), three-quarters of a Year ofCredited Service for each one year computation periodspecified in Section B2.1(b)(ii) (as adjusted below forService of less than one year); and

(iv)for all other cases, such as those not specified inthe Discipline in quarter-time increments, one-half of aYear of Credited Service for each one year computationperiod specified in Section B2.1(b)(ii) (as adjustedbelow for Service of less than one year).

Notwithstanding the foregoing, if a Participant isAppointed on less than a Full-Time basis and actuallyserves in the Appointment for less than a full year(whether the Part-Time Appointment was for a full yearor less), his or her Credited Service will be adjusted bymultiplying the percentage of Full-Time of theAppointment by the portion or percentage of a full year(measured to the nearest day of Service) to determinethe Credited Service such Participant will receive. (Forexample, a Participant Appointed for a year to a one-quarter time Appointment who completes only 300 daysof Service during the Appointment year will receive 300

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days times one-quarter of a Year of Credited Service or75 days of Credited Service.) Each Plan Sponsor willreport to the Administrator on the degree of each Part-Time Appointment and on the portion of a full year ofService actually rendered by a Participant when it is lessthan a full year.A Participant who is Appointed asdescribed in Section B2.2(a)(i) to less than a Full-TimeAppointment, is otherwise qualified under SectionB2.2(a) for Part-Time Credited Service, or who isAppointed on a Full-Time basis but serves only a portionof an annual appointment will receive days of CreditedService equal to his or her actual days of Service, timeshis or her Appointment percentage (which will bedeemed 50% if no percentage is specified in theAppointment). Each Plan Sponsor will report to theAdministrator on the degree of each Part-TimeAppointment and on the portion of a full year of Serviceactually rendered by a Participant when it is less than afull year.

20. Amend Section B4.2 as follows, effectiveJanuary 1, 2013:

B4.2 Late Contributions. If a Plan Sponsor delaysin making a specified Contribution to the Plan beyondthe date specified in Section B4.1, then the Plan Sponsorwill make such delayed Contribution to the Plan as soonas possible thereafter., along with In addition, such PlanSponsor will pay a Contribution equal to the greater of:

(a) the annual interest rate used by theAdministrator’s actuary to value MPP benefits, times themissed Contribution (although the Administrator maywaive this alternate computation in the case of exigentcircumstances); or

(b) missed net earnings (but ignoring net losses) onsuch delayed Contribution (determined in accordancewith the actual returns on MPP annuity assets);

computed, in either case, missed earnings on suchdelayed Contribution in accordance with any applicableInternal Revenue Service correction program, creditedfrom the Due Date until the date such delayedContribution was actually transferred to the Trustee. Anyspecial services provided by the Administrator in con-nection with this Section B4.2 are subject to the addi-tional charges provided for in Section A3.7(c). If anyamounts are more than two months overdue, theAdministrator may compel payment by offsettingagainst any other amounts a Plan Sponsor may have ondeposit with the Administrator, by bringing the matter toJudicial Council, or by any other means theAdministrator may elect to pursue. In addition to theforegoing remedies, the Administrator, after giving writ-ten notice to the Plan Sponsor (and all other PlanSponsors) with a prospective effective date (such effec-

tive date being no sooner than two months after the DueDate), may suspend further Accrued Benefit accrualsunder Section 6 (including increases in Credited Service,Final DAC, and/or Final Compensation under appropri-ate Sections of the Program) for Participants whoseAccrued Benefits are funded by such delinquent PlanSponsor under Section B4.1 until such Plan Sponsor:

(a) makes up delayed Contributions and missedearnings as provided above in this Section B4.2; and/or

(b) satisfies Section B4.3(d)(iii) below.Accrued Benefit accruals will be retroactively rein-

stated if and when the Administrator gives written noticeto such Plan Sponsor that it is in compliance with thisSection B4.2.

21. Amend Section B5.1(a) and (b) as follows,effective January 1, 2011:

(a) $195,000$180,000 (or such greater amount asmay be determined from time to time in accordance withCode §415(d) for calendar years ending after December31, 20112007 that begin within the Plan Year, includingPlan Years after a Participant or Terminated Participantincurred a severance from employment or commencedhis or her 415 DB Plan benefit); or

(b) 100% of the Participant’s average 415Compensation for the three consecutive calendar years(as provided in Section B5.3) in which he or shereceived the highest aggregate 415 Compensation. ForPlan Years commencing on or after the Effective Date, tothe extent required by Code §415(b), a Participant’sSection 415 Compensation in excess of the limit in Code§401(a)(17) ($245,000 $225,000 in 20112007, adjustedeach Plan Year to take into account any applicable cost-of-living adjustment provided for that year pursuant toRegulations under Code §401(a)(17)(B)) will be disre-garded. Notwithstanding the foregoing, the limit of thisSection B5.1(b) will not apply to Accrued Benefitsaccrued by a Clergyperson in a Plan Year before the dateon which he or she first became highly compensatedwithin the meaning of Code §414(q) to the extent thatsuch Accrued Benefits qualify under Code §415(b)(11).

22. Amend Section B5.2(b) and (c) as follows,effective January 1, 2011:

(b) If a Participant’s Annual Retirement Benefit ispaid before the Participant attains age 62, the determina-tion as to whether the dollar limitation set forth inSection B5.1(a) has been satisfied will be made, inaccordance with Regulations under Code §415(b)(2)(C),by reducing the limitation specified in Section B5.1(a)so that such limitation (as so reduced) equals an annualbenefit (beginning when such Annual RetirementBenefit begins) that is actuarially equivalent to a$195,000$180,000 (in 20112007, or as indexed thereafter)


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Annual Retirement Benefit beginning at theParticipant’s attainment of age 62.

(c) If a Participant’s Annual Retirement Benefit ispaid after the Participant attains age 65, the determina-tion as to whether the dollar limitation set forth inSection B5.1(a) has been satisfied will be made, inaccordance with Regulations under Code §415(b)(2)(D),by increasing the limitation of Section B5.1(a) so thatsuch limitation (as so increased) equals an annual bene-fit (beginning when such Annual Retirement Benefitbegins) that is equivalent to a $195,000$180,000 (in20112007, or as indexed thereafter) Annual RetirementBenefit beginning at the Participant’s attainment of age65.

23. Amend the flush language of Section B9.1(b)as follows, effective January 1, 2013:

Except as otherwise provided in this SectionB9.1(b), in Section B9.1(d), or in Section B9.2(c), noRecipient may receive his or her benefit under this Planin a lump sum, partial lump sum, installment form, orany other non-annuity form of payment.

(1) Termination by Withdrawal. A Participant whoincurs a Termination of Conference Relationship underany subparagraph of ¶360.2 of the Discipline may electan Actuarially Equivalent lump sum transfer of his or herCore Defined Benefit Plan Accrued Benefit to anAccount of the Administrator’s choosing in the CoreDefined Contribution Plan, as further provided inSection B9.2(c).

(2) Re-Employment. If a Terminated Participantelects a lump sum transfer under Section B9.1(b)(1)above and is later re-employed (see Section B3.4(d)), heor she may not reverse or repay the earlier lump sumtransfer and, notwithstanding any provision of SectionB6.2, will not receive any Credited Service for periodsthat were included when computing his or her AccruedBenefit that was transferred in a lump sum as providedin Section B9.1(b)(1) above.

24. Amend Section B9.2(a)(i) as follows:the Participant’s or Terminated Participant’s

Aggregate DB Benefit exceeds the amount specified inSection B9.1(d), and the Participant or TerminatedParticipant fails to submit an accurately completedApplication for Benefits to the Administrator within 60days following not later than such Early, Normal, orLate Retirement Date (or, in the case of a TerminatedParticipant, his or her 62nd birthday), in which case thepayment of his or her Early Retirement Benefit, NormalRetirement Benefit, or Late Retirement Benefit will bemade in accordance with Section B9.2(b); or

25. Add the following to the end of SectionB9.2(c), effective January 1, 2013:

A Participant entitled to a lump sum transfer underSection B9.1(b)(1) must elect such lump sum transfer:

(i) within 180 days of his or her Termination ofConference Relationship under any subparagraph of¶360.2 of the Discipline;

(ii) subject to all applicable provisions of SectionsB9.1 and B9.2; and

(iii) in accordance with such rules as theAdministrator may make from time to time.

Such Terminated Participant’s lump sum transferwill be completed as soon as reasonably practicableafter the Administrator’s receipt of the TerminatedParticipant’s lump sum election. The lump sum transferwill constitute the complete transfer of such TerminatedParticipant’s Accrued Benefit under the Core DefinedBenefit Plan to an Account of the Administrator’s choos-ing in the Core Defined Contribution Plan. Followingsuch transfer, the Terminated Participant may leave thetransferred lump sum in the Account to which it wastransferred or apply for and receive a distribution of suchtransferred lump sum in accordance with Section C8.

26. Substitute the following for Section B9.4(a)(and make appropriate changes to cross-references),effective January 1, 2007:

(a) Time of Distribution.(i) Required Beginning Date. Monthly benefits will

begin to be distributed to the Participant no later than theParticipant’s Required Beginning Date.

(ii) Death of Participant Before DistributionsBegin. If the Participant dies before a distribution to theParticipant begins, monthly benefits will be distributedto the Participant’s surviving Spouse, if any, beginningno later than December 31 of the later of:

(A) the calendar year in which the Participantwould have attained age 70?; or

(B) the calendar year following the calendar yearin which the Participant died;

and ending with the death of the Participant’s sur-viving Spouse. If the Participant has no survivingSpouse, no benefit will be paid.

27. Amend Section C4.1(a) as follows, effectiveJanuary 1, 2013:

CPP Disabled Participants, CPP will make aContribution for each payroll period during such CPPDisability of 3% of such Participant’s Compensationmeasured as of the payroll period immediately preced-ing such Participant’s CPP Disability, with future years’imputed3% annual increases in imputed Compensationas may be provided in CPP; and

28. Amend the last sentence of Section C4.3, effec-tive January 1, 2013:


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If any Contributions are more than two monthsoverdue, the Administrator may compel payment by off-setting against any other amounts a Plan Sponsor mayhave on deposit with the Administrator, by bringing thematter to Judicial Council, or by any other means theAdministrator may elect to pursue.

29. Amend Section C5.1(a)(i)(A) as follows, effec-tive January 1, 2011:

(A) $49,000$45,000 (in 20112007 or as indexedunder Code §415(d) in later years); or

30. Add the following to the end of SectionC8.3(d), effective January 1, 2007:

Notwithstanding the foregoing, any Participant’sdesignation of Beneficiary Form received and acceptedby the Administrator under any predecessor to the Planbefore January 1, 1993 will continue to be effective onand after January 1, 1993, notwithstanding suchParticipant’s marriage after January 1, 1993, whether ornot such Participant’s Spouse consented to theBeneficiary designated on such Form. The foregoingsentence, and the grandfather rule it establishes, willcease to be effective as of January 1, 2013 or such laterdate (not later than January 1, 2014) as of which theAdministrator implements the discontinuance.

31. Amend the flush language at the end of SectionS1.3.1 as follows, effective January 1, 2007:

The responsible Pre-82 Sponsors specified abovewill make annual past service cContributions to theTrustee in accordance with the schedule for suchcContributions determined by the Administrator on thebasis of periodic actuarial valuations. All suchcContributions will be made by the Due Date specified bythe Administrator to the Funding Account for the respon-sible party in the Consolidated DB Plan (although a sep-arate accounting as Pre-82 Assets will be maintained as tosuch contributions for administrative purposes). If a Pre-82 Sponsor delays in making a specified Contribution tothe Plan beyond such Due Date, then the Pre-82 Sponsorwill make such delayed Contribution to the Plan as soonas possible thereafter. In addition, such Pre-82 Sponsorwill pay a Contribution equal to the greater of:

(1) the annual interest rate used by the Plan’s actu-ary to value Plan benefits, times the missed Contribution(although the Administrator may waive this alternatecomputation in the case of exigent circumstances); or

(2) missed net earnings (but ignoring net losses) onsuch delayed Contribution (determined in accordancewith the actual returns on Plan assets);

computed, in either case, from the Due Date untilthe date such delayed Contribution was actually trans-ferred to the Trustee. Any special services provided bythe Administrator in connection with this Section S1.3.1

are subject to the additional charges provided for inSection A3.7(c). If any amounts are more than twomonths overdue, the Administrator may compel pay-ment by bringing the matter to Judicial Council or byany other means the Administrator may elect to pursue.

32. Amend Section S1.3.4 as follows:S1.3.4 Past Service Rate Amount Increases.(a) Automatic Increases. The Past Service Rate

Amount for each Conference will automatically increasefor Plan Year 2007 and each Plan Year thereafter by anamount equal to the amount necessary, if any, for thePast Service Rate Amount to equal 0.8% of theConference Average Compensation for such Conferencefor such Plan Year, provided that if the dollar amount socomputed is not a whole dollar amount, then the PastService Rate Amount for such Plan Year will be the nexthigher whole dollar amount (in one U.S. dollar incre-ments).

(b) Elective Increases. A Conference may elect toincrease its Past Service Rate Amount for any Plan Yearto an amount that exceeds the automatic amount com-puted under Section S1.3.4(a) by so amending itsAdoption Agreement, subject to the funding require-ments of Section S1.3.4(c).

(c) Funding Liability. Each Conference will fund:(i) the liability related to: (A)any automatic increase in the Past Service Rate

Amount provided under Section S1.3.4(a); and(B) any elective increase in the Past Service Rate

Amount provided under Section S1.3.4(b) up to (but notexceeding) the increase specified in Section S1.3.4(c)(iii)

by making annual contributions to the Trust inamounts determined by the Administrator to be suffi-cient to amortize the liability ratably over the periodfrom the date of the automatic increase to a date not laterthan December 31, 2021;

(ii) any liability related to any increase in the PastService Rate Amount provided under Sections S1.3.4(a)or S1.3.4(b) that, in either case, occurs after December31, 2021 by making annual contributions to the Trust inamounts determined by the Administrator to be suffi-cient to amortize the liability ratably over the periodfrom the date of the increase to a date specified by theAdministrator from time to time; and

(iii) the portion of any liability as of the beginningof a Plan Year that is determined by the Administrator toexceed the greater of:

(A)2% of the Past Service Rate Amount for the pre-vious Plan Year; or

(B) an elective increase under Section S1.3.4(b)occurring before December 31, 2021 that exceeds 1% ofthe Conference Average Compensation;


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for such Conference for such Plan Year by makinga Contribution to the Trust by the end of that Plan Yearof the full amount of such liability, adjusted using a rea-sonable interest rate selected from time to time by theAdministrator to reflect any delay in payment after thebeginning of a Plan Year. If such Contribution is notmade by the end of such Plan Year, the elective increaseunder Section S1.3.4(b) above will not take effect. In thecase of Conferences that have merged during a PlanYear, the resulting Conference may adopt the PastService Rate Amount and Conference AverageCompensation of any of the pre-merger Conferences (orany amount in between), in accordance with rules estab-lished by the Administrator, to determine if immediatefunding is due under this Section S1.3.4(c)(iii), pro-vided, however, that immediate funding will not be dueexcept for elective increases in excess of the foregoingamounts adopted by merging Conferences.

(a) Elective Increases. A Conference is encouragedto consider the increased cost of living when setting itsPast Service Rate Amount. A Conference may increaseits Past Service Rate Amount as of January 1 of any PlanYear by amending its Adoption Agreement, subject tothe funding requirements of Section S1.3.4(b) below.

(b) Funding Liability. Effective January 1, 2014,before implementing any elective increase in its PastService Rate Amount provided under this Section S1.3.4or its Contingent Annuitant percentage under SectionS1.3.7, a Conference must:

(i) if such Conference does not already have suffi-cient funding in its Funding Account to fully fund anysuch elective increase, fund the liability related to anysuch elective increase by making a Contribution to theTrust of the full amount of the liability incurred as aresult of such increase, being the present value of allfuture additional benefits paid as a result of suchincrease as determined by the Administrator, adjustedusing a reasonable interest rate selected from time totime by the Administrator to reflect any differencesbetween the date the liability was calculated and the datepayment is made, and in accordance with any timing oradministrative rules the Administrator may establish;and

(ii) have, and be in compliance with, a funding planto cover all Pre-82 Plan liabilities, including those gen-erated by such increase, which funding plan must meetminimum standards set by the Administrator.

(c) Merging Conferences. When two or moreConferences merge, the merged Conference may:

(i) elect one Past Service Rate Amount for all Pre-82 Participants in the merged conference, in which casesuch single Past Service Rate Amount may not be any

lower than the highest Past Service Rate Amount appli-cable to each merged Conference on the day before themerger; or

(ii) maintain more than one Past Service RateAmount for the Pre-82 Participants in the merged con-ference, in each case retaining or increasing the PastService Rate Amount that previously applied to eachsuch Pre-82 Participant. Separate Past Service RateAmounts may be maintained for one or more years aftera merger, with any one or more of such Past ServiceRate Amounts being retained or increased, provided thatno Pre-82 Participant’s Past Service Rate Amount isreduced.

Any increases in Past Service Rate Amounts underthis Section S1.3.4(c) will be treated as electiveincreases that must meet the requirements of SectionS1.3.4(b).

(d) Subdividing Conference. When a Conferencesubdivides into two or more Conferences or when a por-tion of a Conference subdivides from its originalConference to merge with another Conference, eachresulting Conference may maintain one or more PastService Rate Amounts, provided that the Past ServiceRate Amount applicable to any Pre-82 Participant maynot be reduced. Any increases in Past Service RateAmounts under this Section S1.3.4(d) will be treated aselective increases under Section S1.3.4(a) that mustmeet the requirements of Section S1.3.4(b).

(e) Non-Reduction. The Past Service Rate Amountapplicable to any Recipient may not be reduced belowits previous highest value.

33. Amend Section S1.3.7 as follows:S1.3.7 Contingent Annuitant Percentage. Before

the Effective Date, a Pre-82 Sponsor was able to elect inits Adoption Agreement to increase the ContingentAnnuitant percentage from 70% to a higher percentage,with the Pre-82 Sponsor funding the added liabilitycaused by such election by making annual contributionsdetermined by the Administrator to be sufficient toamortize the liability ratably over the period from thecurrent year to December 31, 2021. On and after theEffective Date, the Contingent Annuitant percentagewill remain at the level it was for each Pre-82 Sponsoron the day before the Effective Date. Funding will con-tinue as previously provided until December 31, 2021.Thereafter, any remaining funding obligations will besatisfied as provided in Section S1.3.5.

(a) Fixed Percentage. Before January 1, 2007, aPre-82 Sponsor was able to elect in its AdoptionAgreement to increase the Contingent Annuitant per-centage from 70% to a higher percentage, with the Pre-82 Sponsor funding the added liability caused by such


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election by making annual contributions determined bythe Administrator to be sufficient to amortize the liabil-ity over the period from the current year to December31, 2021. On and after January 1, 2007, the ContingentAnnuitant percentage will remain at the level it was foreach Pre-82 Sponsor on the day before January 1, 2007.Funding will continue as previously provided untilDecember 31, 2021. Thereafter, any remaining fundingobligations will be satisfied as provided in SectionS1.3.5.

(b) Changes to Percentage. On or after theEffective Date, a Pre-82 Sponsor may elect in itsAdoption Agreement, as of any January 1, to increase(but not decrease) its Contingent Annuitant percentage.Any increases in Contingent Annuitant Percentageunder this Section S1.3.7(b) will be treated as electiveincreases that must meet the requirements of SectionS1.3.4(b).

(c) Conference Mergers. When Conferences mergeor subdivide as described in Sections S1.3.4(c) and (d),a resulting Conference may:

(i) apply the highest Contingent Annuitant percent-age applicable to any of its Pre-82 Participants to all ofits Pre-82 Participants; or

(ii) maintain more than one Contingent Annuitantpercentage for the Pre-82 Participants in the mergedconference, in each case retaining or increasing theContingent Annuitant percentage that previously appliedto each such Pre-82 Participant. Separate ContingentAnnuitant percentages may be maintained for one ormore years after a merger, with any one or more of suchContingent Annuitant percentages being retained orincreased,

Any increases in Contingent Annuitant Percentageunder this Section S1.3.7(c) will be treated as electiveincreases that must meet the requirements of SectionS1.3.4(b).

(d) Non-Reduction. The Contingent Annuitant per-centage for any Pre-82 Participant or surviving Spousemay not be reduced.

34. Add the following new Section S3.3.6 follow-ing Section S3.3.5, effective June 1, 2012:

S3.3.6 Annuity Funding. The annuities providedunder Section S3.4 will be funded initially by assetsfrom the portion of each Participant’s and TerminatedParticipant’s MPP Account that is converted into anannuity benefit provided under Section S3.4. After con-version, such assets are commingled and are available tofund the annuities of all such Participants andTerminated Participants. If the Administrator determinesthat such annuity assets are insufficient to fund suchannuities under the Funding Policy from time to time,

the Administrator may require MPP Plan Sponsors tomake additional Contributions to the MPP annuity assetsby the Due Date set by the Administrator in an amountestablished by the Administrator that is sufficient to sat-isfy the Funding Policy. If a Plan Sponsor delays in mak-ing a specified Contribution to the MPP annuity assetsbeyond such Due Date, then the Plan Sponsor will makesuch delayed Contribution to the MPP annuity assets assoon as possible thereafter. In addition, such PlanSponsor will pay a Contribution equal to the greater of:


(b) missed net earnings (but ignoring net losses) onsuch delayed Contribution (determined in accordancewith the actual returns on MPP annuity assets);

computed, in either case, from the Due Date untilthe date such delayed Contribution was actually trans-ferred to the Trustee. Any special services provided bythe Administrator in connection with this Section S3.3.5are subject to the additional charges provided for inSection A3.7(c). If any amounts are more than twomonths overdue, the Administrator may compel pay-ment by bringing the matter to Judicial Council or byany other means the Administrator may elect to pursue.

35. Amend Section S3.4.1(a), (b), and (c) as follows:(a) If such Participant Retires at his or her Early

Retirement Date or Normal Retirement Date, allamounts credited to such Participant’s Account willbecome distributable at such date, if by such date theParticipant has submitted an Application for Benefits, orat such later date as is provided in Section S3.4.1(d).

(b) However, a Participant may postpone his or herRetirement to his or her Late Retirement Date, in whichcase such Participant’s participation in the Plan, includ-ing the right to receive Contributions to the extent spec-ified in Section S3.3.1, will continue beyond his or herNormal Retirement Date. If such a Participant Retires athis or her Late Retirement Date, all amounts credited tosuch Participant’s Account will become distributable atsuch date, if by such date the Participant has submittedan Application for Benefits, or at such later date as isprovided in Section S3.4.1(d).

(c) Unless otherwise provided in Section S3.4.1(d),upon a Participant’s Retirement Date, if by such date theParticipant has submitted an Application for Benefits, oras soon thereafter as is practicable, the Administratorwill direct the Trustee to distribute all amounts creditedto such Participant’s Account in accordance withSections S3.4.5 and S3.4.8.


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36. Add the following to the end of SectionS3.4.2(d), effective January 1, 2007:


37. Amend Section S3.4.4(a) as follows:(a) A Terminated Participant’s Annuity Starting

Date will be on the occurrence of the Participant’s deathor Early, Normal, or Late Retirement Date, if by suchdate the Participant has submitted an Application forBenefits. Otherwise, such Terminated Participant’sAnnuity Starting Date will be the first of the month fol-lowing the date the Participant has submitted anApplication for Benefits, but not later than his or herRequired Beginning Date. Such a Terminated Partici-pant’s Account will be distributed in accordance with:

38. Amend Sections S3.4.5(a), (b), and (g) as fol-lows:

(a) Married Participants. Unless otherwise electedas provided in Section S3.4.5(c) below, a Participantwho is married on his or her Annuity Starting Date andwho does not die before such Annuity Starting Date willreceive the value of all 65% of his or her benefits MPPAccount Balance in the form of a 70% ContingentAnnuity with his or her Spouse as Contingent Annuitant.

(i) Such Contingent Annuity benefits following theParticipant’s death will continue to the Spouse (deter-mined as of the Annuity Starting Date) during theSpouse’s lifetime at a rate equal to 70% of the rate atwhich such benefits were payable to the Participant.

(ii) This 70% Contingent Annuity will be consid-ered the designated qualified Contingent Annuity andautomatic form of payment for the purposes of this Plan.

The remaining 35% of the Participant’s MPPAccount Balance will be distributed at the Participant’sAnnuity Starting Date (as provided in Section S3.4.5(f),which Annuity Starting Date may be different from theone applicable to the 65% of the Participant’s MPPAccount Balance provided for above), in the form of asingle lump sum distribution or a 100% direct rollover inaccordance with the provisions of Section C8.5(a) (orpartially directly rolled over and partially distributed,provided that 100% of the MPP Account is so disposed

of at one time). Alternately, the Participant may elect onan Application for Benefits a distribution (or a directrollover) of the 35% of his or her MPP Account first,leaving the remainder to be distributed as providedabove in this Section S3.4.5(a) at his or her later electionon an Application for Benefits (but not later than his orher Required Beginning Date).

(b) Single Participants. Unless otherwise electedas provided in Section S3.4.5(c) below, a Participantwho is not married on his or her Annuity Starting Dateand who does not die before such Annuity Starting Datewill receive the value of 65% of his or her benefit MPPAccount Balance in the form of a Single-Life Annuity.

(i) Such unmarried Participant may elect in writ-ing, however, to waive the lifetime only annuity andelect to receive his or her benefit in accordance withSection S3.4.5(g) below.

(ii) The election must comply with the provisionsof Section S3.4.5(c) as if it were an election to waive theContingent Annuity by a married Participant, but with-out the spousal consent requirement.

The remaining 35% of the Participant’s MPPAccount Balance will be distributed at the Participant’sAnnuity Starting Date (as provided in Section S3.4.5(f),which Annuity Starting Date may be different from theone applicable to the 65% of the Participant’s MPPAccount Balance provided for above), in the form of asingle lump sum distribution or a 100% direct rollover inaccordance with the provisions of Section C8.5(a) (orpartially directly rolled over and partially distributed,provided that 100% of the MPP Account is so disposedof at one time). Alternately, the Participant may elect onan Application for Benefits a distribution (or a directrollover) of the 35% of his or her MPP Account first,leaving the remainder to be distributed as providedabove in this Section S3.4.5(a) at his or her later electionon an Application for Benefits (but not later than his orher Required Beginning Date). ...

(g) Optional Forms of Distribution. If a marriedParticipant elects pursuant to Section S3.4.5(c) abovenot to receive his or her benefit in the form of a 70%Contingent Annuity, or if an unmarried Participant electspursuant to Section S3.4.5(c) above not to receive his orher benefit in the form of a life annuity Single-LifeAnnuity, the Administrator, pursuant to the election ofthe Participant on an Application for Benefits, will directthe Trustee to distribute, as determined and limited byrules and regulations of the Administrator, on a datespecified by the Participant (which date may not be laterthan such Participant’s Required Beginning Date andwhich date must be as of the first of a month), to theParticipant or to the Participant and his or her


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Contingent Annuitant any amount to which he or she isentitled under the Plan in one or more of the followingmethods, as determined and limited by rules and regula-tions of the Administrator:

(i) with respect to 65% of such Participant’s MPPAccount Balance, the purchase of or providing of an alifetime (including a lifetime with years certain) annuityor joint and survivor lifetime annuity. However, suchannuity may not be elected in any form that will providefor guarantee, through a years certain provision, pay-ments over a period extending beyond either the life ofthe Participant (or the lives of the Participant and his orher designated Contingent Annuitant) or the lifeexpectancy of the Participant (or the life expectancy ofthe Participant and his or her designated ContingentAnnuitant).

(ii) with respect to the remaining 35% of suchParticipant’s MPP Account Balance, a one-time lump-sum payment, subject to the Participant’s right to requesta direct rollover in an amount not to exceed 35% of theParticipant’s Account under the Plan, or an annual ormonthly annuity for a period of 5, 10, 15, or 20 yearscertain (but not for a period extending beyond the lifeexpectancy of the Participant) based on an amount not toexceed 35% of such Account before annuitizing theremaining Account balance in accordance with other theprovisions of this Section C8.5(a) S3.4.5.

39. Add the following to the end of SectionS3.4.5(h), effective January 1, 2007:


40. Amend Section S3.4.6(b)(i)(B) as follows:If no election is made before the Required

Beginning Date, the benefit will be paid in the form of aSingle-Life Annuity; 65% of the Account will be paid tothe surviving Spouse Beneficiary in the form of aSingle-Life Annuity, and 35% of the Account will bepaid to the surviving Spouse Beneficiary in a lump sum.

41. Amend Section S3.4.7 as follows:S3.4.7 Distribution of Benefits Upon Disability.

If a benefit is payable under this Section S3.4.7, then it

may be distributed as follows: (without respect to anytransfer under Section S3.3.5), then, for theAdministrator’s convenience, it may be distributedunder this Section S3.4.7, or it may be transferred to anddistributed under the Core DB Plan and/or the Core DCPlan in accordance with Section S3.3.5.

(a) At any time after becoming Disabled (but notlater than his or her Required Beginning Date and as ofthe first of a month), a Disabled Participant may elect onan Application for Benefits to receive one of the follow-ing benefits from his or her Account under the Plan:

(i) a one-time lump-sum payment in an the amountnot to exceed of 35% of his or her MPP AccountBalance. such Account; or

(ii) an annual or monthly annuity for a period of 5,10, 15, or 20 years certain (but not for a period extend-ing beyond the life expectancy of the Participant) basedon an amount not to exceed 35% of such Account.

(b) If the Participant is married at the time he or shemakes an election pursuant to Section S3.4.7(a) above,such election will not be valid without the consent of theParticipant’s Spouse given in accordance with the proce-dures stated in Section S3.4.5(c).

The remaining 65% of such Disabled Participant’sMPP Account Balance will be distributed at theDisabled Participant’s Annuity Starting Date determinedin accordance with Section S3.4.1 or S3.4.4, and inaccordance with Section S3.4.5(g)(i) at such time as theDisabled Participant elects in an Application forBenefits, provided that such time is not later than his orher Required Beginning Date.

42. Amend Section S3.4.8(a) and (b) as follows,effective January 1, 2007:

(a) will be increased by 2% annually (the defaultoption), or

(b) will remain the same or be increased by 3%,4%, or 5% annually, if so elected by the Participant atthe time of application, or the Beneficiary at the timebenefits commence, as applicable, under Sections S3.45or S3.46.

Rationale: This petition revises, as of current or retroactive

dates, the Clergy Retirement Security Program(“CRSP”), incorporated in Book of Discipline ¶1504.1.The revisions are various technical and substantiveamendments that should become effective before eitherof the restated CRSP alternate plans being proposed toGeneral Conference 2012 is effective.



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Restate the Clergy Retirement Security Program (“CRSP”), which is incorporated by reference in¶ 1504.1 of the Book of Discipline, in the form of Exhibit A, beginning on page 701 (including any needed revi-sions to CRSP section numbering, formatting, pagination, or Table of Contents), effective on a date or datesspecified by the General Board of Pension and Health Benefits that are as soon as systems can reasonably bereconfigured to administer the restated plan, which date(s) are not later than January 1, 2014, except whereanother effective date is specified in Exhibit A.

RATIONALE: This is one of two alternate petitions sponsored by GBPHB to replace the clergy retirementplan. It is recommended because it provides lifetime income, which the Church has always valued. It helps provideintergenerational equity as investments fluctuate over time. It will reduce benefits and costs to address conferenceconcerns.

Date: August 31, 2011

Signature of the Petitioner: ________________________________________Barbara A. BoigegrainGeneral SecretaryGeneral Board of Pension and Health Benefits847-866-4644Fax: [email protected]

Restated Clergy Retirement Security Program

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Exhibit A

Clergy Retirement Security Program

A Church Retirement Benefits Plan of

The United Methodist Church

Effective January 1, 2007, as Adopted by the 2004 General Conference andAmended by the 2008 and 2012 General Conference

Restated as of the Effective Date

CRSP13.001



TABLE OF CONTENTS

SECTION PAGE

PART A COMMON PART 709

A1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709

A1.1 Defined Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709A1.2 History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 710A1.3 The Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 710A1.4 The Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 710A1.5 Type of Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711A1.6 Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711A1.7 Exclusive Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712

A2 Definitions and Rules of Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712

A2.1 Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.2 Account Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.3 Accountholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.4 Accounting Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.5 Accrued Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.6 Actuarial Equivalent or Actuarially Equivalent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.7 Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.8 Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.9 Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.10 Aggregate Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712A2.11 Aggregate DB Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.12 Alternate Payee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.13 Annual Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.14 Annual Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.15 Annual Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.16 Annuity Starting Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.17 Application for Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.18 Appoint or Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.19 Approved Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.20 Associate Member . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.21 Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.22 Bishop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713A2.23 Break in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.24 Central Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.25 Church Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.26 Claimant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.27 Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.28 Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.29 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.30 Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.31 Conference-Elective Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714A2.32 Conference-Responsible Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714

Clergy Retirement Security Program



A2.33 Consolidated DB Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.34 Contingent Annuitant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.35 Contingent Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.36 Contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.37 Core Defined Benefit Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.38 Core Defined Contribution Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.39 CPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.40 CPP Disabled or CPP Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.41 Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.42 Deacon in Full Connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.43 Default Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.44 Denominational Average Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.45 Designated Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.46 Disabled or Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715A2.47 Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.48 Distribution Calendar Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.49 Due Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.50 Early Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.51 Early Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.52 Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.53 Elder in Full Connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.54 Eligible Clergy or Eligible Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.55 Eligible Rollover Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716A2.56 Entry Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.57 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.58 Final Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.59 Final DAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.60 Five-Year Distribution Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.61 Five-Year No Record of Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.62 Formula Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.63 415 Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.64 415 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717A2.65 415 DB Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718A2.66 415 Suspense Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718A2.67 Full-Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718A2.68 Funding Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718A2.69 Funding Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719A2.70 General Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719A2.71 General Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.72 GCFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719A2.73 General Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.74 Half-Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.75 Incapacity Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.76 Includible Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.77 In Pay Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.78 IRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.79 Jurisdictional Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.80 Late Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.81 Late Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .719A2.82 Leave of Absence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719A2.83 Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.84 Life Expectancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720



A2.85 Lifetime Distribution Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.86 Limitation Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.87 Local Church . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.88 Local Pastor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.89 Matching Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.90 Matching Contribution Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.91 Ministerial Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.92 MPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.93 MPP Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.94 Non-Jurisdictional Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.95 Non-Matching Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.96 Non-Matching Contribution Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.97 Normal Form of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.98 Normal Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.99 Normal Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.100 Other Denomination Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 720A2.101 Other Methodist Denomination Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . 721A2.102 Optional Form of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.103 Part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.104 Part A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.105 Part B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.106 Part C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.107 Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.108 Participant Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.109 Part-Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.110 Pastoral Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.111 Past Service Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.112 Past Service Rate Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.113 Personal Contributions Accumulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.114 Personal Contributions Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.115 Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.116 Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.117 Plan Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.118 Pre-82 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.119 Pre-82 Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .721A2.120 Pre-82 Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.121 Pre-82 Plan Vesting Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.122 Pre-82 Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.123 Prior Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.124 Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.125 Provisional Member . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.126 QDRO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.127 Recipient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722A2.128 Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.129 Related Defined Benefit Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.130 Relinquish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.131 Required Beginning Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.132 Retire or Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.133 Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.134 Salary-Paying Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.135 Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723A2.136 Separation from Covered Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723



A2.137 Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .723A2.138 Service Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.139 Service Annuity Accumulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.140 70% Pre-Retirement Survivor Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.141 Single-Life Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.142 Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.143 Supplement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.144 Supplement One . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.145 Supplement Two . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.146 Supplement Three . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.147 Termination of Conference Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.148 Terminated Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.149 Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724A2.150 Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A2.151 UMPIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A2.152 Under Episcopal Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A2.153 USERRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A2.154 Valuation Account Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A2.155 Valuation Calendar Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A2.156 Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A2.157 Year of Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725

A3 Plan Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725

A3.1 General Fiduciary Standard of Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A3.2 Allocation of Responsibility Among Fiduciaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A3.3 Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A3.4 Powers, Authority, and Duties of Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725A3.5 Records and Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 726A3.6 Duties of Each Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727A3.7 Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727A3.8 Attorney Fees and Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727A3.9 Delegation of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727A3.10 Indemnification by Plan Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727A3.11 Claims Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728A3.12 Qualified Domestic Relations Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 729

A4 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 729

A4.1 Rules and Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 729A4.2 Non-Alienation of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 729A4.3 Non-Reversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730A4.4 Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730A4.5 Limitation of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730A4.6 Alternative Dispute Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730A4.7 Titles and Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.8 Number and Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.9 USERRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.10 Participant, Beneficiary, Recipient, and Accountholder Duties . . . . . . . . . . . . . . . . . . . 731A4.11 Adequacy of Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.12 Notice to Other Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.13 Waiver of Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.14 Successors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.15 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A4.16 Supplements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731



A5 Amendment and Termination of Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731

A5.1 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731A5.2 Termination of Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732

A6 Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732

A6.1 Beneficiary Designation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732A6.2 Beneficiary of an Accountholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732A6.3 Affected Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732A6.4 Preexisting Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732

A7 Adoption Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732

A7.1 Completion of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732A7.2 Form of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732A7.3 Acceptance of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732A7.4 Continuance of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732A7.5 Supplements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 732

PART B CORE DEFINED BENEFIT PART 733

B1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 733

B1.1 Plan Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .733B1.2 Prospective Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .733

B2 Computation of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .733

B2.1 Kinds of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .733B2.2 Computation of Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .733

B3 Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734

B3.1 Eligibility for Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734B3.2 Determination of Entry Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735B3.3 Determination of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735B3.4 Cessation and Reinstatement of Conference Relationship . . . . . . . . . . . . . . . . . . . . . . . 735B3.5 Omission of Eligible Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736B3.6 Inclusion of Ineligible Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736B3.7 Election Not to Participate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736

B4 Amount and Allocation of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736

B4.1 Plan Sponsor Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736B4.2 Late Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736B4.3 Funding Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 737B4.4 Benefits Payable Only from Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738

B5 Limit on Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738

B5.1 General Limitation on Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738B5.2 Adjustments to Annual Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738B5.3 High Three Years Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739B5.4 Pro Rating Fewer Than 10 Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739B5.5 Defined Contribution Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739B5.6 Purpose of Limitations; Authority of Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739

B6 Accrued Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739

B6.1 Monthly Benefit Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739



B6.2 Break in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739B6.3 Change of Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740

B7 Vesting and Forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740

B7.1 Full Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740B7.2 Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740

B8 Amount of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741

B8.1 Normal Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741B8.2 Early Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741B8.3 Late Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741B8.4 Death of Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741

B9 Payment of Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741

B9.1 Form of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741B9.2 Time of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 744B9.3 Payments After a Participant’s Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 744B9.4 Required Minimum Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745B9.5 Unclaimed Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 746B9.6 Payment with Respect to Incapacitated Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747B9.7 Limitation on Liability for Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747B9.8 Relinquishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747

PART C CORE DEFINED CONTRIBUTION PART 747

C1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747

C1.1 Plan Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747C1.2 Prospective Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748

C2 Computation of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748

C2.1 Method of Computation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748

C3 Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748

C3.1 Eligibility for Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748C3.2 Determination of Entry Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749C3.3 Determination of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749C3.4 Cessation and Resumption of Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749C3.5 Omission of Eligible Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749C3.6 Inclusion of Ineligible Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750C3.7 Election Not to Participate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

C4 Amount and Allocation of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

C4.1 Plan Sponsor Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750C4.2 Allocation and Deposit of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751C4.3 Late Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751C4.4 Ineligible Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751

C5 Limits on Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752

C5.1 Limit on Annual Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752C5.2 Contributions to Disabled Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754C5.3 Purpose of Limitations; Authority of Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754

C6 Investments and Plan Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754

C6.1 Participant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754



C6.2 Separate Fund Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754C6.3 Accountholder-Directed Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755

C7 Vesting and Forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755

C7.1 Full Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755C7.2 Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755

C8 Payment of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755

C8.1 Methods of Benefit Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755C8.2 Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756C8.3 Payments After an Accountholder’s Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757C8.4 Required Minimum Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .758C8.5 Direct Rollovers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 760C8.6 Unclaimed Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761C8.7 Payment with Respect to Incapacitated Accountholders . . . . . . . . . . . . . . . . . . . . . . . . . 761C8.8 Limitation on Liability for Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761C8.9 In-Service Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761C8.10 Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761C8.11 Trailing Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761

SUPPLEMENT ONE PRE-82 PLAN 762

S1.1 The Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762

S1.1.1 Prior Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762S1.1.2 Use of Assets of Prior Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762

S1.2 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762

S1.2.1 Participating Group No. Pre-82-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762S1.2.2 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762

S1.3 Funding of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762

S1.3.1 Liability for Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762S1.3.2 Amortization of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763S1.3.3 Determination of Initial Unfunded Portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763S1.3.4 Past Service Rate Amount Increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763S1.3.5 Amortization of Other Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763S1.3.6 Personal Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763S1.3.7 Contingent Annuitant Percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764S1.3.8 Investment of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764

S1.4 Past Service Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764

S1.4.1 Approved Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764S1.4.2 Past Service Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764S1.4.3 Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 765S1.4.4 Disability Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 766S1.4.5 Surviving Spouse Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 766S1.4.6 Small Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .767S1.4.7 Survivor Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .767S1.4.8 Deferred Vested Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .767S1.4.9 Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .767S1.4.10 Unclaimed Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768

843504028411pgs.700-774.qxp:QK004.qxd 1/24/12 1:54 PM 8


Note: The Clergy Retirement Security Program is achurch plan that is not subject to registration, regulation,or reporting under the Investment Company Act of1940, the Securities Act of 1933, the SecuritiesExchange Act of 1934, Title 15 of the United StatesCode, or State securities laws. Similarly, theAdministrator and the Trustee of the Plan and the enti-ties maintaining any investment funds under the Plan arenot subject to those provisions of those Acts or laws.Therefore, Plan participants and beneficiaries will notbe afforded the protection of those provisions.

CLERGY RETIREMENT SECURITYPROGRAM

Part ACommon PartSECTION A1—INTRODUCTION

A1.1 Defined Terms. As used in thisProgram, capitalized terms, including acronyms, havethe meanings set forth in Section A2. When not set forthin that Section, capitalized terms have the meanings setforth in predecessor plans or the meanings given to themin the Discipline.

SUPPLEMENT TWO GROUP 2 PRE-82 BENEFIT 768

S2.1 Group 2 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .768

S2.1.1 Description of Participating Group No. Pre-82-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .768S2.1.2 Eligibility to Receive Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .768

SUPPLEMENT THREE MINISTERIAL PENSION PLAN 769

S3.1 The Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769

S3.1.1 The Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.1.2 Type of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.1.3 Frozen Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.1.4 Termination of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769

S3.2 Eligibility for Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769

S3.2.1 Conditions of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.2.2 Enrollment by MPP Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.2.3 Omission of Eligible Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.2.4 Inclusion of Ineligible Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769

S3.3 Contributions and Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769

S3.3.1 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.3.2 Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.3.3 Maximum Annual Addition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.3.4 Investment of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769S3.3.5 Annuity Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770

S3.4 Determination and Distribution of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770

S3.4.1 Determination of Benefits Upon Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770S3.4.2 Determination of Benefits Upon Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770S3.4.3 Determination of Benefits Upon Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771S3.4.4 Determination of Benefits Upon Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771S3.4.5 Determination of Benefits for Any Reason Except Death or Disability . . . . . . . . . . . . . 771S3.4.6 Distribution of Benefits Upon Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 773S3.4.7 Distribution of Benefits Upon Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774S3.4.8 Benefit Increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774S3.4.9 Other Provisions Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774



A1.2 History. The Program is restated as ofthe Effective Date, reflecting revisions approved atGeneral Conference 2012. Although the Program bearsa different name, it is an amendment and restatement ofMPP, effective January 1, 2007, as approved by GeneralConference 2004. MPP was frozen as of December 31,2006 (August 31, 2008 for Bishops) and has been pre-served in Supplement Three hereto. MPP was effectiveJanuary 1, 1982. The Ministers Reserve Pension Fund,the Partial Reserve Pension Fund, the Local PastorsReserve Pension Fund, the Senior Plan, the MinistersReserve Pension Plan, and the Current IncomeDistribution Pension Plan were merged into MPP assupplement one to MPP, effective January 1, 1982. Thebenefits payable under those Prior Plans will be paid inaccordance with the provisions of supplement one toMPP, as reflected in Supplement One hereto. Previousversions of the Program or its predecessors may be con-sulted for provisions effective at earlier times.

A1.3 The Program. The Program, asapproved by General Conference 2012 and as applied toany Plan Sponsor, consists of the following subdivi-sions, plus any others that may be added to the Program(and minus any others that may be removed from theProgram) from time to time:

(a) Part A, also known as the Common Part;(b) Part B, also known as the Core Defined Benefit

Part;(c) Part C, also known as the Core Defined

Contribution Part;(d) Supplement One, also formerly known as sup-

plement one to MPP, also known (together with Part A,Supplement Two, and the Adoption Agreement for anyPlan Sponsor) as the Pre-82 Plan;

(e) Supplement Two, also formerly known as sup-plement two to MPP;

(f) Supplement Three, also known (together withPart A and the Adoption Agreement for any PlanSponsor) as MPP or the Ministerial Pension Plan; and

(g) The Adoption Agreement for any PlanSponsor.

The Program will apply to a Participant, aTerminated Participant, a Beneficiary, a ContingentAnnuitant, a Recipient, or an Accountholder as of theearlier of the date such person first became eligible forthe Program or first had an Accrued Benefit or anAccount and will remain applicable, as the Programexists from time to time, until such person no longer hasan Accrued Benefit or an Account under the Program. Ifany issue under the Program applies after such person’sAccrued Benefit has been paid or Account has been dis-tributed, then the terms of the Program as they existed

on the date of such payment or distribution will apply tosuch person. In the case of a Beneficiary or any otherperson who does not have an Accrued Benefit or anAccount but who claims a benefit under the Program,the terms of the Program as they existed at the time ortimes such person would have been entitled to anAccrued Benefit or an Account if such claim wereupheld will govern.

A1.4 The Plans.(a) For the purpose of the nomenclature of the

Program, there are four Plans within the Program:(i) The Core Defined Benefit Plan, which is com-

posed of Parts A and B and the Adoption Agreement forany Plan Sponsor;

(ii) The Core Defined Contribution Plan, which iscomposed of Parts A and C and the Adoption Agreementfor any Plan Sponsor;

(iii) The Pre-82 Plan, which is composed of Part A,Supplement One, Supplement Two, and the AdoptionAgreement for any Plan Sponsor; and

(iv) MPP, which is composed of Part A,Supplement Three, and the Adoption Agreement for anyPlan Sponsor.

Supplement Two provides a special benefit throughthe Pre-82 Plan but is not a separate Plan.

(b) The Core Defined Benefit Plan and the CoreDefined Contribution Plan are active Plans. All the otherPlans are frozen as to eligibility. The Pre-82 Plan isfrozen as to further Service, but Pre-82 Sponsors retainthe right to amend it from time to time to increase bene-fits accrued by Participants still in Service, benefitsaccrued by Participants no longer in Service but not yetIn Pay Status, and benefits payable to persons In PayStatus, by increasing the Past Service Rate Amount.MPP is a frozen Plan as to all Participants, except thatMPP Account balances not yet In Pay Status remaininvested under Supplement Three until eachParticipant’s Annuity Starting Date, when they are paidas provided in Supplement Three.

(c) For the purpose of separate funding, there arefour plans within the Program:

(i) The Consolidated DB Plan;(ii) The Core Defined Contribution Plan;

(iii) The Personal Contributions Accumulation,together with the Service Annuity Accumulation, of thePre-82 Plan before either has been annuitized; and

(iv) MPP, before its account balances have beenannuitized.

The assets for each of these four plans will be sep-arately accounted for in the Trust and will not be com-mingled or transferred except as otherwise specificallyprovided in the Program. Assets from one of these plans



will not be used to fund another of these plans (except asotherwise specifically provided in the Program). Each ofthese four plans will be treated as a separate single planwithin the meaning of Regulation §1.414(l)-1(b)(1).

A1.5 Type of Plans. Each of the plans listedin Section A1.4(c) is intended to be a program of one ormore church-sponsored retirement income accountswithin the meaning of Code §403(b)(9), with theConsolidated DB Plan being a defined benefit plan, asthat term is defined in Code §414(j), and the plans listedin Sections A1.4(c)(ii)–(iv) being defined contributionplans, as that term is defined in Code §414(i). TheConsolidated DB Plan is a grandfathered pre-August 14,1982 defined benefit Code §403(b) plan under Code§403(b)(9) in accordance with §251(e)(5) of the TaxEquity and Fiscal Responsibility Act of 1982. For thepurpose of Statement of Financial Accounting StandardsNumber 158, the Consolidated DB Plan is a multi-employer plan. For the purpose of Code §401(a)(4), theProgram is intended to be a multiple employer planinvolving more than one Plan Sponsor. Plan Sponsorsmay or may not be Affiliates of one another. For the pur-pose of Code §414(e), the Plan Sponsors are eachintended to be a church, a convention or association ofchurches (within the meaning of Code §414(e)(3)(C)),or an organization controlled by or associated with achurch or a convention or association of churches(within the meaning of Code §414(e)(3)(D)).Accordingly, the Plan Sponsors are intended to be oneemployer for the purpose of Code §414(e). Further, theProgram is intended to meet the requirements of a“church plan” as that term is defined in Code §414(e)and ERISA §3(33) and to be exempt from ERISA as aChurch Plan to the extent permitted under Code§410(d), applicable ERISA sections (including, but notlimited to, ERISA §§4(b)(2) and 4021(b)(3)), and anyother applicable law.

A1.6 Funding. Contributions to fund the ben-efits provided under the Program are made by the PlanSponsors as provided in each Plan.

(a) The Trust. To receive the contributions, theGeneral Board has established the Trust pursuant to anagreement with the Trustee. All benefits under theProgram will be provided exclusively by distributionsfrom the Trust. The Trustee has the powers and dutiesspecified in the agreement establishing the Trust. TheGeneral Board has the authority to replace the Trustee ofthe Trust at any time, or to establish additional Trusts tofund benefits under the Program.

(b) Insurance Contracts. Benefits under theProgram may also, at the General Board’s discretion, beprovided by the purchase of insurance contracts, and, in

such event, the term Trust will also include theProgram’s interest, if any, in such insurance contracts.Such insurance contracts may be entered into by theGeneral Board or by the Trustee in accordance with theGeneral Board’s direction.

(c) Separate Accounts. The Administrator willmaintain a separate accounting for each of theRegulation §1.414(l)-1(b)(1) plans identified in SectionA1.4(c), for each Plan Sponsor’s contributions undereach such plan (subject to Section A1.6(d)), and for eachParticipant, Beneficiary, or Accountholder under theplans in Sections A1.4(c)(ii)–(iv). Such accounting willreflect contributions, earnings, losses, forfeitures, trans-fers, distributions, and any other relevant events neces-sary to keep accurate accounts.

(d) Defined Benefit Funding. Each Plan Sponsorwill be primarily responsible to fund benefit payments toParticipants, Terminated Participants, Beneficiaries,Contingent Annuitants, and any other persons entitled toa benefit under the Consolidated DB Plan. The fundingfor each constituent subplan of the Consolidated DBPlan will be accomplished as provided in Part B andeach of the Supplements by each Plan Sponsor makingcontributions to its Funding Account, which will serveto pay all benefits due from that Plan Sponsor under theConsolidated DB Plan. Subject to any rules or limita-tions established by the Administrator, all assets in aPlan Sponsor’s Funding Account are available to pay allbenefits attributable to that Plan Sponsor or another PlanSponsor under the Consolidated DB Plan. If, however, aPlan Sponsor does not have sufficient assets in itsFunding Account to pay all benefits of the ConsolidatedDB Plan as they come due, in order to pay such benefits,the Administrator will authorize debits against theFunding Accounts of all other Plan Sponsors (except anyPlan Sponsor with a zero Funding Account balance), prorata in proportion to the Liabilities each such other PlanSponsor has as a percentage of all Liabilities under theConsolidated DB Plan (as determined by theAdministrator). If the delinquent Plan Sponsor latermakes contributions to its Funding Account, such con-tributions will first be allocated pro rata in the samefashion to repay amounts taken from other PlanSponsors’ Funding Accounts, plus interest at a marketrate to be determined by the Administrator from time totime, and only thereafter to the delinquent PlanSponsor’s separate Funding Account.

(e) Ordering of Contributions. Effective June 1,2012, if a Plan Sponsor owes Contributions for morethan one Plan within the Consolidated DB Plan, as of theDue Dates for such Plans that fall within any Plan Year,and if such Plan Sponsor fails to make the full amount



of Contributions required of it by the Administrator bysuch Due Dates, then the Administrator will allocatesuch Contributions as it does receive for such Plan Yearfirst to the Pre-82 Plan, next to the assets funding MPPannuities, and last to the Core Defined Benefit Plan.

(f) Reversion from a Funding Account. No PlanSponsor may receive a reversion of assets in its FundingAccount unless assets remain after all liabilities of allPlan Sponsors and the Consolidated DB Plan have beensatisfied as to all Participants, Beneficiaries, and anyother persons entitled to benefits under such plan. Whenall such liabilities have been satisfied by the payment ofall benefits due, by annuitizing any remaining benefitswith an insurance or annuity provider selected by theAdministrator, and/or by converting, merging, or spin-ning off any remaining benefits to ActuariallyEquivalent lump sum or annuity benefits to be paid fromanother plan or insurance contract, any remaining assetsin each Plan Sponsor’s Funding Account will bereturned by the Trustee to that Plan Sponsor.Notwithstanding the foregoing, assets may also bereturned to a Plan Sponsor as provided in Section A4.3.

A1.7 Exclusive Benefit. The Program is forthe exclusive benefit of Recipients and Accountholders.No portion of the funds contributed to the Program willrevert to or be applied for the benefit of the PlanSponsors, except as specifically permitted herein.

SECTION A2—DEFINITIONS AND RULESOF INTERPRETATION

As used in this Program, capitalized terms have themeanings set forth below.

A2.1 Account. All of the separate accountsmaintained according to the books and records of theCore Defined Contribution Plan or a Supplement for thepurpose of recording contributions made to the Plan bya Plan Sponsor, Salary-Paying Unit, or Participant forthe benefit of a Participant, an Alternate Payee, or aBeneficiary as provided in Sections C6, S1.3.6,S1.4.2(e)(ii), S3.3.4, and any other Accountholderaccount in the Program, adjusted for contributions, dis-tributions, and earnings and losses allocated thereto.

A2.2 Account Balance. The total amount heldfor an Accountholder in his or her Account (or in the spe-cific separate Account referred to), as determined on thecoincident or immediately preceding Accounting Date inaccordance with the provisions of the applicable Plan.

A2.3 Accountholder. A Participant, AlternatePayee, or Beneficiary who has an Account under theCore Defined Contribution Plan, or a Supplement.

A2.4 Accounting Date. The last business dayof each calendar year and each other date upon which

Contributions to, distributions from, or transfers to orfrom Account Balances are made or upon whichAccount Balances are adjusted in accordance with theprovisions of the applicable Plan.

A2.5 Accrued Benefit. The Core DefinedBenefit Plan monthly benefit formula amount computedin accordance with Section B6.1 and payable in the Nor-mal Form of Benefit at a Participant’s Normal RetirementDate or such later date as of which it is computed.

A2.6 Actuarial Equivalent or ActuariallyEquivalent. Providing a benefit having the same valueafter adjusting for mortality and the time value ofmoney, using generally accepted actuarial methods andassumptions, including an interest or discount rate and amortality table, when necessary, selected by theAdministrator from time to time.

A2.7 Administrator. The General Board orany successor.

A2.8 Adoption Agreement. An agreementexecuted by each Plan Sponsor and accepted by theAdministrator that is a part of this Program and is themeans by which a Plan Sponsor adopts the Program, or,when the Administrator uses more than one AdoptionAgreement for the Program, one or more Plans under theProgram, and specifies any optional provisions that are apart of any Plan as to that Plan Sponsor.

A2.9 Affiliate. Any entity that is:(a) a corporation that is a member of the same con-

trolled group of corporations, as defined in Code§414(b), as a Plan Sponsor;

(b) a trade or business, whether or not incorpo-rated, that is under common control with a Plan Sponsorwithin the meaning of Code §414(c);

(c) a member of the same affiliated service group,as defined in Code §414(m), as a Plan Sponsor; or

(d) otherwise required to be aggregated with aPlan Sponsor pursuant to Regulations issued under Code§414(o), but that is not itself a Plan Sponsor.

A2.10 Aggregate Benefit. The sum of anAccountholder’s or a Recipient’s:

(a) Vested Account Balances in this Program; plus(b) vested account balances in all other plans

administered by the Administrator, if any; plus(c) Accrued Benefit, converted to its Actuarial

Equivalent lump sum; plus(d) accrued benefits (not already included above)

in any Supplement plus all other defined benefit plansadministered by the Administrator, if any, converted totheir Actuarial Equivalent aggregate lump sum; plus

(e) monthly benefits, if any, being received from aplan administered by the Administrator, if any, con-verted to their Actuarial Equivalent aggregate lump sum.



A2.11 Aggregate DB Benefit. The sum of aParticipant’s or a Recipient’s:

(a) Core Defined Benefit Plan monthly benefitdue, if any; plus

(b) monthly annuity-type benefits, if any, beingpaid or due from all of the Supplements; plus

(c) monthly annuity-type benefits, if any, beingpaid or due from any other plans administered by theAdministrator,

in each case determined on the basis of the form ofbenefit then being paid or having been elected (or, ifsuch benefit is not yet being paid and has not yet beenelected, then in the normal form of payment).

A2.12 Alternate Payee. A Spouse, formerSpouse, child, or other dependent of a Participant enti-tled to receive a portion of such Participant’s AccruedBenefit, annuity, or Account under a QDRO.

A2.13 Annual Additions. The sum of:(a) Non-Matching Contributions made by a Plan

Sponsor (and any other employer non-matching contri-butions made under any other Code §403(b) definedcontribution plan maintained by a Plan Sponsor or a 415Affiliate);

(b) Matching Contributions made by a PlanSponsor (and any other employer matching contribu-tions made under any other Code §403(b) defined con-tribution plan maintained by a Plan Sponsor or a 415Affiliate);

(c) Contributions made under Supplement Three,if any;

(d) any before-tax, salary-deferral contributionsmade on behalf of a Participant under any other Code§403(b) defined contribution plan maintained by a PlanSponsor or a 415 Affiliate;

(e) any after-tax contributions made on behalf of aParticipant under any other Code §403(b) defined con-tribution plan maintained by a Plan Sponsor or a 415Affiliate; and

(f) amounts allocated to an individual medicalaccount, as defined in Code §415(l)(2), that is part of apension or annuity plan maintained by a Plan Sponsor;amounts derived from contributions that are attributableto post-retirement medical benefits, allocated to the sep-arate account of a key employee, as provided in Code§419A(d); required employee contributions to a definedbenefit plan; and amounts allocated to a simplifiedemployee pension (SEP) that is maintained by the PlanSponsor,

that are credited to any Participant’s Account orsuch other Code §403(b) defined contribution plan, indi-vidual medical account, or other plan. Catch-up contri-butions under Code §414(v), distributed excess

deferrals, plan loan repayments, repayment of previ-ously distributed benefits, restorative payments to cor-rect situations that could reasonably result in federal orstate fiduciary liability, direct transfers of benefits fromone plan to another, and rollover contributions underCode §§402(c) or 408(d) made to a Plan Sponsor’s or a415 Affiliate’s plan are not included in AnnualAdditions.

A2.14 Annual Conference. The basic body ofThe United Methodist Church as further described in¶ 33 and in ¶¶ 601-656 of the Discipline.

A2.15 Annual Retirement Benefit. A retire-ment benefit (actuarially adjusted as provided in SectionB5 and Code §415(b)) payable annually under the 415DB Plan in the form of a single-life annuity (with noancillary benefits).

A2.16 Annuity Starting Date. The first dayof the month for which an amount is payable as an annu-ity, an Early Retirement Benefit, a Normal RetirementBenefit, or a Late Retirement Benefit or, in the case of abenefit not payable in such form (such as a benefitpayable in a lump sum), the day coinciding with thecompletion of all events that entitle the Participant orAccountholder to such benefit. In the case of a deferredannuity, the Annuity Starting Date will be the date onwhich the annuity payments are scheduled to begin.

A2.17 Application for Benefits. A formestablished by the Administrator from time to time uponwhich a Participant, Terminated Participant, otherAccountholder, or other Recipient officially applies forbenefits under a Plan.

A2.18 Appoint or Appointment. Officiallyappointed by a Bishop to a ministry pursuant to ¶¶ 430through 435 of the Discipline. For the purposes of theProgram, in the case of a Bishop, assigned in accordancewith ¶ 406 of the Discipline.

A2.19 Approved Service. As used inSupplement One, a Pre-82 Participant’s or retired Pre-82Participant’s years and fractions of years of service ren-dered before January 1, 1982, with pension credit in aConference, as evidenced by the Pre-82 Participant’sservice record maintained by the Administrator. A Pre-82 Participant’s service record will be subject to correc-tion in accordance with the provisions of the Discipline.

A2.20 Associate Member. A person electedto associate membership in an Annual Conference withinthe meaning of ¶¶ 321, 322, or 369.1 of the Discipline.

A2.21 Beneficiary. An Accountholder’s orRecipient’s Designated Beneficiary or DefaultBeneficiary.

A2.22 Bishop. A bishop of The UnitedMethodist Church elected by a Jurisdictional



Conference in accordance with ¶ 405 of the Disciplineand continuing to serve under ¶¶ 404-413 of theDiscipline, including such a bishop on a leave under¶ 410 of the Discipline and such a bishop receiving ben-efits under CPP, but not including such a bishop who hasterminated office in accordance with ¶ 408 of theDiscipline.

A2.23 Break in Service. A period of time,beginning on the day a Clergyperson becomes aTerminated Participant or Retires, and ending (if at all)on the day he or she is reinstated into the effectiveConference relationship and is Under EpiscopalAppointment (or is otherwise covered under theProgram). Taking a Leave of Absence or becomingDisabled does not begin a Break in Service.

A2.24 Central Conference. A central confer-ence within the meaning of ¶¶ 540-548 of the Discipline.

A2.25 Church Plan. A plan qualifying underCode §414(e) or ERISA §3(33) that has not made anelection under Code §410(d).

A2.26 Claimant. A person who makes aclaim for benefits under the Plan or who appeals thedenial of such a claim, or such person’s representative.

A2.27 Clergy or Clergyperson. For the pur-poses of Parts A, B, and C, one of the following persons:

(a) effective September 1, 2008, a Bishop, exceptin the case of Bishops who were newly consecrated in2008, then effective as of the date of their consecration;

(b) an Elder in Full Connection, a Deacon in FullConnection, a Provisional Member, an affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, or an Associate Member of a Conference, butnot including a Bishop;

(c) a Local Pastor of a Conference who has beenpreviously approved by the Conference’s board ofordained ministry (as further described in ¶ 635 of theDiscipline) and classified as eligible for Appointment asa Full-Time Local Pastor (within the meaning of ¶¶ 318and 318.1 of the Discipline), Part-Time Local Pastor(within the meaning of ¶¶ 318 and 318.2 of theDiscipline), or student Local Pastor (within the meaningof ¶¶ 318 and 318.3 or 318.4 of the Discipline);

(d) a Non-Jurisdictional Clergyperson, providedthat such clergyperson is not then participating in a pen-sion program of the Puerto Rico Methodist Church orthe Central Conference (or Annual Conference withinsuch Central Conference) to which such clergypersonbelongs;

(e) an Other Methodist DenominationClergyperson, provided that such clergyperson is notthen participating in a pension program of the Methodistdenomination to which such clergyperson belongs; or

(f) an Other Denomination Clergyperson, pro-vided that such clergyperson is not then participating ina pension program of the denomination to which suchclergyperson belongs.

A2.28 Code. The Internal Revenue Code of1986, as now in effect or as hereafter amended, and anyregulation, ruling, or other administrative guidanceissued pursuant thereto by the Internal Revenue Service.

A2.29 Compensation. In a Plan Year, for aParticipant, the sum of the following:

(a) the Participant’s 415 Compensation (including,in the case of a self-employed Clergyperson (who isself-employed within the meaning of Code§401(c)(1)(B) but is an employee of The UnitedMethodist Church within the meaning of Code§414(e)(5)(A)(i)(I) and the Regulations thereunder),such Clergyperson’s 415 Compensation earned in thecourse of such self-employment) but excluding anyIncludible Compensation earned outside of such PlanYear;

(b) cash received from a Plan Sponsor or a Salary-Paying Unit and excluded from taxable cash salary pur-suant to Code §107(2); and

(c) when a parsonage is provided to the Participantas part of his or her compensation, 25% of the sum of:

(i) the Participant’s 415 Compensation; and(ii) cash excluded from taxable cash salary pur-

suant to Code §107(2) as provided in Section A2.29(b).A2.30 Conference. Any Annual Conference,

provisional annual conference (as described in ¶¶ 580-583 of the Discipline), or missionary conference (asdescribed in ¶¶ 585-588 of the Discipline) that isdescribed in the Discipline and is located in aJurisdictional Conference.

A2.31 Conference-Elective Entity. Any exten-sion ministry (such as an agency, a camp, or a founda-tion) that is on a list of extension ministries reportedperiodically to the Administrator by a Conference. Byreporting any such extension ministry, a Conferenceagrees to make Contributions under Part B and Part C onbehalf of all Clergypersons Under EpiscopalAppointment by that Conference’s Bishop to that exten-sion ministry. A Conference may add extension min-istries to, or remove them from, the list periodically as ofa date or dates specified from time to time by theAdministrator during such reporting periods as theAdministrator may designate from time to time. Butonce an extension ministry is reported for the list, it willremain on the list until it is removed, prospectively only,by the Conference.

A2.32 Conference-Responsible Unit. As pro-vided in ¶ 344.1a(1) of the Discipline, an Annual



Conference unit within the connectional structures ofUnited Methodism to which certain Clergy areAppointed, such as district superintendents, staff mem-bers of conference councils and boards, treasurers,Bishops’ assistants, superintendents or directors ofparish development, general evangelists, and campusministers, and for which unit the Annual Conference isresponsible to provide for Contributions to the Programon behalf of such Clergy. Appointments described abovethat are to the Annual Conference itself (rather than aunit thereof) are also included within the term. The termalso covers parallel Appointments to Conferences otherthan Annual Conferences.

A2.33 Consolidated DB Plan. The aggrega-tion of the following Plans and portions of Plans:

(a) the Core Defined Benefit Plan;(b) the Formula Benefit of the Pre-82 Plan; and(c) all annuities payable under all of the

Supplements, once they are annuitized.A2.34 Contingent Annuitant. The person

named by a Participant, a Terminated Participant, or thePlan to receive the survivor portion of a ContingentAnnuity. Such person may be the Participant’s orTerminated Participant’s Spouse or another person.

A2.35 Contingent Annuity. A monthly annu-ity for the life of a Participant or Terminated Participant,beginning on such Participant’s or TerminatedParticipant’s Annuity Starting Date, payable as long ashe or she lives, and, upon his or her death, payable to hisor her surviving Contingent Annuitant, if any, in anamount that is not less than one-half of, nor greater than(except for periodic cost-of-living benefit increases),the amount of the annuity payable during the joint livesof the Participant or Terminated Participant and his orher Contingent Annuitant, and ending with the paymentmade on the first of the month in which such ContingentAnnuitant dies, or, if such deceased Participant orTerminated Participant is not survived by his or herContingent Annuitant, then ending with the paymentmade on the first of the month in which such Participantor Terminated Participant dies and no longer payable toanyone thereafter. The Contingent Annuity may beexpressed with a percentage, such as a 70% ContingentAnnuity, which indicates that the Contingent Annuitantwill receive a monthly benefit that is 70% of themonthly benefit payable during the joint lives of theannuitants.

A2.36 Contribution. An amount contributedto a Plan by a Plan Sponsor or other responsible party inaccordance with Sections B4, C4, S1.3, S3.3, and anyother Section that calls for funding the benefits providedfor by the Program. A Contribution may be made on

behalf of a Plan Sponsor by CPP (as provided therein) oranother source or entity as long as the amount con-tributed is clearly being paid on behalf of the relevantPlan Sponsor.

A2.37 Core Defined Benefit Plan. The Planspecified in Section A1.4(a)(i).

A2.38 Core Defined Contribution Plan. ThePlan specified in Section A1.4(a)(ii).

A2.39 CPP. The Comprehensive ProtectionPlan, a Church Welfare Benefits Plan for ClergyAssociated with a Jurisdictional Conference of TheUnited Methodist Church, as amended from time to time.

A2.40 CPP Disabled or CPP Disability.Receiving disability benefits under CPP or having a con-dition entitling a person to disability benefits under CPP,as determined by the Administrator. (See also the defini-tions of Disabled and Incapacity Leave.)

A2.41 Credited Service. Service rendered onor after January 1, 2007 that counts toward the compu-tation of a Participant’s Accrued Benefit as specified inSection B2.2, measured in one-day increments. Servicerendered before January 1, 2007 will not be counted asCredited Service.

A2.42 Deacon in Full Connection. A mem-ber of the Order of Deacons within the meaning of¶¶ 306-309 of the Discipline who is a member of aConference and not a Provisional Member.

A2.43 Default Beneficiary. The person(s)(including an estate) specified in Section A6, or else-where in the Program, to receive benefits that arepayable at the death or disappearance of anAccountholder or a Recipient when there is noDesignated Beneficiary or when a Plan provides.

A2.44 Denominational Average Compensa-tion. The average annual compensation of Full-TimeClergypersons, which average is determined in accor-dance with procedures established by the Administrator.

A2.45 Designated Beneficiary. The person(s)(including a trust or other entity), designated by anAccountholder or a Recipient, as set forth in Section A6,elsewhere in the Program, or in Code §401(a)(9) andRegulation §1.401(a)(9)-4, who is receiving, entitled toreceive, or, at the death or disappearance of anAccountholder or a Recipient, will be entitled to receivethe residual interest under a Plan or this Program that ispayable following such Accountholder’s or Recipient’sdeath or disappearance.

A2.46 Disabled or Disability. Any of the fol-lowing with respect to a Participant or TerminatedParticipant:

(a) determined to be disabled by the SocialSecurity Administration;



(b) receiving long-term disability benefits underthe terms of CPP or another disability benefit plan pro-vided by such Participant’s or Terminated Participant’sSalary-Paying Unit or Plan Sponsor; or

(c) placed on Incapacity Leave by suchParticipant’s or Terminated Participant’s Conference.

(See also the definitions of CPP Disabled andIncapacity Leave.)

A2.47 Discipline. The Book of Discipline ofThe United Methodist Church 2008, the body of churchlaw established by General Conference, as amended andrestated from time to time. Cited paragraphs or othersubdivisions are deemed to refer to successor provisionswhen an amendment or restatement of the Disciplinecauses a change in location or citation.

A2.48 Distribution Calendar Year. A calen-dar year for which a minimum distribution is requiredunder Code §401(a)(9). For distributions beginningbefore a Participant’s death, the first DistributionCalendar Year is the calendar year immediately preced-ing the calendar year that contains the Participant’sRequired Beginning Date. For distributions beginningafter a Participant’s death, the first Distribution Calendaryear is the calendar year in which distributions arerequired to begin under Sections B9.4(a)(ii), C8.4(c),and the comparable year under Supplements One andThree. The required minimum distribution for theParticipant’s first Distribution Calendar Year will bemade on or before the Participant’s Required BeginningDate. The required minimum distribution for otherDistribution Calendar Years, including the required min-imum distribution for the Distribution Calendar Year inwhich the Participant’s Required Beginning Dateoccurs, will be made on or before December 31 of thatDistribution Calendar Year. Notwithstanding the fore-going, in the case of any defined contribution benefits oraccount balances under the Program, calendar year 2009was not treated as a Distribution Calendar Year.

A2.49 Due Date. The day specified by theAdministrator from time to time on which Contributionsfor a particular Plan are due, after any grace periodshave passed. The Due Date may be different from Planto Plan or from Contribution type to Contribution type.

A2.50 Early Retirement Benefit. The monthlypension amount that is computed in accordance withSection B8.2 (and any other applicable provisions of theCore Defined Benefit Plan) and payable in accordancewith the Core Defined Benefit Plan, starting at aParticipant’s or Terminated Participant’s Early RetirementDate or such later time as is specified in Section B9.2.

A2.51 Early Retirement Date. The first day ofthe month coinciding with or next following the later of:

(a) the date on which a Participant or TerminatedParticipant attains:

(i) the age or service completion date specified in¶ 358.2b of the Discipline; or

(ii) for a Participant who retires in accordance with¶¶ 358.2a or 358.3 of the Discipline, or who is aTerminated Participant, age 62; or

(b) in the case of a:(i) Participant, the date on which the Participant

Retires; or(ii) Terminated Participant, the date on which the

Terminated Participant incurs a Termination of Con-ference Relationship or a Five-Year No Record ofAppointment,

provided that such date is before the Participant’s orTerminated Participant’s Normal Retirement Date.

A2.52 Effective Date. This restatement of theProgram is effective on a date or dates specified by theAdministrator (with reasonable notice to Plan Sponsors)that is as soon after General Conference 2012 as admin-istratively practicable, but that is not later than January1, 2014. Provisions with different effective dates arenoted in the Program’s text or by footnote.

A2.53 Elder in Full Connection. A memberof the Order of Elders within the meaning of ¶¶ 306-309of the Discipline who is a member of a Conference andnot a Provisional Member.

A2.54 Eligible Clergy or Eligible Clergy-person. A Clergyperson who is eligible for participa-tion in the Core Defined Benefit Plan as furtherdescribed in Section B3.1(a) or Core DefinedContribution Plan as further described in SectionC3.1(a).

A2.55 Eligible Rollover Distribution. Anydistribution of all or any portion of the balance to thecredit of a distributee covered under Sections B9.1(f),C8.5, S3.4.9, or any comparable Section, except that theterm “Eligible Rollover Distribution” does not include:

(a) any distribution that is one of a series of sub-stantially equal periodic payments made (not less fre-quently than annually) for the life (or life expectancy) ofsuch distributee or the joint lives (or joint life expectan-cies) of such distributee and such distributee’sBeneficiary or for a specified period of 10 years or more;

(b) any distribution to the extent such distributionis required under Code §401(a)(9);

(c) any hardship distribution similar to onedescribed in Code §401(k)(2)(B)(i)(IV); or

(d) any other excluded distribution described inCode §402(c)(4), Regulations thereunder, or any otherprovision of the Code or Regulations.



A2.56 Entry Date. The date upon which aClergyperson becomes a Participant in a Plan after firstsatisfying the eligibility requirements.

A2.57 ERISA. The Employee RetirementIncome Security Act of 1974, as now in effect or as here-after amended, and any regulation, ruling, or otheradministrative guidance issued pursuant thereto by theInternal Revenue Service, the Department of Labor, orthe Pension Benefit Guaranty Corporation.

A2.58 Final Compensation. The annualizedrate of Compensation in effect for a Bishop at the end ofthe last month in which he or she had Compensationimmediately preceding his or her Annuity Starting Date.In the case of a CPP Disabled Bishop or a Bishop onIncapacity Leave who, in either case, has not Retired, isnot a Terminated Participant, and does not receive con-tinued salary as a Bishop under ¶ 410 of the Discipline,the annualized rate of Compensation in effect for suchBishop at the end of the last month for which he or shelast received Compensation at the full rate for Bishops,increased annually thereafter by 3% per year until his orher Annuity Starting Date.

A2.59 Final DAC. With respect to aParticipant or Terminated Participant, the greater of:

(a) the Denominational Average Compensation forthe Plan Year in which such person earns or earned hisor her last Credited Service; or

(b) the Denominational Average Compensation forthe Plan Year in which such person last rendered service to:

(i) any United Methodist Church-related entity(including a Central Conference or any Appointmentwhere the United Methodist Church is treated as theemployer under Code §414(e)(3)(C)); or

(ii) The Puerto Rico Methodist Church (but notother autonomous Methodist churches).

A2.60 Five-Year Distribution Option. Aform of distribution that may be elected by a Beneficiarythat distributes a Participant’s entire interest in a Plan byDecember 31 of the calendar year containing the fifthanniversary of the Participant’s death.

A2.61 Five-Year No Record of Appointment.With respect to a Provisional Member, AssociateMember, affiliate member within the meaning of¶¶ 344.4, 369.1, or 586.4 of the Discipline, Deacon inFull Connection, or Local Pastor, a 60-consecutive-month period during which the Provisional Member,Associate Member, affiliate member, Deacon in FullConnection, or Local Pastor (or some combination in thecase of a Clergyperson who changes classification) isnot Under Episcopal Appointment.

A2.62 Formula Benefit. As used inSupplement One, an annual benefit that is the product of:

(a) a Participant’s Approved Service under thePre-82 Plan; and

(b) the applicable Past Service Rate Amount,reduced on the Participant’s Annuity Starting Date

and each later January 1 while such benefit is paid by thelesser of:

(i) one-half of 1% per month (or fraction of amonth) of the Participant’s age that is less than 65 years,determined as of such January 1; or

(ii) one-half of 1% per month for each month ofdifference between the assumed date at which theParticipant’s 40 years of service under appointmentwould have been completed and such January 1,

provided, however, that such reduction will nolonger be applied after the earlier of the date theParticipant attains or would have attained age 65 or theassumed date at which such Participant would haveattained 40 years of service under appointment. Anychanges to the applicable Past Service Rate Amount willbe reflected annually in a Pre-82 Participant’s FormulaBenefit (even after the Pre-82 Participant’s AnnuityStarting Date), except that the Formula Benefit for aTerminated Participant whose Termination ofConference Relationship occurred after the close ofGeneral Conference 1976 will be computed using theapplicable Past Service Rate Amount in effect on thedate he or she became a Terminated Participant, andsuch Past Service Rate Amount will not change in lateryears.

A2.63 415 Affiliate. An entity that either is anAffiliate, or would be an Affiliate if Code §414 weremodified in the manner provided by Code §415(h).

A2.64 415 Compensation. All Includible Com-pensation paid or made available by a Plan Sponsor or415 Affiliate to a Clergyperson in a Limitation Year,including:

(a) the Clergyperson’s wages, salaries, fees forprofessional services, and other amounts received (with-out regard to whether or not an amount is paid in cash)for personal services actually rendered in the course ofemployment with the Plan Sponsor or Salary-PayingUnit to the extent that the amounts are includable ingross income (including, but not limited to, bonuses,fringe benefits, and reimbursements or other expenseallowances under a nonaccountable plan (as described inRegulation §1.62-2(c)), but excluding severance pay thatwould not have been paid but for a severance fromemployment);

(b) in the case of a self-employed Clergyperson(who is self-employed within the meaning of Code§401(c)(1)(B) but is an employee of The UnitedMethodist Church within the meaning of Code



§414(e)(5)(A)(i)(I) and the Regulations thereunder), theClergyperson’s earned income (as described in Code§401(c)(2) and the Regulations thereunder);

(c) amounts received in connection with accidentor sickness and described in Code §§104(a)(3), 105(a),and 105(h), but only to the extent that these amounts areincludable in the gross income of the Clergyperson;

(d) amounts includible in the gross income of theClergyperson:

(i) paid for, or as reimbursements of, movingexpenses;

(ii) under Code §409A, Code §457(f)(1)(A), or thedoctrine of constructive receipt;

(iii) as gain under a Code §83(b) election; and(iv) differential compensation, as provided under

USERRA and the HEART Act; and(e) any elective contributions excluded from

income under Code §125 (relating to cafeteria plans),Code §132(f) (relating to qualified transportation fringebenefits), Code §402(e)(3) (relating to 401(k) plans),Code §402(h) (relating to simplified employee pensionplans), Code §403(b) (relating to tax-sheltered annuityplans), or compensation deferred under a plan qualifiedunder Code §457.

For the purposes of Sections A2.64(a) and (b), “415Compensation” includes foreign earned income (asdefined in Code §911(b)), whether or not excludablefrom gross income under Code §911. Compensationdescribed in Section A2.64(a) above is to be determinedwithout regard to the exclusions from gross income inCode §§872(b), 893, 894, 911, 931, and 933 (dealingwith income from sources outside of the United States).Similar principles are to be applied with respect to incomesubject to Code §§872(b), 893, 894, 911, 931, and 933 indetermining compensation described in Section A2.64(b).The term “415 Compensation” does not include:

(1) Non-Matching Contributions or MatchingContributions made by a Plan Sponsor to the Plan, ordistributions from a plan of deferred compensation,regardless of whether such amounts are includible in thegross income of the Clergyperson when distributed(however, any amounts received by a Clergyperson pur-suant to an unfunded nonqualified plan will be consid-ered as “415 Compensation” in the year the amounts areincludible in the gross income of the Clergyperson);

(2) Other amounts that receive special tax benefits,such as premiums for group-term life insurance (butonly to the extent that the premiums are not includible inthe gross income of the Clergyperson) or housingallowance excludible under Code §107; or

(3) Amounts paid after severance from employ-ment, except that “415 Compensation” does include:

(A) Amounts paid under Section 2.64(a) above thatare paid after severance from employment but within theLimitation Year in which services were rendered orwithin 2½ months following such severance fromemployment;

(B) Amounts paid under Section 2.64(c) above thatare paid after severance from employment but within theLimitation Year in which such accident or sicknessexisted or within 2½ months following such severancefrom employment; and

(C) Amounts received pursuant to an unfundednonqualified deferred compensation plan that are paidafter severance from employment, but only to the extentthat such amounts:

(I) would have been paid at the same time hadthere been no severance from employment;

(II) are included in the Clergyperson’s grossincome; and

(III) are paid within the Limitation Year in whichseverance occurred or within 2½ months following suchseverance from employment.

A2.65 415 DB Plan. A defined benefit plancomposed of the provisions of:

(a) the Consolidated DB Plan; and(b) any Related Defined Benefit Plan;and paying an Annual Retirement Benefit that is the

sum of the benefits payable under all such plans.A2.66 415 Suspense Account. An account in

the name of a Plan Sponsor used to temporarily holdContributions that exceed the limits of Section C5 untilthey can be reallocated to Participant Accounts as pro-vided in Section C5. A 415 Suspense Account will notbe deemed an Account, and earnings and losses will notbe credited or debited to a 415 Suspense Account.

A2.67 Full-Time. Appointed to spend aClergyperson’s entire vocational time devoted to thework of the ministry to which the Clergyperson isAppointed, such as provided in ¶¶ 318.1, 331, or 338.1of the Discipline.

A2.68 Funding Account. An account in thename of a Plan Sponsor, Pre-82 Sponsor, or other entityresponsible for funding benefits under the ConsolidatedDB Plan that holds contributions from the Plan Sponsor,Pre-82 Sponsor, or such other entity under theConsolidated DB Plan (or any of its component sub-plans) and earnings thereon. In the case of the CoreDefined Benefit Plan, the Funding Account for eachPlan Sponsor will be pooled with the other PlanSponsors sponsoring that Plan, with each Plan Sponsor’sinterest being proportional to its liabilities under thatPlan. In the case of the annuities payable underSupplement Three, the Funding Account for each Plan



Sponsor will be pooled with the other Plan Sponsorssponsoring that Plan, with each Plan Sponsor’s interestbeing proportional to its liabilities under that Plan.

A2.69 Funding Policy. A plan based on rea-sonable actuarial methods and assumptions determinedby the Administrator from time to time to assure suffi-cient contributions to the Consolidated DB Plan to pro-vide all benefits due under the Consolidated DB Plan bythe time they become due.

A2.70 General Agency. Any agency of TheUnited Methodist Church that is specified in ¶¶ 701.2,701.3, 702.2, 703.1, 703.5, or 703.6 of the Discipline,except for the Connectional Table (see Judicial CouncilDecision No. 990).

A2.71 General Board. General Board ofPension and Health Benefits of The United MethodistChurch, Incorporated in Illinois.

A2.72 GCFA. The General Council onFinance and Administration, which is a General Agency,as further described in ¶¶ 801-823 of the Discipline.

A2.73 General Conference. The GeneralConference of The United Methodist Church, the high-est legislative body in the denomination, as described in¶¶ 501-511 of the Discipline.

A2.74 Half-Time. Appointed on at least aone-half time basis, including the sum of two or moreAppointments, as determined by the Bishop orConference that makes the Appointment. Bishopsassigned under ¶ 406 of the Discipline will be deemedassigned on at least a one-half time basis.

A2.75 Incapacity Leave. A Conference rela-tionship specified in ¶ 357 of the Discipline. IncapacityLeave for a Bishop is granted under ¶ 410.1 of theDiscipline. (See also the definitions of CPP Disabledand Disabled.)

A2.76 Includible Compensation. For anyLimitation Year, a Clergyperson’s compensation asdetermined under Code §415(c)(3)(E), Code §403(b)(3),and Regulations thereunder:

(a) In the case of a Full-Time Clergyperson whowas paid for the entire Limitation Year, such compensa-tion received by the Clergyperson from his or herSalary-Paying Unit during a Limitation Year; and

(b) In the case of a Full-Time Clergyperson whowas not paid for the entire Limitation Year or a Part-Time Clergyperson, such compensation received by theClergyperson from his or her Salary-Paying Unit(s) andany other entity that is controlled by or associated withThe United Methodist Church during the most recentperiod that constitutes a year of service under Code§403(b)(4) and applicable Regulations.

A2.77 In Pay Status. Receiving a periodicpension benefit under the Plan.

A2.78 IRA. An individual retirement accountor annuity, qualified under Code §408 (other than anendowment contract).

A2.79 Jurisdictional Conference. One of theorganizational units of The United Methodist Church, asdescribed in ¶¶ 512-537 of the Discipline.

A2.80 Late Retirement Benefit. The monthlypension amount that is computed in accordance withSection B8.3 (and any other applicable provisions ofthe Core Defined Benefit Plan) and payable in accor-dance with the Core Defined Benefit Plan, starting at aParticipant’s or Terminated Participant’s Late RetirementDate.

A2.81 Late Retirement Date. The first day ofthe month coinciding with or next following:

(a) In the case of a Participant, the Participant’sactual Retirement Date after having reached his or herNormal Retirement Date, but not later than the manda-tory retirement date specified in ¶ 358.1 of the Discipline(if any); or

(b) In the case of a Terminated Participant, the dateof the Administrator’s acceptance of the TerminatedParticipant’s Application for Benefits after havingreached his or her Normal Retirement Date, but not laterthan his or her Required Beginning Date.

A2.82 Leave of Absence. A Clergyperson’speriod of absence from performing his or her ministerialduties for a Plan Sponsor:

(a) in accordance with ¶ 352 of the Discipline(relating to sabbatical leaves);

(b) in accordance with ¶ 354 of the Discipline(relating to voluntary leaves of absence);

(c) in accordance with ¶ 355 of the Discipline(relating to involuntary leaves);

(d) in accordance with ¶ 356 of the Discipline(relating to maternity or paternity leaves);

(e) in accordance with ¶ 410 of the Discipline(relating to leaves for Bishops);

(f) because of an Incapacity Leave;(g) that is covered by USERRA (or applicable

prior law); or(h) to which the Clergyperson is entitled under the

Family and Medical Leave Act of 1993 or any compara-ble applicable state law;

provided, however, that the Clergyperson Retires orreturns to work for a Plan Sponsor or Affiliate within thetime specified in his or her Leave of Absence (or, ifapplicable, within the period during which his or her re-employment rights are protected by law).



A2.83 Liabilities. Amounts due (from one ormore Plan Sponsors) to the Consolidated DB Plan tofund benefits due under such plan, as determined by theAdministrator.

A2.84 Life Expectancy. Life expectancy ascomputed by the use of the applicable table inRegulation §1.401(a)(9)-9.

A2.85 Lifetime Distribution Option. A formof distribution that may be elected by a Beneficiary(other than a Beneficiary that is an estate or a trust) thatdistributes a Participant’s entire interest in a Plan overthe Life Expectancy of the Beneficiary.

A2.86 Limitation Year. The twelve-monthperiod used by the Plan for the purpose of applying thelimitations of Code §415, which is the same as the PlanYear.

A2.87 Local Church. A United MethodistChurch organization within the meaning of ¶ 201 of theDiscipline.

A2.88 Local Pastor. A person licensed inaccordance with ¶¶ 315-320 of the Discipline.

A2.89 Matching Contributions. Contribu-tions made by the Plan Sponsor to a Participant’sMatching Contribution Account under the Core DefinedContribution Plan in accordance with Section C4.1(b) inproportion to Participant Contributions made to UMPIP.

A2.90 Matching Contribution Account. TheAccount established for an Accountholder on the booksand records of the Core Defined Contribution Plan forthe purpose of recording any Matching Contributionsmade pursuant to Section C4.1(b), adjusted for contribu-tions, distributions, and earnings and losses attributableto such Matching Contributions.

A2.91 Ministerial Pension Plan. The prede-cessor plan to the Program from 1982 through 2006 (andthrough August 31, 2008 for Bishops), also known asMPP, and which was frozen as of December 31, 2006(for most participants) and as of August 31, 2008 (forBishops) and preserved in frozen form in SupplementThree to, and Part A of, the Program.

A2.92 MPP. The Ministerial Pension Plan.A2.93 MPP Plan Sponsor. An entity described

below:(a) for periods before September 1, 2008, GCFA if

the Participant was a Bishop, except in the case ofBishops who were newly consecrated in 2008, then forperiods before the date of their consecration; or

(b) for periods before January 1, 2007, a plansponsor as defined in the Ministerial Pension Plan as itexisted before January 1, 2007.

A2.94 Non-Jurisdictional Clergy or Clergy-person. A clergyperson who is a member of:

(a) a Central Conference; or(b) The Puerto Rico Methodist Churchwho is Appointed by the Bishop of a Plan Sponsor

Conference in which such clergyperson is not a member(or, where the Plan Sponsor is not supervised by a Bishop,who is covered by a Plan Sponsor’s Adoption Agreement).

A2.95 Non-Matching Contributions. Contri-butions made by the Plan Sponsor to a Participant’sNon-Matching Contribution Account under the CoreDefined Contribution Plan in accordance with SectionC4.1(a) for the benefit of Participants.

A2.96 Non-Matching Contribution Account.The Account established for an Accountholder on thebooks and records of the Core Defined ContributionPlan for the purpose of recording any Non-MatchingContributions made pursuant to Section C4.1(a), adjustedfor contributions, distributions, and earnings and lossesattributable to such Non-Matching Contributions.

A2.97 Normal Form of Benefit. A form ofbenefit specified in Section B9.1(a).

A2.98 Normal Retirement Benefit. Themonthly pension amount that is computed in accordancewith Section B8.1 (and any other applicable provisionsof the Core Defined Benefit Plan) and payable in accor-dance with the Core Defined Benefit Plan, starting at aParticipant’s or Terminated Participant’s NormalRetirement Date.

A2.99 Normal Retirement Date.(a) In the case of a Participant (other than a

Bishop), the first day of the month coinciding with ornext following the earlier of:


years of service under ¶ 358.2c) of the Discipline.(b) In the case of a Terminated Participant, the first

day of the month coinciding with or next following theTerminated Participant’s 65th birthday.

(c) In the case of a Participant who is a Bishop, thefirst day of the month next following the earlier of:



accordance with ¶ 358.2c) of the Discipline; and(B) the Participant’s years of service assigned as a

Bishop in accordance with ¶ 406 of the Discipline.A2.100 Other Denomination Clergy or

Clergyperson. A Clergyperson who is a member ofanother denomination (within the meaning of ¶¶ 346.2or 346.3 of the Discipline) who is Appointed by theBishop of a Plan Sponsor Conference in which suchClergyperson is not a member (or, where the Plan



Sponsor is not supervised by a Bishop, who is coveredby a Plan Sponsor’s Adoption Agreement).

A2.101 Other Methodist DenominationClergy or Clergyperson. A Clergyperson who is amember of another Methodist denomination (within themeaning of ¶ 346.1 of the Discipline), other than ThePuerto Rico Methodist Church, who is Appointed by theBishop of a Plan Sponsor Conference in which suchClergyperson is not a member (or, where the PlanSponsor is not supervised by a Bishop, who is coveredby a Plan Sponsor’s Adoption Agreement).

A2.102 Optional Form of Benefit. Any formof annuity that is offered by the Administrator underSection B9.1(b).

A2.103 Part. Any of Part A, Part B, or Part Cof the Program, or, in the plural form, all three such sub-divisions of the Program.

A2.104 Part A. Part A of the Program, alsoknown as the Common Part.

A2.105 Part B. Part B of the Program, alsoknown as the Core Defined Benefit Part, and, whenaggregated with Part A and an Adoption Agreement, asthe Core Defined Benefit Plan.

A2.106 Part C. Part C of the Program, alsoknown as the Core Defined Contribution Part, and, whenaggregated with Part A and an Adoption Agreement, asthe Core Defined Contribution Plan.

A2.107 Participant.(a) As used in Part B and Part C, an Eligible

Clergyperson who has become a participatingClergyperson as provided in each such Part, includingsuch a Clergyperson who has Retired;

(b) As used in Supplement One, a Pre-82Participant; and

(c) As used in Supplement Three, a person with anMPP Account Balance as provided in SupplementThree.

A2.108 Participant Contributions. Contri-butions to UMPIP by a Plan Sponsor in accordance witha Participant’s Salary-Reduction Agreement, that areany of the following types:

(a) Before-Tax Contributions (including Catch-UpContributions);

(b) After-Tax Contributions; or(c) Roth Contributions (including Catch-Up

Contributions);as the terms “Salary-Reduction Agreement,”

“Before-Tax Contributions,” “Catch-Up Contributions,”“After-Tax Contributions,” and “Roth Contributions” areused in UMPIP.

A2.109 Part-Time. Appointed on a one-quar-ter, one-half, three-quarters, or other less than Full-Time

basis, as determined by the Bishop or Conference thatmakes the Appointment.

A2.110 Pastoral Charge. One or more LocalChurches within the meaning of ¶ 205 of the Discipline.

A2.111 Past Service Benefit. The benefitpayable in accordance with Section S1.4 of SupplementOne.

A2.112 Past Service Rate Amount. Asapplied to the Pre-82 Plan, the dollar amount payable foreach year of Approved Service, as determined in accor-dance with Supplement One. The Past Service RateAmount is also sometimes known as: the past servicerate, the pension rate, the annuity rate, the service annu-ity rate, and the pension annuity rate.

A2.113 Personal Contributions Accumulation.As used in Supplement One, the sum of the amountstanding to the credit of a Participant as of December 31,1981, in such Participant’s individual accounts under thePrior Plans, based on contributions made by suchParticipant and interest credited thereon before January1, 1982, and the amount of interest credited thereon afterDecember 31, 1981, by the Trustee.

A2.114 Personal Contributions Annuity. Asused in Supplement One, an annuity during life, payablein monthly installments in advance, on the basis of theactuarial equivalent of the Personal ContributionsAccumulation.

A2.115 Plan. Any of the Core DefinedBenefit Plan, the Core Defined Contribution Plan, thePre-82 Plan, or MPP, as the context requires, when usedin this instrument, as amended, as applied to all PlanSponsors or as applied to any particular Plan Sponsor, asthe context requires, including any applicable AdoptionAgreements, amendments, or supplements hereto, all asfurther provided in Section A1.4.

A2.116 Plan Sponsor. Any of the entitiesspecified in Sections B1.1 and C1.1.

A2.117 Plan Year. The calendar year.A2.118 Pre-82 Assets. The sum of:(a) the assets of the Prior Plans (other than those in

the Disability and Survivor Benefit Fund) that weretransferred to Supplement One to MPP effective January1, 1982 to pay benefits due under the Prior Plans (some-times known as the Reserve Pension Fund); plus

(b) any contributions made to the Pre-82 Plan orits predecessors by the Pre-82 Sponsors or any otherparty for the purpose of funding benefits payable underthe Pre-82 Plan.

A2.119 Pre-82 Participant. A person whohas a Vested benefit under the Pre-82 Plan by his or herAnnuity Starting Date in accordance with SectionS1.2.2.



A2.120 Pre-82 Plan. A synonym forSupplement One to MPP, which has been amended,restated, and preserved in Supplements One and Two to,and Part A of, the Program.

A2.121 Pre-82 Plan Vesting Service.(a) In the case of:(i) Local Pastors and ordained ministers of

another denomination within the meaning of ¶¶ 346.2 or346.3 of the Discipline:

(A) service with pension credit before 1982; and/or(B) full years of service with full participation in

CPP (as provided in Section A2.121(d) below) after1981; and

(ii) All other Pre-82 Participants (not covered inSection A2.121(a)(i)):

(A) service Under Episcopal Appointment in aConference, including full years served as a Full-TimeLocal Pastor (within the meaning of ¶¶ 318 and 318.1 ofthe Discipline) with pension credit before having beenadmitted as an Associate Member, affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, Provisional Member, or Elder in FullConnection; or

(B) periods of service in the ordained ministry ofanother denomination to the extent that such denomina-tion grants pension rights in its plan for such service.

(b) Pre-82 Plan Vesting Service will be measuredin 12-month periods or the sum of equivalent partialperiods (measured by days).

(c) In no case will a Pre-82 Participant’s Pre-82Plan Vesting Service be less than he or she had earned onthe Effective Date.

(d) A Pre-82 Participant’s “full participation inCPP” is CPP participation:

(i) during the period from January 1, 1982,through December 31, 1984, for a Plan Year duringwhich:

(A) the required MPP Plan Sponsor Contributionsfor the Pre-82 Participant were made at the contributionrate elected by the Annual Conference; or

(B) a pension supplement was credited to the MPPchurch account (as provided in CPP) of the Pre-82Participant for the Plan Year; or

(ii) for Plan Years after 1984, for a full year of CPPparticipation, based on the following formula to deter-mine fractional years of such participation:

(A) any period of up to and including 45 days willnot be counted;

(B) 46 days up to and including 136 days will becounted as one-quarter of a year;

(C) 137 days up to and including 228 days will becounted as one-half of a year;

(D) 229 days up to and including 319 days will becounted as three-quarters of a year;

(E) 320 days up to and including 365 days will becounted as one year.

Days of participation are days for which a CPPchurch contribution (within the meaning of CPP) wasmade on behalf of a Pre-82 Participant.

A2.122 Pre-82 Sponsor. Any of the followingentities that are responsible to fund the Pre-82 Plan withrespect to Pre-82 Participants:

(a) who are or were members of an AnnualConference, such Annual Conference; and

(b) with service rendered in a missionary confer-ence (as described in ¶¶ 585-588 of the Discipline), pro-visional annual conference (as described in ¶¶ 580-583of the Discipline), or former mission (within the mean-ing of ¶¶ 590-591 of the Discipline) within the UnitedStates, which has been approved by such entities for pre-1982 pension credit, one or more of the following inaccordance with their mutual agreement:

(i) the missionary conference (as described in¶¶ 585-588 of the Discipline), provisional annual con-ference (as described in ¶¶ 580-583 of the Discipline), orformer mission (within the meaning of ¶¶ 590-591 of theDiscipline) concerned;

(ii) the General Board with funds provided byGCFA; and

(iii) the General Board of Global Ministries,National Division (now the Mission Personnel ProgramArea of the General Board of Global Ministries,described in ¶ 1313.6 of the Discipline).

A2.123 Prior Plans. The Ministers ReservePension Fund, the Partial Reserve Pension Fund, theLocal Pastors Reserve Pension Fund, the Senior Plan,the Ministers Reserve Pension Plan, and the CurrentIncome Distribution Pension Plan.

A2.124 Program. This Clergy RetirementSecurity Program, i.e., the aggregate of the Parts,Supplements, and Adoption Agreements described inSection A1.3, as they may be amended from time to time.

A2.125 Provisional Member. A personelected to provisional membership in an AnnualConference within the meaning of ¶ 324 of theDiscipline; formerly called a probationary member.

A2.126 QDRO. A qualified domestic rela-tions order in accordance with Code §414(p), approvedby the Administrator in accordance with Section A3.12.

A2.127 Recipient. A Participant, TerminatedParticipant, Beneficiary, Contingent Annuitant, orAlternate Payee who has an Accrued Benefit under, orwho is receiving or is entitled to receive all or a portionof a benefit due under, the Consolidated DB Plan or any



of its components or is receiving or is entitled to receivean annuity payment under one of the Supplements.

A2.128 Regulation. Any applicable regula-tion, including proposed and temporary regulations,issued by the Department of the Treasury or InternalRevenue Service that is codified at Title 26 of the Codeof Federal Regulations. Where a reference is made totemporary or proposed regulations, such reference willinclude any permanent regulations, modified proposedregulations, or temporary regulations issued in lieuthereof.

A2.129 Related Defined Benefit Plan. Anydefined benefit plan (as defined in Code §414(j)) otherthan the Consolidated DB Plan that is maintained by aPlan Sponsor or any Affiliate.

A2.130 Relinquish. The permanent renuncia-tion of a benefit by a Recipient or an Accountholder sothat it does not pass to a Beneficiary or successor.Relinquished benefits are forfeited under Sections B7.2,C7.2, S1.4.9, and S3.4.9.

A2.131 Required Beginning Date. Subject toCode §401(a)(9), in the case of a:

(a) Participant or Terminated Participant, April 1of the calendar year following the later of:

(i) the calendar year in which a Participant Retiresor the Terminated Participant incurs a Termination ofConference Relationship, or

(ii) the calendar year in which the Participant orTerminated Participant attains the age of 70½.

(b) Beneficiary who is not the Participant’s orTerminated Participant’s surviving Spouse, December31 of:

(i) the calendar year following the calendar yearof the Participant’s or Terminated Participant’s death, ifbenefits are payable over the remaining life or lifeexpectancy of such Beneficiary; or otherwise


(c) Beneficiary who is the Participant’s orTerminated Participant’s surviving Spouse:

(i) if benefits are payable over the remaining lifeor life expectancy of such surviving Spouse, then byDecember 31 of the later of:


(B) the calendar year in which the Participant orTerminated Participant would have attained age 70½; orotherwise

(ii) December 31 of the calendar year containingthe fifth anniversary (not including Distribution

Calendar Year 2009) of the Participant’s or TerminatedParticipant’s death.

A2.132 Retire or Retirement. In the case of a:(a) Participant (other than a Bishop), to be placed

in the retired relation in accordance with ¶ 358 of theDiscipline or the condition of being in the retired rela-tion;

(b) Terminated Participant, applying for a distribu-tion under the Core Defined Benefit Plan on or aftersuch Terminated Participant’s 62nd birthday; or

(c) Participant who is a Bishop, to have the statusof a retired bishop in accordance with ¶¶ 408.1, 408.2,or 408.3 of the Discipline.

A2.133 Retirement Date. The date on whicha Participant or Terminated Participant Retires.

A2.134 Salary-Paying Unit. Any one of thefollowing units associated with The United MethodistChurch:

(a) Commission on the General Conference, asspecified in ¶ 511 of the Discipline;

(b) a General Agency;(c) a Jurisdictional Conference;(d) a Conference;(e) a Conference board, agency, or commission;(f) a Local Church located in a Conference; or(g) any other entity to which a Clergyperson

Under Episcopal Appointment is appointed.A2.135 Section. Any article, section, subsec-

tion, paragraph, subparagraph, clause, or other portionof this Program.

A2.136 Separation From Covered Service.A Participant ceasing to be Under Episcopal Appointmentin any capacity that is covered by any Plan Sponsorunder Section B1.1, including by reason of:

(a) Retirement;(b) incurring an unpaid Leave of Absence from

which the Participant does not return within the author-ized period (in which case the Separation From CoveredService will date from the start of such Leave ofAbsence);

(c) being Appointed to a Salary-Paying Unit that isnot covered by a Plan Sponsor;

(d) incurring a Termination of ConferenceRelationship; or

(e) the death of the Participant.A2.137 Service. A period of time during which

a Clergyperson is:(a) an active member of any Conference (within

the meaning of ¶ 602 of the Discipline) Under EpiscopalAppointment; or

(b) a Bishop who is assigned in accordance with¶ 406 of the Discipline.



A2.138 Service Annuity. As used inSupplement One, the Service Annuity Accumulation con-verted on an Actuarially Equivalent basis to a monthlyannuity for the life of the Participant or the joint lives ofthe Participant and his or her Contingent Annuitant,payable as of the first of each month during such period.

A2.139 Service Annuity Accumulation. Asused in Supplement One, the sum of the amount stand-ing to the credit of a Participant as of December 31,1981, in such Participant’s reserve account under thePrior Plans, based on contributions made by the applica-ble Conference or Salary-Paying Unit on behalf of theParticipant and interest credited thereon before January1, 1982, and the amount of interest credited thereon afterDecember 31, 1981, by the Trustee.

A2.140 70% Pre-Retirement SurvivorBenefit. A monthly benefit payable in accordance withSection B9.3(a)(ii)(B) to the surviving Spouse of aParticipant or Terminated Participant who died beforebeginning his or her Early, Normal, or Late RetirementBenefit.

A2.141 Single-Life Annuity. An Early, Normal,or Late Retirement Benefit payable as a monthly annu-ity to a Participant or Terminated Participant, beginningat such Participant’s or Terminated Participant’s AnnuityStarting Date and ending with the payment made on thefirst of the month in which he or she dies, with no fur-ther benefit payable to anyone thereafter.

A2.142 Spouse. The husband or wife or sur-viving husband or wife of a Recipient or an Account-holder who is legally married to such Recipient orAccountholder, or was so legally married on the date ofthe Recipient’s or Accountholder’s death, under the lawsof the jurisdiction where the Recipient or Accountholderresides or resided. Notwithstanding the foregoing, theterm “Spouse” will not include common law spouses,even in states that recognize common law marriage.

A2.143 Supplement. Supplement One, Supple-ment Two, Supplement Three, or any other supplementto this Program.

A2.144 Supplement One. The partially frozenpredecessor plan to MPP, also known as the Pre-82 Planand the Ministers Reserve Pension Fund, which,together with the other Prior Plans, was merged intoMPP and has been preserved as Supplement One to theProgram.

A2.145 Supplement Two. Supplement Two toMPP, which has been preserved as Supplement Two tothe Program.

A2.146 Supplement Three. A frozen versionof MPP, which has been preserved as Supplement Threeto the Program.

A2.147 Termination of Conference Relation-ship. A Participant ceasing to be a member of anyConference, including by reason of:

(a) being honorably located within the meaning of¶ 359 of the Discipline;

(b) being administratively located within themeaning of ¶ 363.3 of the Discipline;

(c) the Participant’s withdrawal within the mean-ing of ¶ 360 of the Discipline;

(d) the surrender of his or her ministerial creden-tials within the meaning of ¶¶ 360.3 and 2719.2 of theDiscipline;

(e) the surrender of his or her Local Pastor’slicense within the meaning of ¶ 320 of the Discipline; or

(f) a penalty assessed by a trial court within themeaning of ¶ 2711.3 of the Discipline.

A2.148 Terminated Participant.(a) Participants. A person who has been a

Participant, but who has incurred a Termination ofConference Relationship, or, in the case of a ProvisionalMember, Associate Member, affiliate member within themeaning of ¶¶ 344.4, 369.1, or 586.4 of the Discipline,Local Pastor, or Deacon in Full Connection (or somecombination in the case of a Clergyperson who changesclassification), who has incurred a Five-Year No Recordof Appointment.

(b) Bishops. In the case of a former Bishop, a per-son who has been a Participant but who has resigned inaccordance with ¶ 408.4 of the Discipline or beenremoved in accordance with ¶¶ 2704.1, 2711.3, or 2712of the Discipline; provided, in either case, that such for-mer Bishop does not return to being a non-BishopClergyperson (in which case termination will be basedon the previous sentence of this Section A2.148).

(c) Non-Jurisdictional Clergy. A Non-JurisdictionalClergyperson who has terminated his or her membershipwith all Central Conferences and The Puerto RicoMethodist Church without having become a member ofany Conference (or otherwise becoming covered underthe Core Defined Benefit and Core Defined ContributionPlans).

(d) Other Clergy. An Other DenominationClergyperson or Other Methodist DenominationClergyperson who has been classified by the PlanSponsor he or she was serving as discontinued or havingno record of Appointment.

A2.149 Trust. The trust or trusts, includingthe Pension Trust of The United Methodist Church,established to fund benefits provided under the Program,as provided in Section A1.6. The term “Trust” alsoincludes, as applicable, any insurance contract pur-chased to fund benefits under the Program.



A2.150 Trustee. The UMC Benefit Board, Inc.,an Illinois not-for-profit corporation, or any successor.

A2.151 UMPIP. The United MethodistPersonal Investment Plan or any successor plan.

A2.152 Under Episcopal Appointment. Thecondition of a Clergyperson who is Appointed by theBishop of the Conference such Clergyperson is serving.

A2.153 USERRA. The Uniformed ServicesEmployment and Re-employment Rights Act of 1994,including pension benefits provided in accordance withCode §414(u). Effective January 1, 2009, references to“USERRA” include the Heroes Earnings Assistance andRelief Tax Act of 2008 (the “HEART Act”) and servicepersons covered thereby, including recognition of con-tributions and benefits due under USERRA toParticipants who are treated as though they returned towork on the day before military-related death or disabil-ity, as provided under the HEART Act.

A2.154 Valuation Account Balance. TheAccount Balance as of the last Accounting Date in theValuation Calendar Year, increased by the amount of anyContributions made and allocated or forfeitures allo-cated to the Account Balance as of dates in the ValuationCalendar Year after such Accounting Date (if any) anddecreased by any distributions made as of dates in theValuation Calendar Year after such Accounting Date.The Valuation Account Balance for the ValuationCalendar Year includes any amounts rolled over or trans-ferred to the Plan, either in the Valuation Calendar Yearor in the Distribution Calendar Year if distributed ortransferred in the Valuation Calendar Year.

A2.155 Valuation Calendar Year. The calen-dar year immediately preceding the DistributionCalendar Year.

A2.156 Vested. The nonforfeitable portion ofany Account or benefit, except as provided in SectionsB7.2, C7.2, S1.4.9, and S3.4.9.

A2.157 Year of Credited Service. CreditedService earned while serving a Full-Time Appointmentfor a 12-month period (or the sum of equivalent partialperiods of Credited Service (measured by days)).

SECTION A3—PLAN ADMINISTRATION

A3.1 General Fiduciary Standard ofConduct. Each fiduciary under this Program will dis-charge his or her duties hereunder solely in the interestof the Recipients and Accountholders and for the exclu-sive purpose of providing benefits to the Recipients andAccountholders and defraying the reasonable expensesof administering the Program and the Trust. Each fidu-ciary will act with the care, skill, prudence, and dili-gence under the circumstances then prevailing that a

prudent person, acting in a like capacity and familiarwith such matters, would use in the conduct of an enter-prise of a like character and with like aims, in accor-dance with the documents and instruments governingthe Program and the Trust, insofar as such documentsand instruments are consistent with this standard.

A3.2 Allocation of Responsibility AmongFiduciaries. The fiduciaries will have only those spe-cific powers, duties, responsibilities, and obligationsspecifically delegated to them under this Program. EachPlan Sponsor, the Administrator, the Trustee, and anyinvestment manager will each be a fiduciary to theextent that such entity determines benefits payable underthe Program or controls or influences the investment ofthe assets of the Program. The Administrator may dele-gate fiduciary duties (other than the Trustee’s duties) topersons other than the fiduciaries specified in the pre-ceding sentence, and may approve any allocation offiduciary duties among fiduciaries. If there is more thanone Trustee, they may enter into agreements amongthemselves with respect to the allocation of the Trustee’sresponsibilities with the consent of the Administrator.ERISA will not apply to this Program if, when, and forso long as it qualifies as a Church Plan.

A3.3 Administrator. The Administrator ofthe Program is the General Board. The Administratorwill be the “plan administrator” as defined in Code§414(g). The Administrator will have the duty to filesuch plan documents and annual reports as may berequired by ERISA (if any, and if ERISA applies) orsimilar legislation and will be designated to accept serv-ice of legal process and any other notices for theProgram. The Administrator or the Plan Sponsor willfurnish each Participant with a summary plan descrip-tion, a summary annual report (if applicable, and ifERISA applies), and all other notices and other docu-ments required by ERISA (if any, and if ERISA applies),the Code, or the Program. The Administrator may resignon reasonable written notice given to the Plan Sponsors,who will then (and only then) have the right to appointanother Administrator by majority vote, with one votefor each of their Participants on the day theAdministrator’s resignation was effective.

A3.4 Powers, Authority, and Duties ofAdministrator. The primary responsibility of theAdministrator is to administer the Program for theexclusive benefit of the Recipients and Accountholders,subject to the terms of the Program. The Administratorwill administer the Program in accordance with its termsand will have the power and discretion to construe theterms of the Program and to determine all questions aris-ing in connection with the administration, interpretation,



and application of the Program. Any such determinationby the Administrator will be conclusive and bindingupon all persons. The Administrator, in addition to allpowers and authorities under common law, statutoryauthority, and other provisions of the Program, will havethe following powers and authorities, to be exercised inthe Administrator’s sole discretion:

(a) to establish procedures, correct any defect,supply any information, or reconcile any inconsistencyin such manner and to such extent as may be deemednecessary or advisable to carry out the purpose of theProgram;

(b) to determine all questions relating to the eligi-bility of a Clergyperson to participate or remain aParticipant hereunder and to receive benefits under theProgram;

(c) to compute, certify, and direct the Trustee withrespect to the amount and the kind of benefits to whichany Recipient or Accountholder may be entitled hereun-der and to prescribe procedures to be followed byRecipients and Accountholders when applying for bene-fits;

(d) in its sole discretion, to construe and interpretthe Program and make and publish such administrativerules or regulations relating to the Program as are con-sistent with the terms hereof, and to resolve or otherwisedecide matters not specifically covered by the terms andprovisions of the Program;

(e) to maintain all necessary records for theadministration of the Program;

(f) to file, or cause to be filed, all such annualreports, returns, schedules, descriptions, financial state-ments and other statements as may be required by anyfederal or state statute, agency, or authority;

(g) to obtain from the Plan Sponsors, Clergy,Recipients, and Accountholders such information asmay be necessary to the proper administration of theProgram;

(h) to specify actuarial assumptions and methodsfor use in determining contributions to and benefitsunder the Core Defined Benefit Plan, Supplement One,or any other part of the Program;

(i) to assist any Recipient or Accountholder tounderstand his or her rights, benefits, or elections avail-able under the Program;

(j) to construe and interpret the provisions of theProgram; to decide the validity of any election or desig-nation made under the Program, and the amount, man-ner and time of any allocation to accounts or payment ofany benefits hereunder; and to make factual determina-tions necessary or appropriate for such decisions ordetermination;

(k) to prepare and distribute information explain-ing the Program;

(l) to appoint or employ advisors, including legaland actuarial counsel (who may also be counsel to theTrustee) to render advice with regard to any responsibil-ity of the Administrator under the Program or to assist inthe administration of the Program;

(m) to select annuity providers to provide benefitsfrom the Program;

(n) to designate in writing other persons to carryout a specified part or parts of its responsibilities here-under (including this power to designate other persons tocarry out a part of such designated responsibility). Anysuch designation must be accepted by the designatedperson who will acknowledge in writing that he, she, orit is a fiduciary with respect to the Program. Any suchperson may be removed by the Administrator at any timewith or without cause;

(o) to adopt reasonable procedures for determiningwhether any order, judgment, or decree constitutes aQDRO and to notify the Participant and all AlternatePayees as to the results of its determination;

(p) to the extent permitted under the agreementestablishing the Trust, to direct the Trustee with respectto the investments of the Trust;

(q) to furnish the Plan Sponsors, upon request,with such annual reports with respect to the administra-tion of the Program as are reasonable and appropriate;

(r) to receive, review, and keep on file (as it deemsconvenient and proper) reports of benefit and expensepayments made by the Trustee; and

(s) to do all other acts that the Administratordeems necessary or proper to accomplish and implementits responsibilities under the Program.

Any rule or procedure adopted by the Administrator,or any decision, ruling, or determination made by theAdministrator, in good faith and in accordance withapplicable fiduciary standards will be final, binding, andconclusive on all Plan Sponsors, Recipients, andAccountholders and all persons claiming through them.The Administrator has discretionary authority to grant ordeny benefits under this Program. Benefits under thisProgram will be paid only if the Administrator decidesin its discretion that the applicant is entitled to them.Rules and procedures adopted by the Administrator mayvary any provision of the Program that is administrativeor ministerial in nature (including the time provided forperforming any act, if not required by law), without thenecessity of a formal amendment.

A3.5 Records and Reports. The Administratorwill keep a record of all actions taken and will keep allother books of account, records, and other data that may



be necessary for proper administration of the Programand will be responsible for supplying all information andreports to appropriate government entities, Recipients,Accountholders, and others as required by law.

A3.6 Duties of Each Plan Sponsor. EachPlan Sponsor will assume the following duties withrespect to each Plan:

(a) to determine eligibility and enroll EligibleClergy as provided in each Plan within 60 days of satis-fying the eligibility requirements of each Plan;

(b) to maintain records of a Participant’s Service;(c) to provide the Administrator with notice within

90 days of a Participant’s Separation From CoveredService or any Break in Service;

(d) to calculate and maintain records of aParticipant’s Compensation and to provide to theAdministrator upon request appropriate records reflect-ing such Compensation, such as W-2s;

(e) to calculate and remit Contributions to theAdministrator or Trustee as provided in each Plan;

(f) to provide the Administrator with the statisticaldata and other statistical information satisfactory to theAdministrator, within a reasonable time after a requestby the Administrator, sufficient to enable theAdministrator to discharge its duties under each Plan;

(g) to register with and report to government agen-cies, as appropriate;

(h) to comply with any nondiscrimination or othergovernment testing that may be required by applicablelaw;

(i) to properly notify Clergypersons of their rightsand obligations under each Plan (including notice oftheir eligibility under each Plan); and

(j) to execute an Adoption Agreement indicatingany elections regarding optional Plan provisions and anyother information called for by the Adoption Agreement.

A3.7 Fees and Expenses. All expensesincurred by the Administrator and Trustee in connectionwith the administration of the Program will be paid bythe Program, the applicable Plan, or the Trust.

(a) The Trustee has the authority to determineadministrative and expense charges and the methods forapplying such charges.

(b) The Trustee is authorized to deduct from theProgram’s or each Plan’s reserves, funds, contributions,and/or earnings thereon, the expenses and fees necessaryor appropriate to the administration of the Programor that Plan, including an allocable share of theAdministrator’s operating expenses.

(c) The Administrator is authorized to determinea reasonable charge for providing non-routine reportsand services for Plan Sponsors, Recipients, and

Accountholders and to require the Plan Sponsor,Recipient, or Accountholder to pay separately for suchnon-routine reports and services.

A3.8 Attorney Fees and Costs. The Trusteemay assess, to the extent permitted by law, against theProgram’s or Trust’s assets, reasonable attorney fees andcharges to reimburse the Administrator or Trustee forexpenses related to the Program incurred by theAdministrator or Trustee in responding to pleadings,retaining counsel, entering an appearance, or defendingany case related to the Program in any action at law, ifthe Administrator or Trustee is served with a levy, sub-poena, summons, or other similar pleading by theInternal Revenue Service or by any other party, includ-ing the parties to marital litigation, in litigation or legalproceedings in which the Administrator or Trustee is nota party, or is made a party.

A3.9 Delegation of Authority. The Adminis-trator may authorize one or more of its employees, orone or more agents, to carry out its administrative duties,and may employ such counsel, auditors, and other spe-cialists and such clerical, actuarial, and other services asit may require in carrying out the provisions of thisProgram. The Administrator may rely on any certificate,notice, or direction, oral or written, purporting to havebeen signed or communicated on behalf of a PlanSponsor, a Recipient, an Accountholder, or others thatthe Administrator believes to have been signed or com-municated by persons authorized to act on behalf of thePlan Sponsor, Recipient, Accountholder, or others, asapplicable. The Administrator may also rely on anypower of attorney, guardianship document, or similardocument that it believes to be genuine and operative.The Administrator may request instructions in writingfrom a Plan Sponsor, Recipient, Accountholder, or oth-ers, as applicable, on other matters, and may rely and actthereon. The Administrator may not be held responsiblefor any loss caused by its acting upon any notice, direc-tion, or certification of a Plan Sponsor, a Recipient, anAccountholder, or others, that the Administrator reason-ably believes to be genuine and communicated by anauthorized person.

A3.10 Indemnification by Plan Sponsors.Each Plan Sponsor will indemnify the Administrator, theTrustee, and any other person or persons to whom thePlan Sponsor, Trustee, or Administrator has delegatedfiduciary or other duties under the Program for, and holdthem harmless from and against, any and all claims,damages, liabilities, losses, costs, and expenses (includ-ing reasonable attorneys fees and all expenses reason-ably incurred in their defense if the Plan Sponsor fails toprovide such defense) of whatsoever kind and nature



that may be imposed on, incurred by, or asserted againstthem at any time by reason of such Plan Sponsor’s fail-ure reasonably to fulfill its duties under Section A3.6 orany other provision of the Program. This provision willsurvive the termination of the Program and the termina-tion of a Plan Sponsor’s participation in the Program asto events that occurred while the Plan Sponsor was par-ticipating in the Program.

A3.11 Claims Procedure. The followingclaims and appeals procedures are subject to any addi-tional rules or procedures that the Administrator mayadopt from time to time that are not inconsistent herewith:

(a) Filing of Claim. A claim for benefits under anyPlan must be filed by a Claimant with the Administratoron a form supplied by the Administrator within one yearafter the later of:

(i) the events giving rise to the claim occurred, or(ii) the Claimant knew or should have known of

the facts or events giving rise to the claim,or the Claimant will be deemed to have waived his

or her right to make a claim or to pursue any other rem-edy, including filing a lawsuit. Notwithstanding the fore-going, a Recipient or an Accountholder is not required toapply for or begin the receipt of benefits under theProgram until his or her Required Beginning Date(except in the case of a small amount cashout). Writtennotice of the disposition of a claim will be sent to thePlan Sponsor and to the Claimant within 45 days afterall required forms and materials related to the claim havebeen filed. If special circumstances require an extensionof time, written notice of the extension will be furnishedto the Claimant, and written notice of the disposition ofa claim will be sent within an additional 90 days.

(b) Denial of Claim. If any claim for benefitsunder a Plan is wholly or partially denied, theAdministrator will send the Claimant written notice of thedenial, within the period specified in Section A3.11(a)above, written in a manner calculated to be understoodby the Claimant, setting forth the following information:

(i) the specific reason(s) for such denial;(ii) specific reference to any pertinent Plan provi-

sion(s) on which the denial is based;(iii) a description of any additional material or

information necessary for the Claimant to perfect theclaim and an explanation of why such material or infor-mation is necessary; and

(iv) an explanation of the Program’s appeals proce-dures.

(c) Appeal of Denial. If a Claimant is denied ben-efits under Section A3.11(b), the Claimant has the rightto appeal the decision within 90 days after the date of theclaim denial, in accordance with the following procedures:

(i) Intermediate Appeals Procedure. TheAdministrator will establish an intermediate appealsprocedure containing no more than a three-level process.

(ii) Final Appeals Procedure.(A) If the Claimant wishes to appeal the denial of

benefits under Section A3.11(c)(i), the Claimant mustfile with the Final Appeals Committee a written appealand supporting documents, using any form required bythe Administrator for the purpose, within 90 days afterthe date of the denial issued under Section A3.11(c)(i).Such an appeal may be addressed to the Administrator orin care of the person or persons specified in the notice ofdenial issued under Section A3.11(c)(i).

(B) A timely filed appeal will be heard by the FinalAppeals Committee at its next meeting, unless addi-tional time is needed for processing, in which case theClaimant will be so notified and the appeal will be heardat the following meeting of the Final AppealsCommittee. Appeals or documents filed fewer than 30days before the next meeting of the Final AppealsCommittee will not be considered by the Final AppealsCommittee except by its leave and discretion.

(C) The Claimant or a representative of the PlanSponsor may request permission to appear personally orby teleconference before the Final Appeals Committee topresent evidence with respect to the claim, subject to con-ditions and time limitations set by the Final AppealsCommittee, but the expense for any such personal appear-ance must be borne by the Claimant or the Plan Sponsor.

(D) The Final Appeals Committee will decide aClaimant’s appeal, and its decision will be final. Thedecision will be implemented by the Administrator.

(E) The Claimant will be given written notice of thedecision on appeal. If the decision is a denial, such noticewill include specific reason(s) for the decision, written ina manner calculated to be understood by the Claimant, andspecific reference to any pertinent Plan provision(s) onwhich the decision is based. Such written notice will bemailed to the claimant by the Administrator within 15 daysfollowing the decision by the Final Appeals Committee.

(iii) Appeals Committees.(A) The Intermediate Appeals Committee is a com-

mittee appointed by the Administrator.(B) The Final Appeals Committee of the

Administrator is a committee of the Board of Directorsof the General Board that is selected from time to timeby that Board.

(C) Each of the Intermediate Appeals Committeeand the Final Appeals Committee may develop rules andprocedures to govern its own meetings and actions andthe filing and decision of claim appeals by Claimants.

(D) Any failure by either appeals committee to



decide a claim appeal by the deadline for such a decisionwill be deemed a denial of the claim. The Claimant maythen proceed to the next step of the procedure.

(E) Any failure by the Claimant to appeal anyclaim denial by the deadline for doing so will be deemedto be a final resolution of the claim, and the Claimantwill be deemed to have waived his or her right to file anappeal or a further appeal or to pursue any other remedy,including filing a lawsuit.

(d) Appeal a Condition Precedent to Civil Action.No cause of action in civil law with respect to anyalleged violation of the terms and conditions of thisProgram may be commenced or maintained by anyClaimant, Recipient, or Accountholder unless and untilsuch Claimant, Recipient, or Accountholder has initiatedand completed the claim and appeal process as set forthin Sections A3.11(a) and (c). Any such cause of actionmust be filed with a court of competent jurisdictionwithin six months of the date on the written notice ofdenial described in Section A3.11(c)(ii)(E) or such causeof action will be deemed waived; provided, however,that such six-month limit will apply only if it isdescribed in such notice of denial.

A3.12 Qualified Domestic Relations Orders.The provisions of Section A4.2 notwithstanding, all orpart of a Participant’s Vested benefits arising under thisProgram may be transferred to one or more AlternatePayees on the basis of a “qualified domestic relationsorder,” as that term is defined in Code §414(p), providedthat: (1) such order was issued by a court having juris-diction over the Administrator; or (2) such order wasentered by any other court and the Administrator, in itssole discretion, determines that the order is a QDRO.

(a) When appropriate, the Administrator will pro-vide a Participant involved in marital litigation withinformation regarding the nature and value of theParticipant’s benefits and will assist the Participant andthe court in interpreting that information.

(b) The Administrator will maintain a written pro-cedure to determine the qualified status of domestic rela-tions orders and to administer distributions under suchqualified orders. Such procedure will provide that dur-ing the period in which a determination is being madewith respect to the qualified status of an order receivedby the Administrator and for 30 days thereafter:

(i) the Administrator will direct the Trustee to seg-regate and separately account for any sums payable tothe Participant that the order requires to be paid to theAlternate Payee; and

(ii) the Participant will be prohibited from electingto receive any distribution that would compromise therights granted to the Alternate Payee by the order, with-

out the Alternate Payee’s written consent.(c) Neither the Alternate Payee nor any person

claiming through the Alternate Payee will have the right totransfer benefits to another Alternate Payee. The benefitstransferred pursuant to a QDRO will be administered inaccordance with the provisions of this Program. For thepurpose of determining eligibility to receive benefits trans-ferred to an Alternate Payee, the Alternate Payee will haveall of the rights and duties of a fully Vested Participant whohas incurred a Termination of Employment, to the exclu-sion of any claim thereto on the part of the Participant.

(d) A subpoena or other instrument of judicialprocess that:

(i) is directed to the Administrator, its constituentcorporations, or its officers or employees;

(ii) appears on its face to be issued in the course ofmarital litigation to which a Participant is a party; and

(iii) seeks information regarding the nature or valueof the Participant’s pension benefits, may be honored bythe Administrator, in its sole discretion, without inter-posing any defense on the grounds of technical or juris-dictional defect.

(e) The Administrator may charge to the Programits costs of handling QDROs, including, but not limitedto, attorneys’ fees, litigation expenses, and a reasonablecharge for its services in connection therewith.

SECTION A4—GENERAL PROVISIONS

A4.1 Rules and Forms. The Administratorwill have the authority and responsibility to:

(a) adopt rules, regulations, and policies for theadministration of this Program, in all matters not specif-ically covered by General Conference legislation or byreasonable implication; and

(b) prescribe such forms and records as are neededfor the administration of the Program.

A4.2 Non-Alienation of Benefits. No benefitspayable at any time under the Program will be subject inany manner to alienation, sale, transfer, pledge, attach-ment, garnishment, or encumbrance of any kind, exceptas provided below. Any attempt to alienate, sell, transfer,assign, pledge, or otherwise encumber such benefit,whether presently or thereafter payable, will be void,except as provided below. No benefit nor any fund underthe Program will in any manner be liable for, or subjectto, the debts or liabilities of any Accountholder,Recipient, or other person entitled to any benefit, except:

(a) as provided in Section A3.12 (relating toQDROs);

(b) as provided in a levy in favor of the IRS to theextent required by Regulations;

(c) to the extent required under the Mandatory



Victims Restitution Act of 1996 (18 U.S.C. §3663A);(d) for the payment of retiree or Disabled

Participant health plan premiums;(e) to the extent that such Accountholder, Recipient,

or other person has received an overpayment under anyother plan administered by the Administrator; or

(f) to the extent that such Accountholder,Recipient, or other person has made a voluntary and rev-ocable assignment:

(i) in a writing filed with, and accepted by, theAdministrator;

(ii) that is acceptable to the Administrator in itssole discretion; and

(iii) after such assigned benefit is due and payableunder the terms of the Program, including the makingof any elections and submission of any applica-tions required of the Accountholder, Recipient, or otherperson.

A4.3 Non-Reversion. All amounts con-tributed to a Plan by a Plan Sponsor are irrevocable con-tributions except to the extent provided below. The PlanSponsors have no right, title, or interest in the assets ofa Plan or the Trust and no portion of the Trust or theassets of a Plan or interest therein may at any time revertto or be repaid to the Plan Sponsors, except as otherwiseprovided below:

(a) Upon termination of the Consolidated DBPlan, any assets remaining, after the satisfaction of allfixed and contingent liabilities by the payment of allsuch liabilities due, the transfer, merger, or spinoff ofsuch liabilities and appropriate assets to another plan,and/or the annuitization of any remaining liabilities withan insurance or annuity provider selected by theAdministrator, may revert to the Plan Sponsors as pro-vided in Section A5.2; and

(b) If a contribution is made to a Plan by the PlanSponsor by a mistake of fact, then such contribution willbe returned to the Plan Sponsor (adjusted for any gainsor losses) if:

(i) the Plan Sponsor sends a written request for itsreturn to the Administrator within one year after the con-tribution was made;

(ii) the Plan Sponsor documents such mistake tothe satisfaction of the Administrator; and

(iii) the Administrator has not yet distributed suchcontribution (or the portion sought to be returned).

Contributions to the Core Defined Benefit Plan willnot be considered a mistake of fact unless they bringfunding to a level that is at least 110% of the actuariallyappropriate amount, as determined by the Administrator,of funding for that Plan Year. Refunds to a Plan Sponsorfrom an Accountholder’s Core Defined Contribution

Plan Account will reduce that Account accordingly.(c) If a Contribution is made to the Program by a

Plan Sponsor that the Administrator determines within 30days is an error or a mistake, the Administrator may refusethe payment as a Contribution to the Program and returnthe payment (or an amount equal to it) to the Plan Sponsor.

A4.4 Construction. The Program and each ofits provisions will be construed under, and their validitydetermined by, the laws of the State of Illinois, otherthan its laws respecting choice of law, to the extent suchlaws are not preempted by any federal law.

A4.5 Limitation of Liability. All benefitshereunder are contingent upon, and payable solely fromthe assets of the Trust, which derive from such contribu-tions as may be received by the Trustee and the invest-ment results of the Trustee. No financial obligations,other than those that can be met by the contributionsactually received and the investment results, reduced byany of the Administrator’s or Trustee’s expenses orcharges against the Trust’s assets, will be assumed bythe Administrator or the Trustee. To the extent that assetsof a Plan attributable to a Recipient or an Accountholderhave been transferred to a separate dedicated trust, allbenefits to which the Recipient or Accountholder is enti-tled under that Plan will be provided only out of suchtrust and only to the extent the trust is adequate therefor.Further, if the Trustee segregates Trust assets by Planwithin the Program, all benefits to which a Recipient oran Accountholder is entitled under that Plan will be pro-vided only out of such segregated portion of the Trustand only to the extent such segregated portion is ade-quate therefor. Neither the Administrator, nor theTrustee, nor their officers, employees, contractors, oragents will be personally responsible or otherwise liablefor the payment of any benefits hereunder.

A4.6 Alternative Dispute Resolution. If adispute arises out of or related to the relationshipbetween the Plan Sponsor and the Administrator orTrustee, the parties agree first to try in good faith to set-tle the dispute by mediation through the AmericanArbitration Association, or another media-tion/arbitration service mutually agreed upon by the par-ties, before resorting to arbitration. Thereafter, anyremaining unresolved controversy or claim arising outof or relating to the relationship between the PlanSponsor and the Administrator or Trustee will be settledby binding arbitration through the American ArbitrationAssociation, or the other mediation/arbitration servicemutually agreed upon by the parties.

(a) The site of the mediation and/or arbitrationwill be in a city mutually agreed to by the parties.

(b) The laws of the State of Illinois will apply in



situations where federal law is not applicable. The appli-cable rules of the selected arbitration service will apply.If the service allows the parties to choose the number ofarbitrators, unless another number is mutually agreed to,any arbitration hereunder will be before three arbitra-tors. The award of the arbitrators, or a majority of them,will be final. Judgment upon the award rendered may beentered in any court, state or federal, having jurisdiction.

(c) The fees and costs for mediation will be borneequally by the parties. The fees and costs of arbitrationwill be allocated to the parties by the arbitrators.

A4.7 Titles and Headings. The titles andheadings of the Sections of this instrument are placedherein for the convenience of reference only, and in thecase of any conflicts, the text of this Program, ratherthan the titles or headings, will control.

A4.8 Number and Gender. Wherever usedherein, the singular includes the plural and the pluralincludes the singular, except where the context requiresotherwise. Similarly, the male includes the female andvice versa.

A4.9 USERRA. Notwithstanding any provi-sion of the Program to the contrary, contributions, bene-fits, and Service credit with respect to qualified militaryservice will be provided in accordance with USERRA.

A4.10 Participant, Beneficiary, Recipient,and Accountholder Duties. Each person entitled tobenefits under the Program must file with theAdministrator and Plan Sponsor from time to time suchperson’s post office address and each change of postoffice address. Failure to do so may result in the forfei-ture of benefits otherwise due under the Program.

A4.11 Adequacy of Evidence. Evidence thatis required of anyone under the Program must be exe-cuted or presented by proper individuals or parties andmay be in the form of certificates, affidavits, documents,or other information that the person acting on such evi-dence considers pertinent and reliable.

A4.12 Notice to Other Parties. A noticemailed first class, postage prepaid, to a Recipient or anAccountholder at his or her last address known to theAdministrator will be binding on the Recipient orAccountholder for all purposes of the Program and willbe deemed given on the date on the notice or letter. Aclaim for benefits, beneficiary designation, or othernotice mailed first class, postage prepaid, from aRecipient or an Accountholder to the Administrator willbe deemed given on the date of the postmark. Noticemay be addressed to the Administrator at the followingaddress (or such other address as the Administrator maydesignate from time to time):Administrator of the Clergy Retirement Security Program

General Board of Pension and Health Benefits of TheUnited Methodist Church

1901 Chestnut AvenueGlenview, IL 60025-1604.

A4.13 Waiver of Notice. Any notice under theProgram may be waived by the person entitled to notice.Waiver of notice in one instance, however, will not bedeemed to be a waiver in a later instance.

A4.14 Successors. This Program is binding onthe Plan Sponsors, and on all persons entitled to benefitshereunder, and their respective successors, heirs, andlegal representatives.

A4.15 Severability. If any provision of theProgram is held illegal or invalid for any reason, suchillegal or invalid provision will not affect the remainingprovisions of the Program, and the Program will be con-strued and enforced as though such illegal or invalid pro-visions had never been contained in the Program.

A4.16 Supplements. The Program may beamended from time to time as provided in Section A5 byadding one or more Supplements to the Program to addressspecial situations not applicable to all Plan Sponsors orto all Clergypersons, Participants, Beneficiaries, orAccountholders. Any such Supplement will specify thePlan Sponsors and persons covered and any special rules orbenefits related to them. To the extent that any such rules orbenefits are in conflict with the general provisions of theProgram, such rules or benefits will supersede the generalprovisions of the Program as to the persons covered bythe Supplement to the extent they are in conflict withsuch general provisions. Except as otherwise providedin a Supplement, all of the provisions of the Programwill apply to the persons covered by the Supplement.

SECTION A5—AMENDMENT AND TERMINATION OF PROGRAM

A5.1 Amendment.(a) General Conference. General Conference may

amend prospectively or retroactively any or all provi-sions of the Program at any time by written instrumentidentified as an amendment of the Program, effective asof a specified date.

(b) Administrator. The Board of Directors of theGeneral Board may amend prospectively or retroactivelyany or all provisions of the Program at any time by res-olution, effective as of a specified date:

(i) to conform the Program to any applicable lawand/or regulations promulgated thereunder; and

(ii) to conform the Program to the Discipline orchanges therein.

A5.2 Termination of Program. General



Conference may terminate the Program at any time in amanner and to the extent not inconsistent with applica-ble law. Upon termination of the Program, the accountsof Participants will be nonforfeitable and will be eitherdistributed outright or held for distribution in accor-dance with the terms of the Program. The assets remain-ing in the Program after all obligations of the Programhave been satisfied will be distributed pursuant to actionby General Conference.

SECTION A6—BENEFICIARIES

A6.1 Beneficiary Designation. A Participantmay designate in writing a primary Beneficiary, or botha primary and a secondary Beneficiary, in such form asis satisfactory to the Administrator. A Beneficiary des-ignation must be postmarked, sent by private courier, orreceived by the Administrator during the Participant’slifetime to be valid. A secondary Beneficiary willreceive benefits only if the primary Beneficiary prede-ceased the Accountholder, cannot be located, or is other-wise unavailable or ineligible. A primary or a secondaryBeneficiary may be an individual, an estate, a trust, or alist of persons. If more than one person is specified asthe Participant’s Designated Beneficiary, each such per-son will take an equal share, per capita, unless theParticipant clearly specifies another division. Per stirpesdesignations are not acceptable. The Administratorreserves the right to reject any Beneficiary designationthat cannot be reasonably administered, in theAdministrator’s sole discretion. Except as otherwiseprovided in Sections C8.3(d), S1.4.5, S1.4.7, and S3.4.6,if a Participant leaves no valid Beneficiary designationor if his or her Designated Beneficiary predeceases theParticipant, then the Participant’s Default Beneficiarywill be his or her Spouse. But if the Participant isnot survived by a Spouse or if one of the condi-tions described in Sections C8.3(d)(ii)–(iv) exists, thenhis or her Default Beneficiary will be the Participant’sestate.

A6.2 Beneficiary of an Accountholder. Anindividual other than a Participant who becomes anAccountholder and does not receive an immediatedistribution of that Account may name a Beneficiaryin accordance with such procedures and in such formas the Administrator may accept or require. Subjectto the provisions of Sections C8.6 and S1.4.10, suchDesignated Beneficiary will receive the Accountholder’sAccount in the case of the Accountholder’s death. If anindividual who becomes an Accountholder does notname his or her own Designated Beneficiary as permit-ted in this Section A6.2, if a Designated Beneficiarydoes not survive such individual, or if Sections C8.6 and

S1.4.10 do not otherwise provide, such individual’sDefault Beneficiary will be such individual’s Spouse or,if there is no surviving Spouse, then the estate of suchindividual.

A6.3 Affected Plans. An Accountholder or aRecipient may revise his or her Designated Beneficiaryunder the Program from time to time, but the mostrecently designated Beneficiary will be deemed to be theAccountholder’s or Recipient’s Designated Beneficiaryunder the entire Program.

A6.4 Preexisting Beneficiary. If a Participantor Terminated Participant does not designate aBeneficiary under this Program after January 1, 2007 buthas designated a valid beneficiary under any Plan beforeJanuary 1, 2007, then the latest of such validly desig-nated beneficiaries will be deemed such Participant’sinitial Designated Beneficiary under this Program.

SECTION A7—ADOPTION AGREEMENTS

A7.1 Completion of Adoption Agreement.Each Plan Sponsor will initially complete one or moreAdoption Agreements in which the Plan Sponsor willindicate any elections that it is required or permitted tomake pursuant to the provisions of the Program.

A7.2 Form of Adoption Agreement. TheAdoption Agreement will be in a form prescribed by theAdministrator. Different forms may be used for differentPlan Sponsors. The Administrator may use more thanone Adoption Agreement per Plan Sponsor covering dif-ferent Clergy groups.

A7.3 Acceptance of Adoption Agreement.An Adoption Agreement will not become effective untilit is accepted by the Administrator. The Administratormay require the submission of an Adoption Agreementup to 31 days in advance of its effective date (but mayalso waive such deadline in appropriate circum-stances).

A7.4 Continuance of Adoption Agreement.An Adoption Agreement will remain in force until it isamended, discontinued, or replaced. Either a PlanSponsor or the Administrator may discontinue an exist-ing Adoption Agreement as of a prospective date speci-fied in a written notice to the other. A Plan Sponsor mayamend or replace an Adoption Agreement if suchamendment or replacement is accepted by theAdministrator under Section A7.3.

A7.5 Supplements. Plan Sponsors withrespect to each of the Supplements must execute one ormore Adoption Agreements covering each suchSupplement. Each Pre-82 Sponsor having Participants inParticipating Group No. Pre-82-1 must execute anAdoption Agreement setting forth the Past Service Rate



Amount applicable to such Participants. In no case mayany Pre-82 Sponsor’s new Adoption Agreement reducethe Past Service Rate Amount or the percentage that ispayable to surviving spouses in accordance with SectionS1.4.2.

Part BCore Defined Benefit PartSECTION B1—INTRODUCTION

B1.1 Plan Sponsors.(a) Each Conference is a Plan Sponsor of the Core

Defined Benefit Plan under this Part B with respect toParticipants who are:

(i) Under Episcopal Appointment by a Bishop to:(A) a Local Church located within that Conference;(B) a Pastoral Charge located within that Conference;(C) a Conference-Responsible Unit located within

that Conference; or(D) a Conference-Elective Entity approved by that

Conference;(ii) Clergy Appointed by the Bishop of that

Conference who are covered by CPP and become CPPDisabled;

(iii) when elected by a Conference under itsAdoption Agreement, members of that Conference whoare placed on Incapacity Leave but not covered underSection B1.1(a)(ii);

(iv) Non-Jurisdictional Clergy, Other MethodistDenomination Clergy, or Other Denomination ClergyAppointed by the Bishop of that Conference; or

(v) entitled to Credited Service under USERRAbut who last served that Conference under SectionB1.1(a)(i).

Each such Conference will complete an AdoptionAgreement covering such Participants with respect tothe Core Defined Benefit Plan.

(b) GCFA is the Plan Sponsor of the Core DefinedBenefit Plan under this Part B on and after September 1,2008 with respect to Participants who are:

(i) Bishops;(ii) Bishops on Incapacity Leave; or

(iii) Bishops entitled to Credited Service underUSERRA.

Notwithstanding the foregoing, in the case ofBishops who are newly consecrated in 2008, then GCFAis the Plan Sponsor of the Core Defined Benefit Planunder this Part B on and after the date of their consecra-tion. GCFA will complete an Adoption Agreement cov-ering such Participants with respect to the Core DefinedBenefit Plan effective as of September 1, 2008.

(c) If so elected by the Commission on the

General Conference on an Adoption Agreement, theCommission on the General Conference is a PlanSponsor of the Core Defined Benefit Plan under this PartB with respect to Participants who are Appointed to theCommission on the General Conference.

(d) No other entity may be a Plan Sponsor of theCore Defined Benefit Plan.

(e) No entity may be a Plan Sponsor of the CoreDefined Benefit Plan without simultaneously being aPlan Sponsor of the Core Defined Contribution Plan.

B1.2 Prospective Application. No benefitsmay accrue to an individual under the Core DefinedBenefit Plan before January 1, 2007.

SECTION B2—COMPUTATION OFSERVICE

B2.1 Kinds of Service.(a) Eligibility Service. A Clergyperson does not

need any Service to be eligible for the Plan (althoughthere are other conditions to eligibility not involvingService).

(b) Credited Service. A Participant’s CreditedService will be determined as described in Section B2.2,

(i) with one-day computation periods beginning atmidnight of:

(A) the date the Participant begins to performService on or after his or her Entry Date; and

(B) each day thereafter until the Participant incursa Separation From Covered Service; and

(ii) with one-year computation periods beginningon:


(B) each anniversary of such date thereafter untilthe Participant incurs a Separation From CoveredService.

(c) Vesting Service. Participants are always 100%Vested in their Accrued Benefits.

B2.2 Computation of Credited Service.(a) General Rule. A Participant will receive one

day of Credited Service for each one-day computationperiod specified in Section B2.1(b)(i) during which heor she is:

(i) Under Episcopal Appointment to and receivingCompensation related to such Appointment from:

(A) a Local Church;(B) a Pastoral Charge;(C) a Conference-Responsible Unit; or(D) a Conference-Elective Entity;(ii) A Bishop receiving Compensation as such

from GCFA;(iii) CPP Disabled;



(iv) when elected by a Conference under itsAdoption Agreement, a member of that Conference whois placed on an Incapacity Leave but not covered underSection B2.2(a)(iii); or

(v) entitled to Credited Service under USERRA;for any portion of such one-day computation

period, regardless of whether such condition continuesthroughout such one-day computation period. A Year ofCredited Service is equal to 365 days (even in leapyears) of Credited Service. Notwithstanding the fore-going provisions of this Section B2.2(a), however, aParticipant who qualifies under Section B2.2(a)(iii) or(iv) above and who was Appointed on a Part-Time basisimmediately before such qualification will receiveCredited Service in accordance with Section B2.2(b),based on such Participant’s highest Appointment per-centage during the 24 months before such qualification.Such 24-month period will not include any period(s)during which a Participant is on a Leave of Absence.

(b) Part-Time Appointments. A Participant who isAppointed as described in Section B2.2(a)(i) to less thana Full-Time Appointment, is otherwise qualified underSection B2.2(a) for Part-Time Credited Service, or whois Appointed on a Full-Time basis but serves only a por-tion of an annual appointment will receive days ofCredited Service equal to his or her actual days ofService, times his or her Appointment percentage(which will be deemed 50% if no percentage is specifiedin the Appointment). Each Plan Sponsor will report tothe Administrator on the degree of each Part-TimeAppointment and on the portion of a full year of Serviceactually rendered by a Participant when it is less than afull year.

(c) Exceptions. A Participant will not receive anyCredited Service for periods before January 1, 2007 orduring which he or she is on an unpaid:

(i) Leave of Absence (except as otherwise pro-vided in Section A4.9, relating to USERRA); or

(ii) any other layoff or leave,whether or not Service would otherwise have been

credited. Further, a Participant will not receive morethan one day of Credited Service for each 24-hour day.

SECTION B3—PARTICIPATION

B3.1 Eligibility for Participation.(a) Eligible Clergyperson. An Eligible Clergy-

person is a Clergyperson:(i) who:

(A) is Appointed at least Half-Time and:(I) whose Conference or Salary-Paying Unit is a

Plan Sponsor under the terms of the Plan; or(II) who is a member of a Conference but is Under

Episcopal Appointment by the Bishop of another PlanSponsor Conference (within the meaning of ¶ 346.1 ofthe Discipline);

(B) is CPP Disabled and was Appointed at leastHalf-Time at some time during the 24 months (exclud-ing periods while on Leave of Absence) immediatelypreceding his or her grant of CPP disability benefits; or

(C) is placed on Incapacity Leave, but only in thecase where such Clergyperson’s Plan Sponsor haselected on its Adoption Agreement to provide benefitsfor such Clergy, and was Appointed at least Half-Time atsome time during the 24 months (excluding periodswhile on Leave of Absence) immediately preceding thedate he or she was placed on Incapacity Leave; or

(ii) who is a Non-Jurisdictional Clergyperson, anOther Methodist Denomination Clergyperson, an OtherDenomination Clergyperson, or a Clergypersondescribed in Section B3.1(a)(i)(A)(II) above) and:

(A) develops a disability or an incapacity after hav-ing been Appointed at least Half-Time at some time dur-ing the 24 months (excluding periods while on Leave ofAbsence) immediately preceding the onset of his or herdisability or incapacity;

(B) remains Appointed by the Bishop of the PlanSponsor Conference (or, where the Plan Sponsor is notsupervised by a Bishop, remains covered by the PlanSponsor’s Adoption Agreement); and

(C) is not reported as discontinued or as having norecord of Appointment;

but not including any Clergyperson who:(1) is Retired, unless such person returns to an

effective relationship under ¶ 358.7 of the Discipline;(2) has incurred a Termination of Conference

Relationship; or(3) is Appointed to a General Agency.The at-least-Half-Time-Appointment eligibility

condition is satisfied (or not) solely on the basis of theAppointment level (or two or more Appointments thatadd to Half-Time). Actual time served in theAppointment, periods of Leave of Absence, and lesserlevels of Appointment with heavy actual service are notrelevant.

(b) Participation. Each Eligible Clergyperson willbecome a Participant on the Entry Date determinedunder Section B3.2, provided that he or she satisfies allof the following requirements on the Entry Date:

(i) He or she is:(A) an Eligible Clergyperson Under Episcopal

Appointment to a Local Church, Pastoral Charge,Conference-Responsible Unit, or Conference-ElectiveEntity; or

(B) a Bishop;



(ii) He or she is eligible to participate in a ChurchPlan; and

(iii) He or she is:(A) receiving Compensation in connection with his

or her Appointment;(B) CPP Disabled or a Bishop on an Incapacity

Leave (but in neither of these cases is a TerminatedParticipant);

(C) when elected by a Conference under itsAdoption Agreement, a Conference member who isplaced on an Incapacity Leave but not covered underSection B3.1(b)(iii)(B) above; or

(D) entitled to participate under USERRA.After initially becoming a Participant on the Entry

Date, an Eligible Clergyperson must continue to meetthe conditions in Sections B3.1(a) and (b) above toremain a Participant eligible to receive Credited Service.Although it will not prevent an Eligible Clergypersonfrom participating in the Plan, the Administrator mayrequire the Plan Sponsor of each Eligible Clergypersonwho is to become (or has become) a Participant (whetheror not such Participant has an Accrued Benefit) to file anapplication for enrollment in the Plan in such form asmay be required by the Administrator or to otherwiseprovide necessary enrollment information in a manneracceptable to the Administrator.

B3.2 Determination of Entry Date. EachEligible Clergyperson’s Entry Date will be:

(a) January 1, 2007, if on that date he or she satis-fied the requirements of Section B3.1; or

(b) the first day of any calendar month thereafteron which he or she first satisfies the requirements ofSection B3.1.

B3.3 Determination of Eligibility. Uponreceipt of enrollment information from the Plan Sponsoras provided in Section B3.1, the Administrator willaccept such information as evidence of eligibility forparticipation in the Plan. However, the Administratormay from time to time audit such information or obtainadditional information, which might result in a determi-nation of ineligibility for a Participant or a determinationof eligibility for a non-Participant. The Administratorhas the final authority to determine the eligibility of anyClergyperson. Such determination will be made pur-suant to the provisions of the Plan and the AdoptionAgreement and will be conclusive and binding upon allpersons.

B3.4 Cessation and Reinstatement ofConference Relationship.

(a) General Rule. A Participant who incurs aTermination of Conference Relationship will continue tobe a Participant but will cease to earn further Credited

Service or to earn an Accrued Benefit.(b) Reinstatement. A Participant described in

Section B3.4(a) who again becomes an EligibleClergyperson will again become a Participant entitled toaccrue Credited Service once he or she qualifies underSection B3.1, without again having to qualify underSection B3.2. Such Participant’s Accrued Benefit will becomputed with respect to Section B6.2, depending onhow long such Participant’s Break in Service lasted.

(c) Transfer. A Participant who transfers from oneConference to another (or who otherwise transfers under¶¶ 346, 347, or 348 of the Discipline such that he or shewas covered under the Plan both before and after thetransfer) without a Break in Service will remain aParticipant, but his or her Plan Sponsor will change fromthe first Conference (or other entity) to the second on thedate that he or she is Under Episcopal Appointment withthe second. If such a Participant does incur a Break inService, then he or she will be treated as provided inSections B3.4(a) and (b).

(d) Reemployment After Termination ofConference Relationship. If a Terminated Participant,after having earned an Accrued Benefit under the Plan,ceases to qualify under Section B3.1 because of aTermination of Conference Relationship or a Five-YearNo Record of Appointment, and if such TerminatedParticipant:

(i) is not In Pay Status when he or she once againqualifies under Section B3.1, then he or she will onceagain accrue a benefit in accordance with SectionB3.4(b); or

(ii) is In Pay Status when he or she once againqualifies under Section B3.1, his or her benefit will bepermanently suspended until he or she again Retires orincurs a Termination of Conference Relationship.Thereafter, in accordance with the provisions of SectionB6.1, his or her Accrued Benefit will be recomputed,actuarially adjusted for amounts already paid, and paidas one benefit in accordance with the terms of the Planas of such later Retirement or Termination ofConference Relationship.

(e) Reemployment After Retirement. If a Participant,after having earned an Accrued Benefit under the Plan,ceases to qualify under Section B3.1 because ofRetirement, and if such Participant:

(i) is not In Pay Status when he or she once againqualifies under Section B3.1, then he or she will onceagain accrue a benefit in accordance with SectionB3.4(b);

(ii) is In Pay Status and then is Appointed to aposition in accordance with ¶ 358.6 of the Discipline orfunctions as a retired Bishop in accordance with ¶ 409 of



the Discipline, his or her benefit will continue In PayStatus, and he or she will not earn any further AccruedBenefit under the Plan; or

(iii) is In Pay Status and then returns to the effectiverelationship with a Conference in accordance with¶ 358.7 of the Discipline, his or her benefit will be per-manently suspended until he or she again Retires.Thereafter, in accordance with the provisions of SectionB6.1, his or her Accrued Benefit will be recomputed,actuarially adjusted for amounts already paid, and paidas one benefit in accordance with the terms of the Planas of such later Retirement.

B3.5 Omission of Eligible Clergyperson. If,in any Plan Year, an Eligible Clergyperson who shouldhave been included as a Participant in the Plan is erro-neously omitted from participation in the Plan, the omit-ted Participant will be retroactively enrolled and grantedmissed Credited Service under the Plan, and, if the dis-covery of such omission is not made until after the DueDate for Contributions for such Plan Year and if themissed Contributions are material in the Administrator’sopinion, the Plan Sponsor will correct that omission bymaking one or more replacement contributions towardsuch Participant’s Accrued Benefit in an amount speci-fied by the Administrator to substitute for theContributions that would have been made with respect tothe omitted Participant had he or she not been omitted,subject to the limits of Section B5. Moreover, the PlanSponsor is subject to an administrative charge underSection A3.7(c).

B3.6 Inclusion of Ineligible Persons. If, inany Plan Year, any person who should not have beenincluded as a Participant in the Plan is erroneouslyincluded, such person will be removed as a Participant.Any funding for such person contributed by a PlanSponsor that does not lead to funding that is at least110% of the actuarially appropriate amount, as deter-mined by the Administrator, of funding for that PlanYear will remain as part of the Plan Sponsor’s FundingAccount. If funding for one or more such persons con-tributed by one Plan Sponsor during any Plan Year leadsto funding that is at least 110% of the actuarially appro-priate amount, as determined by the Administrator, offunding for that Plan Year and if the erroneous fundingqualifies under Section A4.3(b) (relating to a mistake offact), then the Administrator will return to the PlanSponsor any such funding that exceeds full fundingunder the Funding Plan.

B3.7 Election Not to Participate. Subject tothe consent of his or her Plan Sponsor, an EligibleClergyperson who is a student Local Pastor (within themeaning of ¶¶ 318 and 318.3 or 318.4 of the Discipline)

or who is Appointed on a Part-Time basis may elect vol-untarily not to participate in the entire Program by writ-ten notice to the Plan Sponsor not later than 60 daysafter the effective date of such election, which may bemade in any form acceptable to the Administrator. Suchan election will prevent benefits from accruing under thePlan for such Eligible Clergyperson. Such an electionmay be revoked at any time that such EligibleClergyperson is eligible to be a Participant, but pastAccrued Benefits related to periods during which theelection was in force will not be earned or will be per-manently forfeited. If such Eligible Clergypersonalready has an Accrued Benefit under the Plan, suchelection not to participate will not affect the AccruedBenefit already earned by such Eligible Clergyperson.

SECTION B4—AMOUNT ANDALLOCATION OF CONTRIBUTIONS

B4.1 Plan Sponsor Contributions. Subject toSection B4.3(d), the Plan Sponsors will makeContributions to the Trustee annually not later than theDue Date (on or about December 31) each year inamounts that are specified by the Administrator as beingdue by that date, as determined in accordance with theFunding Policy, based on the Participants who:

(a) in the case of a Conference, qualify underSection B1.1(a); and

(b) in the case of GCFA, qualify under SectionB1.1(b)

with respect to that Plan Sponsor. Participants areneither required nor permitted to make contributionsunder the Plan.

B4.2 Late Contributions. If a Plan Sponsordelays in making a specified Contribution to the Planbeyond the date specified in Section B4.1, then the PlanSponsor will make such delayed Contribution to thePlan as soon as possible thereafter. In addition, suchPlan Sponsor will pay a Contribution equal to the greaterof:


(2) missed net earnings (but ignoring net losses)on such delayed Contribution (determined in accordancewith the actual returns on Plan assets);

computed, in either case, from the Due Date untilthe date such delayed Contribution was actually trans-ferred to the Trustee. Any special services provided bythe Administrator in connection with this Section B4.2are subject to the additional charges provided for inSection A3.7(c). If any amounts are more than two



months overdue, the Administrator may compel pay-ment by bringing the matter to Judicial Council or byany other means the Administrator may elect to pursue.In addition to the foregoing remedies, the Administrator,after giving written notice to the Plan Sponsor (and allother Plan Sponsors) with a prospective effective date(such effective date being no sooner than two monthsafter the Due Date), may suspend further AccruedBenefit accruals under Section B6 (including increasesin Credited Service, Final DAC, and/or FinalCompensation under appropriate Sections of theProgram) for Participants whose Accrued Benefits arefunded by such delinquent Plan Sponsor under SectionB4.1 until such Plan Sponsor:

(a) makes up delayed Contributions and missedearnings as provided above in this Section B4.2; and/or

(b) satisfies Section B4.3(d)(iii) below.Accrued Benefit accruals will be retroactively rein-

stated if and when the Administrator gives written noticeto such Plan Sponsor that it is in compliance with thisSection B4.2.

B4.3 Funding Accounts.(a) Contributions. Contributions under Sections

B4.1 and B4.2 by any Plan Sponsor will be credited assoon as practicable by the Administrator to a FundingAccount in the name of all Plan Sponsors that sponsorthe Core Defined Benefit Plan under Section B4.1, witheach Plan Sponsor’s interest in such pooled FundingAccount being proportional to its liabilities. A PlanSponsor’s proportional interest in the pooled FundingAccount may be included in that Plan Sponsor’s sepa-rate Funding Account in its own name to the extentneeded for any purpose under the Program.

(b) Earnings. The Trustee will invest amounts insuch pooled Funding Account in accordance with theTrust. The Administrator will credit such FundingAccount with earnings and debit such Funding Accountwith losses accrued from time to time.

(c) Forfeitures. Forfeitures of benefits arisingunder the Plan for any reason that are not already pro-vided for under the Plan will be applied to reduce thecontribution to the Plan of the Plan Sponsor relating tothe Participant (or his or her Beneficiary or other personclaiming under him or her) who has suffered the forfei-ture and will not increase the benefits under the Planotherwise payable to Participants or others.

(d) Funding Benefits. Except as otherwise pro-vided in Sections B4.3(d)(ii) and B4.3(d)(iii), each PlanSponsor will be responsible to fund the Accrued Benefitof each Participant in proportion to the period suchParticipant rendered Credited Service that the PlanSponsor is responsible for under Section B4.1 in relation

to all of such Participant’s Credited Service determinedat his or her Annuity Starting Date.

(i) Except as otherwise provided in SectionsB4.3(d)(ii) and B4.3(d)(iii), the funding obligation of:

(A) Conferences will be based on the benefit for-mula of non-Bishop Clergy; and

(B) GCFA will be based on the benefit formula forBishops.

(ii) Notwithstanding anything to the contrary inthe Core Defined Benefit Plan, the Alaska MissionaryAnnual Conference, Oklahoma Indian MissionaryAnnual Conference, Red Bird Missionary AnnualConference, and the Rio Grande Annual Conference willnot be responsible to fund the Accrued Benefits ofParticipants who rendered Service to such Plan Sponsors(which funding exemption will not extend to any otherPlan under the Program). Nevertheless, suchParticipants will still be entitled to the same benefitsunder the Core Defined Benefit Plan as they would oth-erwise be entitled to thereunder. To fund such benefits,the Administrator will authorize debits each Plan Yearagainst the Funding Accounts of all other Plan Sponsors(except the Plan Sponsors listed above and any otherPlan Sponsor with a zero Funding Account balance), prorata in proportion to the Liabilities of each such otherPlan Sponsor as a percentage of all Liabilities under thePlan (as determined by the Administrator).

(iii) If a Plan Sponsor does not have sufficientassets in its Funding Account (including its portion ofany pooled Funding Account) to pay Plan benefits asthey come due, in order to pay such benefits theAdministrator will authorize debits from time to timeagainst the Funding Accounts of all other Plan Sponsors(except any Plan Sponsor with a zero Funding Accountbalance), pro rata in proportion to the Liabilities of eachsuch other Plan Sponsor as a percentage of all Liabilitiesunder the Plan (as determined by the Administrator). Ifthe delinquent Plan Sponsor later makes Contributionsto the Plan, such Contributions will first be allocated prorata in the same fashion to repay amounts taken fromother Plan Sponsors’ Funding Accounts, plus interest ata market rate to be determined by the Administratorfrom time to time, and only thereafter to the delinquentPlan Sponsor’s separate Funding Account.

(e) Reversions. No Plan Sponsor may receive areversion of assets in its Funding Account unless assetsremain after all liabilities of all Plan Sponsors and thePlan have been satisfied as to all Participants,Beneficiaries, and any other persons entitled to benefitsunder the Plan. When all such liabilities have been satis-fied by the payment of all benefits due, the transfer,merger, or spinoff of benefits and assets to another plan,



and/or by annuitizing any remaining benefits with aninsurance or annuity provider selected by theAdministrator, any remaining assets in each PlanSponsor’s Funding Account will be returned by theTrustee to that Plan Sponsor. Except to the extent theyhave actually funded the Core Defined Benefit Plan, theAlaska Missionary Annual Conference, OklahomaIndian Missionary Annual Conference, Red BirdMissionary Annual Conference, and the Rio GrandeAnnual Conference will not receive any reversionsunder the Core Defined Benefit Plan. As provided in thePlan certain forfeitures may be turned over to theAdministrator to pay for the administrative expenses ofthe Plan.

B4.4 Benefits Payable Only from Trust.Benefits provided by this Plan will be paid solely fromthe Trust assets, and neither any Plan Sponsor nor anyagent or representative of a Plan Sponsor will be liableto a Participant, Beneficiary, Recipient, or Account-holder in any manner for any such benefits, or for thesufficiency of the Trust assets to pay any such benefits.Nothing in this Section B4.4 will release a Plan Sponsorfrom its obligation to fund the Plan in accordance withits terms.

SECTION B5—LIMIT ON BENEFITS

B5.1 General Limitation on Benefits.Notwithstanding any other provisions of the 415 DBPlan to the contrary (other than this Section B5), theAnnual Retirement Benefit payable with respect to aParticipant under the 415 DB Plan may not exceed anamount equal to the lesser of:

(a) $195,000 (or such greater amount as may bedetermined from time to time in accordance with Code§415(d) for calendar years ending after December 31,2011 that begin within the Plan Year, including PlanYears after a Participant or Terminated Participantincurred a severance from employment or commencedhis or her 415 DB Plan benefit); or

(b) 100% of the Participant’s average 415Compensation for the three consecutive calendar years(as provided in Section B5.3) in which he or shereceived the highest aggregate 415 Compensation. ForPlan Years commencing on or after January 1, 2007, tothe extent required by Code §415(b), a Participant’s 415Compensation in excess of the limit in Code §401(a)(17)($245,000 in 2011, adjusted each Plan Year to take intoaccount any applicable cost-of-living adjustment pro-vided for that year pursuant to Regulations under Code§401(a)(17)(B)) will be disregarded. Notwithstandingthe foregoing, the limit of this Section B5.1(b) will notapply to Accrued Benefits accrued by a Clergyperson in

a Plan Year before the date on which he or she firstbecame highly compensated within the meaning ofCode §414(q) to the extent that such Accrued Benefitsqualify under Code §415(b)(11).

If the benefits otherwise payable under the 415 DBPlan exceed the foregoing limit, they will be reduceduntil they meet that limit, but benefits exceeding theforegoing limit may be paid in a future Plan Year if theythen do not exceed such limits. If more than one separateplan comprises the 415 DB Plan and if benefits must belimited under this Section B5.1, the benefit under a planwith a smaller dollar amount of plan sponsor benefit willbe reduced before a plan with a larger amount.

B5.2 Adjustments to Annual RetirementBenefit. The Annual Retirement Benefit payable withrespect to a Participant under the 415 DB Plan will beactuarially adjusted as follows:

(a) If a Participant’s Annual Retirement Benefit ispaid in a form other than a single-life annuity (with noancillary benefits), it will be actuarially adjusted to itssingle-life annuity equivalent in accordance withRegulations under Code §415(b)(2)(B).

(b) If a Participant’s Annual Retirement Benefit ispaid before the Participant attains age 62, the determina-tion as to whether the dollar limitation set forth in SectionB5.1(a) has been satisfied will be made, in accordancewith Regulations under Code §415(b)(2)(C), by reducingthe limitation specified in Section B5.1(a) so that suchlimitation (as so reduced) equals an annual benefit (begin-ning when such Annual Retirement Benefit begins) that isactuarially equivalent to a $195,000 (in 2011, or asindexed thereafter) Annual Retirement Benefit beginningat the Participant’s attainment of age 62.

(c) If a Participant’s Annual Retirement Benefit ispaid after the Participant attains age 65, the determina-tion as to whether the dollar limitation set forth inSection B5.1(a) has been satisfied will be made, inaccordance with Regulations under Code §415(b)(2)(D),by increasing the limitation of Section B5.1(a) so thatsuch limitation (as so increased) equals an annual bene-fit (beginning when such Annual Retirement Benefitbegins) that is equivalent to a $195,000 (in 2011, or asindexed thereafter) Annual Retirement Benefit begin-ning at the Participant’s attainment of age 65.

(d) When making the benefit or limitation adjust-ments specified in:

(i) Sections B5.2(a) or (b), the interest rateassumption may not be less than the greater of:

(A) five percent, or(B) the rate used to compute Actuarial Equivalents;

and(ii) Section B5.2(c), the interest rate assumption



may not be greater than the lesser of:(A) five percent, or(B) the rate used to compute Actuarial Equivalents.For the purpose of the foregoing adjustments, no

limitation indexing under Code §415(d)(1) will be takeninto account before the year for which such adjustmentfirst takes effect.

B5.3 High Three Years Compensation. Forthe purpose of Section B5.1(b), a Participant’s high threeyears will be the period of consecutive calendar years(not less than one nor more than three, and ignoringbreaks in service), including fractional portions, duringwhich the Participant was an employee of a 415 DB Plansponsor or a 415 Affiliate (whether or not he or she wasa participant in the 415 DB Plan for such period) andhad the greatest aggregate:

(a) 415 Compensation from his or her 415 DBPlan sponsor or a 415 Affiliate, or

(b) in the case of an employee within the meaningof Code §401(c)(1), earned income (within the meaningof Code §401(c)(2) but determined without regard toany exclusion under Code §911).

B5.4 Pro Rating Fewer Than 10 Years.(a) In the case of a Participant who has fewer than

10 years of participation in the 415 DB Plan, the limita-tion referred to in Section B5.1 will be the limitationdetermined under Section B5.1 (determined withoutregard to this Section B5.4), multiplied by a fraction:

(i) the numerator of which is the number of years(or portion thereof) of participation in the 415 DB Plan;and

(ii) the denominator of which is 10.(b) The provisions of Section B5.4(a) will apply to

the limitations under Section B5.1(b), except thatSection B5.4(a) will be applied with respect to years ofservice with the Plan Sponsor, a Salary-Paying Unit, ora 415 Affiliate of either, rather than years of participa-tion in the 415 DB Plan. Periods during which aParticipant or Terminated Participant was totally andpermanently disabled within the meaning of Code§415(c)(3)(C)(i) will be credited as service for the pur-pose of Section B5.4(a)(i).

(c) In no event may Sections B5.4(a) or (b) reducethe limitations referred to in Section B5.1(a) to anamount less than 1/10 of such limitation (determinedwithout regard to this Section B5.4(c)).

B5.5 Defined Contribution Limits. To theextent required by Code §§403(b) and 415(c), the limitsof Code §415(c) will also apply to annual increases in aParticipant’s Accrued Benefit. Those limits may befound in Section C5.1, Code §415(c), and Regulations.To the extent permitted by the Code and under rules

established from time to time by the Administrator, if aParticipant’s Accrued Benefit in a Limitation Year islimited under this Section B5.5, the portion of suchAccrued Benefit in excess of such limit may be deemedto have accrued in one or more later Limitation Years tothe extent applicable limits allow.

B5.6 Purpose of Limitations; Authority ofAdministrator. The limitations of this Section B5 areintended to comply with the requirements of Code §415(and especially Code §415(b)), and the Regulationsissued thereunder, and will be construed accordingly. Tothe extent that such Regulations provide for any elec-tions or alternative methods of compliance not specifi-cally addressed in this Section B5, the Administratorwill have the authority to make or revoke such electionor use such alternative method of compliance unlesssuch election or alternative method of compliance by itsterms requires an amendment to the Plan.

SECTION B6—ACCRUED BENEFIT

B6.1 Monthly Benefit Formula. A Participant’s(or other Recipient’s) monthly benefit formula amountas of any date is (a), plus (b), where:

(a) is (i), times (ii), where:(i) is 1/12th of the Participant’s Final DAC; and

(ii) is the sum of (A) and (B), where:(A) is 1.25% of the Participant’s Credited Service

accrued on and after January 1, 2007 and before theEffective Date for any periods that the Participant wasnot a Bishop; and

(B) is 1.00% of the Participant’s Credited Serviceaccrued on and after the Effective Date for any periodsthat the Participant was not a Bishop.

(b) is (i), times (ii), where:(i) is 1/12th of the Participant’s Final

Compensation; and(ii) is the sum of (A) and (B), where:(A) is 1.25% of the Participant’s Credited Service

accrued on and after September 1, 2008 and before theEffective Date for any periods that the Participant was aBishop; and

(B) is 1.00% of the Participant’s Credited Serviceaccrued on and after the Effective Date for any periodsthat the Participant was a Bishop.

B6.2 Break in Service. If a Participant incursa Separation From Covered Service, his or her CreditedService will cease and his or her Accrued Benefit will bedetermined as of such date. Except as otherwise pro-vided in Section B9.1(b)(iv)(B), if such Participant laterrequalifies under Section B3.1 before beginning his orher benefit, his or her Credited Service will resume, and

(a) if such Participant did not suffer a Break in



Service lasting at least 365 consecutive days, his or herAccrued Benefit may once again be computed as of adetermination date after such Separation From CoveredService, using the sum of the Participant’s CreditedService for both periods of Appointment and the FinalDAC and/or the Participant’s Final Compensation, asapplicable, on the earlier of the determination date suchAccrued Benefit is computed or the date the secondperiod of Credited Service ends.

(b) if such Participant did suffer a Break in Servicelasting at least 365 consecutive days, his or her AccruedBenefit as of a determination date after such Break inService will be the sum of:

(i) such Participant’s Accrued Benefit computedas of the day before the start of the Break in Service last-ing at least 365 consecutive days, based on the FinalDAC and/or the Participant’s Final Compensation, asapplicable, on that date and the Participant’s CreditedService as of that date; and

(ii) such Participant’s Accrued Benefit computed asof such determination date after the end of the Break inService lasting at least 365 consecutive days, based onlyon his or her Credited Service after such Break in Serviceand the Final DAC and/or the Participant’s FinalCompensation, as applicable, on such determination date.

Notwithstanding the foregoing, nor the definition ofBreak in Service, for the purpose of this Section B6.2,any period of time during which a Participant is notemployed by a Plan Sponsor but is:

(1) Under Episcopal Appointment;(2) an active member of a Conference;(3) an active member of a Central Conference; or(4) an active member of The Puerto Rico

Methodist Churchwill not count toward a Break in Service for such

Participant.B6.3 Change of Classification. If a

Participant’s Clergy classification is changed fromBishop, Elder in Full Connection, Local Pastor, Deaconin Full Connection, Associate Member, affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, Provisional Member, or any otherClergyperson classification to another of those classifi-cations, the Participant’s Accrued Benefit will not beaffected and will continue to accrue as long as he or sheremains as an Eligible Clergyperson and does not suffera Break in Service.

SECTION B7—VESTING AND FORFEITURE

B7.1 Full Vesting. A Participant’s AccruedBenefit will be fully Vested at all times to the extentfunded, and will not be forfeited for any reason except

as provided in Section B7.2.B7.2 Forfeitures. Notwithstanding Section

B7.1, a Recipient may forfeit an otherwise VestedAccrued Benefit in the following circumstances:

(a) Missing Recipient. The Accrued Benefit of aRecipient who cannot be located will be handled asdescribed in Section B9.5.

(b) Uncashed Check. Any Recipient who has beenissued a check for benefits due but who does not returnor cash the check within a reasonable period establishedby the Administrator, after such reasonable notice (or inthe case of very small benefit amounts, no notice) as theAdministrator may determine, will forfeit such benefits.Such forfeited amounts will be returned to the FundingAccount of the Plan Sponsor sponsoring such Recipientand will be used to pay other benefits due under thePlan. Uncashed checks returned to the Administratorbecause the payee is missing or for other reasons are notcovered by this Section B7.2(b).

(c) Relinquished Benefits. If a Recipient Relin-quishes a benefit payment or his or her entire AccruedBenefit, it is forfeited. The Relinquished benefit will bereturned to the Funding Account of the Plan Sponsorsponsoring such Recipient and will be used to pay otherbenefits due under the Plan.

(d) Death. If a Participant or Terminated Partici-pant dies without a Spouse before his or her AnnuityStarting Date, all of such Participant’s or TerminatedParticipant’s Vested benefits will be forfeited except asotherwise provided in Section B9.3. A Participant,Terminated Participant, Contingent Annuitant, orBeneficiary who dies after his or her Annuity StartingDate will also forfeit any monthly benefits that have notalready become payable to such person, although bene-fits may continue to another person in accordance withSection B9. Unless otherwise specifically provided, allsuch forfeitures will remain in the Funding Account(s)of the Plan Sponsor(s) from which the forfeited benefitswere due to be paid, and will be used to pay other bene-fits due under the Plan.

(e) Ineligible Participant. Benefits credited to anineligible Participant will be handled as described inSection B3.6.

(f) Election Not to Participate. Eligible Clergywho elect not to participate in the Plan will be handledas described in Section B3.7.

(g) Benefits in Excess of Limits. Benefits may beforfeited in accordance with the terms of Section B5.

(h) Disabled Adult Child Annuity Conditions.When a disabled adult child is a secondary ContingentAnnuitant (receiving an annuity benefit after theParticipant’s or Terminated Participant’s Spouse or other



Contingent Annuitant has died), such disabled adultchild will not be eligible for benefits unless, or benefitsalready payable will be forfeited unless:

(i) benefits to the disabled adult child are payableto a special needs trust for the benefit of such child; and

(ii) such special needs trust complies with applica-ble law.

Further, the disabled adult child benefits abovefor which such disabled adult child was not eligible,or that were forfeited, will not be restored to the estatesof the deceased Participant, Terminated Participant,surviving Spouse, or other primary ContingentAnnuitant, nor will any of them receive any retroactivechange to the actuarially reduced benefits that werepaid to them that funded the secondary ContingentAnnuitant benefits.

SECTION B8—AMOUNT OF BENEFITS

B8.1 Normal Retirement. A Participant orTerminated Participant who Retires on his or her NormalRetirement Date will receive a monthly NormalRetirement Benefit or Late Retirement Benefit at his orher Annuity Starting Date that is computed using his orher Accrued Benefit as of his or her Normal RetirementDate and payable in accordance with the provisions ofSection B9. If distribution is delayed under SectionB9.2(b), such a Participant or Terminated Participantmay receive a Late Retirement Benefit.

B8.2 Early Retirement. A Participant whoRetires on his or her Early Retirement Date or aTerminated Participant who incurs a Termination ofConference Relationship or a Five-Year No Record ofAppointment on or before his or her Early RetirementDate will receive (at his or her Annuity Starting Datethat is before his or her Normal Retirement Date) areduced monthly Early Retirement Benefit that is theActuarial Equivalent of his or her Accrued Benefit com-puted as of his or her Normal Retirement Date, com-puted using Credited Service accrued to his or her EarlyRetirement Date, and that is payable in accordance withthe provisions of Section B9. If his or her AnnuityStarting Date is delayed under Section B9.2(b), such aParticipant or Terminated Participant may receive aNormal Retirement Benefit or a Late RetirementBenefit.

B8.3 Late Retirement. A Participant orTerminated Participant who Retires on his or her LateRetirement Date will receive a monthly Late RetirementBenefit computed using his or her Accrued Benefit as ofhis or her Late Retirement Date and payable in accor-dance with the provisions of Section B9.

B8.4 Death of Participant. If a Participant or

a Terminated Participant dies before his or her Early,Normal, or Late Retirement Benefit begins and:

(a) if he or she had no Spouse on the date of his orher death, then no benefit of any kind will be payablefrom the Plan to any person; or

(b) if he or she had a Spouse on the date of his orher death, then such Spouse will be entitled to a 70%Pre-Retirement Survivor Benefit, payable in accordancewith the provisions of Section B9.

If a Retired Participant or a Terminated Participantdies after his or her Early, Normal, or Late RetirementBenefit begins, whether a continued benefit will be paidor not will depend on the form of benefit the RetiredParticipant or Terminated Participant was receiving andthe terms of Section B9.

SECTION B9—PAYMENT OF RETIRE-MENT BENEFITS

B9.1 Form of Payment. The following provi-sions are subject to Section B9.4 (relating to requiredminimum distributions).

(a) Normal Form. Except as otherwise provided inthis Section B9.1, a Participant or a TerminatedParticipant entitled to an Early Retirement Benefit, aNormal Retirement Benefit, or a Late RetirementBenefit will receive such benefit in the Normal Form ofBenefit, which is:

(i) Single Participant. In the case of a RetiredParticipant or Terminated Participant who has no Spouseon his or her Annuity Starting Date, a Single-LifeAnnuity that is equal to such Participant’s or TerminatedParticipant’s Accrued Benefit as of his or her AnnuityStarting Date (subject to any Early Retirement Benefitactuarial reduction). In the case of a Retired Participant,the monthly amount of such benefit will be increasedannually by 2% on each January 1 for benefits that wereIn Pay Status on the preceding July 30, which July 30limit will not apply to a Bishop in the first partial PlanYear after his or her Retirement. Notwithstanding theforegoing, the 2% increase rate will be reduced ifrequired by Regulation §1.401(a)(9)-6, Q&A-14, or anyother applicable Regulation.

(ii) Married Retired Participant. In the case of aRetired Participant who has a Spouse on his or herAnnuity Starting Date, a 70% Contingent Annuity, with2% annual increases as further provided below. The 70%Contingent Annuity will first pay the Retired Participanta monthly benefit during his or her lifetime equal to:

(A) such Participant’s Accrued Benefit on his orher Annuity Starting Date taking into account onlyCredited Service from January 1, 2007 through the daybefore the Effective Date (subject to any Early



Retirement Benefit actuarial reduction), plus(B) such Participant’s Accrued Benefit on his or

her Annuity Starting Date taking into account onlyCredited Service on and after the Effective Date, actuar-ially reduced to reflect the cost of providing a 70% sur-viving Spouse benefit, such that the post-Effective Date70% Contingent Annuity is the Actuarial Equivalent of aSingle-Life Annuity with 2% annual increases for thesame period of Credited Service (subject to any EarlyRetirement Benefit further actuarial reduction).

Following the Retired Participant’s death, if his orher Spouse (determined on his or her Annuity StartingDate) survives him or her, such surviving Spouse willreceive a monthly benefit for the remainder of his or herlifetime equal to 70% of the benefit paid to the RetiredParticipant immediately before his or her death, with 2%annual increases as further provided below.

The monthly amount of the 70% ContingentAnnuity, both the portion payable to the RetiredParticipant during his or her lifetime, and the portion, ifany, payable to his or her surviving Spouse, will beincreased annually by 2% on each January 1 for benefitsthat were In Pay Status on the preceding July 30, whichJuly 30 limit will not apply to a Retired Bishop in thefirst partial Plan Year after his or her Retirement.Notwithstanding the foregoing, the 2% increase rate willbe reduced if required by Regulation §1.401(a)(9)-6,Q&A-14, or any other applicable Regulation.

(iii) Married Terminated Participant. In the case ofa Terminated Participant who has a Spouse on his or herAnnuity Starting Date, a 70% Contingent Annuity that isreduced to be the Actuarial Equivalent of suchTerminated Participant’s Accrued Benefit as of his or herAnnuity Starting Date (subject to any Early RetirementBenefit further actuarial reduction). During theTerminated Participant’s lifetime, he or she will receivea monthly benefit that is equal to his or her AccruedBenefit, actuarially reduced to reflect the cost of provid-ing a 70% surviving Spouse benefit and further actuari-ally reduced to reflect any commencement of the benefitbefore the Terminated Participant’s Normal RetirementDate. Following the Terminated Participant’s death, ifhis or her Spouse (determined on his or her AnnuityStarting Date) survives him or her, such survivingSpouse will receive a monthly benefit for the remainderof his or her lifetime equal to 70% of the benefit paid tothe Terminated Participant immediately before his or herdeath. The monthly amount of such benefit, both theportion payable to the Terminated Participant and theportion, if any, payable to the surviving Spouse, will notbe increased annually.

(b) Optional Form.

(i) Waiving Normal Form of Benefit. Notwith-standing Section B9.1(a), a Participant or TerminatedParticipant:

(A) who has no Spouse on his or her AnnuityStarting Date may waive receipt (in writing in a formacceptable to the Administrator) of his or her benefit inthe Normal Form of Benefit, and elect, instead, anOptional Form of Benefit.

(B) who has a Spouse on his or her AnnuityStarting Date may waive receipt (in writing in a formacceptable to the Administrator) of his or her benefit inthe Normal Form of Benefit, and elect, instead, anOptional Form of Benefit if his or her Spouse consentsas provided in Section B9.1(c).

(ii) Optional Form of Benefit. The Administrator,in its discretion, may offer as an Optional Form ofBenefit, from time to time, any form of annuity, such asa life annuity, a life and period certain annuity, or a jointand survivor annuity (with any permitted percentagepayable to any permitted named survivor), other than theNormal Form of Benefit due to a Participant orTerminated Participant, that is the Actuarial Equivalentof the Normal Form of Benefit; provided, however, thatany benefit that increases periodically must use anincrease rate that complies with Regulation §1.401(a)(9)-6, Q&A-14, or any other applicable Regulation.

(iii) Disabled Adult Child as Contingent Annuitant.As Optional Forms of Benefit, the Administrator willoffer one or more Contingent Annuity options that paysurvivor benefits to a special needs trust for a disabledadult child of the Participant or Terminated Participant,which Contingent Annuity options may provide for dualContingent Annuitants (such as a Spouse and the specialneeds trust as a successor). As further described in anApplication for Benefits (or in accompanying informa-tion), these Contingent Annuity options will be subjectto any conditions or limitations the Administrator mayspecify and to actuarial reductions in benefits that makethese Contingent Annuities Actuarially Equivalent to theNormal Form of Benefit otherwise payable to theParticipant or Terminated Participant.

(iv) Lump Sums. Except as otherwise provided inthis Section B9.1(b)(iv), in Section B9.1(d), or in SectionB9.2(c), no Recipient may receive his or her benefitunder this Plan in a lump sum, partial lump sum, install-ment form, or any other non-annuity form of payment.

(A) Termination by Withdrawal. A Participant whoincurs a Termination of Conference Relationship under¶ 360.2 of the Discipline on or after January 1, 2013 mayelect an Actuarially Equivalent lump sum transfer of hisor her Core Defined Benefit Plan Accrued Benefit to anAccount of the Administrator’s choosing in the Core



Defined Contribution Plan, as further provided inSection B9.2(c).

(B) Re-Employment. If a Terminated Participantelects a lump sum transfer under Section B9.1(b)(iv)(A)above and is later re-employed (see Section B3.4(d)), heor she may not reverse or repay the earlier lump sumtransfer and, notwithstanding any provision of SectionB6.2, will not receive any Credited Service for periodsthat were included when computing his or her AccruedBenefit that was transferred in a lump sum as providedin Section B9.1(b)(iv)(A) above.

(c) Spousal Consent. A Spouse must consent to aParticipant’s or a Terminated Participant’s election of anOptional Form of Benefit in writing and in such form asmay be required by the Administrator, provided that anelection to reject the Normal Form of Benefit will not beeffective unless:

(i) the Spouse’s consent acknowledges the effectof such election and is witnessed by an authorized rep-resentative of the Salary-Paying Unit, Plan Sponsor, orAdministrator or a notary public; or

(ii) it is established to the satisfaction of theAdministrator that the consent required under SectionB9.1(c)(i) may not be obtained because:

(A) the Participant or Terminated Participant hasno Spouse;

(B) the Participant or Terminated Participant islegally separated from his or her Spouse or has beenabandoned (within the meaning of local law) by his orher Spouse, and, in either case, the Participant orTerminated Participant has a court order to such effect(and there is no QDRO that provides otherwise); or

(C) neither the Participant or TerminatedParticipant nor the Administrator can locate the Spouse(provided, however, that the Administrator will have noobligation to search for such Spouse).

Any consent by a Spouse (or establishment that theconsent of a Spouse may not be obtained) under the nextpreceding sentence will be effective only with respect tosuch Spouse. Notwithstanding anything else to the con-trary in this Section B9.1(c), a Spouse’s consent will notbe required if the Participant or Terminated Participantelects an Optional Form of Benefit that provides a ben-efit to that Spouse that is at least the ActuarialEquivalent of what the Normal Form of Benefit wouldprovide to that Spouse.

(d) Small Benefit. The Administrator may establisha minimum annuity amount from time to time. If theamount of a Recipient’s Aggregate DB Benefit is orwould be less than the minimum annuity amount, suchAggregate DB Benefit will be converted on anActuarially Equivalent basis to a lump sum. The

Administrator may make such minimum annuity deter-mination and conversion, in its discretion, at theRecipient’s Retirement, when the Recipient becomes aTerminated Participant, and/or at the Recipient’s AnnuityStarting Date. Once such conversion is made, theAdministrator will transfer such lump sum to an Accountof its choosing in the Core Defined Contribution Plan orpartly to an account in another defined contribution planwhen so required by another plan administered by theAdministrator. Neither the Recipient’s consent nor theconsent of the Recipient’s Spouse will be required tomake such conversion or transfer.

(e) Election Procedures. Wherever the Plan pro-vides for a Recipient to elect a form of distribution(including the right to defer receiving a distribution), theAdministrator will provide a written explanation of thedifferent forms of distribution. Such explanation will beprovided not fewer than 30 nor more than 180 daysbefore the Recipient’s Annuity Starting Date for suchbenefit, or within such other period as may be providedby any applicable provision of the Code. A Recipientwho has received such explanation may waive the 30-day period and elect to have his or her benefit distributedas soon as administratively practicable.

(f) Rollover. If a Participant or TerminatedParticipant, or the surviving Spouse or Alternate Payee ofeither, receives a distribution that qualifies as an EligibleRollover Distribution, such person has the right to directthe rollover of all or a portion of such distributiondirectly to an IRA, a defined contribution pension orprofit-sharing trust qualified under Code §401(a), anannuity plan qualified under Code §403(a), a tax-shel-tered annuity plan qualified under Code §403(b), oranother “eligible retirement plan” as defined in Code§401(a)(31), that will accept such a rollover, providedthat the amount so transferred must either be the entireamount of such distribution or must be at least $200. Anysurviving non-Spouse Beneficiary who receives a distri-bution that qualifies as an Eligible Rollover Distributionhas the right to elect a direct rollover of all or a portionof such distribution directly to an inherited IRA that willaccept such rollover, provided that the amount so trans-ferred must either be the entire amount of such distribu-tion or be at least $200. The Administrator may adoptadministrative procedures to implement direct rollovers,which may vary the time periods and minimum amountsset forth above, to the extent consistent with finalRegulations issued under Code §401(a)(31).

(g) Non-Revision. Subject to Section B3.4, begin-ning five business days before the first monthly benefitis due, neither the form of payment nor the Spouse enti-tled to survivor payments may be changed by reason of



a changed election, the death of a Spouse, or a divorce.B9.2 Time of Payment. The following provi-

sions are subject to Section B9.4 (relating to requiredminimum distributions).

(a) Distribution at Retirement. A Participant’s orTerminated Participant’s Annuity Starting Date will bethe Early Retirement Date, Normal Retirement Date, orLate Retirement Date on or immediately following suchParticipant’s Retirement or Terminated Participant’s62nd birthday, unless:

(i) the Participant’s or Terminated Participant’sAggregate DB Benefit exceeds the amount specified inSection B9.1(d), and the Participant or TerminatedParticipant fails to submit an accurately completedApplication for Benefits to the Administrator before suchEarly, Normal, or Late Retirement Date (or, in the case of aTerminated Participant, his or her 62nd birthday), in whichcase the payment of his or her Early Retirement Benefit,Normal Retirement Benefit, or Late Retirement Benefitwill be made in accordance with Section B9.2(b); or

(ii) the Participant’s or Terminated Participant’sAggregate DB Benefit does not exceed the amount spec-ified in Section B9.1(d), in which case the payment ofhis or her Accrued Benefit will be made in accordancewith Section B9.2(c).

Notwithstanding the provisions of the previous sen-tence, such Participant’s or Terminated Participant’sAnnuity Starting Date will be delayed if required to sat-isfy the conditions of Sections B9.1(e) and B9.2(d).

(b) Delayed Distribution. If Section B9.2(a)(i)applies, the Annuity Starting Date for a Participant’s orTerminated Participant’s Early Retirement Benefit,Normal Retirement Benefit, or Late Retirement Benefitwill be the earlier of:

(i) the date that is:(A) the first of the month following the

Administrator’s acceptance of the Participant’s orTerminated Participant’s Application for Benefits; or

(B) such later date, if any, as is necessary to satisfythe conditions of Sections B9.1(e) and B9.2(d); or

(ii) the Participant’s or Terminated Participant’sRequired Beginning Date.

(c) Lump Sums.(i) Small Benefit. Except in the case of a Disabled

Participant, if, as of the time:(A) a Participant qualifies for Early Retirement,

Normal Retirement, or Late Retirement or attains his orher Annuity Starting Date;

(B) a Terminated Participant first becomes aTerminated Participant or attains his or her AnnuityStarting Date; or

(C) an Alternate Payee’s benefit is segregated pur-

suant to a QDRO or the Alternate Payee attains his or herAnnuity Starting Date,

such person’s Aggregate DB Benefit does notexceed the amount specified in Section B9.1(d), thensuch Aggregate DB Benefit will be administered asdescribed in Section B9.1(d). A Disabled Participantmust consent to such distribution.

(ii) Termination by Withdrawal. A Participant enti-tled to a lump sum transfer under Section B9.1(b)(iv)(A)must elect such lump sum transfer:

(A) within 180 days of his or her Termination ofConference Relationship under any subparagraph of¶ 360.2 of the Discipline;

(B) subject to all applicable provisions of SectionsB9.1 and B9.2; and

(C) in accordance with such rules as the Admini-strator may make from time to time.

Such Terminated Participant’s lump sum transferwill be completed as soon as reasonably practicableafter the Administrator’s receipt of the TerminatedParticipant’s lump sum election. The lump sum transferwill constitute the complete transfer of such TerminatedParticipant’s Accrued Benefit under the Core DefinedBenefit Plan to an Account of the Administrator’s choos-ing in the Core Defined Contribution Plan. Followingsuch transfer, the Terminated Participant may leave thetransferred lump sum in the Account to which it wastransferred or apply for and receive a distribution of suchtransferred lump sum in accordance with Section C8.

(d) Tax Notice. Before making any EligibleRollover Distribution, the Administrator will furnisheach Recipient with a notice describing his or her rightto a direct rollover of the distribution and the tax conse-quences of the distribution. Such notice will be fur-nished not more than 180 days nor fewer than 30 daysbefore the Recipient is entitled to receive such distribu-tion, and no distribution will be made until 30 days afterhe or she has received such notice unless he or shewaives such 30-day period in writing in accordance withprocedures established by the Administrator.

B9.3 Payments After a Participant’s Death.The following provisions are subject to Section B9.4(relating to required minimum distributions).

(a) Distribution on Death. On or after the death ofa Participant or a Terminated Participant whose AnnuityStarting Date:

(i) has already passed, further Plan benefits willbe paid (or will cease) in accordance with the terms ofthe Normal Form of Benefit or Optional Form ofBenefit, whichever is in force; or

(ii) has not yet arrived,(A) no benefits under the Plan will be payable if



such Participant or Terminated Participant has no sur-viving Spouse; or

(B) a monthly 70% Pre-Retirement SurvivorBenefit will be paid to such Participant’s or TerminatedParticipant’s surviving Spouse as follows:

(I) If the Participant or Terminated Participantdied while married to a Spouse, that surviving Spousewill receive 70% of the Participant’s or TerminatedParticipant’s portion of:

(1) the benefit payable under Section B9.1(a)(ii) inthe case of a surviving Spouse of a Participant; or

(2) the benefit payable under Section B9.1(a)(iii)in the case of a surviving Spouse of a TerminatedParticipant,

in either case as though the Participant orTerminated Participant commenced the benefit payableunder Section B9.1(a)(ii) or (iii), respectively, on the daybefore his or her death (disregarding any limitations onwhen such benefit may be paid) and died immediatelythereafter without receiving any payments thereunder,leaving only the surviving Spouse portion of the benefit.Monthly surviving Spouse benefits will be actuariallyreduced, as determined by the Administrator, to reflectearly commencement in the case of payments beginningbefore the Participant’s or Terminated Participant’sNormal Retirement Date.

(II) Monthly benefits will begin on:(1) the first of the month following the Partici-

pant’s or Terminated Participant’s date of death; or(2) such later date as such surviving Spouse may

elect (in accordance with rules and procedures adoptedby the Administrator from time to time); and

will end with the payment made on the first of themonth in which such surviving Spouse dies.

(III) Monthly benefits will be increased 2% peryear, in accordance with the provisions of SectionB9.1(a)(ii), when paid to the surviving Spouse of adeceased Participant, but no annual increase will be paidto the surviving Spouse of a deceased TerminatedParticipant.

(b) Proof of Death. The Administrator may requiresuch proper proof of death and such evidence of theright of any person to receive payment of a NormalForm of Benefit, Optional Form of Benefit, or 70% Pre-Retirement Survivor Benefit as the Administrator maydeem appropriate. The Administrator’s determination ofwhich person will receive payment will be conclusive.

(c) Effect of Divorce. A Participant’s or TerminatedParticipant’s divorce after his or her Annuity StartingDate will not change how benefits are paid under theNormal Form of Benefit or an Optional Form of Benefitunless a QDRO otherwise provides. A Participant’s or

Terminated Participant’s divorce (but not his or her legalseparation) before his or her Annuity Starting Date willresult in benefits being paid as though the Participant orTerminated Participant does not have a Spouse, unlessthe Participant or Terminated Participant remarriesbefore his or her Annuity Starting Date or unless aQDRO otherwise provides.

B9.4 Required Minimum Distributions.Notwithstanding anything in the Plan to the contrary,distributions under the Plan will comply with Code§403(b)(10) and its provisions related to compliancewith Code §401(a)(9) and the applicable provisions ofany required minimum distribution Regulations issuedthereunder. Such Code and Regulation provisions arehereby incorporated herein by this reference, and willcontrol over any form of distribution or timing of distri-bution provided in this Plan that is inconsistent there-with. To the extent that such Regulations provide for anyelections or alternative methods of compliance notspecifically addressed in the Plan, the Administrator willhave the authority to provide for such elections or alter-native methods of compliance.

(a) Time of Distribution.(i) Required Beginning Date. Monthly benefits

will begin to be distributed to the Participant no laterthan the Participant’s Required Beginning Date.

(ii) Death of Participant Before DistributionsBegin. If the Participant dies before a distribution to theParticipant begins, monthly benefits will be distributedto the Participant’s surviving Spouse, if any, beginningno later than December 31 of the later of:

(A) the calendar year in which the Participantwould have attained age 70½; or



(b) Determination of Amount to be DistributedEach Year.

(i) General Annuity Requirements. If a Participant’sinterest is paid in the form of an annuity distributionunder the Plan, payments under the annuity must satisfythe following requirements:

(A) the annuity distribution will be paid in periodicpayments made at intervals not longer than one year;

(B) the distribution period will be over a life (orlives) or over a period certain not longer than the perioddescribed in Section B9.4(c) or (d);

(C) once payments have begun over a period cer-tain, the period certain will not be changed, even ifthe period certain is shorter than the maximum permit-



ted; and(D) payments will either be nonincreasing or will

increase only as follows:(I) by an annual percentage increase that does not

exceed the annual percentage increase in a cost-of-livingindex that is based on prices of all items and issued bythe Bureau of Labor Statistics;

(II) to the extent of the reduction in the amount ofthe Participant’s payments to provide for a survivor ben-efit upon death, but only if the Beneficiary whose lifewas being used to determine the distribution perioddescribed in section B9.4(c) dies or is no longer theParticipant’s Beneficiary pursuant to a QDRO;

(III) to provide cash refunds of participant contribu-tions upon the Participant’s death;

(IV) to pay increased benefits that result from a Planamendment; or

(V) by an annual percentage increase that complieswith any other applicable Regulation.

(ii) Amount Required to be Distributed byRequired Beginning Date. The amount that must be dis-tributed on or before a Participant’s Required BeginningDate (or, if the Participant dies before distributionsbegin, the date distributions are required to begin underSection B9.4(a)(ii)) is the payment that is required forone payment interval (i.e., the period for which an annu-ity payment is received (e.g., bi-monthly, monthly, semi-annually, or annually)). The second payment need not bemade until the end of the next such payment intervaleven if that payment interval ends in the next calendaryear. All of the Participant’s benefit accruals as of thelast day of the first distribution calendar year will beincluded in the calculation of the amount of the annuitypayments for such payment intervals ending on or afterthe Participant’s Required Beginning Date.

(iii) Additional Accruals After First DistributionCalendar Year. Any additional benefits accruing to aParticipant in a calendar year after the first DistributionCalendar Year will be distributed beginning with the firstpayment interval ending in the calendar year immedi-ately following the calendar year in which such amountaccrues.

(c) Requirements for Annuity Distributions thatBegin During Participant’s Lifetime.

(i) Joint-Life Annuities Where the ContingentAnnuitant Is Not the Participant’s Spouse. If aParticipant’s interest is being distributed in the form of aContingent Annuity for the joint lives of the Participantand a non-Spouse Contingent Annuitant, annuity pay-ments to be made on or after the Participant’s RequiredBeginning Date to the Contingent Annuitant after theParticipant’s death must not at any time exceed the

applicable percentage of the annuity payment for suchperiod that would have been payable to the Participantusing the table set forth in Regulation §401(a)(9)-6,Q&A-2. If the form of distribution combines aContingent Annuity for the joint lives of the Participantand a non-Spouse Contingent Annuitant and a periodcertain annuity, the requirement in the preceding sen-tence will apply to annuity payments to be made to theContingent Annuitant after the expiration of the periodcertain.

(ii) Period-Certain Annuities. Unless a Participant’sSpouse is the sole Designated Beneficiary and the formof distribution is a period certain with no lifetime bene-fit annuity, the period certain for an annuity distributioncommencing during the Participant’s lifetime may notexceed the applicable distribution period for theParticipant under the Uniform Lifetime Table set forth inRegulation §1.401(a)(9)-9 for the calendar year thatcontains the Annuity Starting Date. If the AnnuityStarting Date precedes the year in which the Participantattains age 70, the applicable distribution period for theParticipant is the distribution period for age 70 under theUniform Lifetime Table set forth in Regulation§1.401(a)(9)-9 plus the excess of 70 over the age of theParticipant as of the Participant’s birthday in the yearthat contains the Annuity Starting Date. If theParticipant’s Spouse is the Participant’s sole DesignatedBeneficiary and the form of distribution is a period cer-tain and joint-life annuity, the period certain may notexceed the longer of the Participant’s applicable distri-bution period, as determined under this SectionB9.4(c)(ii), or the joint life and last survivor expectancyof the Participant and the Participant’s Spouse as deter-mined under the Joint and Last Survivor Table set forthin Regulation §1.401(a)(9)-9, using the Participant’s andSpouse’s attained ages as of the Participant’s andSpouse’s birthdays in the calendar year that contains theAnnuity Starting Date.

(d) Small Benefit. Notwithstanding the foregoingportions of this Section B9.4, except in the case of a dis-tribution to a Disabled Participant, if a Participant’s or aTerminated Participant’s Aggregate DB Benefit does notexceed the amount specified in Section B9.1(d) at thetime of distribution, then such Aggregate DB Benefitwill be administered as described in Section B9.1(d) assoon as administratively feasible. A Disabled Participantmust consent to such administration, subject to the fore-going provisions of this Section B9.4.

B9.5 Unclaimed Benefits. The Administratormay prescribe uniform and nondiscriminatory rules forcarrying out the following provisions:

(a) If a portion (or all) of an Early, Normal, or Late



Retirement Benefit or a 70% Pre-Retirement SurvivorBenefit remains to be distributed to a Recipient at a timewhen it is due under the Plan (including, but not limitedto, the Required Beginning Date) and the Administratoris then unable to locate the Recipient, the Administratorwill send notice of such benefit due by a certified letterwith return receipt requested to the last known addressof the Recipient. If the Recipient fails to contact theAdministrator within 12 months, the Recipient will bepresumed dead and such benefit will be forfeited (exceptas provided in Section B9.5(c)) and will become the ben-efit of the next Recipient in line (except as provided inSection B9.5(b)) in accordance with the applicable formof payment. The Administrator will then send notice bycertified letter as provided above to the next Recipient inline, and the process specified above will be repeateduntil the last successor Recipient is sent a notification.

(b) If the last successor or default Recipient fails tocontact the Administrator within 12 months after beingsent notification of a benefit due as provided in SectionB9.5(a), then the amount specified in Section B9.5(a)will be forfeited. Such forfeitures will remain in theFunding Account from which they would otherwise havebeen paid to fund other benefits payable under the Plan.

(c) If, at any time before the expiration of the 12-month period described in Section B9.5(b), a Recipientwho is or was due a benefit described in Section B9.5(a)claims the benefit, the benefit will be paid to suchRecipient (notwithstanding any previous forfeiture) if ithas not previously been paid to another Recipient. If abenefit has been paid to a successor Recipient, the for-feiture as to all predecessor Recipients will become per-manent. If the 12-month period described in SectionB9.5(b) has elapsed, then such benefit will be perma-nently forfeited and will remain in the Funding Accountfrom which it would otherwise have been paid to fundother benefits payable under the Plan.

B9.6 Payment with Respect to IncapacitatedRecipients. Whenever, in the Administrator’s opinion,a person entitled to receive any payment of a benefitunder the Plan is under a legal disability (includingbeing a minor) or is incapacitated in any way so as to beunable to manage such person’s financial affairs, theAdministrator may direct the Trustee to make paymentsdirectly to the person, to the person’s legal representa-tive (including a custodian for such person under theapplicable Uniform Gifts or Transfers to Minors Act orsimilar legislation), or to a relative or friend of the per-son to be used exclusively for such person’s benefit, orapply any such payment for the benefit of the person insuch manner as the Administrator deems advisable. Thedecision of the Administrator, in each case, will be final,

binding, and conclusive upon all persons interestedhereunder. The Administrator will not be obligated tosee to the proper application or expenditure of any pay-ment so made. Any benefit payment (or installmentthereof) made in accordance with the provisions of thisSection B9.6 will completely discharge the obligationfor making such payment under the Plan, and theAdministrator will have no further liability on accountthereof.

B9.7 Limitation on Liability for Distributions.All rights and benefits, including benefit elections, pro-vided to a Participant or Terminated Participant underthis Plan will be subject to the rights afforded to anyAlternate Payee under a QDRO. Further, a distributionto an Alternate Payee will be permitted if such distribu-tion is authorized by a QDRO, even if the affectedParticipant or Terminated Participant has not incurred aTermination of Conference Relationship or attained anyparticular age.

B9.8 Relinquishment. Any Recipient mayRelinquish any benefit or portion thereof that is due tohim or her under the Plan if it is done in writing in aform acceptable to the Administrator and before receiv-ing it. The Relinquishment will be effective for anymonthly benefit payments due after it is made, willremain in effect in accordance with its terms for futurebenefit payments (until revoked), and may be revoked atany time (prospectively only), in accordance with rulesor procedures adopted from time to time by theAdministrator, as to monthly benefits not yet due.Relinquished monthly benefits will be handled in accor-dance with Section B7.2.

Part CCore Defined Contribution PartSECTION C1—INTRODUCTION

C1.1 Plan Sponsors.(a) Each Conference is a Plan Sponsor of the Core

Defined Contribution Plan under this Part C with respectto Participants who are:





(iii) when elected by a Conference under its



Adoption Agreement, members of that Conference whoare placed on Incapacity Leave but not covered underSection C1.1(a)(ii);

(iv) Non-Jurisdictional Clergy, Other MethodistDenomination Clergy, or Other Denomination Clergy; or

(v) entitled to Credited Service under USERRAbut who last served that Conference under SectionC1.1(a)(i).

Each such Conference will complete an AdoptionAgreement covering such Participants with respect tothe Core Defined Contribution Plan.

(b) GCFA will be a Plan Sponsor of the CoreDefined Contribution Plan under this Part C on and afterSeptember 1, 2008 with respect to Participants who are:



Notwithstanding the foregoing, in the case ofBishops who were newly consecrated in 2008, thenGCFA is the Plan Sponsor of the Core DefinedContribution Plan under this Part C on and after the dateof their consecration. GCFA will complete an AdoptionAgreement covering such Participants with respect tothe Core Defined Contribution Plan effective as ofSeptember 1, 2008.

(c) If so elected by the Commission on theGeneral Conference on an Adoption Agreement, theCommission on the General Conference is a Plan Sponsorof the Core Defined Contribution Plan under this Part Cwith respect to Participants who are Appointed to theCommission on the General Conference.

(d) No other entity may be a Plan Sponsor of theCore Defined Contribution Plan.

(e) No entity may be a Plan Sponsor of the CoreDefined Contribution Plan without simultaneously beinga Plan Sponsor of the Core Defined Benefit Plan.

C1.2 Prospective Application. No benefitswill accrue under the Core Defined Contribution Planbefore January 1, 2007.

SECTION C2—COMPUTATION OFSERVICE

C2.1 Method of Computation.(a) Eligibility Service. A Clergyperson does not

need to complete a specified period of Service to be eli-gible for the Plan (although there are other conditionsnot involving Service).

(b) Credited Service. An Eligible Clergyperson’sContributions under the Plan are not determined withreference to Service.

(c) Vesting Service. Participants are always 100%

Vested in their Accounts.

SECTION C3—PARTICIPATION

C3.1 Eligibility for Participation.(a) Eligible Clergyperson. An Eligible

Clergyperson is a Clergyperson:(i) who:

(A) is Appointed at least Half-Time and:(I) whose Conference or Salary-Paying Unit is a

Plan Sponsor under the terms of the Plan and is UnderEpiscopal Appointment by the Bishop of such PlanSponsor Conference; or

(II) who is a member of a Conference but is UnderEpiscopal Appointment by the Bishop of another PlanSponsor Conference (within the meaning of ¶ 346.1 ofthe Discipline);



(ii) who is a Non-Jurisdictional Clergyperson, anOther Methodist Denomination Clergyperson, an OtherDenomination Clergyperson, or a Clergypersondescribed in Section C3.1(a)(i)(A)(II) above) and:

(A) who:(I) develops a disability or an incapacity after hav-

ing been Appointed at least Half-Time at some time dur-ing the 24 months (excluding periods while on Leave ofAbsence) immediately preceding the onset of his or herdisability or incapacity;

(II) remains Appointed by the Bishop of the PlanSponsor Conference (or, where the Plan Sponsor is notsupervised by a Bishop, remains covered by the PlanSponsor’s Adoption Agreement); and

(III) is not reported as discontinued or as having norecord of Appointment; or

(B) who is CPP Disabled and was Appointed atleast Half-Time at some time during the 24 months(excluding periods while on Leave of Absence) immedi-ately preceding his or her grant of CPP disability bene-fits;







(b) Participation. Each Eligible Clergyperson willbecome a Participant on the Entry Date determinedunder Section C3.2, provided that he or she satisfies allof the following requirements on the Entry Date:



(B) a Bishop;(ii) He or she is eligible to participate in a Church

Plan; and(iii) He or she is:(A) receiving Compensation in connection with his

or her Appointment;(B) CPP Disabled or a Bishop on Incapacity Leave

(but in neither of these cases is a Terminated Participant);(C) when elected by a Conference under its

Adoption Agreement, a Conference member who isplaced on an Incapacity Leave but not covered underSection C3.1(b)(iii)(B) above; or


Date, an Eligible Clergyperson must continue to meetthe conditions in Sections C3.1(a) and (b) above toremain a Participant eligible to receive Contributions.Although it will not prevent an Eligible Clergypersonfrom participating in the Plan, the Administrator mayrequire the Plan Sponsor of each Eligible Clergypersonwho is to become (or has become) a Participant (whetheror not such Participant has an Accrued Benefit) to file anapplication for enrollment in the Plan in such form asmay be required by the Administrator or to otherwiseprovide necessary enrollment information in a manneracceptable to the Administrator.

C3.2 Determination of Entry Date. EachEligible Clergyperson’s Entry Date will be:

(a) January 1, 2007, if on that date he or she satis-fied the requirements of Section C3.1; or

(b) the first day of any calendar month thereafteron which he or she first satisfies the requirements ofSection C3.1.

C3.3 Determination of Eligibility. Upon

receipt of enrollment information from the Plan Sponsoras provided in Section C3.1, the Administrator willaccept such information as evidence of eligibility forparticipation in the Plan. However, the Administratormay from time to time audit such information or obtainadditional information, which might result in a determi-nation of ineligibility for a Participant or a determinationof eligibility for a non-Participant. The Administratorhas the final authority to determine the eligibility of anyClergyperson. Such determination will be made pur-suant to the provisions of the Plan and the AdoptionAgreement and will be conclusive and binding upon allpersons.

C3.4 Cessation and Resumption ofParticipation.

(a) Cessation of Participation. A Participant whoreceives a distribution of his entire Account Balanceunder the Plan and who no longer qualifies underSection C3.1 will cease to be a Participant in the Plan.

(b) Reinstatement. A person described in SectionC3.4(a) who again qualifies under Sections C3.1 andC3.2 will again become a Participant entitled toContributions.

(c) Return to Coverage. If a Participant ceases toqualify under Sections C3.1 and C3.2 but does notreceive a distribution of his entire Account Balanceunder the Plan and then requalifies under those Sections,he or she will once again be entitled to Contributionsunder the Plan but will not be entitled to receive distri-butions under the Plan (except to the extent he or shequalifies under Section C8.2), even for amounts that heor she would have been entitled to receive when he orshe previously ceased to qualify under Sections C3.1and C3.2.

(d) Transfer. A Participant who transfers from oneConference (or other Plan Sponsor) to another (or whootherwise transfers under ¶¶ 346, 347, or 348 of theDiscipline such that he or she was covered under thePlan both before and after the transfer) without a Breakin Service will remain a Participant, but his or her PlanSponsor will change from the first Conference (or otherPlan Sponsor) to the second on the date that he or she isUnder Episcopal Appointment with the second.

C3.5 Omission of Eligible Clergyperson. If,in any Plan Year, a Clergyperson who should have beenincluded as a Participant in the Plan is erroneously omit-ted from participation and if the discovery of such omis-sion is not made until after one or more Contributions byhis or her Plan Sponsor has been made or is due for suchPlan Year, the Plan Sponsor will correct that omission bymaking one or more replacement contributions to suchParticipant’s Non-Matching Contribution Account or



Matching Contribution Account to substitute for theNon-Matching Contributions or Matching Contributionsthat would have been made with respect to the omittedParticipant had he or she not been omitted, subject to thelimits of Section C5. In addition, the Plan Sponsor willcontribute to the Non-Matching Contribution Account orMatching Contribution Account of the omittedParticipant imputed earnings on the replacement contri-butions based on a fixed rate of interest or on projectedearnings as established by the Administrator from caseto case or time to time, credited from the Due Date onwhich any such Contributions were due to the Plan untilthe Accounting Date such replacement contributionswere actually credited to the omitted Participant’s Non-Matching Contribution Account or MatchingContribution Account. Moreover, the Plan Sponsor issubject to one or more administrative charge(s) underSection A3.7(c). In accordance with Revenue Procedure2003-44 or its successors, replacement contributionsmade on account of any past Limitation Year will bedeemed made in that past Limitation Year for the purposeof Code §415. Replacement contributions made onaccount of imputed earnings will not be treated as annualadditions in any Limitation Year under Code §415.

C3.6 Inclusion of Ineligible Person. If, inany Plan Year, any person who should not have beenincluded as a Participant in the Plan is erroneouslyincluded and the discovery of such incorrect inclusion isnot made until after one or more Contributions for thePlan Year have been made with respect to such person,any such Contributions will constitute a mistake of factfor the Plan Year in which the Contributions are madeand will be returned to the Plan Sponsor (adjusted forany gains or losses) if it qualifies under Section A4.3(b).Erroneous Contributions that do not qualify underSection A4.3(b) will be permanently forfeited and usedby the Administrator to defray administrative expensesof the Plan.

C3.7 Election Not to Participate. Subject tothe consent of his or her Plan Sponsor, an EligibleClergyperson who is a student Local Pastor (within themeaning of ¶¶ 318 and 318.3 or 318.4 of the Discipline)or who is Appointed on a Part-Time basis may elect vol-untarily not to participate in the entire Program by writ-ten notice to the Plan Sponsor not later than 60 daysafter the effective date of such election, which may bemade in any form acceptable to the Administrator. Asthe result of such an election, Contributions will not bemade with respect to the electing Eligible Clergypersonwhile such an election is in force. The EligibleClergyperson may revoke such an election at any timethat such Clergyperson is eligible to be a Participant, but

past Contributions related to periods during which theelection was in force will not be earned or will be per-manently forfeited. If such Clergyperson already has anAccount Balance in the Plan, such election not to partic-ipate will not affect the Account Balance or Contributionsalready made to the Plan or the Participant’s right todirect the investment of such Account Balance.

SECTION C4—AMOUNT ANDALLOCATION OF CONTRIBUTIONS

C4.1 Plan Sponsor Contributions.(a) Non-Matching Contributions. For each month,

each Plan Sponsor will make a Non-MatchingContribution on behalf of each of its Participants whoqualify under Sections C3.1 and C3.2 (and continue toqualify at the end of each such month) in the amount of2% of such Participant’s Compensation for each suchmonth.

(b) Matching Contributions. For each month, eachPlan Sponsor will make a Matching Contribution onbehalf of each of its Participants who qualify underSections C3.1 and C3.2 (and continue to qualify at theend of each such month) in an amount equal to the por-tion of such Participant’s Participant Contributions toUMPIP for the current Plan Year to date that does notexceed 1% percent of such Participant’s Compensationfor the current Plan Year to date, reduced by the amountof Matching Contributions made for such Participant forprevious months in the current Plan Year.

(c) Disabled Participants. Sections C4.1(a) and(b) above will apply to CPP Disabled Participants andParticipants on Incapacity Leave only as provided in thisSection C4.1(c):

(i) Disabled Participant Eligibility. In accordancewith the provisions of this Section C4.1(c), PlanSponsors (or CPP on their behalf) will also make Non-Matching Contributions and Matching Contributions to:

(A) CPP Disabled Participants and Bishops onIncapacity Leave who are eligible under Sections C3.1and C3.2 (and continue to qualify at the end of eachmonth); and

(B) Participants on Incapacity Leave who are eligi-ble under Sections C3.1 and C3.2 (and continue to qual-ify at the end of each month) whose Plan Sponsors haveelected on their Adoption Agreements to cover suchParticipants.

Notwithstanding the foregoing provisions of thisSection C4.1(c)(i), a Participant will cease to qualify forfurther Non-Matching and Matching Contributions onaccount of periods after he or she becomes a TerminatedParticipant.

(ii) Amount of Contributions. Participants eligible



under Section C4.1(c)(i) above will be entitled to Non-Matching Contributions and Matching Contributions:

(A) in the case of CPP Disabled Participants andBishops on Incapacity Leave covered under SectionC4.1(c)(i)(A) above, in the amount of:

(I) 2% of such Participant’s Compensation deter-mined as of the month immediately preceding the startof such Participant’s CPP Disability (subject to annualimputed increases described below); plus

(II) an additional amount of Matching Contributionsup to 1% of such Participant’s Compensation deter-mined as provided in Section C4.1(c)(ii)(A)(I) above, tothe extent that such Participant makes ParticipantContributions under UMPIP while CPP Disabled,

with 3% annual imputed increases in Compensation,effective on and after January 1, 2013, starting with theyear following the year in which such Contributionswere first made (all of which may be paid by CPP);

(B) in the case of Participants on Incapacity Leavecovered under Section C4.1(c)(i)(B) above, in theamount of:

(I) 2% of such Participant’s Compensation deter-mined as of the month immediately preceding the startof such Participant’s Incapacity Leave (subject to annualimputed increases described below); plus

(II) an additional amount of Matching Contributionsup to 1% of such Participant’s Compensation deter-mined as provided in Section C4.1(c)(ii)(B)(I) above, tothe extent that such Participant makes ParticipantContributions under UMPIP while on Incapacity Leave,

with 3% annual imputed increases in Compensationstarting with the year following the year in which suchContributions were first made,

in either case, to the extent permitted under Code§415(c)(3)(C) (or any other applicable Code provisions)and Section C5.

(iii) Period of Contributions. The Contributionsprovided for under Section C4.1(c)(ii) above will bemade from the date such Participant is eligible underC4.1(c)(i) above until the earliest of:

(A) the date such Participant ceases to qualifyunder C4.1(c)(i) above;

(B) in the case of a Participant who qualified underC4.1(c)(i) above before age 60, on the earlier of:

(I) the date such Participant Retires on an EarlyRetirement Date; or

(II) such Participant’s Normal Retirement Date(whether or not he or she actually Retires); or

(C) in the case of a Participant who qualified underC4.1(c)(i) above on or after age 60, on the earliest of:

(I) the date that is the five-year anniversary of

such Participant’s qualification under C4.1(c)(i) above;(II) such Participant’s 70th birthday; or

(III) in the case of a CPP Disabled Participant, thedate that CPP disability benefits cease.

C4.2 Allocation and Deposit of Contributions.All Contributions will be forwarded to the Administratorby the Plan Sponsor as soon as possible, but in no eventlater than the Due Date. The Administrator will depositContributions in the Trust as soon as possible afterreceiving them. Each Participant’s share of the Non-Matching Contributions will be allocated to theParticipant’s Non-Matching Contribution Account as ofthe Accounting Date coinciding with or next succeedingthe date they are deposited in the Trust. EachParticipant’s share of the Matching Contributions willbe allocated to the Participant’s Matching ContributionAccount as of the Accounting Date coinciding withor next succeeding the date they are deposited in theTrust.

C4.3 Late Contributions. If a Plan Sponsordelays in making a Contribution to the Plan on behalf ofany Participant until after the Due Date specified inSection C4.2, then the Plan Sponsor will make suchdelayed Contribution to the Plan as soon as possiblethereafter, along with missed earnings on such delayedContribution in accordance with any applicable InternalRevenue Service correction program, credited from theday after such Due Date until the Accounting Date suchContribution was actually credited to the Participant’sAccount. For the purpose of Code §415, such replace-ment Contributions (including imputed earnings) will betreated as specified in Section C3.5. Any special servicesprovided by the Administrator in connection with thisSection C4.3 are subject to the additional charges pro-vided for in Section A3.7(c). If any Contributions aremore than two months overdue, the Administrator maycompel payment by bringing the matter to JudicialCouncil or by any other means the Administrator mayelect to pursue.

C4.4 Ineligible Participants. If a Participantceases to qualify under Section C3.1, is on an unpaidLeave of Absence (except as otherwise required underSection A4.9 (relating to USERRA) or applicable law),is suspended from employment without pay, or is oth-erwise not earning Compensation for a month for a rea-son not covered under Section C3.1, but has notRetired or incurred a Termination of ConferenceRelationship, then for any such period the Participant’sAccounts will not be credited with any Non-MatchingContributions.



SECTION C5—LIMITS ONCONTRIBUTIONS

C5.1 Limit on Annual Additions.(a) Limitation. Notwithstanding any other provi-

sions of the Plan (except for this Section C5), theamount of Annual Additions allocated to a Participant’sAccount for any Limitation Year will not exceed anamount equal to the limit of Section C5.1(a)(i) below, asincreased, if at all, by the provisions of SectionsC5.1(a)(ii) and C5.1(a)(iii) below.

(i) Standard Limit. The limit of this SectionC5.1(a)(i) is the lesser of:

(A) $49,000 (in 2011 or as indexed under Code§415(d) in later years); or

(B) 100% of the Participant’s 415 Compensationfor the Limitation Year;

reduced, in either case, by the amount of AnnualAdditions credited to the Participant’s account for theLimitation Year under any other Code §403(b) definedcontribution plan maintained by a Plan Sponsor or a 415Affiliate.

(ii) $3,000 Missionary Minimum. To the extentpermitted under Code §415(c)(7) and Regulations, if theamount of Annual Additions allocated to a Participant’sAccount for any Limitation Year exceeds the limit ofSection C5.1(a)(i) above, in the case of a Participant per-forming services outside of the United States for anyentity that is controlled by or associated with The UnitedMethodist Church or any autonomous affiliated church,such limit will be increased (if this Section C5.1(a)(ii)provides an increase) to $3,000, provided that suchParticipant’s adjusted gross income for such LimitationYear (determined separately and without regard to com-munity property laws) does not exceed $17,000.

(iii) $10,000 Minimum. To the extent permittedunder Code §415(c)(7) and Regulations, if the amountof Annual Additions allocated to a Participant’s Accountfor any Limitation Year exceeds the limit of SectionC5.1(a)(i) above, as increased to the limit of SectionC5.1(a)(ii) above (if such Section provides an increase),such limit will be increased to the lesser of:

(A) $10,000 minus the limit of Section C5.1(a)(i)above as applied to such Participant in such LimitationYear; or

(B) $40,000 minus the aggregate of all previousAnnual Additions for all previous Limitation Years madebecause of the extended limit attributable to Code§415(c)(7).

This Section C5.1(a)(iii) will be applied, to theextent required under Code §415(c)(7) and Regulations,to the Participant’s account for the Limitation Year under

any other Code §403(b) defined contribution plan main-tained by any entity controlled by or associated with TheUnited Methodist Church within the meaning of Code§414(e)(3)(B)(ii).

(b) Error in Previous Limitation Year. To the extentpermitted by applicable law, an amount credited to aParticipant’s Account in order to correct an error madein a previous Limitation Year will be treated for the pur-pose of Section C5.1(a) as having been credited to suchAccount in the Limitation Year to which the errorrelates.

(c) Correction of Excess Annual Additions. If theamount otherwise allocable to a Participant’s Account,or with respect to a Participant in any other Code§403(b) defined contribution plan described in SectionC5.1(d) below, in a Limitation Year would exceed thelimitation set forth in Section C5.1(a) above, the amountof such excess will be corrected as soon as is practicablein accordance with any applicable Internal RevenueService correction program, which correction will beimplemented, if permitted:

(1) as provided in UMPIP, or, if there is a conflictin the application of this Plan and UMPIP or anotherplan, then according to the plan with the smaller amountof plan sponsor contributions, or, if the foregoing doesnot correct the excess Annual Additions, then

(2) by the application of one or more of SectionsC5.1(c)(2)(i)-(xi) below in the following order to theextent necessary and to the extent permissible under theCode or Regulations or Internal Revenue Service pro-grams (such as the Employee Plans ComplianceResolution System) thereunder:

(i) first, in the case of a Participant eligible tomake before-tax elective deferral contributions (includ-ing any qualified as 15-year catch-up contributions inaccordance with Code §402(g)(7)) to a Code §403(b)defined contribution plan, by a recharacterization of anysuch contributions (and any earnings thereon) for theLimitation Year as age 50 catch-up contributions to theextent permissible under Code §414(v) and any suchdefined contribution plan;

(ii) second, in the case of a Participant eligible tomake Roth elective deferral contributions (including anyqualified as 15-year catch-up contributions in accor-dance with Code §402(g)(7)) to a Code §403(b) definedcontribution plan, by a recharacterization of any suchcontributions (and any earnings thereon) for theLimitation Year as age 50 catch-up contributions to theextent permissible under Code §414(v) and any suchdefined contribution plan;

(iii) third, in the case of a Participant eligible tomake after-tax participant contributions to a Code



§403(b) defined contribution plan, by returning all or aportion of such contributions (and any earnings thereon)for the Limitation Year, except that in the case of aParticipant whose Plan Sponsor or employer makesmatching contributions (including conditional contribu-tions under UMPIP), such return of after-tax participantcontributions will be made only to the extent that theywere not pre-requisites to earning matching contribu-tions (including such conditional contributions) and onlyto the extent permitted by such defined contribution plan;

(iv) fourth, by returning all or a portion of theParticipant’s before-tax elective deferral contributions toa Code §403(b) defined contribution plan (and any earn-ings thereon) for the Limitation Year, except that in thecase of a Participant whose Plan Sponsor or employermakes matching contributions (including conditionalcontributions under UMPIP), such return of before-taxelective deferral contributions will be made only to theextent that they were not pre-requisites to earningmatching contributions (including such conditional con-tributions) and only to the extent permitted by suchdefined contribution plan;

(v) fifth, by returning all or a portion of theParticipant’s Roth elective deferral contributions to aCode §403(b) defined contribution plan (and any earn-ings thereon) for the Limitation Year, except that in thecase of a Participant whose Plan Sponsor or employermakes matching contributions (including conditionalcontributions under UMPIP), such return of Roth elec-tive deferral contributions will be made only to theextent that they were not pre-requisites to earningmatching contributions (including such conditional con-tributions) and only to the extent permitted by suchdefined contribution plan;

(vi) sixth, in the case of a Participant whose PlanSponsor or employer makes matching contributions(including conditional contributions under UMPIP) to aCode §403(b) defined contribution plan, by repeatingthe following cycle: returning one dollar of after-tax par-ticipant contributions (and any earnings thereon) for theLimitation Year to the Participant and forfeiting any cor-responding matching contributions (including such con-ditional contributions) (and any earnings on either) andcrediting them to a 415 Suspense Account in the nameof the Plan Sponsor or employer, until such excess iscorrected or all after-tax participant contributions andmatching contributions (including such conditional con-tributions) (and any earnings on either) have beenreturned or forfeited, all to the extent permitted by suchdefined contribution plan;

(vii) seventh, in the case of a Participant whose PlanSponsor or employer makes matching contributions

(including conditional contributions under UMPIP) to aCode §403(b) defined contribution plan, by repeatingthe following cycle: returning one dollar of before-taxelective deferral contributions (and any earningsthereon) for the Limitation Year to the Participant andforfeiting any corresponding matching contributions(including such conditional contributions) (and anyearnings on either) and crediting them to a 415 SuspenseAccount in the name of the Plan Sponsor or employer,until such excess is corrected or all before-tax electivedeferral contributions and matching contributions(including such conditional contributions) (and anyearnings on either) have been returned or forfeited, all tothe extent permitted by such defined contribution plan;

(viii) eighth, in the case of a Participant whose PlanSponsor or employer makes matching contributions(including conditional contributions under UMPIP) to aCode §403(b) defined contribution plan, by repeatingthe following cycle: returning one dollar of Roth electivedeferral contributions (and any earnings thereon) for theLimitation Year to the Participant and forfeiting any cor-responding matching contributions (including such con-ditional contributions) (and any earnings on either) andcrediting them to a 415 Suspense Account in the nameof the Plan Sponsor or employer, until such excess iscorrected or all Roth elective deferral contributions andmatching contributions (including such conditional con-tributions) (and any earnings on either) have beenreturned or forfeited, all to the extent permitted by suchdefined contribution plan;

(ix) ninth, by crediting any other non-Vested PlanSponsor or employer contributions made for theLimitation Year to a Code §403(b) defined contributionplan that are not specified in Sections C5.1(c)(vi)through (viii) above (and any earnings thereon) to aCode §415 suspense account in the name of the PlanSponsor or employer, to be used to reduce the need forfuture Plan Sponsor or employer contributions, all to theextent permitted under such other plan;

(x) tenth, by crediting any other Plan Sponsor oremployer contributions made for the Limitation Year toa Code §403(b) defined contribution plan that are notspecified in Sections C5.1(c)(vi) through (ix) above (andany earnings thereon) to a Code §415 suspense accountin the name of the Plan Sponsor or employer, to be usedto reduce the need for future Plan Sponsor or employercontributions, all to the extent permitted under suchother plan; and

(xi) finally, by returning any other contributions notpreviously returned (and any earnings thereon) for theLimitation Year, in the case of Plan Sponsor Contributionsunder this Plan, to a 415 Suspense Account in the name



of the Plan Sponsor, to be used to reduce the need forfuture Contributions from such Plan Sponsor.

Any amounts in a Plan Sponsor’s 415 SuspenseAccount will be used to reduce future Contributions toParticipants from that Plan Sponsor to Non-MatchingContribution Accounts and Matching ContributionAccounts. 415 Suspense Account amounts will be soapplied as soon as possible after the amounts are allocatedto the 415 Suspense Account. If a sum in a 415 SuspenseAccount has not been so reallocated to Non-MatchingContribution Accounts or Matching ContributionAccounts within two Plan Years after the close of the PlanYear in which the sum was first allocated to the 415Suspense Account, then such sum will be contributed tothe Funding Account of the Participant’s Plan Sponsor.

(d) Aggregation of Plans. For the purpose of thisSection C5.1, all Code §403(b) defined contributionplans of, and all 415 Compensation from, any PlanSponsor or its 415 Affiliates, whether or not such plansare terminated, are to be aggregated and/or treated asone defined contribution plan. If the limit of SectionC5.1(a) is exceeded, Annual Additions must be limited,more than one plan is aggregated, and the provisions ofSection C5.1(c) do not specify which plan’s AnnualAdditions will be limited, then Annual Additions to aplan with a smaller dollar amount of plan sponsor con-tributions will be limited before a plan with a larger dol-lar amount of plan sponsor contributions.

(e) Contribution Timing. A contribution will bedeemed made for a Limitation Year if all conditions nec-essary for a Participant to earn the contribution are sat-isfied in such Limitation Year and if the plan sponsoractually makes the contribution not later than October15 of the year following such Limitation Year.

C5.2 Contributions to Disabled Persons.Contributions may be made with respect to a DisabledParticipant or a Disabled Terminated Participant only tothe extent (if any) that such Contributions may be madein accordance with:

(a) Code §415(c)(3)(C),(b) Code §§414(e)(3)(E)(ii) and/or 415(c)(7),(c) Code §415(c) because of the 415 Compensation

received by such Eligible Clergyperson, or(d) any other applicable provisions of the Code.If Contributions made with respect to a Disabled

Participant or a Disabled Terminated Participant exceedthe above limits because of a reasonable mis-estimationof such Disabled Participant’s or a Disabled TerminatedParticipant’s 415 Compensation or for any other reasondescribed in Regulations, the resulting excess AnnualAdditions will be corrected as provided in SectionC5.1(c).

C5.3 Purpose of Limitations; Authority ofAdministrator. The limitations of this Section C5 areintended to comply with the requirements of Code §415,and the Regulations issued thereunder, and will be con-strued accordingly. To the extent that such Regulationsprovide for any elections or alternative methods of com-pliance not specifically addressed in this Section C5, theAdministrator will have the authority to make or revokesuch election or use such alternative method of compli-ance unless such election or alternative method of com-pliance by its terms requires an amendment to the Plan.

SECTION C6—INVESTMENTS AND PLANACCOUNTING

C6.1 Participant Accounts. The Administratorwill establish and maintain a Non-Matching Contribu-tion Account on behalf of each Accountholder who isallocated any Non-Matching Contributions under thePlan or who succeeds to any such amounts. TheAdministrator will establish and maintain a MatchingContribution Account on behalf of each Accountholderwho is allocated any Matching Contributions under thePlan or who succeeds to any such amounts. Each Non-Matching Contribution Account or Matching ContributionAccount represents the aggregate amount of Non-Matching Contributions or Matching Contributions,respectively, less any withdrawals or distributionscharged thereto, and adjusted by the earnings, gains,losses, expenses, and unrealized appreciation or depreci-ation attributable to such Contributions, all in accor-dance with accounting rules and procedures establishedby the Administrator from time to time. The mainte-nance of separate Account Balances will not requirephysical segregation of plan assets with respect to anyAccount. The Accounts maintained hereunder representthe Accountholders’ interests in the Plan and Trust andare intended as bookkeeping records to assist theAdministrator in the administration of the Plan. Any ref-erence in the Core Defined Contribution Plan to anAccountholder’s “Account(s)” or “Account Balance(s)”refers to all amounts credited to both the Non-MatchingContribution Account and Matching Contribution Accountmaintained in the Accountholder’s name under the Planunless the context otherwise requires. The Administratormay aggregate similar Accounts from more than one Planin the Program for the purposes of accounting, invest-ment, distributions, and other purposes in accordancewith rules and procedures adopted from time to time.

C6.2 Separate Fund Accounting.(a) Manner of Accounting. To the extent the Trust

is divided into separate funds, including funds estab-lished pursuant to Section C6.3, the undivided interest of



each Accountholder’s Account in each such fund will bedetermined in accordance with the accounting proce-dures specified in the trust agreement, investment man-agement agreement, insurance contract, custodianagreement, or other document under which such fund ismaintained. To the extent not inconsistent with such pro-cedures, the following rules will apply:

(i) Amounts deposited in a fund will be depositedby means of a transfer of such amounts to such fundfrom another fund or from a Plan Sponsor, as required.

(ii) Amounts required to be transferred from afund to satisfy benefit payments will be transferred fromsuch investment fund as soon as practicable followingreceipt by the trustee or investment manager of suchfund of proper instructions to complete such transfers.

(iii) Except as provided in the applicable fund doc-ument, all amounts deposited in a fund will be investedas soon as practicable following receipt of such deposit.Pending investment in the appropriate fund, assets maybe invested in short-term instruments or funds asdirected by the Trustee, an investment manager, or anapplicable policy of the Trustee or Administrator.

(b) Separate Accountholder Accounts. Notwith-standing the foregoing, if any portion of the Trust isinvested in a fund that permits each Accountholder’sinterest in the fund to be accounted for as a separateaccount, all Contributions, distributions, and earningswill be accounted for as they are actually received, dis-bursed, or earned.

C6.3 Accountholder-Directed Accounts.Accountholders may direct the investment of theirAccounts in this Plan among any one or combination ofinvestment funds as are offered for such purpose by theAdministrator from time to time. The Administrator willestablish a written procedure to govern such invest-ments, including specifying a default investment fund orfunds when Accountholders do not direct the investmentof their Accounts.

SECTION C7—VESTING AND FORFEITURE

C7.1 Full Vesting. An Accountholder’sAccount in the Plan will be fully Vested at all times tothe extent funded, and will not be forfeited for any rea-son except as provided in Section C7.2.

C7.2 Forfeitures. Notwithstanding SectionC7.1, an Accountholder may forfeit an otherwise VestedAccount in the following circumstances:

(a) Missing Accountholder. The Accounts ofAccountholders who cannot be located will be handledas described in Section C8.6.

(b) Uncashed Check. Any Accountholder who hasbeen issued a check for benefits due but who does not

return or cash the check within a reasonable periodestablished by the Administrator, after such reasonablenotice (or in the case of very small benefit amounts, nonotice) as the Administrator may determine, will forfeitsuch benefits. Such forfeited amounts will be con-tributed to the Funding Account of the Accountholder’sPlan Sponsor. Uncashed checks returned to theAdministrator because the payee is missing or for otherreasons are not covered by this Section C7.2(b).

(c) Relinquished Benefits. If a ParticipantRelinquishes a benefit, it is forfeited. The Relinquishedbenefit will be contributed to the Funding Account of theAccountholder’s Plan Sponsor.

(d) Ineligible Person. Benefits credited to an ineli-gible person will be handled as described in SectionC3.6.

(e) Election Not to Participate. Eligible Clergywho elect not to participate in the Plan will be handledas described in Section C3.7.

(f) Contributions in Excess of Limits. Contribu-tions and earnings thereon may be forfeited in accor-dance with the terms of Section C5.

SECTION C8—PAYMENT OF BENEFITS

C8.1 Methods of Benefit Payment. The fol-lowing provisions are subject to Section C8.4 (relatingto required minimum distributions).

(a) Normal Form of Payment. The normal form ofpayment of an Accountholder’s benefit is a cash lump-sum distribution equal to the Accountholder’s totalAccount Balance in the Plan valued as of the AccountingDate coincident with or immediately before such distri-bution, and, except as otherwise provided herein, allbenefits will be paid in such form.

(b) Small Account Balance. Except in the case of aDisabled Participant and subject to Section C8.2(a), ifthe Accountholder’s Aggregate Benefit does not exceed$5,000 at the Accountholder’s Retirement, when theAccountholder becomes a Terminated Participant,and/or at the Accountholder’s Annuity Starting Date,subject to policies established by the Administrator fromtime to time, the entire amount of the Accountholder’sVested Account Balance in the Plan will be distributedas a lump sum to the Accountholder as soon as adminis-tratively feasible. A Disabled Participant must consent tosuch distribution.

(c) Payment in Cash Installments. In accordancewith rules established by the Administrator, anAccountholder may elect to receive his or her AccountBalance in this Plan in cash installments. Such install-ments will be made in a series of distributions, payableannually or at more frequent intervals, determined in



accordance with the provisions set forth below and rulesissued by the Administrator. The payments will continueuntil the Accountholder changes his or her distributionoption or until the Accountholder’s entire AccountBalance in the Plan has been distributed. Until such time,income, gains, losses, expenses, and unrealized appreci-ation or depreciation will continue to be allocated to theAccount in accordance with Section C6. All payments ofcash installments will be subject to the following.

(i) When required by Code §401(a)(9), theamount distributed in each calendar year beginning withthe calendar year in which the payment begins will notbe less than the Account Balance in this Plan on the lastAccounting Date in the preceding calendar year dividedby the divisor determined under Regulations issuedunder Code §401(a)(9). If the first payment is made inthe year that includes the last day (April 1) of theRequired Beginning Date, such payment will relate tothe immediately preceding year, will be computed asthough paid in such preceding year, and will be sub-tracted from the Account Balance in computing the sec-ond annual payment, which will be due by December 31of the same year in which the first payment was made.

(ii) Installments may be paid more often thanannually, in accordance with rules established by theAdministrator, so long as, when required by Code§401(a)(9), the total amount distributed in any year sat-isfies the minimum distribution requirement of SectionsC8.1(c)(i) and C8.4. Distributions in excess of the mini-mum requirement in any year will not reduce the mini-mum required distribution in later years. Correctivedistributions made to satisfy any of the limitations ofSection C5 will not be considered distributions for thepurpose of the minimum distribution requirement.

(d) Partial Distributions. An Accountholder mayelect one or more partial distributions of his or herAccount Balance under the Plan, in accordance withrules established by the Administrator, provided thateach such distribution is made on or before the requireddate for such distribution under Section C8.4.

(e) Election Procedures. Wherever the Plan pro-vides for an Accountholder to elect a form of distribu-tion (including the right to defer receiving adistribution), the Administrator will provide a writtenexplanation of the different forms of distribution. Suchexplanation will be provided not fewer than 30 nor morethan 180 days before the scheduled commencement ofsuch benefit, or within such other period as may be pro-vided by any applicable provision of the Code. AnAccountholder who has received such explanation maywaive the 30-day period and elect to have his or her ben-efit distributed as soon as administratively practicable.

C8.2 Distributions. The following provisionsare subject to Section C8.4 (relating to required mini-mum distributions).

(a) Small Account Balances. Except in the case ofa Disabled Participant, and subject to policies establishedby the Administrator from time to time, if, at the time:

(i) a Participant qualifies for Early Retirement,Normal Retirement, or Late Retirement or attains his orher Annuity Starting Date;

(ii) a Terminated Participant first becomes aTerminated Participant or attains his or her AnnuityStarting Date; or

(iii) an Alternate Payee’s benefit is segregated pur-suant to a QDRO or the Alternate Payee attains his or herAnnuity Starting Date,

such person’s Aggregate Benefit does not exceed$5,000, the entire amount of the Accountholder’s VestedAccount Balance will be distributed as a lump sum tothe Accountholder as soon as administratively feasibleunless the Accountholder elects a rollover under SectionC8.5(a) to a specified plan or IRA. Notwithstanding theforegoing, if the portion of the Accountholder’sAggregate Benefit that is being distributed from thisProgram at one time is in excess of $1,000, such distri-bution will be rolled over in accordance with SectionC8.5(b) unless such Accountholder:

(1) actively elects a distribution or a rollover underSection C8.5(a) to a specified plan or IRA;

(2) has attained his or her Normal RetirementDate;

(3) is a Beneficiary;(4) is an Alternate Payee; or(5) has attained his or her Required Beginning

Date.A Disabled Participant must consent to such distri-

bution, which will be made in accordance with SectionC8.2(d).

(b) Distribution at Retirement. A Participant withan Aggregate Benefit that exceeds $5,000 who attainshis or her Early, Normal, or Late Retirement Date mayelect to begin receiving the distribution of some or all ofhis or her Account Balance as soon as administrativelyfeasible thereafter (subject to the limitations of SectionsC8.1(e) and C8.2(g)) or he or she will be deemed to haveelected to postpone receiving his or her distributionunder Section C8.2(e). Such distribution will be madeeither in the normal form of payment provided inSection C8.1(a) or, if the Participant so elects, in anyoptional form of payment provided under Section C8.1.

(c) Distribution at Termination. A Participant withan Aggregate Benefit that exceeds $5,000 who undergoesa Termination of Conference Relationship, otherwise



becomes a Terminated Participant, or incurs a Five-YearNo Record of Appointment may elect to begin receivingthe distribution of some or all of his or her AccountBalance as soon as administratively feasible thereafter(subject to the limitations of Sections C8.1(e) andC8.2(g)) or he or she will be deemed to have elected topostpone receiving his or her distribution until a laterdate to be specified by the Participant that is not laterthan the latest date determined under Section C8.2(f).Such distribution will be made either in the normal formprovided in Section C8.1(a) or, if the Participant soelects, in any optional form provided by Section C8.1.

(d) Distribution at Disability. A Participant who isDisabled may elect to begin receiving the distribution ofsome or all of his or her Account Balance as soon asadministratively feasible thereafter (subject to the limi-tations of Sections C8.1(e) and C8.2(g)) or he or she willbe deemed to have elected to postpone receiving his orher distribution until a date not later than the latest datedetermined under Section C8.2(f). Such distribution willbe made either in the normal form provided in SectionC8.1(a) or, if the Participant so elects, in any optionalform provided by Section C8.1.

(e) Delayed Distribution. A Participant who hasdeferred the Distribution of some or all of his or herAccounts under the Plan under Sections C8.2(b)-(d)may elect to receive some or all of his or her remainingAccounts under the Plan at any later time (subject to thelimitations of Sections C8.1(e) and C8.2(g), but not laterthan the date specified in Section C8.2(f)) in anyoptional form provided by Section C8.1.

(f) Latest Commencement Date. Notwithstandingany other provision of this Plan, the latest date uponwhich the distribution of a Participant’s Account underthe Plan may begin is the Required Beginning Date.Periodic distributions, including mandatory partial lumpsum distributions, will be required thereafter as providedin Section C8.4.

(g) Tax Notice. Before making any EligibleRollover Distribution, the Administrator will furnisheach Accountholder with a notice describing his or herright to a direct rollover of the distribution and the taxconsequences of the distribution. Such notice will befurnished not more than 180 days nor fewer than 30 daysbefore the Recipient is entitled to receive such distribu-tion, and no distribution will be made until 30 days afterhe or she has received such notice unless he or shewaives such 30 day period in writing in accordance withprocedures established by the Administrator.

C8.3 Payments After an Accountholder’sDeath. The following provisions are subject to SectionC8.4 (relating to required minimum distributions).

(a) Distribution on Death. Upon the death of anAccountholder, all amounts credited to such Account-holder’s Account will be distributed to his or herBeneficiary in accordance with the provisions of thePlan or as otherwise specified in the Plan.

(b) Proof of Death. The Administrator may requiresuch proof of death and such evidence of the right of anyperson to receive payment of the value of the Account ofa deceased Accountholder as the Administrator maydeem appropriate. The Administrator’s determination ofwhich person will receive payment will be conclusive.

(c) Beneficiary Designation. A Participant mayname a Designated Beneficiary in accordance withSection A6.

(d) Surviving Spouse. Notwithstanding a Partici-pant’s Beneficiary designation to the contrary, if thedeceased Participant’s Spouse survives him or her, theParticipant’s surviving Spouse will be his or herBeneficiary and the Participant’s Account will be paid tothat Spouse unless:

(i) the Spouse consents in writing after theParticipant’s death, or had consented in writing beforethe Participant’s death, witnessed in either case by aPlan Sponsor or Administrator representative or a notarypublic, to the Participant’s designation of anotherDesignated Beneficiary; provided, however, that theAdministrator need not solicit such a Spousal consent.The Spouse must consent as specified above to eachchange in Designated Beneficiary unless the originalconsent expressly permits the Participant to furtherchange his or her Designated Beneficiary without therequirement of further consent by the Spouse;

(ii) the Participant is legally separated from his orher Spouse or has been abandoned (within the meaningof local law) by his or her Spouse, and, in either case, theParticipant has a court order to such effect;

(iii) the Spouse disclaims the Participant’s Account,in writing in a form acceptable to the Administrator,before receiving it. The disclaimer must be of the entirebenefit. The effect of such disclaimer is to treat theSpouse as if he or she had predeceased the Participant;or

(iv) neither the Participant nor the Administratorcan locate the Spouse (provided, however, that theAdministrator will have no obligation to search for suchSpouse).

(e) Change of Beneficiary. An Accountholder mayat any time revoke his or her designation of aBeneficiary or change his or her Designated Beneficiaryby filing written notice (in such form as may be requiredby the Administrator) of such revocation or change withthe Administrator.



(f) Effect of Divorce. A Participant’s divorce on orafter January 1, 1998 will automatically revoke anyBeneficiary designation in favor of the Participant’sSpouse made before the divorce, unless the Participantcompletes another Beneficiary designation in favor ofthe former Spouse after the divorce. Until such time as anew designation of Beneficiary is filed with theAdministrator in accordance with the provisions of thisSection C8.3(f), benefits will be payable as though theformer Spouse had predeceased the Participant.

C8.4 Required Minimum Distributions. Theprovisions of Sections C8.1, C8.2, and C8.3 are intendedto comply with the requirements of Code §401(a)(9),including specifically the minimum distribution inciden-tal death benefit rule of Code §401(a)(9)(G), and theRegulations issued thereunder, and will be construedaccordingly. Such Code and Regulation provisions arehereby incorporated herein by this reference, and willcontrol over any form of distribution provided in thisPlan that is inconsistent therewith. To the extent thatsuch Regulations provide for any elections or alternativemethods of compliance not specifically addressed inSections C8.1, C8.2, or C8.3, the Administrator willhave the authority to make or revoke such election or usesuch alternative method of compliance. The require-ments of this Section C8.4 will take precedence over anyinconsistent provisions of the Plan.

(a) Time and Manner of Distribution.(i) Required Beginning Date. The Participant’s

entire interest will be distributed, or will begin to be dis-tributed, to the Participant no later than the Participant’sRequired Beginning Date. Unless a Participant or otherAccountholder otherwise elects, a distribution at theRequired Beginning Date or at the time of a laterrequired distribution will not exceed the amount of theminimum required distribution.

(ii) Death of Participant Before DistributionsBegin. If the Participant dies before a distribution to theParticipant begins, the Participant’s entire interest willbe distributed no later than as follows:

(A) If the Participant’s surviving Spouse is theParticipant’s sole Designated Beneficiary, then distribu-tions will begin to the surviving Spouse:

(I) if the surviving Spouse timely elects the Five-Year Distribution Option, then by December 31 of thecalendar year containing the fifth anniversary of theParticipant’s death; or

(II) if the surviving Spouse does not timely electthe Five-Year Distribution Option, then by December 31of the later of:

(1) the calendar year immediately following thecalendar year in which the Participant died; or

(2) the calendar year in which the Participantwould have attained age 70½;

and the Participant’s entire interest will be distrib-uted no later than:

(III) if the surviving Spouse timely elects the Five-Year Distribution Option, December 31 of the calendaryear containing the fifth anniversary of the Participant’sdeath; and

(IV) if the surviving Spouse does not timely electthe Five-Year Distribution Option, either:

(1) over the Life Expectancy of the survivingSpouse; or

(2) over a period certain not exceeding the LifeExpectancy of the surviving Spouse determined usingthe surviving Spouse’s age as of the surviving Spouse’sbirthday in the calendar year:

(a) that contains the Annuity Starting Date wherethe Annuity Starting Date is before the first DistributionCalendar Year; or

(b) immediately following the calendar year of theParticipant’s death where the Annuity Starting Date isnot before the first Distribution Calendar Year.

A timely election is one made before the earlier ofthe two applicable deadlines.

(B) If the Participant’s surviving Spouse is not theParticipant’s sole Designated Beneficiary, then distribu-tions will begin to the Designated Beneficiary:

(I) if the Designated Beneficiary timely elects theLifetime Distribution Option (not available to Beneficiariesthat are estates or trusts), by December 31 of the calen-dar year immediately following the calendar year inwhich the Participant died; or

(II) if the Designated Beneficiary does not timelyelect the Lifetime Distribution Option, by December 31of the calendar year containing the fifth anniversary ofthe Participant’s death;


(III) if the Designated Beneficiary timely elects theLifetime Distribution Option, then over the life of theDesignated Beneficiary as provided in SectionC8.4(c)(ii)(A); or

(IV) if the Designated Beneficiary does not timelyelect the Lifetime Distribution Option, then byDecember 31 of the calendar year containing the fifthanniversary of the Participant’s death.


(C) If there is no Designated Beneficiary as ofSeptember 30 of the year following the year of theParticipant’s death, the Participant’s entire interest will



be distributed by December 31 of the calendar year con-taining the fifth anniversary of the Participant’s death.

(D) If the Participant’s surviving Spouse is theParticipant’s sole Designated Beneficiary and the sur-viving Spouse dies after the Participant but before dis-tributions to the surviving Spouse begin, this SectionC8.4(a)(ii), other than section C8.4(a)(ii)(A), will applyas though the surviving Spouse were the Participant.

For the purposes of this Section C8.4(a)(ii), unlessSection C8.4(a)(ii)(D) applies, distributions are consid-ered to begin on the Participant’s Required BeginningDate. If Section C8.4(a)(ii)(D) applies, distributions areconsidered to begin on the date distributions are requiredto begin to the surviving Spouse under SectionC8.4(a)(ii)(A).

(iii) Forms of Distribution. Unless a Participant’sinterest is distributed in the form of a single sum on orbefore the Required Beginning Date, as of the firstDistribution Calendar Year, distributions will be made inaccordance with Sections C8.4(b), (c), and (d).

(b) Required Minimum Distributions DuringParticipant’s Lifetime.

(i) Amount of Required Minimum Distribution forEach Distribution Calendar Year. During a Participant’slifetime, the minimum amount that will be distributedfor each Distribution Calendar Year is the lesser of:

(A) the quotient obtained by dividing theParticipant’s Valuation Account Balance by the distribu-tion period in the Uniform Lifetime Table set forth inRegulation §1.401(a)(9)-9, using the Participant’s age asof the Participant’s birthday in the Distribution CalendarYear; or

(B) if the Participant’s sole Designated Beneficiaryfor the Distribution Calendar Year is the Participant’sSpouse, the quotient obtained by dividing theParticipant’s Valuation Account Balance by the numberin the Joint and Last Survivor Table set forth inRegulation §1.401(a)(9)-9, using the Participant’s andSpouse’s attained ages as of the Participant’s andSpouse’s birthdays in the Distribution Calendar Year.

(ii) Lifetime Required Minimum DistributionsContinue Through Year of Participant’s Death. Requiredminimum distributions will be determined under thisSection C8.4(b) beginning with the first DistributionCalendar Year and up to and including the DistributionCalendar Year that includes the Participant’s date ofdeath.

(c) Required Minimum Distributions AfterParticipant’s Death.

(i) Death on or After Date Distributions Begin.(A) Participant Survived by Designated Beneficiary.

If the Participant dies on or after the date distributions

begin and there is a Designated Beneficiary, the mini-mum amount that will be distributed for eachDistribution Calendar Year after the year of theParticipant’s death is the quotient obtained by dividingthe Participant’s Valuation Account Balance by thelonger of the remaining Life Expectancy of theParticipant or the remaining Life Expectancy of theParticipant’s Designated Beneficiary, determined as fol-lows:

(I) The Participant’s remaining Life Expectancy iscalculated using the age of the Participant in the year ofthe Participant’s death, reduced by one year for eachyear after the Participant’s death.

(II) If the Participant’s surviving Spouse is theParticipant’s sole Designated Beneficiary, the remainingLife Expectancy of the surviving Spouse is calculatedfor each Distribution Calendar Year after the year of theParticipant’s death using the surviving Spouse’s age asof the Spouse’s birthday in that year. For DistributionCalendar Years after the year of the surviving Spouse’sdeath, the remaining Life Expectancy of the survivingSpouse is calculated using the age of the survivingSpouse as of the Spouse’s birthday in the calendar yearof the Spouse’s death, reduced by one year for each latercalendar year.

(III) If the Participant’s surviving Spouse is not theParticipant’s sole Designated Beneficiary, theDesignated Beneficiary’s remaining Life Expectancy iscalculated using the age of the Designated Beneficiaryin the year following the year of the Participant’s death,reduced by one year for each later year.

(B) No Designated Beneficiary. If the Participantdies on or after the date distributions begin and there isno Designated Beneficiary as of September 30 of theyear after the year of the Participant’s death, the mini-mum amount that will be distributed to the DefaultBeneficiary for each Distribution Calendar Year after theyear of the Participant’s death is the quotient obtained bydividing the Participant’s Valuation Account Balance bythe Participant’s remaining Life Expectancy calculatedusing the age of the Participant in the year of theParticipant’s death, reduced by one year for each lateryear. Notwithstanding the foregoing, if the Participant’ssurviving Spouse is the Participant’s sole DefaultBeneficiary, distributions to such surviving Spouse willbe made in accordance with Section C8.4(c)(i)(A)(II)above.

(ii) Death Before Date Distributions Begin.(A) Participant Survived by Designated Beneficiary.

Except as otherwise provided in Section C8.4(d), if theParticipant dies before the date distributions begin andthere is a Designated Beneficiary, the minimum amount



that will be distributed for each Distribution CalendarYear after the year of the Participant’s death is the quo-tient obtained by dividing the Participant’s ValuationAccount Balance by the remaining Life Expectancy ofthe Participant’s Designated Beneficiary, determined asprovided in Section C8.4(c)(i).

(B) No Designated Beneficiary. If the Participantdies before the date distributions begin and there is noDesignated Beneficiary as of September 30 of the yearfollowing the year of the Participant’s death, distributionof the Participant’s entire interest to the DefaultBeneficiary will be completed by December 31 of thecalendar year containing the fifth anniversary of theParticipant’s death.

(C) Death of Surviving Spouse Before Distributionsto Surviving Spouse Are Required to Begin. If theParticipant dies before the date distributions begin, theParticipant’s surviving Spouse is the Participant’s soleDesignated Beneficiary, and such surviving Spouse diesbefore distributions are required to begin to the surviv-ing Spouse under Section C8.4(a)(ii)(A), this SectionC8.4(c)(ii) will apply as if the surviving Spouse were theParticipant.

(d) Small Account Balance. Except in the case ofa Disabled Participant or a Disabled TerminatedParticipant, notwithstanding the provisions of SectionsC8.4(a)-(c) to the contrary, if an Accountholder’s orDesignated Beneficiary’s Aggregate Benefit at the timeof distribution does not exceed $5,000, his or her entireAccount Balance will be distributed as a lump sum tosuch Accountholder or Designated Beneficiary as soonas administratively feasible in accordance with SectionC8.2(a). A Disabled Participant or a Disabled TerminatedParticipant must consent to such distribution, which willbe made in accordance with Section C8.2(d).

C8.5 Direct Rollovers.(a) Elective Rollovers. If a Participant or Terminated

Participant, or the surviving Spouse or Alternate Payeeof either, receives an Eligible Rollover Distribution, theParticipant or Terminated Participant, or the survivingSpouse or Alternate Payee of either, has the right todirect the rollover of all or a portion of such distributiondirectly to an IRA, a defined contribution pension orprofit-sharing trust qualified under Code §401(a), anannuity plan qualified under Code §403(a), a tax-shel-tered annuity plan qualified under Code §403(b), oranother “eligible retirement plan” as defined in Code§401(a)(31), that will accept such a rollover, providedthat the amount so transferred must either be the entireamount of such distribution or at least $200. Any sur-viving non-Spouse Beneficiary who receives a lumpsum cash-out that qualifies as an Eligible Rollover

Distribution has the right to elect a direct rollover of allor a portion of such distribution directly to an inheritedIRA that will accept such rollover, provided that theamount so transferred must either be the entire amountof such distribution or at least $200. The Administratormay adopt administrative procedures to implementdirect rollovers, which may vary the time periods andminimum amounts set forth above, to the extent consis-tent with final Regulations issued under Code§401(a)(31). The Administrator will furnish eachAccountholder to whom this Section C8.5(a) applies witha notice describing his or her right to a direct rollover andthe tax consequences of a distribution. Such notice will befurnished not more than 180 days nor fewer than 30 daysbefore the Accountholder is entitled to receive such distri-bution, and no distribution will be made until 30 daysafter he or she has received such notice unless he or shewaives such 30 day period in writing. The Administratormay adopt administrative procedures to implement directrollovers, which may vary the time periods and mini-mum amounts set forth above, to the extent consistentwith final Regulations issued under Code §401(a)(31).

(b) Auto-Rollovers. When:(i) a distribution from this Program to an

Accountholder exceeds $1,000;(ii) the Accountholder’s Aggregate Benefit does

not exceed $5,000; and(iii) the Accountholder:(A) has not requested to receive the distribution;(B) has not requested that the distribution be rolled

over to another eligible retirement plan or IRA specifiedby the Accountholder;

(C) has not attained his or her Normal RetirementDate;

(D) is not a Beneficiary;(E) is not an Alternate Payee; and(F) has not attained his or her Required Beginning

Date;then the Administrator will pay the distribution in a

direct rollover to an IRA designated by theAdministrator and invested in an investment type desig-nated by the Administrator for the benefit of theAccountholder. Before making such rollover, theAdministrator will provide, separately or as part of thenotice specified in Section C8.5(a) above, a notice tosuch Accountholder stating that, absent his or her affir-mative election, the distribution will be automaticallyrolled over to an IRA. The notice will also identify thecustodian, trustee, or other issuer of the IRA. In carryingout this Section C8.5(b), the Administrator will complywith IRS Notice 2005-5 and other applicable advicefrom the Internal Revenue Service or Regulations.



C8.6 Unclaimed Benefits. The Administratormay prescribe uniform and nondiscriminatory rules forcarrying out the following provisions:

(a) If a portion (or all) of an Account remains tobe distributed to an Accountholder at a time when it isdue under the Plan (including, but not limited to, theRequired Beginning Date) and the Administrator is thenunable to locate the Accountholder, the Administratorwill send notice of such benefit due by a certified letterwith return receipt requested to the last known addressof the Accountholder. If the Accountholder fails to con-tact the Administrator within 12 months (except as pro-vided in Section C8.6(b)), such benefit will be forfeited(except as provided in Section C8.6(c)) and willbecome the benefit of, in the case of a Participant orAlternate Payee, such person’s Beneficiary, or, in thecase of a Beneficiary, the Participant’s or AlternatePayee’s successor Beneficiary (including any DefaultBeneficiaries provided under the terms of the Plan),except in the case where a Beneficiary defers thedistribution of an Account and is permitted to name hisor her own Beneficiary, and in that case theBeneficiary’s Beneficiary. The Administrator will thensend notice by certified letter as provided above to theBeneficiary or successor Beneficiary (including aDefault Beneficiary), and the process specified abovewill be repeated until the last successor Beneficiary issent a notification.

(b) If the last successor or Default Beneficiaryfails to contact the Administrator within 12 months afterbeing sent notification of a benefit due as provided inSection C8.6(a), then the amount specified in SectionC8.6(a) will be forfeited. The Administrator will holdsuch forfeitures in a suspense account on behalf of thePlan Sponsor of the Accountholder referred to in SectionC8.6(a) above to be applied against a subsequentContribution to the Plan from that Plan Sponsor.

(c) If, at any time before the expiration of the 12-month period described in Section C8.6(b), anAccountholder who is or was due a benefit described inSection C8.6(a) claims the benefit, the benefit will bepaid to such Accountholder (notwithstanding any previ-ous forfeiture) if it has not previously been paid toanother Accountholder. If the 12-month perioddescribed in Section C8.6(b) has elapsed, then such ben-efit will be permanently forfeited and used by theAdministrator as described in Section C8.6(b).

C8.7 Payment with Respect to IncapacitatedAccountholders. Whenever, in the Administrator’sopinion, a person entitled to receive any payment of abenefit under the Plan is under a legal disability (includ-ing being a minor) or is incapacitated in any way so as

to be unable to manage such person’s financial affairs,the Administrator may direct the Trustee to make pay-ments directly to the person, to the person’s legal repre-sentative (including a custodian for such person underthe applicable Uniform Gifts or Transfers to Minors Actor similar legislation), or to a relative or friend of theperson to be used exclusively for such person’s benefit,or apply any such payment for the benefit of the personin such manner as the Administrator deems advisable.The decision of the Administrator, in each case, will befinal, binding, and conclusive upon all persons inter-ested hereunder. The Administrator will not be obligatedto see to the proper application or expenditure of anypayment so made. Any benefit payment (or installmentthereof) made in accordance with the provisions of thisSection C8.7 will completely discharge the obligationfor making such payment under the Plan, and theAdministrator will have no further liability on accountthereof.

C8.8 Limitation on Liability for Distributions.All rights and benefits, including benefit and investmentelections, provided to a Participant in this Plan will besubject to the rights afforded to any Alternate Payeeunder a QDRO. Further, a distribution to an AlternatePayee will be permitted if such distribution is authorizedby a QDRO, even if the affected Participant has notincurred a Termination of Employment or attained anyparticular age.

C8.9 In-Service Withdrawals. A Participantmay withdraw all or any portion of his or her Accountunder this Plan if the Participant is Disabled.

C8.10 Disclaimer. Any Beneficiary may dis-claim any benefit or portion thereof that is due to him orher if done in writing in a form acceptable to theAdministrator and if done before receiving it. The effectof a disclaimer is to treat such Beneficiary as if he or shehad died before the benefit or portion was due to him orher.

C8.11 Trailing Account Balances. If anAccountholder who has received a distribution of his orher entire Account Balance later receives a credit to suchAccount, because of a delayed Contribution, a delayedcrediting of earnings, or a correction in accounting or forsome other reason, the Administrator will distribute thebalance in the Account to the Accountholder as soon aspracticable thereafter. If the Account Balance is under$200, the Account Balance will be distributed as a lumpsum to the Accountholder as soon as administrativelyfeasible. If the Account Balance is $200 or more, it willbe distributed in the same form of payment that appliedto the Accountholder’s previous distribution.



SUPPLEMENT ONETO THE


PRE-82 PLANSECTION S1.1—THE PLAN

S1.1.1 Prior Plans. Effective January 1, 1982,the Ministers Reserve Pension Fund, the Partial ReservePension Fund, the Local Pastors Reserve Pension Fund,the Senior Plan, the Ministers Reserve Pension Plan, orthe Current Income Distribution Pension Plan (here-inafter collectively referred to as the “Prior Plans”) weremerged into supplement one to the Ministerial PensionPlan. Effective January 1, 2007, MPP was amended andrestated as the Program, and supplement one to MPPwas amended and restated as this Supplement One to theProgram. On and after January 1, 2007, the benefitspayable under the Prior Plans will be paid in accordancewith the provisions of this Supplement One and willbenefit members of Participating Group No. Pre-82-1(see Section S1.2 below).

S1.1.2 Use of Assets of Prior Plans. Theassets of the Prior Plans (other than those in the Disabilityand Survivor Benefit Fund) are designated as a part of thePre-82 Plan for the purpose of funding the Past ServiceBenefits for such persons. Such assets will be collectivelyreferred to as the Pre-82 Assets and will be accounted forseparate and apart from the other funds under the Program,subject to Section A1.6(d). The assets of the Prior Plans inthe Disability and Survivor Benefit Fund were transferredto CPP, which replaced the provisions of the Prior Plansrelated to the Disability and Survivor Benefit Fund.

SECTION S1.2—ELIGIBILITY

S1.2.1 Participating Group No. Pre-82-1.Participating Group No. Pre-82-1 consists of:

(a) All participants in supplement one to MPP onJanuary 1, 1982 who:

(i) on December 31, 1981 were covered by thePrior Plans, and

(ii) on December 31, 2006 were receiving pensionbenefits or by their Annuity Starting Dates were entitledto receive deferred Vested pension benefits from the Pre-82 Plan; and

(b) All other persons (other than those specified inSection S1.2.1(a)) who:

(i) on December 31, 1981 were receiving pensionbenefits or were entitled to receive deferred Vested pen-sion benefits from the Prior Plans, and

(ii) on December 31, 2006 were receiving pensionbenefits or by their Annuity Starting Dates were entitled

to receive deferred Vested pension benefits from the Pre-82 Plan.

S1.2.2 Eligibility. Members of ParticipatingGroup Pre-82-1 are eligible to receive benefits pursuantto the provisions of this Supplement One and are knownhereunder as Pre-82 Participants.

SECTION S1.3—FUNDING OF BENEFITS

S1.3.1 Liability for Contributions. Except asotherwise specifically provided in this Supplement One,the Past Service Benefits due to or with respect to Pre-82 Participants:

(a) who were members of an Annual Conferencewill be funded by each such Annual Conference; and

(b) with service rendered in a missionary confer-ence (as described in ¶¶ 585-588 of the Discipline), pro-visional annual conference (as described in ¶¶ 580-583of the Discipline), or former mission (within the mean-ing of ¶¶ 590-591 of the Discipline) within the UnitedStates that has been approved by such entities for pre-1982 pension credit, will be funded as provided in¶ 1506.16 of the Discipline.

The responsible Pre-82 Sponsors specified abovewill make annual past service Contributions to theTrustee in accordance with the schedule for suchContributions determined by the Administrator on thebasis of periodic actuarial valuations. All suchContributions will be made by the Due Date specified bythe Administrator to the Funding Account for theresponsible party in the Consolidated DB Plan (althougha separate accounting as Pre-82 Assets will be main-tained as to such contributions for administrative pur-poses). If a Pre-82 Sponsor delays in making a specifiedContribution to the Plan beyond such Due Date, then thePre-82 Sponsor will make such delayed Contribution tothe Plan as soon as possible thereafter. In addition, suchPre-82 Sponsor will pay a Contribution equal to thegreater of:



computed, in either case, from the Due Date untilthe date such delayed Contribution was actually trans-ferred to the Trustee. Any special services provided bythe Administrator in connection with this Section S1.3.1are subject to the additional charges provided for inSection A3.7(c). If any amounts are more than twomonths overdue, the Administrator may compel pay-



ment by bringing the matter to Judicial Council or byany other means the Administrator may elect to pursue.

S1.3.2 Amortization of Liability. The initialunfunded liability for the Past Service Benefits, based onthe past service rate in effect as of January 1, 1982, willbe funded by an annual past service contribution duefrom each Pre-82 Sponsor to its Funding Account underthe Trust not later than December 31 of each Plan Yearthat is at least equal to the greater of:

(a) an amount (when taken together with expectedfuture contributions) determined by the Administrator toamortize the unfunded accrued past service liability overa period ending on or before December 31, 2021; or

(b) the amount of the unfunded Past ServiceBenefits paid out during the year.

S1.3.3 Determination of Initial UnfundedPortion. In determining the initial unfunded portion ofthe accrued past service liability as of January 1, 1982,the following items will be subtracted from the totalaccrued past service liability:

(a) the funded past service liability; and(b) the sum of:(i) the Service Annuity Accumulations; and

(ii) any portion of the Personal ContributionsAccumulation that is required to be applied toward thepayment of the Formula Benefit, to the extent that theseamounts do not exceed the amount necessary to fund theFormula Benefit.

S1.3.4 Past Service Rate Amount Increases.(a) Elective Increases. A Conference is encour-

aged to consider the increased cost of living when set-ting its Past Service Rate Amount. A Conference mayincrease its Past Service Rate Amount as of January 1 ofany Plan Year by amending its Adoption Agreement,subject to the funding requirements of Section S1.3.4(b)below. In no event may a Conference reduce its PastService Rate Amount.


(i) if such Conference does not already have suffi-cient funding in its Funding Account to fully fund anysuch elective increase, fund the liability related to anysuch elective increase by making a Contribution to theTrust of the full amount of the liability incurred as aresult of such increase, being the present value of allfuture additional benefits paid as a result of suchincrease as determined by the Administrator, adjustedusing a reasonable interest rate selected from time totime by the Administrator to reflect any differences

between the date the liability was calculated and the datepayment is made, and in accordance with any timing oradministrative rules the Administrator may establish;and

(ii) have, and be in compliance with, a fundingplan to cover all Pre-82 Plan liabilities, including thosegenerated by such increase, which funding plan mustmeet minimum standards set by the Administrator.


(i) elect one Past Service Rate Amount for all Pre-82 Participants in the merged conference, in which casesuch single Past Service Rate Amount may not be anylower than the highest Past Service Rate Amount appli-cable to each merged Conference on the day before themerger; or



(d) Subdividing Conference. When a Conferencesubdivides into two or more Conferences or when a por-tion of a Conference subdivides from its originalConference to merge with another Conference, eachresulting Conference may maintain one or more PastService Rate Amounts, provided that the Past ServiceRate Amount applicable to any Pre-82 Participant maynot be reduced. Any increases in Past Service RateAmounts under this Section S1.3.4(d) will be treated aselective increases under Section S1.3.4(a) that mustmeet the requirements of Section S1.3.4(b).

S1.3.5 Amortization of Other Liability.Unfunded liability for Past Service Benefits not other-wise covered under another Section, such as liability forbenefits due after December 31, 2021 and liability foractuarial losses, will be funded by Pre-82 Sponsors in anactuarially reasonable manner specified by theAdministrator from time to time.

S1.3.6 Personal Account. The Trustee willmaintain an Account, which may be called the personalaccount, for each Pre-82 Participant who has a PersonalContributions Accumulation under the Plan. The



Personal Contributions Accumulation of the Pre-82Participant will be held in this Account and will beinvested by the Trustee in the same manner as isdescribed in Section S1.3.8.

S1.3.7 Contingent Annuitant Percentage.(a) Fixed Percentage. Before January 1, 2007, a

Pre-82 Sponsor was able to elect in its AdoptionAgreement to increase the Contingent Annuitant per-centage from 70% to a higher percentage, with the Pre-82 Sponsor funding the added liability caused by suchelection by making annual contributions determined bythe Administrator to be sufficient to amortize the liabil-ity over the period from the current year to December31, 2021. On and after January 1, 2007, the ContingentAnnuitant percentage will remain at the level it was foreach Pre-82 Sponsor on the day before January 1, 2007,unless a change is adopted in accordance with SectionS1.3.7(b) below. Funding will continue as previouslyprovided until December 31, 2021. Thereafter, anyremaining funding obligations will be satisfied as pro-vided in Section S1.3.5.

(b) Changes to Percentage. On or after the EffectiveDate, a Pre-82 Sponsor may elect in its AdoptionAgreement, as of any January 1, to increase (but notdecrease) its Contingent Annuitant percentage. Anyincreases in Contingent Annuitant percentage under thisSection S1.3.7(b) will be treated as elective increasesthat must meet the requirements of Section S1.3.4(b).

(c) Conference Mergers. When Conferencesmerge or subdivide as described in Sections S1.3.4(c)and (d), a resulting Conference may:

(i) apply the highest Contingent Annuitant per-centage applicable to any of its Pre-82 Participants to allof its Pre-82 Participants; or


Any increases in Contingent Annuitant percentageunder this Section S1.3.7(c) will be treated as electiveincreases that must meet the requirements of SectionS1.3.4(b).


S1.3.8 Investment of Contributions. TheTrustee will invest amounts in each Pre-82 Sponsor’s

Funding Account in accordance with the Trust. TheAdministrator will credit each such Funding Accountwith earnings and debit each such Funding Account withlosses accrued from time to time.

SECTION S1.4—PAST SERVICE BENEFITS

A member of Participating Group No. Pre-82-1, inaddition to any benefits based on service on or afterJanuary 1, 1982, will be entitled to benefits based onservice before January 1, 1982, in accordance with thefollowing provisions:

S1.4.1 Approved Service. A Pre-82 Partici-pant’s Approved Service will be the same under the Pre-82 Plan as it was as of January 1, 1982 determined undersupplement one to MPP or under the Prior Plans.

S1.4.2 Past Service Benefits.(a) Past Benefits Continued. All persons who, as of

December 31, 2006, were receiving pension benefitsfrom supplement one to MPP will thereafter continue toreceive such Past Service Benefits in the same form andamount from this Pre-82 Plan.

(b) Annuity Starting Date. If a Pre-82 Participantwas not receiving pension benefits from supplement oneto MPP as of December 31, 2006 or ceased receivingthem after that date because of reemployment, his or herAnnuity Starting Date for his or her Past ServiceBenefits will be the first day of the month following themonth in which occurs the later of:

(i) his or her Early, Normal, or Late RetirementDate; or

(ii) the date he or she applies for a Past ServiceBenefit;

provided, however, that notwithstanding this provi-sion:

(A) an Annual Conference may designate a Pre-82Participant’s Annuity Starting Date to be the first day ofthe month in which his or her Retirement takes place;

(B) a Pre-82 Participant’s Annuity Starting Datemust meet the conditions of Section S3.4.5(e); and

(C) a Pre-82 Participant’s Annuity Starting Datemay not be later than his or her Required BeginningDate, notwithstanding the foregoing.

Distributions under the Plan will comply with Code§403(b)(10) and its provisions related to compliancewith Code §401(a)(9) and the applicable provisions ofany required minimum distribution Regulations issuedthereunder. Such Code and Regulation provisions arehereby incorporated herein by this reference, and willcontrol over any form of distribution or timing of distri-bution provided in this Plan that is inconsistent there-with. To the extent that such Regulations provide for anyelections or alternative methods of compliance not



specifically addressed in the Plan, the Administrator willhave the authority to provide for such elections or alter-native methods of compliance.

(c) Amount of Benefit. A Pre-82 Participant willreceive a monthly Past Service Benefit equal to thegreater of (on an annual basis):

(i) the sum of:(A) such Pre-82 Participant’s Service Annuity; plus(B) his or her Personal Contributions Annuity, if

any; or(ii) the following sum or amount:(A) such Pre-82 Participant’s Formula Benefit;

plus, if his or her Pre-82 Sponsor does not stipulate in itsAdoption Agreement that the Personal ContributionsAnnuity will apply toward the payment of the Pre-82Participant’s Formula Benefit,

(B) his or her Personal Contributions Annuity, ifany;

provided however, that if such Pre-82 ParticipantRetires on his or her:

(1) Early Retirement Date, the amount of his orher Past Service Benefit will be actuarially adjusted asprovided in ¶ 1506.4i) of the Discipline; or

(2) Late Retirement Date, the amount of his or herPast Service Benefit will be actuarially adjusted to reflectthe delay from his or her Normal Retirement Date to hisor her Late Retirement Date. Such actuarial adjustmentwill be on an Actuarially Equivalent basis determinedpursuant to procedures developed by the Administrator.

(d) Form of Benefit.(i) If the Pre-82 Participant has a Spouse at the

time of Retirement and his or her marriage to thatSpouse took place before the cessation of service ren-dered by the Pre-82 Participant while Under EpiscopalAppointment, the form of the annuity will be aContingent Annuity with 70% (or 75%, 85%, or 100%,if elected by the applicable Pre-82 Sponsor and so setforth in the Adoption Agreement) payable to theContingent Annuitant on the death of the Pre-82Participant. The Pre-82 Participant will be the primaryannuitant and his or her Spouse will be the ContingentAnnuitant.

(ii) If the Pre-82 Participant is not married at thetime of Retirement or if the Pre-82 Participant’s mar-riage took place after he or she ceased serving UnderEpiscopal Appointment, the form of the annuity will bea Single-Life Annuity.

(e) Funding. The funding for a Pre-82 Participant’sPast Service Benefit will come from the followingsources in the following order:

(i) First, such Pre-82 Participant’s ServiceAnnuity Accumulation;

(ii) Second, such Pre-82 Participant’s PersonalContributions Accumulation; and

(iii) Finally, the Funding Account in theConsolidated DB Plan for such Pre-82 Participant’s Pre-82 Sponsor.

(f) Supplement Three Benefits. The defined contri-bution organizational reserve and defined benefit Vestedfunds contributed on behalf of a Pre-82 Participant or aRetired Pre-82 Participant will be paid in accordancewith Section S3.4.5 of Supplement Three.

(g) Terminated Participants. Notwithstanding theabove provisions, the pension of a Pre-82 Participantwho became a Terminated Participant before January 1,1982 will be determined in accordance with:

(i) the provisions of the Discipline and the PriorPlans in effect at the time of such termination, or

(ii) the special provisions of Sections S1.4.3(d)-(g).

(h) Non-Revision. Except in the case of a perma-nent suspension of benefits due to re-employment,beginning five business days before the first monthlyPast Service Benefit is due, neither the form of paymentnor the Spouse entitled to survivor payments may bechanged by reason of the death of a Spouse or a divorce.

S1.4.3 Vesting.(a) A Pre-82 Participant will at all times be fully

Vested in his or her Personal Contributions Accumulation.(b) A Pre-82 Participant will be fully Vested in his

or her Past Service Benefits at his or her Retirement.(c) A Pre-82 Participant will be fully Vested after

December 31, 1981 in his or her Past Service Benefits ifhe or she has at least:

(i) 10 years of Pre-82 Plan Vesting Service if he orshe is a Bishop, an Elder in Full Connection, aProvisional Member, affiliate member within the mean-ing of ¶¶ 344.4, 369.1, or 586.4 of the Discipline, or anAssociate Member, or

(ii) 10 years of Pre-82 Plan Vesting Service or fourconsecutive years of Pre-82 Plan Vesting Service if he orshe is a Local Pastor or an ordained minister of anotherdenomination within the meaning of ¶¶ 346.2 or 346.3of the Discipline.

(d) A Pre-82 Participant who is a former Elder inFull Connection, Provisional Member, affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, or Associate Member who became aTerminated Participant on or after January 1, 1973, andbefore January 1, 1982, after the completion of 10 ormore years of service with pension credit in one or moreConferences will be Vested in the right to receive a pen-sion beginning on the first of any month following thedate such Pre-82 Participant attains age 62, based on the



years of service approved for pension credit. Such Pre-82 Participant’s pension will be based on all years ofservice with pension credit if such Pre-82 Participanthad 20 or more such years. If such Pre-82 Participanthad fewer than 20 such years but at least 10 years, theyears used in the calculation of the benefit will be a per-centage of the Approved Service years; such percentagewill be determined by multiplying the credited wholeyears by 5%, resulting in 50% of such years for 10 yearsof credited service and 100% for 20 years of such serv-ice. Effective at the close of the 1976 GeneralConference, Pre-82 Participants who were former Eldersin Full Connection, Provisional Members, affiliatemember within the meaning of ¶¶ 344.4, 369.1, or 586.4of the Discipline, or Associate Members of theConference who became Terminated Participants on orafter such date will have any vested pension benefits cal-culated at the annuity rate in effect on the date he or shebecame a Terminated Participant.

(e) The foregoing notwithstanding, a Pre-82Participant who participated in the Ministers ReservePension Fund before January 1, 1973, and, upon his orher Termination of Conference Relationship, allows hisor her Personal Contributions Accumulation to remain inthe Pre-82 Plan until he or she attains age 60, will beVested fully in his or her Service Annuity, payable in thesame form as provided in Section S3.4.5 of SupplementThree.

(f) A Pre-82 Participant who was an Elder in FullConnection, Provisional Member, affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, or Associate Member and who voluntarilywithdrew from the ministry of The United MethodistChurch to enter the ministry of another church ordenomination, upon

(i) the attainment of age 62,(ii) the recommendation of the board of pensions

of any Conference in which he or she had ApprovedService rendered before January 1, 1982, or the legalsuccessor of such Conference, and

(iii) a three-fourths vote of those present and votingin such Conference,

may be recognized and granted a pension on accountof Approved Service rendered in such Conference.

(g) A Pre-82 Participant who has been granted theretired relation in a Central Conference or an affiliatedautonomous church will be entitled to a pension from aConference or Conferences for the years of ApprovedService rendered therein upon attainment of the requiredage or the completion of the required years of ApprovedService. Such clergyperson will notify the GeneralBoard of Pension and Health Benefits upon his or her

retirement. The Administrator will certify the years ofApproved Service to each Conference concerned.Payments due thereunder will be collected from theConference concerned and forwarded to such Pre-82Participant by the Administrator in such manner as itmay deem most expedient and economical. If such Pre-82 Participant dies before his or her Annuity StartingDate, his or her Spouse will be eligible for a benefitequal to 70% (or 75%, 85%, or 100% percent if electedby the applicable Conference) of such Pre-82Participant’s Formula Benefit. If no Spouse survivessuch Pre-82 Participant, his or her Service AnnuityAccumulation will be paid in accordance with SectionS3.4.6 of Supplement Three.

(h) Any funding for a Pre-82 Plan benefit that isforfeited by an unvested Pre-82 Participant will stay inthe Pre-82 Plan to be used to fund benefits for other Pre-82 Participants of the same Pre-82 Sponsor.

S1.4.4 Disability Benefits.(a) Eligibility. All persons who:(i) as of December 31, 1981, were receiving dis-

ability benefits under the Current Income DistributionPension Plan; and

(ii) continued to receive such benefits on December31, 2006 under supplement one to MPP

will be entitled to continue the annual disabilitybenefit, payable in monthly installments, for as long asthey remain disabled within the meaning of that plan.

(b) Amount. Each eligible person described inSection S1.4.4(a) will continue the monthly benefit he orshe was receiving as of December 31, 2006 for as longas he or she remains eligible. Effective January 1, 2007,that amount will increase by 3% annually thereafter onthe anniversary date of the first payment of each recipi-ent’s disability benefits.

(c) Payment. Payment of the disability benefits setforth in this Section S1.4.4 will be subject to the provi-sions of subsections 5.04(d), (e), and (f) of CPP as ofJanuary 1, 1982 or their successors.

S1.4.5 Surviving Spouse Benefits.(a) All surviving Spouses who:(i) as of December 31, 1981, were receiving sur-

viving spouse benefits from the Prior Plans; and(ii) as of December 31, 2006, were receiving such

benefits under supplement one to MPPwill thereafter continue to receive such benefits

from this Plan, except that such benefits that were for-merly being paid from the Disability and SurvivorBenefit Fund will be continued under CPP.

(b) The benefit payable hereunder to a survivingSpouse who remarried before January 1, 1982, willcease upon his or her remarriage. Upon the earlier of:



(i) the dissolution of the marriage; or(ii) the spouse attaining age 65,and after application to the Administrator, the ben-

efit will begin again with no consideration being givenfor the period during which no benefit was being paid.

(c) Notwithstanding the definition of “Spouse” inSection 2, a surviving “Spouse” under Supplement Onemust have been married to a Pre-82 Participant:

(i) at some point while the Pre-82 Participant wasUnder Episcopal Appointment;

(ii) at the Pre-82 Participant’s Retirement; and(iii) at the Pre-82 Participant’s Annuity Starting Dateto receive a surviving Spouse benefit. During the

period starting January 1, 1982 and continuing throughDecember 31, 1997, such surviving Spouse must alsohave been married to the Pre-82 Participant at the Pre-82Participant’s death.

(d) Upon the death of a Pre-82 Participant on orafter January 1, 1982, and before his or her Retirement,the following provisions will apply:

(i) His or her surviving spouse will receive amonthly benefit equal to the sum of such Pre-82Participant’s Service Annuity and Personal ContributionsAnnuity. If the Service Annuity, on an annual basis, isless than 70% (or 75%, 85%, or 100% if elected by theapplicable Pre-82 Sponsor and so set forth in theAdoption Agreement) of the Pre-82 Participant’sFormula Benefit, and if the applicable Pre-82 Sponsordoes not stipulate that a Pre-82 Participant’s PersonalContributions Annuity applies toward the payment of hisor her Formula Benefit, a past service supplement willbe added so that the sum of the Service Annuity and thepast service supplement is equal, on an annual basis, to70% (or 75%, 85%, or 100% if elected by the applicablePre-82 Sponsor and so set forth in the AdoptionAgreement) of the Pre-82 Participant’s Formula Benefit.

(ii) The Surviving Spouse Benefit will be based onall of the Pre-82 Participant’s years of ApprovedService, provided the marriage took place before thecessation of service rendered by the Pre-82 Participantwhile Under Episcopal Appointment.

(iii) If the applicable Pre-82 Sponsor stipulates inthe Adoption Agreement that the Personal ContributionsAnnuity will apply toward the payment of the Pre-82Participant’s Formula Benefit, and if the Pre-82 Partici-pant’s Service Annuity plus the Pre-82 Participant’sPersonal Contributions Annuity, on an annual basis, isless than 70% (or 75%, 85%, or 100% if elected by theapplicable Pre-82 Sponsor and so set forth in theAdoption Agreement) of the Pre-82 Participant’sFormula Benefit, a past service supplement will beadded so that the sum of the Service Annuity, the

Personal Contributions Annuity, and the past servicesupplement is equal, on an annual basis, to 70% (or75%, 85%, or 100% if elected by the applicable Pre-82Sponsor and so set forth in the Adoption Agreement) ofthe Pre-82 Participant’s Formula Benefit.

S1.4.6 Small Benefit. Notwithstanding any-thing to the contrary in Section S1.4:

(a) if any person entitled to a Formula Benefitunder Section S1.4 has an Aggregate DB Benefit atRetirement, Termination of Conference Relationship,and/or Annuity Starting Date, as determined by theAdministrator, that does not exceed the amount speci-fied in Section B9.1(d), his or her Formula Benefitpayable under Section S1.4 will be paid under SectionB9.1(d) as though such person were a Participant there-under; and

(b) if any person entitled to a Service AnnuityAccumulation under Section S1.4 or a benefit underSection S1.4.8 has, when such benefits are converted toan annuity, an Aggregate DB Benefit at Retirement,Termination of Conference Relationship, and/or his orher Annuity Starting Date, as determined by theAdministrator, that does not exceed the minimum annu-ity amount established by the Administrator from timeto time, such Section S1.4 benefits will be converted toan Actuarially Equivalent lump sum and transferred tothe Core Defined Contribution Plan in accordance withSection B9.1(d).

S1.4.7 Survivor Death Benefits. Effective atthe close of the 1988 General Conference, upon thedeath of a Pre-82 Participant or Retired Pre-82Participant before his or her Annuity Starting Datewhere no spouse survives him or her or where the Pre-82 Participant’s marriage took place after his or her ces-sation of service Under Episcopal Appointment, theService Annuity Accumulation will be paid in accor-dance with Section S3.4.6 of Supplement Three.

S1.4.8 Deferred Vested Benefits. Any personwho, as of December 31, 1981, was entitled to receivedeferred Vested pension benefits from any of the PriorPlans, will receive such benefits from this Plan in theamount and form determined to be payable under thePrior Plans in effect at the time of such person’s termi-nation of service.

S1.4.9 Forfeitures. Notwithstanding SectionS1.4.3, a Recipient may forfeit an otherwise Vested ben-efit under the Plan in the following circumstances:

(a) Missing Recipient. The benefit of a Recipientwho cannot be located will be handled as described inSection S1.4.10.

(b) Uncashed Check. Any Recipient who has beenissued a check for benefits due but who does not return



or cash the check within a reasonable period establishedby the Administrator, after such reasonable notice (or inthe case of very small benefit amounts, no notice) as theAdministrator may determine, will forfeit such benefits.Such forfeited amounts will be returned to the FundingAccount of the Plan Sponsor sponsoring such Recipientand will be used to pay other benefits due under thePlan. Uncashed checks returned to the Administratorbecause the payee is missing or for other reasons are notcovered by this Section S1.4.9(b).


(d) Death. If a Pre-82 Participant dies without aSpouse before his or her Annuity Starting Date, all ofsuch Pre-82 Participant’s Vested benefits will be for-feited except as otherwise provided in Section S1.4.5 orS1.4.7. A Pre-82 Participant, Contingent Annuitant, orBeneficiary who dies will also forfeit any monthly ben-efits that have not already been paid to such person. Allsuch forfeitures will remain in the Funding Account(s)of the Plan Sponsor(s) from which the forfeited benefitswere due to be paid, and will be used to pay other bene-fits due under the Plan.

(e) Unvested Benefits. A Pre-82 Participant whohas not Vested in his or her Pre-82 Plan benefits underSection S1.4.3 by his or her Annuity Starting Date willforfeit those benefits. Any funding for a Pre-82 Planbenefit that is forfeited by an unvested Pre-82Participant will stay in the Pre-82 Plan to be used to fundbenefits for other Pre-82 Participants of the same Pre-82Sponsor.

S1.4.10 Unclaimed Benefits. The Admin-istrator may prescribe uniform and nondiscriminatoryrules for carrying out the following provisions:

(a) If a portion (or all) of a benefit under the Planremains to be distributed to a Recipient at a time when itis due under the Plan (including, but not limited to, theRequired Beginning Date) and the Administrator is thenunable to locate the Recipient, the Administrator willsend notice of such benefit due by a certified letter withreturn receipt requested to the last known address of theRecipient. If the Recipient fails to contact theAdministrator within 12 months (except as provided inSection S1.4.10(b)), such benefit will be forfeited(except as provided in Section S1.4.10(c)) and willbecome the benefit of the next Recipient in line in accor-dance with the applicable form of payment. The

Administrator will then send notice by certified letter asprovided above to the next Recipient in line, and theprocess specified above will be repeated until the lastsuccessor Recipient is notified.

(b) If the last successor or default Recipient fails tocontact the Administrator within 12 months after beingsent notification of a benefit due as provided in SectionS1.4.10(a), then the amount specified in SectionS1.4.10(a) will be forfeited. Such forfeitures will remainin the Funding Account from which they would other-wise have been paid to fund other benefits payable underthe Plan.

(c) If, at any time before the expiration of the 12-month period described in Section S1.4.10(b), aRecipient who is or was due a benefit described inSection S1.4.10(a) claims the benefit, the benefit will bepaid to such Recipient (notwithstanding any previousforfeiture) if it has not previously been paid to anotherRecipient. If the 12-month period described in SectionS1.4.10(b) has elapsed, then such benefit will be perma-nently forfeited and will remain in the Funding Accountfrom which it would otherwise have been paid to fundother benefits payable under the Plan.

SUPPLEMENT TWOTO THE


SECTION S2.1 – GROUP 2 BENEFIT

S2.1.1 Description of Participating GroupNo. Pre-82-2. Any Participant in the Pre-82 Plan beforeJanuary 1, 1982, who:

(a) before January 1, 1982, served a GeneralAgency or other institution under special appointmentwithout pension credit on his or her Conference; and

(b) on December 31, 2006 was a Participant inParticipating Group No. 2 of supplement two to MPP,

is, if the General Agency or other institution servedby any such individual chose to contribute to one ormore of the Prior Plans, a member of ParticipatingGroup No. Pre-82-2 and will be entitled to a benefitbased upon the contributions made by the GeneralAgency or other institution on behalf of such Participantplus interest credited thereon.

S2.1.2 Eligibility to Receive Benefit. AParticipant who is a member of Participating Group No.Pre-82-2 will be eligible to receive benefits from thecontributions and interest specified in Section S2.1.1according to the provisions of Section S3.4 ofSupplement Three.



SUPPLEMENT THREETO THE


MINISTERIAL PENSION PLANSECTION S3.1—THE PLAN

S3.1.1 The Plan. The General Conference ofThe United Methodist Church authorized the establish-ment of the Ministerial Pension Plan effective January 1,1982. Effective as of January 1, 2007, the GeneralConference amended and restated the MinisterialPension Plan (hereinafter referred to as the “Plan”) asSupplement Three to the Program. The Plan’s benefitswere frozen as of December 31, 2006 for all Participantsand their Beneficiaries, except for Bishops, whose ben-efits were frozen on August 31, 2008.

S3.1.2 Type of Plan. The Plan is intended tomeet the requirements of a Church Plan and be adminis-tered pursuant to the retirement income account provi-sions of Code §403(b)(9).

S3.1.3 Frozen Plan. Notwithstanding anyother provision of this Supplement Three, no furtherContributions to anyone’s MPP Account will be earnedunder this Supplement Three after August 31, 2008except in the case of corrections of earlier administrativeerrors. Interest, gains, and losses may still accrue on theinvestments in a Participant’s Account under thisSupplement Three, but only until all benefits payableunder Supplement Three are distributed.

S3.1.4 Termination of Plan. Once all the ben-efits of all Participants in Supplement Three have beenpaid under this Supplement Three, this SupplementThree will automatically terminate and become a nullityexcept to the extent that it is needed to:

(a) help specify the benefit due under anotherSupplement or another Plan;

(b) cure errors in the computation or determinationof benefits due under this Supplement Three or MPP; or

(c) accept and adjudicate a claim (or appeal) forbenefits due under this Supplement Three.

SECTION S3.2—ELIGIBILITY FORPARTICIPATION

S3.2.1 Conditions of Eligibility.(a) No new Participant is eligible for MPP on or

after September 1, 2008, when the Plan was frozen.(b) An MPP Participant who has an Account

Balance in MPP on or after September 1, 2008 may con-tinue to participate in Supplement Three for the purposesof having his or her Account Balance paid in accordance

with the terms of Supplement Three and/or invested inaccordance with the provisions of Supplement Three.

S3.2.2 Enrollment by MPP Plan Sponsor.No new MPP Participants will be enrolled on or afterSeptember 1, 2008 except as required under SectionS3.2.3.

S3.2.3 Omission of Eligible Minister. If, forany Plan Year, any minister who should have beenincluded as a Participant in the Plan was erroneouslyomitted and such omission was not discovered until afterthe Contribution by his or her Plan Sponsor for suchPlan Year has been made, the Plan Sponsor will make alater Contribution, subject to the Annual AccountAddition limits of Section S3.3.3 with respect to theomitted minister in the amount that such Plan Sponsorwould have contributed with respect to him or her had heor she not been omitted.

S3.2.4 Inclusion of Ineligible Minister. If,with respect to any Plan Year, any person who should nothave been included as a Participant in the Plan was erro-neously included, the amount contributed with respect tothe ineligible person will constitute a mistake of fact forthe Plan Year in which the discovery is made.

SECTION S3.3—CONTRIBUTIONS ANDINVESTMENTS

S3.3.1 Contributions. No Contributions aredue to MPP other than those due under Sections S3.2.3and S3.3.5.

S3.3.2 Vesting. Contributions credited to aParticipant’s MPP Account are fully Vested.

S3.3.3 Maximum Annual Addition. The onlyAnnual Additions contributed to MPP will be correctiveones relating to a year before the Effective Date. Thelimitations of Section C5 (as they existed in such previ-ous year) will apply to such corrective contributions asthough they were contributed in the previous year forwhich they are contributed.

S3.3.4 Investment of Accounts. Existing MPPAccounts will be invested as determined by the Trustee(including the possible use of a computerized asset allo-cation and rebalancing program) until each Participant’sAccount is distributed in accordance with Section S3.4.The Trustee may invest each Accountholder’s Accountin one or more investment funds or other investmentmedia or permit Accountholders to direct the investmentof their own Accounts, which self-direction may begranted to Accountholders entirely, partially, and/or instages as the Accountholder nears his or her Early,Normal, or Late Retirement Date or other expected dis-tribution date, all in accordance with such rules and reg-ulations as the Trustee may promulgate.



S3.3.5 Annuity Funding. The annuities pro-vided under Section S3.4 will be funded initially byassets from the portion of each Participant’s andTerminated Participant’s MPP Account that is convertedinto an annuity benefit provided under Section S3.4.After conversion, such assets are commingled and areavailable to fund the annuities of all such Participantsand Terminated Participants. Effective June 1, 2012, ifthe Administrator determines that such annuity assetsare insufficient to fund such annuities under the FundingPolicy from time to time, the Administrator may requireMPP Plan Sponsors to make additional Contributions tothe MPP annuity assets by the Due Date set by theAdministrator in an amount established by theAdministrator that is sufficient to satisfy the FundingPolicy. If a Plan Sponsor delays in making a specifiedContribution to the MPP annuity assets beyond suchDue Date, then the Plan Sponsor will make such delayedContribution to the MPP annuity assets as soon as pos-sible thereafter. In addition, such Plan Sponsor will paya Contribution equal to the greater of:


(b) missed net earnings (but ignoring net losses)on such delayed Contribution (determined in accordancewith the actual returns on MPP annuity assets);


SECTION S3.4—DETERMINATION ANDDISTRIBUTION OF BENEFITS

S3.4.1 Determination of Benefits UponRetirement. A Participant may elect an AnnuityStarting Date for his or her benefits payable under thisSupplement Three that is the first of a month on or afterhis or her Retirement Date. Such election must be madeon an Application for Benefits or such other form orforms as the Administrator may specify.

(a) If such Participant Retires at his or her EarlyRetirement Date or Normal Retirement Date, allamounts credited to such Participant’s Account willbecome distributable at such date, if by such date the

Participant has submitted an Application for Benefits, orat such later date as is provided in Section S3.4.1(d).


(c) Unless otherwise provided in SectionS3.4.1(d), upon a Participant’s Retirement Date, if bysuch date the Participant has submitted an Applicationfor Benefits, or as soon thereafter as is practicable, theAdministrator will direct the Trustee to distribute allamounts credited to such Participant’s Account in accor-dance with Sections S3.4.5 and S3.4.8.

(d) A Participant who has Retired may elect todefer his or her Annuity Starting Date to a date of his orher choosing in accordance with rules and regulationsestablished from time to time by the Administrator, butsuch date may not be later than his or her RequiredBeginning Date nor be a date other than the first of amonth. A Participant who has deferred his or herAnnuity Starting Date will begin his or her benefit as ofhis or her Annuity Starting Date in accordance withSections S3.4.5 and S3.4.8.

S3.4.2 Determination of Benefits Upon Death.(a) Upon the death of a Participant or Terminated

Participant before his or her having received a benefitfrom the Plan, the Administrator will direct the Trusteeto distribute, in accordance with the provisions ofSections S3.4.6 and S3.4.8, any remaining amountscredited to the Account of the deceased Participant orTerminated Participant to such Participant’s orTerminated Participant’s Beneficiary.

(b) The Administrator may require such proof ofdeath and such evidence of the right of any person toreceive payment of the value of the Account of adeceased Participant or Terminated Participant as theAdministrator may deem desirable. The Administrator’sdetermination of death and of the right of any person toreceive payment will be conclusive.

(c) Unless otherwise elected in the mannerdescribed below, the Default Beneficiary of the deathbenefit will be the Participant’s Spouse.

(i) Notwithstanding the foregoing, the Participantmay designate a Beneficiary other than his or her Spouseif:



(A) his or her Spouse consents in writing to thedesignation of another Beneficiary, which designation iswitnessed by a Plan Sponsor representative or a notarypublic; or

(B) the Participant is legally separated from his orher Spouse or has been abandoned (within the meaningof local law) by his or her Spouse, and, in either case, theParticipant has a court order to such effect; or

(C) the Participant has no Spouse; or(D) his or her Spouse cannot be located.(ii) In such event, the designation of a Beneficiary

must be made in a form that is satisfactory to theAdministrator and must be received by theAdministrator during the Participant’s lifetime.

(iii) A Participant may at any time revoke his or herdesignation of a Beneficiary or change his or herBeneficiary by filing written notice (in such form as maybe required by the Administrator) of such revocation orchange with the Administrator. However, the Participant’sSpouse must again consent in writing in accordance withthe provisions of Section S3.4.2(c)(i)(A) to any changein the Participant’s Designated Beneficiary unless theoriginal consent expressly permits such changes by theParticipant without the requirement of further consentby his or her Spouse.

(iv) A Participant’s divorce will revoke anyBeneficiary designation in favor of the Participant’sSpouse made before the divorce. Until such time as anew designation of Beneficiary is filed with theAdministrator in accordance with the provisions of thisSection S3.4.2, benefits will be payable as if the formerSpouse had predeceased the Beneficiary.

(v) If no valid designation of Beneficiary exists atthe time of the Participant’s death and there is no sur-viving Spouse, the death benefit will be payable to theParticipant’s estate as the Default Beneficiary.

S3.4.3 Determination of Benefits UponDisability. In the event of the Disability of a Participantor Terminated Participant, the Participant or TerminatedParticipant may elect to receive benefits in an amountequal to 35% of the value of his or her Account in accor-dance with the provisions of Section S3.4.7. TheAdministrator may require the Participant or TerminatedParticipant to provide such documentation as is neces-sary to substantiate the Disability of the Participant orTerminated Participant.

S3.4.4 Determination of Benefits UponTermination. If a Participant becomes a TerminatedParticipant, the Participant’s Account will be distributedas follows:

(a) A Terminated Participant’s Annuity StartingDate may be as early as the Participant’s Early, Normal,

or Late Retirement Date or as late as his or her RequiredBeginning Date, if by such date the Participant has sub-mitted an Application for Benefits. Otherwise, suchTerminated Participant’s Annuity Starting Date will bethe first of the month following the date the Participanthas submitted an Application for Benefits, but not laterthan his or her Required Beginning Date. Such aTerminated Participant’s Account will be distributed inaccordance with Sections S3.4.5(g)(i) or (ii) withouttaking into account the increases provided for in SectionS3.4.8.

(b) Notwithstanding Section S3.4.4(a), theAdministrator will pay the Participant’s entire benefit ina single lump sum upon the Participant’s Termination ofConference Relationship:

(i) in accordance with Section C8.2(a) if theTerminated Participant’s Aggregate Benefit does notexceed $5,000; or

(ii) upon such Terminated Participant’s consent ifhis or her Aggregate Benefit is $5,000 or more, but hisor her Account Balance under Supplement Three is lessthan one-fourth of the Denominational AverageCompensation as of the date on which he or shebecomes a Terminated Participant.

S3.4.5 Distribution of Benefits for AnyReason Except Death or Disability. If a benefit ispayable under this Section S3.4.5, then it may be dis-tributed as follows:

(a) Married Participants. Unless otherwise electedas provided in Section S3.4.5(c) below, a Participantwho is married on his or her Annuity Starting Date andwho does not die before such Annuity Starting Date willreceive the value of 65% of his or her MPP AccountBalance in the form of a 70% Contingent Annuity withhis or her Spouse as Contingent Annuitant.

(i) Such Contingent Annuity benefits followingthe Participant’s death will continue to the Spouse(determined as of the Annuity Starting Date) during theSpouse’s lifetime at a rate equal to 70% of the rate atwhich such benefits were payable to the Participant.


The remaining 35% of the Participant’s MPPAccount Balance will be distributed at the Participant’sAnnuity Starting Date (as provided in Section S3.4.5(f),which Annuity Starting Date may be different from theone applicable to the 65% of the Participant’s MPPAccount Balance provided for above), in the form of asingle lump sum distribution or a 100% direct rollover inaccordance with the provisions of Section C8.5(a) (orpartially directly rolled over and partially distributed,



provided that 100% of the MPP Account is so disposedof at one time). Alternately, the Participant may elect onan Application for Benefits a distribution (or a directrollover) of the 35% of his or her MPP Account first,leaving the remainder to be distributed as providedabove in this Section S3.4.5(a) at his or her later electionon an Application for Benefits (but not later than his orher Required Beginning Date).

(b) Single Participants. Unless otherwise electedas provided in Section S3.4.5(c) below, a Participantwho is not married on his or her Annuity Starting Dateand who does not die before such Annuity Starting Datewill receive the value of 65% of his or her MPP AccountBalance in the form of a Single-Life Annuity.



The remaining 35% of the Participant’s MPPAccount Balance will be distributed at the Participant’sAnnuity Starting Date (as provided in Section S3.4.5(f),which Annuity Starting Date may be different from theone applicable to the 65% of the Participant’s MPPAccount Balance provided for above), in the form of asingle lump sum distribution or a 100% direct rollover inaccordance with the provisions of Section C8.5(a) (orpartially directly rolled over and partially distributed,provided that 100% of the MPP Account is so disposedof at one time). Alternately, the Participant may elect onan Application for Benefits a distribution (or a directrollover) of the 35% of his or her MPP Account first,leaving the remainder to be distributed as providedabove in this Section S3.4.5(a) at his or her later electionon an Application for Benefits (but not later than his orher Required Beginning Date).

(c) Waiver. Any election to waive the 70%Contingent Annuity under Section S3.4.5(a) or theSingle-Life Annuity under Section S3.4.5(b) must bemade by the Participant in writing during the electionperiod and be consented to by the Participant’s Spouse,if the Participant has a Spouse at his or her AnnuityStarting Date.

(i) If the Participant’s Spouse is legally incompe-tent to give consent, such Spouse’s legal guardian maygive consent, even if such guardian is the Participant.

(ii) Such election may designate a Beneficiary (ora form of benefit) that may not be changed without

Spousal consent (unless such Spouse’s consentexpressly permits future designations by the Participantwithout the requirement of further consent by suchSpouse).

(iii) Such Spouse’s consent will be irrevocable andmust acknowledge the effect of the election and bewitnessed by a Plan Sponsor representative or a notarypublic.

(iv) Such consent will not be required if it is estab-lished to the satisfaction of the Administrator that therequired consent cannot be obtained because there is noSpouse, the Participant’s Spouse cannot be located, orother circumstances pertain as may be prescribed byRegulations. Spousal consent will also not be required ifthe Participant elects an optional form of annuity underSection S3.4.5(g)(i) that provides a surviving Spouseannuity of at least 70% of the periodic annuity amountthe Participant received during the Participant’s lifetime.

(v) The election made by the Participant and con-sented to by his or her Spouse may be revoked by theParticipant in writing without the consent of his or herSpouse at any time during the election period.

(A) The number of revocations will not be limited.(B) Any new election must comply with the

requirements of this Section S3.4.5(c).(iv) A former Spouse’s waiver will not bind a new

Spouse.(d) Election Period. The election period to waive

the Contingent Annuity will be the 180-day period end-ing on the Annuity Starting Date.

(e) Notice. With regard to the election to waive the70% Contingent Annuity, the Administrator will provideto the Participant, no fewer than 30 days and no morethan 180 days before the Annuity Starting Date, a writ-ten explanation of:

(i) the terms and conditions of the 70%Contingent Annuity;

(ii) the Participant’s right to make, and the effectof, an election to waive the 70% Contingent Annuity;

(iii) the right of the Participant’s Spouse to consentto any election to waive the 70% Contingent Annuity;and

(iv) the right of the Participant to revoke such elec-tion, and the effect of such revocation.

A Participant’s Annuity Starting Date may notoccur and no distribution may be made until 30 dayshave elapsed after such written explanation has beenprovided, except that a Participant may waive the 30-dayperiod in writing in a form specified by theAdministrator and begin his or her benefit as soon asadministratively practicable.



(f) Annuity Starting Date. If a Participant was notreceiving pension benefits from MPP as of December 31,2006 or ceased receiving them after that date because ofreemployment, then his or her Annuity Starting Date for hisor her MPP benefits will be the date specified in SectionsS3.4.1, S3.4.4, S3.4.5(g), or S3.4.7, whichever date appliesto such Participant; provided, however, that notwithstand-ing this provision such Participant’s Annuity Starting Date:

(i) must be a date that satisfies the requirements ofSection S3.4.5(e), unless

(ii) Sections S3.4.5(i) or (j) otherwise provide.(g) Optional Forms of Distribution. If a married

Participant elects pursuant to Section S3.4.5(c) abovenot to receive his or her benefit in the form of a 70%Contingent Annuity, or if an unmarried Participant electspursuant to Section S3.4.5(c) above not to receive his orher benefit in the form of a Single-Life Annuity, theAdministrator, pursuant to the election of the Participanton an Application for Benefits, will direct the Trustee todistribute, as determined and limited by rules and regu-lations of the Administrator, on a date specified by theParticipant (which date may not be later than suchParticipant’s Required Beginning Date and which datemust be as of the first of a month), to the Participant orto the Participant and his or her Contingent Annuitant:

(i) with respect to 65% of such Participant’s MPPAccount Balance, the purchase of or providing of a life-time (including a lifetime with years certain) annuity orjoint and survivor lifetime annuity (including the dis-abled adult child annuity options described in SectionB9.1(b)(iii)). However, such annuity may not be electedin any form that will guarantee, through a years certainprovision, payments over a period extending beyondeither the life of the Participant (or the lives of theParticipant and his or her designated ContingentAnnuitant) or the life expectancy of the Participant (orthe life expectancy of the Participant and his or her des-ignated Contingent Annuitant).

(ii) with respect to the remaining 35% of suchParticipant’s MPP Account Balance, a one-time lump-sum payment, subject to the Participant’s right to requesta direct rollover in accordance with the provisions ofSection C8.5(a).

(h) Spousal Consent to Optional Form. If theParticipant is married at the time he or she makes anelection pursuant to Section S3.4.5(g) above, such elec-tion will not be valid without the consent of theParticipant’s Spouse, given in accordance with the pro-cedures specified in Section S3.4.5(c).

(i) Small Amount Cash Out. If the Participant’sAggregate Benefit is equal to or less than $5,000, theAdministrator will direct the Trustee to distribute the full

amount of the Participant’s Account in this Plan to theParticipant in a lump sum in accordance with SectionC8.2(a) without the consent of the Participant or his orher Spouse.

(j) Required Minimum Distributions. Notwithstand-ing any provision in the Plan to the contrary, the entireinterest of a Participant under the Plan will be distributed:

(i) no later than the Required Beginning Date; or(ii) beginning no later than the Required

Beginning Date over:(A) the life of the Participant;(B) the lives of the Participant and a designated

Contingent Annuitant;(C) a period not extending beyond the life

expectancy of the Participant; or(D) a period not extending beyond the life

expectancies of the Participant and a designatedContingent Annuitant.

Notwithstanding anything in the Plan to the con-trary, distributions under the Plan will comply withCode §403(b)(10) and its provisions related to compli-ance with Code §401(a)(9) and the applicable provisionsof any required minimum distribution Regulationsissued thereunder. Such Code and Regulation provisionsare hereby incorporated herein by this reference, andwill control over any form of distribution or timing ofdistribution provided in this Plan that is inconsistenttherewith. To the extent that such Regulations providefor any elections or alternative methods of compliancenot specifically addressed in the Plan, the Administratorwill have the authority to provide for such elections oralternative methods of compliance.

(k) Non-Revision. Subject to Sections S3.4.9 andB3.4(d), beginning five business days before the firstmonthly annuity benefit is due, neither the form of pay-ment nor the Spouse or Contingent Annuitant entitled tosurvivor payments may be changed by reason of achanged election, the death of a Spouse, or a divorce.

S3.4.6 Distribution of Benefits Upon Death.If a benefit is payable under this Section S3.4.6, then itmay be distributed as follows:

(a) Distribution to Beneficiary. If a Participant diesbefore his or her Annuity Starting Date, his or herAccount under the Plan will be paid to the Participant’sBeneficiary in accordance with Section C8.3, subject tothe requirements of Section S3.4.6(b) below.

(b) Required Minimum Distribution. Notwith-standing any provision in the Plan to the contrary, distri-butions upon the death of a Participant will be made inaccordance with the following requirements and willotherwise comply with Code §401(a)(9) and theRegulations thereunder.



(i) If the Participant’s surviving Spouse is his orher Beneficiary, the Account will be paid according toone of the distribution options described in SectionS3.4.5(g) as elected by the surviving Spouse, but in nocase may any distribution provide for payments over aperiod extending beyond either the life of the survivingSpouse or the life expectancy of the surviving Spouse.

(A) Distributions to the surviving SpouseBeneficiary must begin on or before the later of:

(I) December 31 of the calendar year immediatelyfollowing the calendar year in which the Participantdied; or

(II) December 31 of the calendar year in which theParticipant would have attained age 70½.

(B) If no election is made before the RequiredBeginning Date, 65% of the Account will be paid to thesurviving Spouse Beneficiary in the form of a Single-Life Annuity, and 35% of the Account will be paid to thesurviving Spouse Beneficiary in a lump sum.

(ii) If the Participant’s Beneficiary is not his or hersurviving Spouse, the Participant’s Account under thePlan will be distributed to his or her Beneficiary:

(A) by December 31 of the calendar year in whichthe fifth anniversary of the Participant’s date of deathoccurs; or

(B) over the life of such Beneficiary (or over aperiod not extending beyond the life expectancy ofsuch Beneficiary) provided such distribution begins notlater than December 31 of the calendar year immedi-ately following the calendar year in which the Partici-pant died.

(I) For the purpose of Section S3.4.6(b)(ii)(A), tobe excepted from the 5-year distribution requirement theelection by a Beneficiary must be made no later thanDecember 31 of the calendar year following the calen-dar year of the Participant’s death.

(II) An election by a Beneficiary must be in writ-ing and will be irrevocable as of the last day of the elec-tion period stated herein.

(iii) In the absence of an election by the Participantor a Beneficiary, the 5-year distribution requirement willapply.

(iv) Notwithstanding the provisions of SectionsS3.4.6(b)(i) or (ii), if the present value of a deceasedParticipant’s Aggregate Benefit is equal to or less than$5,000 at the time of his or her death, the Administratorwill direct the Trustee to distribute the full amount of theParticipant’s Account Balance to the Participant’sBeneficiary in accordance with Section C8.2(a) withoutthe consent of the Beneficiary.

(v) If the distribution of a Participant’s interest hadbegun and the Participant dies before his or her entire

interest has been distributed to him or her, the remainingportion of such interest will be distributed at least as rap-idly as under the method of distribution selected pur-suant to Section S3.4.5 as of his or her date of death.

S3.4.7 Distribution of Benefits UponDisability. If a benefit is payable under this SectionS3.4.7, then it may be distributed as follows:

(a) At any time after becoming Disabled (but notlater than his or her Required Beginning Date and as ofthe first of a month), a Disabled Participant may elect onan Application for Benefits to receive a one-time lump-sum payment in the amount of 35% of his or her MPPAccount Balance.

(b) If the Participant is married at the time he orshe makes an election pursuant to Section S3.4.7(a)above, such election will not be valid without the con-sent of the Participant’s Spouse given in accordancewith the procedures stated in Section S3.4.5(c).


S3.4.8 Benefit Increases. The amount of anymonthly annuity benefit payable under Sections S3.4.5or S3.4.6 will be determined actuarially on the basis ofthe value of the Participant’s Account under the Plansuch that such value:


(b) will not be increased or will be increased by3%, 4%, or 5% annually, if so elected by the Participantat the time of application, or the Beneficiary at the timebenefits commence, as applicable, under Sections S3.4.5or S3.4.6.

These increases will occur once a year on a datespecified by the Administrator from time to time, whichmay be the same date for all Participants andBeneficiaries or may vary with each benefit recipient.

S3.4.9 Other Provisions Incorporated. Inaccordance with rules established by the Administrator,Supplement Three includes provisions similar to thosefound in Sections B3.4(d) and (e), B7.2, B9.1(d),B9.1(f), B9.2(b), B9.4, B9.5, B9.6, B9.8, C7.2, C8.1(a),C8.2(e) and (f), C8.4, C8.5, C8.6, C8.7, and C8.10.




Restate the Clergy Retirement Security Program, which is incorporated by reference in ¶ 1504.1 of theBook of Discipline, as the Clergy Defined Contribution Retirement Program (“CDCRP”) in the form ofExhibit A, beginning on page 776 (including any needed revisions to CDCRP section numbering, formatting,pagination, or Table of Contents), effective on a date or dates specified by the General Board of Pension andHealth Benefits that is as soon as systems can reasonably be reconfigured to administer the restated plan,which date(s) are not later than January 1, 2014, except where another effective date is specified in Exhibit A.

RATIONALE: This is one of two alternate petitions sponsored by GBPHB to replace the current clergy retirementplan. This petition would cease accrual of future pension liabilities, but the other petition is recommended for itslifetime clergy income. Both plans would reduce benefits and costs to help address conference financial concerns.

Date: August 31, 2011

Signature of the Petitioner: ________________________________________Barbara A. BoigegrainGeneral SecretaryGeneral Board of Pension and Health Benefits847-866-4644Fax: [email protected]

Restated Clergy Defined Contribution Retirement Program



Exhibit A

Clergy Defined Contribution Retirement Program

A Church Retirement Benefits Plan of

The United Methodist Church

As Adopted by the 2012 General Conference

CDCRP13.001



TABLE OF CONTENTS

SECTION PAGE

PART A COMMON PART 784

A1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 784

A1.1 Defined Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 784A1.2 History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785A1.3 The Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785A1.4 The Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785A1.5 Type of Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 786A1.6 Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .786A1.7 Exclusive Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787

A2 Definitions and Rules of Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787

A2.1 Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.2 Account Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.3 Accountholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.4 Accounting Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.5 Accrued Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.6 Actuarial Equivalent or Actuarially Equivalent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.7 Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.8 Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.9 Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.10 Aggregate Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787A2.11 Aggregate DB Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.12 Alternate Payee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.13 Annual Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.14 Annual Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.15 Annual Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.16 Annuity Starting Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.17 Application for Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.18 Appoint or Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.19 Approved Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 788A2.20 Associate Member . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.21 Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.22 Bishop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.23 Break in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.24 Central Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.25 Church Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.26 Claimant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.27 Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.28 Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.29 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.30 Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.31 Conference-Elective Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789A2.32 Conference-Responsible Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790

Clergy Defined Contribution Retirement Program



A2.33 Consolidated DB Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.34 Contingent Annuitant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.35 Contingent Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.36 Contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.37 Core Defined Contribution Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.38 CPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.39 CPP Disabled or CPP Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.40 Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.41 CRSP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.42 CRSP-DB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.43 Deacon in Full Connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.44 Default Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790A2.45 Denominational Average Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.46 Designated Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.47 Disabled or Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.48 Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.49 Distribution Calendar Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.50 Due Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.51 Early Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.52 Early Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.53 Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.54 Elder in Full Connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.55 Eligible Clergy or Eligible Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791A2.56 Eligible Rollover Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.57 Entry Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.58 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.59 Final Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.60 Final DAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.61 Five-Year Distribution Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.62 Five-Year No Record of Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.63 Formula Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.64 415 Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792A2.65 415 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793A2.66 415 DB Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793A2.67 415 Suspense Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793A2.68 Full-Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.69 Funding Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.70 Funding Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.71 General Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.72 General Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.73 GCFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.74 General Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.75 Half-Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.76 Incapacity Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.77 Includible Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.78 In Pay Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.79 IRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.80 Jurisdictional Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.81 Late Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.82 Late Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.83 Leave of Absence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794A2.84 Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795



A2.85 Life Expectancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.86 Lifetime Distribution Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.87 Limitation Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.88 Local Church . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.89 Local Pastor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.90 Matching Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.91 Matching Contribution Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.92 Ministerial Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.93 MPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.94 MPP Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.95 Non-Jurisdictional Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.96 Non-Matching Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.97 Non-Matching Contribution Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.98 Normal Form of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.99 Normal Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.100 Normal Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795A2.101 Other Denomination Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.102 Other Methodist Denomination Clergy or Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.103 Optional Form of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.104 Part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.105 Part A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.106 Part B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.107 Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.108 Participant Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.109 Part-Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.110 Pastoral Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.111 Past Service Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.112 Past Service Rate Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.113 Personal Contributions Accumulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.114 Personal Contributions Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.115 Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796A2.116 Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.117 Plan Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.118 Pre-82 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.119 Pre-82 Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.120 Pre-82 Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.121 Pre-82 Plan Vesting Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.122 Pre-82 Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.123 Prior Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797A2.124 Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.125 Provisional Member . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.126 QDRO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.127 Recipient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.128 Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.129 Related Defined Benefit Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.130 Relinquish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.131 Required Beginning Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.132 Retire or Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.133 Retirement Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.134 Salary-Paying Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.135 Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798A2.136 Separation from Covered Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798



A2.137 Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.138 Service Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.139 Service Annuity Accumulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.140 70% Pre-Retirement Survivor Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.141 Single-Life Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.142 Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.143 Supplement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.144 Supplement One . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.145 Supplement Two . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.146 Supplement Three . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.147 Supplement Four . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.148 Termination of Conference Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.149 Terminated Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799A2.150 Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.151 Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.152 UMPIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.153 Under Episcopal Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.154 USERRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.155 Valuation Account Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.156 Valuation Calendar Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.157 Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A2.158 Year of Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800

A3 Plan Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800

A3.1 General Fiduciary Standard of Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A3.2 Allocation of Responsibility Among Fiduciaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A3.3 Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800A3.4 Powers, Authority, and Duties of Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 801A3.5 Records and Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802A3.6 Duties of Each Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802A3.7 Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802A3.8 Attorney Fees and Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802A3.9 Delegation of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802A3.10 Indemnification by Plan Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 803A3.11 Claims Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 803A3.12 Qualified Domestic Relations Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804

A4 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805

A4.1 Rules and Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805A4.2 Non-Alienation of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805A4.3 Non-Reversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805A4.4 Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805A4.5 Limitation of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805A4.6 Alternative Dispute Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.7 Titles and Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.8 Number and Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.9 USERRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.10 Participant, Beneficiary, Recipient, and Accountholder Duties . . . . . . . . . . . . . . . . . . . . 806A4.11 Adequacy of Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.12 Notice to Other Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.13 Waiver of Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.14 Successors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806



A4.15 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806A4.16 Supplements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806

A5 Amendment and Termination of Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807

A5.1 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807A5.2 Termination of Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807

A6 Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807

A6.1 Beneficiary Designation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807A6.2 Beneficiary of an Accountholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807A6.3 Affected Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807A6.4 Preexisting Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807

A7 Adoption Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807

A7.1 Completion of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807A7.2 Form of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807A7.3 Acceptance of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808A7.4 Continuance of Adoption Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808A7.5 Supplements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808

PART B CORE DEFINED CONTRIBUTION PART 808

B1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808

B1.1 Plan Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808B1.2 Prospective Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808

B2 Computation of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808

B2.1 Method of Computation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808

B3 Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809

B3.1 Eligibility for Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809B3.2 Determination of Entry Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809B3.3 Determination of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 810B3.4 Cessation and Resumption of Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 810B3.5 Omission of Eligible Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 810B3.6 Inclusion of Ineligible Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 810B3.7 Election Not to Participate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 810

B4 Amount and Allocation of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811

B4.1 Plan Sponsor Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811B4.2 Allocation and Deposit of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813B4.3 Late Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813B4.4 Ineligible Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813

B5 Limits on Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813

B5.1 Limit on Annual Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813B5.2 Contributions to Disabled Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816B5.3 Purpose of Limitations; Authority of Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816

B6 Investments and Plan Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816

B6.1 Participant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816B6.2 Separate Fund Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816B6.3 Accountholder-Directed Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816



B7 Vesting and Forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 817

B7.1 Full Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 817B7.2 Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 817

B8 Payment of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 817

B8.1 Methods of Benefit Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 817B8.2 Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 818B8.3 Payments After an Accountholder’s Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 819B8.4 Required Minimum Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 819B8.5 Direct Rollovers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 822B8.6 Unclaimed Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 822B8.7 Payment with Respect to Incapacitated Accountholders . . . . . . . . . . . . . . . . . . . . . . . . . 823B8.8 Limitation on Liability for Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823B8.9 In-Service Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823B8.10 Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823B8.11 Trailing Account Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823

SUPPLEMENT ONE PRE-82 PLAN 823

S1.1 The Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823

S1.1.1 Prior Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823S1.1.2 Use of Assets of Prior Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823

S1.2 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824

S1.2.1 Participating Group No. Pre-82-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824S1.2.2 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824

S1.3 Funding of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824

S1.3.1 Liability for Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824S1.3.2 Amortization of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824S1.3.3 Determination of Initial Unfunded Portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824S1.3.4 Past Service Rate Amount Increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824S1.3.5 Amortization of Other Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 825S1.3.6 Personal Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 825S1.3.7 Contingent Annuitant Percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 825S1.3.8 Investment of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 826

S1.4 Past Service Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 826

S1.4.1 Approved Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 826S1.4.2 Past Service Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 826S1.4.3 Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 827S1.4.4 Disability Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828S1.4.5 Surviving Spouse Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828S1.4.6 Small Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 829S1.4.7 Survivor Death Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 829S1.4.8 Deferred Vested Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 829S1.4.9 Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 829S1.4.10 Unclaimed Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830

SUPPLEMENT TWO GROUP 2 PRE-82 BENEFIT 830

S2.1 Group 2 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830



S2.1.1 Description of Participating Group No. Pre-82-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830S2.1.2 Eligibility to Receive Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830

SUPPLEMENT THREE MINISTERIAL PENSION PLAN 830

S3.1 The Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830

S3.1.1 The Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830S3.1.2 Type of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830S3.1.3 Frozen Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830S3.1.4 Termination of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831

S3.2 Eligibility for Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831

S3.2.1 Conditions of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831S3.2.2 Enrollment by MPP Plan Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831S3.2.3 Omission of Eligible Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831S3.2.4 Inclusion of Ineligible Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831

S3.3 Contributions and Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831

S3.3.1 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831S3.3.2 Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831S3.3.3 Maximum Annual Addition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831S3.3.4 Investment of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831S3.3.5 Annuity Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831

S3.4 Determination and Distribution of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832

S3.4.1 Determination of Benefits Upon Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832S3.4.2 Determination of Benefits Upon Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832S3.4.3 Determination of Benefits Upon Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 833S3.4.4 Determination of Benefits Upon Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 833S3.4.5 Determination of Benefits for Any Reason Except Death or Disability . . . . . . . . . . . . . 833S3.4.6 Distribution of Benefits Upon Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835S3.4.7 Distribution of Benefits Upon Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836S3.4.8 Benefit Increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836S3.4.9 Other Provisions Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836

SUPPLEMENT FOUR CRSP-DB 836

S4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836

S4.1.1 The Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836S4.1.2 Plan Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836

S4.2 Computation of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837

S4.2.1 Kinds of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837S4.2.2 Computation of Credited Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837

S4.3 Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 838

S4.3.1 Eligibility for Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 838S4.3.2 Determination of Entry Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 839S4.3.3 Determination of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 839S4.3.4 Cessation and Reinstatement of Conference Relationship . . . . . . . . . . . . . . . . . . . . . . . 839S4.3.5 Omission of Eligible Clergyperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 839S4.3.6 Inclusion of Ineligible Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840



S4.3.7 Election Not to Participate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840

S4.4 Amount and Allocation of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840

S4.4.1 Plan Sponsor Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840S4.4.2 Late Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840S4.4.3 Funding Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 841S4.4.4 Benefits Payable Only from Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 841

S4.5 Limit on Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842

S4.5.1 General Limitation on Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842S4.5.2 Adjustments to Annual Retirement Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842S4.5.3 High Three Years Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842S4.5.4 Pro Rating Fewer Than 10 Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843S4.5.5 Defined Contribution Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843S4.5.6 Purpose of Limitations; Authority of Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843

S4.6 Accrued Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843

S4.6.1 Monthly Benefit Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843S4.6.2 Break in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843S4.6.3 Change of Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844

S4.7 Vesting and Forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844

S4.7.1 Full Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844S4.7.2 Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844

S4.8 Amount of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844

S4.8.1 Normal Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844S4.8.2 Early Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845S4.8.3 Late Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845S4.8.4 Death of Participant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845

S4.9 Payment of Retirement Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845

S4.9.1 Form of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845S4.9.2 Time of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 847S4.9.3 Payments After a Participant’s Death . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 848S4.9.4 Required Minimum Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 849S4.9.5 Unclaimed Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850S4.9.6 Payment with Respect to Incapacitated Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 851S4.9.7 Limitation on Liability for Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 851S4.9.8 Relinquishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 851

Note: The Clergy Defined Contribution RetirementProgram is a church plan that is not subject to registra-tion, regulation, or reporting under the InvestmentCompany Act of 1940, the Securities Act of 1933, theSecurities Exchange Act of 1934, Title 15 of the UnitedStates Code, or State securities laws. Similarly, theAdministrator and the Trustee of the Plan and the enti-ties maintaining any investment funds under the Plan arenot subject to those provisions of those Acts or laws.Therefore, Plan participants and beneficiaries will notbe afforded the protection of those provisions.

CLERGY DEFINED CONTRIBUTIONRETIREMENT PROGRAM

Part ACommon PartSECTION A1—INTRODUCTION

A1.1 Defined Terms. As used in this Program,capitalized terms, including acronyms, have the meaningsset forth in Section A2. When not set forth in that Section,capitalized terms have the meanings set forth in predeces-sor plans or the meanings given to them in the Discipline.



A1.2 History. The Program is restated as ofthe Effective Date, reflecting revisions approved atGeneral Conference 2012. Among other revisions,CRSP-DB (now in Supplement Four) is partially frozenas of the Effective Date (no new Participants and no fur-ther Credited Service, but continued Final Compensa-tion and Final DAC updates), and the Core DefinedContribution Plan (now in Part B) now provides forhigher contributions and a matching contribution.Although the Program bears a different name, it is anamendment and restatement of CRSP, effective as of theEffective Date. CRSP replaced MPP on January 1, 2007(September 1, 2008 for Bishops). MPP was effective onJanuary 1, 1982 and was frozen as of December 31,2006 (August 31, 2008 for Bishops) and has been pre-served in Supplement Three hereto. The MinistersReserve Pension Fund, the Partial Reserve PensionFund, the Local Pastors Reserve Pension Fund, theSenior Plan, the Ministers Reserve Pension Plan, and theCurrent Income Distribution Pension Plan were mergedinto MPP as supplement one to MPP, effective January1, 1982. The benefits payable under those Prior Planswill be paid in accordance with the provisions of sup-plement one to MPP, as reflected in Supplement Onehereto. Previous versions of the Program or its prede-cessors may be consulted for provisions effective at ear-lier times.

A1.3 The Program. The Program, asapproved by General Conference 2012 and as applied toany Plan Sponsor, consists of the following subdivi-sions, plus any others that may be added to the Program(and minus any others that may be removed from theProgram) from time to time:

(a) Part A, also known as the Common Part;(b) Part B, also known as the Core Defined

Contribution Part;(c) Supplement One, also formerly known as sup-

plement one to CRSP, also known (together with Part A,Supplement Two, and the Adoption Agreement for anyPlan Sponsor) as the Pre-82 Plan;

(d) Supplement Two, also formerly known as sup-plement two to CRSP;

(e) Supplement Three, also known (together withPart A and the Adoption Agreement for any PlanSponsor) as MPP or the Ministerial Pension Plan;

(f) Supplement Four, also known (together withPart A and the Adoption Agreement for any PlanSponsor) as CRSP-DB (formerly, Part B of CRSP); and

(g) The Adoption Agreement for any PlanSponsor.

The Program will apply to a Participant, aTerminated Participant, a Beneficiary, a Contingent

Annuitant, a Recipient, or an Accountholder as of theearlier of the date such person first became eligible forthe Program or first had an Accrued Benefit or anAccount and will remain applicable, as the Programexists from time to time, until such person no longer hasan Accrued Benefit or an Account under the Program. Ifany issue under the Program applies after such person’sAccrued Benefit has been paid or Account has been dis-tributed, then the terms of the Program as they existedon the date of such payment or distribution will apply tosuch person. In the case of a Beneficiary or any otherperson who does not have an Accrued Benefit or anAccount but who claims a benefit under the Program,the terms of the Program as they existed at the time ortimes such person would have been entitled to anAccrued Benefit or an Account if such claim wereupheld will govern.

A1.4 The Plans.(a) For the purpose of the nomenclature of the

Program, there are four Plans within the Program:(i) The Core Defined Contribution Plan, which is

composed of Parts A and B and the Adoption Agreementfor any Plan Sponsor;

(ii) The Pre-82 Plan, which is composed of Part A,Supplement One, Supplement Two, and the AdoptionAgreement for any Plan Sponsor;

(iii) MPP, which is composed of Part A,Supplement Three, and the Adoption Agreement for anyPlan Sponsor; and

(iv) CRSP-DB, which is composed of Part A,Supplement Four, and the Adoption Agreement for anyPlan Sponsor.

Supplement Two provides a special benefit throughthe Pre-82 Plan but is not a separate Plan.

(b) The Core Defined Contribution Plan is the onlyfully active Plan. All the other Plans are frozen as to eli-gibility. The Pre-82 Plan is frozen as to further Service,but Pre-82 Sponsors retain the right to amend it fromtime to time to increase benefits accrued by Participantsstill in Service, benefits accrued by Retired Participantsnot yet In Pay Status, and benefits payable to Retirees InPay Status, and in each case their surviving Spouses, byincreasing the Past Service Rate Amount. MPP is afrozen Plan as to all Participants, except that MPPAccount balances not yet In Pay Status remain investedunder Supplement Three until each Participant’sAnnuity Starting Date, when they are paid as provided inSupplement Three. CRSP-DB is frozen as to furtherCredited Service, but not as to further changes in FinalDAC and Final Compensation.

(c) For the purpose of separate funding, there arefour plans within the Program:



(i) The Consolidated DB Plan;(ii) The Core Defined Contribution Plan;

(iii) The Personal Contributions Accumulation,together with the Service Annuity Accumulation, of thePre-82 Plan before either has been annuitized; and

(iv) MPP, before its account balances have beenannuitized.

The assets for each of these four plans will be sep-arately accounted for in the Trust and will not be com-mingled or transferred except as otherwise specificallyprovided in the Program. Assets from one of these planswill not be used to fund another of these plans (except asotherwise specifically provided in the Program). Each ofthese four plans will be treated as a separate single planwithin the meaning of Regulation §1.414(l)-1(b)(1).

A1.5 Type of Plans. Each of the plans listedin Section A1.4(c) is intended to be a program of one ormore church-sponsored retirement income accountswithin the meaning of Code §403(b)(9), with theConsolidated DB Plan being a defined benefit plan, asthat term is defined in Code §414(j), and the plans listedin Sections A1.4(c)(ii)–(iv) being defined contributionplans, as that term is defined in Code §414(i). TheConsolidated DB Plan is a grandfathered pre-August 14,1982 defined benefit Code §403(b) plan under Code§403(b)(9) in accordance with §251(e)(5) of the TaxEquity and Fiscal Responsibility Act of 1982. For thepurpose of Statement of Financial Accounting StandardsNumber 158, the Consolidated DB Plan is a multi-employer plan. For the purpose of Code §401(a)(4), theProgram is intended to be a multiple employer planinvolving more than one Plan Sponsor. Plan Sponsorsmay or may not be Affiliates of one another. For the pur-pose of Code §414(e), the Plan Sponsors are eachintended to be a church, a convention or association ofchurches (within the meaning of Code §414(e)(3)(C)),or an organization controlled by or associated with achurch or a convention or association of churches(within the meaning of Code §414(e)(3)(D)).Accordingly, the Plan Sponsors are intended to be oneemployer for the purpose of Code §414(e). Further, theProgram is intended to meet the requirements of a“church plan” as that term is defined in Code §414(e)and ERISA §3(33) and to be exempt from ERISA as aChurch Plan to the extent permitted under Code§410(d), applicable ERISA sections (including, but notlimited to, ERISA §§4(b)(2) and 4021(b)(3)), and anyother applicable law.

A1.6 Funding. Contributions to fund the ben-efits provided under the Program are made by the PlanSponsors as provided in each Plan.

(a) The Trust. To receive the contributions, theGeneral Board has established the Trust pursuant to anagreement with the Trustee. All benefits under theProgram will be provided exclusively by distributionsfrom the Trust. The Trustee has the powers and dutiesspecified in the agreement establishing the Trust. TheGeneral Board has the authority to replace the Trustee ofthe Trust at any time, or to establish additional Trusts tofund benefits under the Program.

(b) Insurance Contracts. Benefits under theProgram may also, at the General Board’s discretion, beprovided by the purchase of insurance contracts, and, insuch event, the term Trust will also include theProgram’s interest, if any, in such insurance contracts.Such insurance contracts may be entered into by theGeneral Board or by the Trustee in accordance with theGeneral Board’s direction.

(c) Separate Accounts. The Administrator willmaintain a separate accounting for each of theRegulation §1.414(l)-1(b)(1) plans identified in SectionA1.4(c), for each Plan Sponsor’s contributions undereach such plan (subject to Section A1.6(d)), and for eachParticipant, Beneficiary, or Accountholder under theplans in Sections A1.4(c)(ii)–(iv). Such accounting willreflect contributions, earnings, losses, forfeitures, trans-fers, distributions, and any other relevant events neces-sary to keep accurate accounts.

(d) Defined Benefit Funding. Each Plan Sponsorwill be primarily responsible to fund benefit payments toParticipants, Terminated Participants, Beneficiaries,Contingent Annuitants, and any other persons entitled toa benefit under the Consolidated DB Plan. The fundingfor each constituent subplan of the Consolidated DBPlan will be accomplished as provided in each of theSupplements by each Plan Sponsor making contribu-tions to its Funding Account, which will serve to pay allbenefits due from that Plan Sponsor under theConsolidated DB Plan. Subject to any rules or limita-tions established by the Administrator, all assets in aPlan Sponsor’s Funding Account are available to pay allbenefits attributable to that Plan Sponsor or another PlanSponsor under the Consolidated DB Plan. If, however, aPlan Sponsor does not have sufficient assets in itsFunding Account to pay all benefits of the ConsolidatedDB Plan as they come due, in order to pay such benefits,the Administrator will authorize debits against theFunding Accounts of all other Plan Sponsors (except anyPlan Sponsor with a zero Funding Account balance), prorata in proportion to the Liabilities each such other PlanSponsor has as a percentage of all Liabilities under theConsolidated DB Plan (as determined by theAdministrator). If the delinquent Plan Sponsor later



makes contributions to its Funding Account, such con-tributions will first be allocated pro rata in the samefashion to repay amounts taken from other PlanSponsors’ Funding Accounts, plus interest at a marketrate to be determined by the Administrator from time totime, and only thereafter to the delinquent PlanSponsor’s separate Funding Account.

(e) Ordering of Contributions. Effective June 1,2012, if a Plan Sponsor owes Contributions for morethan one Plan within the Consolidated DB Plan, as of theDue Dates for such Plans that fall within any Plan Year,and if such Plan Sponsor fails to make the full amountof Contributions required of it by the Administrator bysuch Due Dates, then the Administrator will allocatesuch Contributions as it does receive for such Plan Yearfirst to the Pre-82 Plan, next to the assets funding MPPannuities, and last to CRSP-DB.

(f) Reversion from a Funding Account. No PlanSponsor may receive a reversion of assets in its FundingAccount unless assets remain after all liabilities of allPlan Sponsors and the Consolidated DB Plan have beensatisfied as to all Participants, Beneficiaries, and anyother persons entitled to benefits under such plan. Whenall such liabilities have been satisfied by the payment ofall benefits due, by annuitizing any remaining benefitswith an insurance or annuity provider selected by theAdministrator, and/or by converting, merging, or spin-ning off any remaining benefits to ActuariallyEquivalent lump sum or annuity benefits to be paid fromanother plan or insurance contract, any remaining assetsin each Plan Sponsor’s Funding Account will bereturned by the Trustee to that Plan Sponsor.Notwithstanding the foregoing, assets may also bereturned to a Plan Sponsor as provided in Section A4.3.

A1.7 Exclusive Benefit. The Program is forthe exclusive benefit of Recipients and Accountholders.No portion of the funds contributed to the Program willrevert to or be applied for the benefit of the PlanSponsors, except as specifically permitted herein.

SECTION A2—DEFINITIONS AND RULESOF INTERPRETATION

As used in this Program, capitalized terms have themeanings set forth below.

A2.1 Account. All of the separate accountsmaintained according to the books and records of theCore Defined Contribution Plan or a Supplement for thepurpose of recording contributions made to the Plan bya Plan Sponsor, Salary-Paying Unit, or Participant forthe benefit of a Participant, an Alternate Payee, or aBeneficiary as provided in Sections B6, S1.3.6,S1.4.2(e)(ii), S3.3.4, and any other Accountholder

account in the Program, adjusted for contributions, dis-tributions, and earnings and losses allocated thereto.

A2.2 Account Balance. The total amount heldfor an Accountholder in his or her Account (or in the spe-cific separate Account referred to), as determined on thecoincident or immediately preceding Accounting Date inaccordance with the provisions of the applicable Plan.

A2.3 Accountholder. A Participant, AlternatePayee, or Beneficiary who has an Account under theCore Defined Contribution Plan, or a Supplement.

A2.4 Accounting Date. The last business dayof each calendar year and each other date upon whichContributions to, distributions from, or transfers to orfrom Account Balances are made or upon whichAccount Balances are adjusted in accordance with theprovisions of the applicable Plan.

A2.5 Accrued Benefit. The CRSP-DB monthlybenefit formula amount computed in accordance withSection S4.6.1 and payable in the Normal Form ofBenefit at a Participant’s Normal Retirement Date orsuch later date as of which it is computed.

A2.6 Actuarial Equivalent or ActuariallyEquivalent. Providing a benefit having the same valueafter adjusting for mortality and the time value ofmoney, using generally accepted actuarial methods andassumptions, including an interest or discount rate and amortality table, when necessary, selected by theAdministrator from time to time.

A2.7 Administrator. The General Board orany successor.

A2.8 Adoption Agreement. An agreementexecuted by each Plan Sponsor and accepted by theAdministrator that is a part of this Program and is themeans by which a Plan Sponsor adopts the Program, or,when the Administrator uses more than one AdoptionAgreement for the Program, one or more Plans under theProgram, and specifies any optional provisions that are apart of any Plan as to that Plan Sponsor.

A2.9 Affiliate. Any entity that is:(a) a corporation that is a member of the same con-

trolled group of corporations, as defined in Code§414(b), as a Plan Sponsor;

(b) a trade or business, whether or not incorpo-rated, that is under common control with a Plan Sponsorwithin the meaning of Code §414(c);

(c) a member of the same affiliated service group,as defined in Code §414(m), as a Plan Sponsor; or

(d) otherwise required to be aggregated with aPlan Sponsor pursuant to Regulations issued under Code§414(o), but that is not itself a Plan Sponsor.

A2.10 Aggregate Benefit. The sum of anAccountholder’s or a Recipient’s:



(a) Vested Account Balances in this Program; plus(b) vested account balances in all other plans

administered by the Administrator, if any; plus(c) Accrued Benefit, converted to its Actuarial

Equivalent lump sum; plus(d) accrued benefits (not already included above)

in any Supplement plus all other defined benefit plansadministered by the Administrator, if any, converted totheir Actuarial Equivalent aggregate lump sum; plus

(e) monthly benefits, if any, being received from aplan administered by the Administrator, if any, con-verted to their Actuarial Equivalent aggregate lump sum.

A2.11 Aggregate DB Benefit. The sum of aParticipant’s or a Recipient’s:

(a) monthly defined benefit or annuity-type bene-fits, if any, being paid or due from all of theSupplements; plus

(b) monthly defined benefit or annuity-type bene-fits, if any, being paid or due from any other plansadministered by the Administrator,

in each case determined on the basis of the form ofbenefit then being paid or having been elected (or, ifsuch benefit is not yet being paid and has not yet beenelected, then in the normal form of payment).

A2.12 Alternate Payee. A Spouse, formerSpouse, child, or other dependent of a Participant enti-tled to receive a portion of such Participant’s AccruedBenefit, annuity, or Account under a QDRO.

A2.13 Annual Additions. The sum of:(a) Non-Matching Contributions made by a Plan

Sponsor (and any other employer non-matching contri-butions made under any other Code §403(b) definedcontribution plan maintained by a Plan Sponsor or a 415Affiliate);

(b) Matching Contributions made by a PlanSponsor (and any other employer matching contribu-tions made under any other Code §403(b) defined con-tribution plan maintained by a Plan Sponsor or a 415Affiliate);

(c) Contributions made under Supplement Three,if any;

(d) any before-tax, salary-deferral contributionsmade on behalf of a Participant under any other Code§403(b) defined contribution plan maintained by a PlanSponsor or a 415 Affiliate;

(e) any after-tax contributions made on behalf of aParticipant under any other Code §403(b) defined con-tribution plan maintained by a Plan Sponsor or a 415Affiliate; and

(f) amounts allocated to an individual medicalaccount, as defined in Code §415(l)(2), that is part of apension or annuity plan maintained by a Plan Sponsor;

amounts derived from contributions that are attributableto post-retirement medical benefits, allocated to the sep-arate account of a key employee, as provided in Code§419A(d); required employee contributions to a definedbenefit plan; and amounts allocated to a simplifiedemployee pension (SEP) that is maintained by the PlanSponsor,

that are credited to any Participant’s Account orsuch other Code §403(b) defined contribution plan, indi-vidual medical account, or other plan. Catch-up contri-butions under Code §414(v), distributed excessdeferrals, plan loan repayments, repayment of previ-ously distributed benefits, restorative payments to cor-rect situations that could reasonably result in federal orstate fiduciary liability, direct transfers of benefits fromone plan to another, and rollover contributions underCode §§402(c) or 408(d) made to a Plan Sponsor’s or a415 Affiliate’s plan are not included in AnnualAdditions.

A2.14 Annual Conference. The basic body ofThe United Methodist Church as further described in¶ 33 and in ¶¶ 601-656 of the Discipline.

A2.15 Annual Retirement Benefit. A retire-ment benefit (actuarially adjusted as provided in SectionS4.5 and Code §415(b)) payable annually under the 415DB Plan in the form of a single-life annuity (with noancillary benefits).

A2.16 Annuity Starting Date. The first dayof the month for which an amount is payable as an annu-ity, an Early Retirement Benefit, a Normal RetirementBenefit, or a Late Retirement Benefit or, in the case of abenefit not payable in such form (such as a benefitpayable in a lump sum), the day coinciding with thecompletion of all events that entitle the Participant orAccountholder to such benefit. In the case of a deferredannuity, the Annuity Starting Date will be the date onwhich the annuity payments are scheduled to begin.

A2.17 Application for Benefits. A form estab-lished by the Administrator from time to time uponwhich a Participant, Terminated Participant, otherAccountholder, or other Recipient officially applies forbenefits under a Plan.

A2.18 Appoint or Appointment. Officiallyappointed by a Bishop to a ministry pursuant to ¶¶ 430through 435 of the Discipline. For the purposes of theProgram, in the case of a Bishop, assigned in accordancewith ¶ 406 of the Discipline.

A2.19 Approved Service. As used inSupplement One, a Pre-82 Participant’s or retired Pre-82Participant’s years and fractions of years of service ren-dered before January 1, 1982, with pension credit in aConference, as evidenced by the Pre-82 Participant’s



service record maintained by the Administrator. A Pre-82 Participant’s service record will be subject to correc-tion in accordance with the provisions of the Discipline.

A2.20 Associate Member. A person electedto associate membership in an Annual Conferencewithin the meaning of ¶¶ 321, 322, or 369.1 of theDiscipline.

A2.21 Beneficiary. An Accountholder’s orRecipient’s Designated Beneficiary or DefaultBeneficiary.

A2.22 Bishop. A bishop of The UnitedMethodist Church elected by a JurisdictionalConference in accordance with ¶ 405 of the Disciplineand continuing to serve under ¶¶ 404-413 of theDiscipline, including such a bishop on a leave under¶ 410 of the Discipline and such a bishop receiving ben-efits under CPP, but not including such a bishop who hasterminated office in accordance with ¶ 408 of theDiscipline.

A2.23 Break in Service. A period of time,beginning on the day a Clergyperson becomes aTerminated Participant or Retires, and ending (if at all)on the day he or she is reinstated into the effectiveConference relationship and is Under EpiscopalAppointment (or is otherwise covered under theProgram). Taking a Leave of Absence or becomingDisabled does not begin a Break in Service.

A2.24 Central Conference. A central confer-ence within the meaning of ¶¶ 540-548 of the Discipline.

A2.25 Church Plan. A plan qualifying underCode §414(e) or ERISA §3(33) that has not made anelection under Code §410(d).

A2.26 Claimant. A person who makes aclaim for benefits under the Plan or who appeals thedenial of such a claim, or such person’s representative.

A2.27 Clergy or Clergyperson. For the pur-poses of Parts A and B and Supplement Four, one of thefollowing persons:

(a) effective September 1, 2008, a Bishop, exceptin the case of Bishops who were newly consecrated in2008, then effective as of the date of their consecration;

(b) an Elder in Full Connection, a Deacon in FullConnection, a Provisional Member, an affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, or an Associate Member of a Conference, butnot including a Bishop;

(c) a Local Pastor of a Conference who has beenpreviously approved by the Conference’s board ofordained ministry (as further described in ¶ 635 of theDiscipline) and classified as eligible for Appointment asa Full-Time Local Pastor (within the meaning of ¶¶ 318and 318.1 of the Discipline), Part-Time Local Pastor

(within the meaning of ¶¶ 318 and 318.2 of theDiscipline), or student Local Pastor (within the meaningof ¶¶ 318 and 318.3 or 318.4 of the Discipline);

(d) a Non-Jurisdictional Clergyperson, providedthat such clergyperson is not then participating in a pen-sion program of the Puerto Rico Methodist Church orthe Central Conference (or Annual Conference withinsuch Central Conference) to which such clergypersonbelongs;

(e) an Other Methodist Denomination Clergy-person, provided that such clergyperson is not then par-ticipating in a pension program of the Methodist denom-ination to which such clergyperson belongs; or

(f) an Other Denomination Clergyperson, pro-vided that such clergyperson is not then participating ina pension program of the denomination to which suchclergyperson belongs.

A2.28 Code. The Internal Revenue Code of1986, as now in effect or as hereafter amended, and anyregulation, ruling, or other administrative guidanceissued pursuant thereto by the Internal Revenue Service.

A2.29 Compensation. In a Plan Year, for aParticipant, the sum of the following:

(a) the Participant’s 415 Compensation (including,in the case of a self-employed Clergyperson (who isself-employed within the meaning of Code§401(c)(1)(B) but is an employee of The UnitedMethodist Church within the meaning of Code§414(e)(5)(A)(i)(I) and the Regulations thereunder),such Clergyperson’s 415 Compensation earned in thecourse of such self-employment) but excluding anyIncludible Compensation earned outside of such PlanYear;

(b) cash received from a Plan Sponsor or a Salary-Paying Unit and excluded from taxable cash salary pur-suant to Code §107(2); and

(c) when a parsonage is provided to the Participantas part of his or her compensation, 25% of the sum of:

(i) the Participant’s 415 Compensation; and(ii) cash excluded from taxable cash salary pur-

suant to Code §107(2) as provided in Section A2.29(b).A2.30 Conference. Any Annual Conference,

provisional annual conference (as described in ¶¶ 580-583 of the Discipline), or missionary conference (asdescribed in ¶¶ 585-588 of the Discipline) that isdescribed in the Discipline and is located in aJurisdictional Conference.

A2.31 Conference-Elective Entity. Any exten-sion ministry (such as an agency, a camp, or a founda-tion) that is on a list of extension ministries reportedperiodically to the Administrator by a Conference. Byreporting any such extension ministry, a Conference



agrees to make Contributions under Part B on behalf ofall Clergypersons Under Episcopal Appointment by thatConference’s Bishop to that extension ministry. AConference may add extension ministries to, or removethem from, the list periodically as of a date or datesspecified from time to time by the Administrator duringsuch reporting periods as the Administrator may desig-nate from time to time. But once an extension ministryis reported for the list, it will remain on the list until it isremoved, prospectively only, by the Conference.

A2.32 Conference-Responsible Unit. Asprovided in ¶ 344.1a(1) of the Discipline, an AnnualConference unit within the connectional structures ofUnited Methodism to which certain Clergy areAppointed, such as district superintendents, staff mem-bers of conference councils and boards, treasurers,Bishops’ assistants, superintendents or directors ofparish development, general evangelists, and campusministers, and for which unit the Annual Conference isresponsible to provide for Contributions to the Programon behalf of such Clergy. Appointments described abovethat are to the Annual Conference itself (rather than aunit thereof) are also included within the term. The termalso covers parallel Appointments to Conferences otherthan Annual Conferences.

A2.33 Consolidated DB Plan. The aggrega-tion of the following Plans and portions of Plans:

(a) CRSP-DB;(b) the Formula Benefit of the Pre-82 Plan; and(c) all annuities payable under all of the

Supplements, once they are annuitized.A2.34 Contingent Annuitant. The person

named by a Participant, a Terminated Participant, or thePlan to receive the survivor portion of a ContingentAnnuity. Such person may be the Participant’s orTerminated Participant’s Spouse or another person.

A2.35 Contingent Annuity. A monthly annu-ity for the life of a Participant or Terminated Participant,beginning on such Participant’s or TerminatedParticipant’s Annuity Starting Date, payable as long ashe or she lives, and, upon his or her death, payable to hisor her surviving Contingent Annuitant, if any, in anamount that is not less than one-half of, nor greater than(except for periodic cost-of-living benefit increases), theamount of the annuity payable during the joint lives ofthe Participant or Terminated Participant and his or herContingent Annuitant, and ending with the paymentmade on the first of the month in which such ContingentAnnuitant dies, or, if such deceased Participant orTerminated Participant is not survived by his or herContingent Annuitant, then ending with the paymentmade on the first of the month in which such Participant

or Terminated Participant dies and no longer payable toanyone thereafter. The Contingent Annuity may beexpressed with a percentage, such as a 70% ContingentAnnuity, which indicates that the Contingent Annuitantwill receive a monthly benefit that is 70% of the monthlybenefit payable during the joint lives of the annuitants.

A2.36 Contribution. An amount contributedto a Plan by a Plan Sponsor or other responsible party inaccordance with Sections B4, S1.3, S3.3, S4.4, and anyother Section that calls for funding the benefits providedfor by the Program. A Contribution may be made onbehalf of a Plan Sponsor by CPP (as provided therein) oranother source or entity as long as the amount con-tributed is clearly being paid on behalf of the relevantPlan Sponsor.

A2.37 Core Defined Contribution Plan. ThePlan specified in Section A1.4(a)(i).

A2.38 CPP. The Comprehensive ProtectionPlan, a Church Welfare Benefits Plan for ClergyAssociated with a Jurisdictional Conference of TheUnited Methodist Church, as amended from time totime.

A2.39 CPP Disabled or CPP Disability.Receiving disability benefits under CPP or having a con-dition entitling a person to disability benefits under CPP,as determined by the Administrator. (See also the defini-tions of Disabled and Incapacity Leave.)

A2.40 Credited Service. Service rendered onor after January 1, 2007 and before the Effective Datethat counts toward the computation of a Participant’sAccrued Benefit as specified in Section S4.2.2, meas-ured in one-day increments. Service rendered beforeJanuary 1, 2007 or on or after the Effective Date will notbe counted as Credited Service.

A2.41 CRSP. The Clergy Retirement SecurityProgram, an amendment and restatement of MPP, whichwas approved by General Conference 2004 andamended by General Conference 2008. GeneralConference 2012 amended and restated CRSP, as of theEffective Date, as the Program.

A2.42 CRSP-DB. The Plan specified inSection A1.4(a)(iv).

A2.43 Deacon in Full Connection. A mem-ber of the Order of Deacons within the meaning of¶¶ 306-309 of the Discipline who is a member of aConference and not a Provisional Member.

A2.44 Default Beneficiary. The person(s)(including an estate) specified in Section A6, or else-where in the Program, to receive benefits that arepayable at the death or disappearance of anAccountholder or a Recipient when there is noDesignated Beneficiary or when a Plan provides.



A2.45 Denominational Average Compensa-tion. The average annual compensation of Full-TimeClergypersons, which average is determined in accor-dance with procedures established by the Administrator.

A2.46 Designated Beneficiary. The person(s)(including a trust or other entity), designated by anAccountholder or a Recipient, as set forth in Section A6,elsewhere in the Program, or in Code §401(a)(9) andRegulation §1.401(a)(9)-4, who is receiving, entitled toreceive, or, at the death or disappearance of anAccountholder or a Recipient, will be entitled to receivethe residual interest under a Plan or this Program that ispayable following such Accountholder’s or Recipient’sdeath or disappearance.

A2.47 Disabled or Disability. Any of the fol-lowing with respect to a Participant or TerminatedParticipant:

(a) determined to be disabled by the SocialSecurity Administration;

(b) receiving long-term disability benefits underthe terms of CPP or another disability benefit plan pro-vided by such Participant’s or Terminated Participant’sSalary-Paying Unit or Plan Sponsor; or

(c) placed on Incapacity Leave by suchParticipant’s or Terminated Participant’s Conference.

(See also the definitions of CPP Disabled andIncapacity Leave.)

A2.48 Discipline. The Book of Discipline ofThe United Methodist Church 2008, the body of churchlaw established by General Conference, as amended andrestated from time to time. Cited paragraphs or othersubdivisions are deemed to refer to successor provisionswhen an amendment or restatement of the Disciplinecauses a change in location or citation.

A2.49 Distribution Calendar Year. A calen-dar year for which a minimum distribution is requiredunder Code §401(a)(9). For distributions beginningbefore a Participant’s death, the first DistributionCalendar Year is the calendar year immediately preced-ing the calendar year that contains the Participant’sRequired Beginning Date. For distributions beginningafter a Participant’s death, the first Distribution Calendaryear is the calendar year in which distributions arerequired to begin under Sections B8.4(c), S4.9.4(a)(ii),and the comparable year under Supplements One andThree. The required minimum distribution for theParticipant’s first Distribution Calendar Year will bemade on or before the Participant’s Required BeginningDate. The required minimum distribution for otherDistribution Calendar Years, including the required min-imum distribution for the Distribution Calendar Year inwhich the Participant’s Required Beginning Date

occurs, will be made on or before December 31 of thatDistribution Calendar Year. Notwithstanding the fore-going, in the case of any defined contribution benefits oraccount balances under the Program, calendar year 2009was not treated as a Distribution Calendar Year.

A2.50 Due Date. The day specified by theAdministrator from time to time on which Contributionsfor a particular Plan are due, after any grace periodshave passed. The Due Date may be different from Planto Plan or from Contribution type to Contribution type.

A2.51 Early Retirement Benefit. The monthlypension amount that is computed in accordance withSection S4.8.2 (and any other applicable provisions ofCRSP-DB) and payable in accordance with CRSP-DB,starting at a Participant’s or Terminated Participant’sEarly Retirement Date or such later time as is specifiedin Section S4.9.2.

A2.52 Early Retirement Date. The first dayof the month coinciding with or next following the laterof:

(a) the date on which a Participant or TerminatedParticipant attains:

(i) the age or service completion date specified in¶ 358.2b of the Discipline; or

(ii) for a Participant who retires in accordance with¶¶ 358.2a or 358.3 of the Discipline, or who is aTerminated Participant, age 62; or

(b) in the case of a:(i) Participant, the date on which the Participant

Retires; or(ii) Terminated Participant, the date on which the

Terminated Participant incurs a Termination ofConference Relationship or a Five-Year No Record ofAppointment;

provided that such date is before the Participant’s orTerminated Participant’s Normal Retirement Date.

A2.53 Effective Date. A date or dates speci-fied by the Administrator (with reasonable notice to PlanSponsors) as of which this restatement of the Program iseffective that is as soon after General Conference 2012as administratively practicable, but that is not later thanJanuary 1, 2014. Provisions with different effectivedates are noted in the Program’s text or by footnote.

A2.54 Elder in Full Connection. A memberof the Order of Elders within the meaning of ¶¶ 306-309of the Discipline who is a member of a Conference andnot a Provisional Member.

A2.55 Eligible Clergy or Eligible Clergy-person. A Clergyperson who is eligible for participa-tion in the Core Defined Contribution Plan as furtherdescribed in Section B3.1(a) or CRSP-DB as furtherdescribed in Section S4.3.1(a).



A2.56 Eligible Rollover Distribution. Anydistribution of all or any portion of the balance to thecredit of a distributee covered under Sections B8.5,S3.4.9, S4.9.1(f), or any comparable Section, except thatthe term “Eligible Rollover Distribution” does notinclude:

(a) any distribution that is one of a series of sub-stantially equal periodic payments made (not less fre-quently than annually) for the life (or life expectancy) ofsuch distributee or the joint lives (or joint life expectan-cies) of such distributee and such distributee’sBeneficiary or for a specified period of 10 years or more;

(b) any distribution to the extent such distributionis required under Code §401(a)(9);

(c) any hardship distribution similar to onedescribed in Code §401(k)(2)(B)(i)(IV); or

(d) any other excluded distribution described inCode §402(c)(4), Regulations thereunder, or any otherprovision of the Code or Regulations.

A2.57 Entry Date. The date upon which aClergyperson becomes a Participant in a Plan after firstsatisfying the eligibility requirements.

A2.58 ERISA. The Employee RetirementIncome Security Act of 1974, as now in effect or as here-after amended, and any regulation, ruling, or otheradministrative guidance issued pursuant thereto by theInternal Revenue Service, the Department of Labor, orthe Pension Benefit Guaranty Corporation.

A2.59 Final Compensation. The annualizedrate of Compensation in effect for a Bishop at the end ofthe last month in which he or she had Compensationimmediately preceding his or her Annuity Starting Date.In the case of a CPP Disabled Bishop or a Bishop onIncapacity Leave who, in either case, has not Retired, isnot a Terminated Participant, and does not receive con-tinued salary as a Bishop under ¶ 410 of the Discipline,the annualized rate of Compensation in effect for suchBishop at the end of the last month for which he or shelast received Compensation at the full rate for Bishops,increased annually thereafter by 3% per year until his orher Annuity Starting Date.

A2.60 Final DAC. With respect to aParticipant or Terminated Participant, the greater of:

(a) the Denominational Average Compensation forthe Plan Year in which such person earned his or her lastCredited Service; or

(b) the Denominational Average Compensation forthe Plan Year in which such person last rendered service to:

(i) any United Methodist Church-related entity(including a Central Conference or any Appointmentwhere the United Methodist Church is treated as theemployer under Code §414(e)(3)(C)); or

(ii) The Puerto Rico Methodist Church (but notother autonomous Methodist churches).

A2.61 Five-Year Distribution Option. Aform of distribution that may be elected by a Beneficiarythat distributes a Participant’s entire interest in a Plan byDecember 31 of the calendar year containing the fifthanniversary of the Participant’s death.

A2.62 Five-Year No Record of Appointment.With respect to a Provisional Member, AssociateMember, affiliate member within the meaning of¶¶ 344.4, 369.1, or 586.4 of the Discipline, Deacon inFull Connection, or Local Pastor, a 60-consecutive-month period during which the Provisional Member,Associate Member, affiliate member, Deacon in FullConnection, or Local Pastor (or some combination in thecase of a Clergyperson who changes classification) isnot Under Episcopal Appointment.

A2.63 Formula Benefit. As used inSupplement One, an annual benefit that is the productof:

(a) a Participant’s Approved Service under thePre-82 Plan; and

(b) the applicable Past Service Rate Amount,reduced on the Participant’s Annuity Starting Date

and each later January 1 while such benefit is paid by thelesser of:

(i) one-half of 1% per month (or fraction of amonth) of the Participant’s age that is less than 65 years,determined as of such January 1; or

(ii) one-half of 1% per month for each month ofdifference between the assumed date at which theParticipant’s 40 years of service under appointmentwould have been completed and such January 1,

provided, however, that such reduction will nolonger be applied after the earlier of the date theParticipant attains or would have attained age 65 or theassumed date at which such Participant would haveattained 40 years of service under appointment. Anychanges to the applicable Past Service Rate Amount willbe reflected annually in a Pre-82 Participant’s FormulaBenefit (even after the Pre-82 Participant’s AnnuityStarting Date), except that the Formula Benefit for aTerminated Participant whose Termination ofConference Relationship occurred after the close ofGeneral Conference 1976 will be computed using theapplicable Past Service Rate Amount in effect on thedate he or she became a Terminated Participant, andsuch Past Service Rate Amount will not change in lateryears.

A2.64 415 Affiliate. An entity that either is anAffiliate, or would be an Affiliate if Code §414 weremodified in the manner provided by Code §415(h).



A2.65 415 Compensation. All Includible Com-pensation paid or made available by a Plan Sponsor or415 Affiliate to a Clergyperson in a Limitation Year,including:

(a) the Clergyperson’s wages, salaries, fees forprofessional services, and other amounts received (with-out regard to whether or not an amount is paid in cash)for personal services actually rendered in the course ofemployment with the Plan Sponsor or Salary-PayingUnit to the extent that the amounts are includable ingross income (including, but not limited to, bonuses,fringe benefits, and reimbursements or other expenseallowances under a nonaccountable plan (as described inRegulation §1.62-2(c)), but excluding severance pay thatwould not have been paid but for a severance fromemployment);

(b) in the case of a self-employed Clergyperson(who is self-employed within the meaning of Code§401(c)(1)(B) but is an employee of The UnitedMethodist Church within the meaning of Code§414(e)(5)(A)(i)(I) and the Regulations thereunder), theClergyperson’s earned income (as described in Code§401(c)(2) and the Regulations thereunder);

(c) amounts received in connection with accidentor sickness and described in Code §§104(a)(3), 105(a),and 105(h), but only to the extent that these amounts areincludable in the gross income of the Clergyperson;

(d) amounts includible in the gross income of theClergyperson:

(i) paid for, or as reimbursements of, movingexpenses;

(ii) under Code §409A, Code §457(f)(1)(A), or thedoctrine of constructive receipt;

(iii) as gain under a Code §83(b) election; and(iv) differential compensation, as provided under

USERRA and the HEART Act; and(e) any elective contributions excluded from

income under Code §125 (relating to cafeteria plans),Code §132(f) (relating to qualified transportation fringebenefits), Code §402(e)(3) (relating to 401(k) plans),Code §402(h) (relating to simplified employee pensionplans), Code §403(b) (relating to tax-sheltered annuityplans), or compensation deferred under a plan qualifiedunder Code §457.

For the purposes of Sections A2.65(a) and (b), “415Compensation” includes foreign earned income (asdefined in Code §911(b)), whether or not excludablefrom gross income under Code §911. Compensationdescribed in Section A2.65(a) above is to be determinedwithout regard to the exclusions from gross income inCode §§872(b), 893, 894, 911, 931, and 933 (dealingwith income from sources outside of the United States).

Similar principles are to be applied with respect toincome subject to Code §§872(b), 893, 894, 911, 931,and 933 in determining compensation described inSection A2.65(b). The term “415 Compensation” doesnot include:

(1) Non-Matching Contributions or MatchingContributions made by a Plan Sponsor to the Plan, ordistributions from a plan of deferred compensation,regardless of whether such amounts are includible in thegross income of the Clergyperson when distributed(however, any amounts received by a Clergyperson pur-suant to an unfunded nonqualified plan will be consid-ered as “415 Compensation” in the year the amounts areincludible in the gross income of the Clergyperson);

(2) Other amounts that receive special tax benefits,such as premiums for group-term life insurance (butonly to the extent that the premiums are not includible inthe gross income of the Clergyperson) or housingallowance excludible under Code §107; or

(3) Amounts paid after severance from employ-ment, except that “415 Compensation” does include:

(A) Amounts paid under Section 2.65(a) above thatare paid after severance from employment but within theLimitation Year in which services were rendered orwithin 2½ months following such severance fromemployment;

(B) Amounts paid under Section 2.65(c) above thatare paid after severance from employment but within theLimitation Year in which such accident or sicknessexisted or within 2½ months following such severancefrom employment; and

(C) Amounts received pursuant to an unfundednonqualified deferred compensation plan that are paidafter severance from employment, but only to the extentthat such amounts:

(I) would have been paid at the same time hadthere been no severance from employment;

(II) are included in the Clergyperson’s grossincome; and

(III) are paid within the Limitation Year in whichseverance occurred or within 2½ months following suchseverance from employment.

A2.66 415 DB Plan. A defined benefit plancomposed of the provisions of:

(a) the Consolidated DB Plan; and(b) any Related Defined Benefit Plan;and paying an Annual Retirement Benefit that is the

sum of the benefits payable under all such plans.A2.67 415 Suspense Account. An account in

the name of a Plan Sponsor used to temporarily holdContributions that exceed the limits of Section B5 untilthey can be reallocated to Participant Accounts as pro-



vided in Section B5. A 415 Suspense Account will notbe deemed an Account, and earnings and losses will notbe credited or debited to a 415 Suspense Account.

A2.68 Full-Time. Appointed to spend aClergyperson’s entire vocational time devoted to thework of the ministry to which the Clergyperson isAppointed, such as provided in ¶¶ 318.1, 331, or 338.1of the Discipline.

A2.69 Funding Account. An account in thename of a Plan Sponsor, Pre-82 Sponsor, or other entityresponsible for funding benefits under the ConsolidatedDB Plan that holds contributions from the Plan Sponsor,Pre-82 Sponsor, or such other entity under theConsolidated DB Plan (or any of its component subplans)and earnings thereon. In the case of CRSP-DB, theFunding Account for each Plan Sponsor will be pooledwith the other Plan Sponsors sponsoring that Plan, witheach Plan Sponsor’s interest being proportional to its lia-bilities under that Plan. In the case of the annuitiespayable under Supplement Three, the Funding Accountfor each Plan Sponsor will be pooled with the other PlanSponsors sponsoring that Plan, with each Plan Sponsor’sinterest being proportional to its liabilities under that Plan.

A2.70 Funding Policy. A plan based on rea-sonable actuarial methods and assumptions determinedby the Administrator from time to time to assure suffi-cient contributions to the Consolidated DB Plan to pro-vide all benefits due under the Consolidated DB Plan bythe time they become due.

A2.71 General Agency. Any agency of TheUnited Methodist Church that is specified in ¶¶ 701.2,701.3, 702.2, 703.1, 703.5, or 703.6 of the Discipline,except for the Connectional Table (see Judicial CouncilDecision No. 990).

A2.72 General Board. General Board ofPension and Health Benefits of The United MethodistChurch, Incorporated in Illinois.

A2.73 GCFA. The General Council onFinance and Administration, which is a General Agency,as further described in ¶¶ 801-823 of the Discipline.

A2.74 General Conference. The GeneralConference of The United Methodist Church, the high-est legislative body in the denomination, as described in¶¶ 501-511 of the Discipline.

A2.75 Half-Time. Appointed on at least aone-half time basis, including the sum of two or moreAppointments, as determined by the Bishop orConference that makes the Appointment. Bishopsassigned under ¶ 406 of the Discipline will be deemedassigned on at least a one-half time basis.

A2.76 Incapacity Leave. A Conference rela-tionship specified in ¶ 357 of the Discipline. Incapacity

Leave for a Bishop is granted under ¶ 410.1 of theDiscipline. (See also the definitions of CPP Disabledand Disabled.)

A2.77 Includible Compensation. For anyLimitation Year, a Clergyperson’s compensation asdetermined under Code §415(c)(3)(E), Code §403(b)(3),and Regulations thereunder:

(a) In the case of a Full-Time Clergyperson whowas paid for the entire Limitation Year, such compensa-tion received by the Clergyperson from his or herSalary-Paying Unit during a Limitation Year; and

(b) In the case of a Full-Time Clergyperson whowas not paid for the entire Limitation Year or a Part-Time Clergyperson, such compensation received by theClergyperson from his or her Salary-Paying Unit(s) andany other entity that is controlled by or associated withThe United Methodist Church during the most recentperiod that constitutes a year of service under Code§403(b)(4) and applicable Regulations.

A2.78 In Pay Status. Receiving a periodicpension benefit under the Plan.

A2.79 IRA. An individual retirement accountor annuity, qualified under Code §408 (other than anendowment contract).

A2.80 Jurisdictional Conference. One of theorganizational units of The United Methodist Church, asdescribed in ¶¶ 512-537 of the Discipline.

A2.81 Late Retirement Benefit. The monthlypension amount that is computed in accordance withSection S4.8.3 (and any other applicable provisions ofCRSP-DB) and payable in accordance with CRSP-DB,starting at a Participant’s or Terminated Participant’sLate Retirement Date.

A2.82 Late Retirement Date. The first day ofthe month coinciding with or next following:

(a) In the case of a Participant, the Participant’sactual Retirement Date after having reached his or herNormal Retirement Date, but not later than the manda-tory retirement date specified in ¶ 358.1 of the Discipline(if any); or

(b) In the case of a Terminated Participant, the dateof the Administrator’s acceptance of the TerminatedParticipant’s Application for Benefits after havingreached his or her Normal Retirement Date, but not laterthan his or her Required Beginning Date.

A2.83 Leave of Absence. A Clergyperson’speriod of absence from performing his or her ministerialduties for a Plan Sponsor:

(a) in accordance with ¶ 352 of the Discipline(relating to sabbatical leaves);

(b) in accordance with ¶ 354 of the Discipline(relating to voluntary leaves of absence);



(c) in accordance with ¶ 355 of the Discipline(relating to involuntary leaves);

(d) in accordance with ¶ 356 of the Discipline(relating to maternity or paternity leaves);

(e) in accordance with ¶ 410 of the Discipline(relating to leaves for Bishops);

(f) because of an Incapacity Leave;(g) that is covered by USERRA (or applicable

prior law); or(h) to which the Clergyperson is entitled under the

Family and Medical Leave Act of 1993 or any compara-ble applicable state law;

provided, however, that the Clergyperson Retires orreturns to work for a Plan Sponsor or Affiliate within thetime specified in his or her Leave of Absence (or, ifapplicable, within the period during which his or her re-employment rights are protected by law).

A2.84 Liabilities. Amounts due (from one ormore Plan Sponsors) to the Consolidated DB Plan tofund benefits due under such plan, as determined by theAdministrator.

A2.85 Life Expectancy. Life expectancy ascomputed by the use of the applicable table inRegulation §1.401(a)(9)-9.

A2.86 Lifetime Distribution Option. A formof distribution that may be elected by a Beneficiary(other than a Beneficiary that is an estate or a trust) thatdistributes a Participant’s entire interest in a Plan overthe Life Expectancy of the Beneficiary.

A2.87 Limitation Year. The twelve-monthperiod used by the Plan for the purpose of applying thelimitations of Code §415, which is the same as the PlanYear.

A2.88 Local Church. A United MethodistChurch organization within the meaning of ¶ 201 of theDiscipline.

A2.89 Local Pastor. A person licensed inaccordance with ¶¶ 315-320 of the Discipline.

A2.90 Matching Contributions. Contribu-tions made by the Plan Sponsor to a Participant’sMatching Contribution Account under the Core DefinedContribution Plan in accordance with Section B4.1(b) inproportion to Participant Contributions made to UMPIP.

A2.91 Matching Contribution Account. TheAccount established for an Accountholder on the booksand records of the Core Defined Contribution Plan forthe purpose of recording any Matching Contributionsmade pursuant to Section B4.1(b), adjusted for contribu-tions, distributions, and earnings and losses attributableto such Matching Contributions.

A2.92 Ministerial Pension Plan. The prede-cessor plan to the Program from 1982 through 2006 (and

through August 31, 2008 for Bishops), also known asMPP, and which was frozen as of December 31, 2006(for most participants) and as of August 31, 2008 (forBishops) and preserved in frozen form in SupplementThree to, and Part A of, the Program.

A2.93 MPP. The Ministerial Pension Plan.A2.94 MPP Plan Sponsor. An entity described

below:(a) for periods before September 1, 2008, GCFA if

the Participant was a Bishop, except in the case ofBishops who were newly consecrated in 2008, then forperiods before the date of their consecration; or

(b) for periods before January 1, 2007, a plansponsor as defined in the Ministerial Pension Plan as itexisted before January 1, 2007.

A2.95 Non-Jurisdictional Clergy or Clergy-person. A clergyperson who is a member of:

(a) a Central Conference; or(b) The Puerto Rico Methodist Churchwho is Appointed by the Bishop of a Plan Sponsor

Conference in which such clergyperson is not a member(or, where the Plan Sponsor is not supervised by aBishop, who is covered by a Plan Sponsor’s AdoptionAgreement).

A2.96 Non-Matching Contributions. Contri-butions made by the Plan Sponsor to a Participant’sNon-Matching Contribution Account under the CoreDefined Contribution Plan in accordance with SectionB4.1(a) for the benefit of Participants.

A2.97 Non-Matching Contribution Account.The Account established for an Accountholder on thebooks and records of the Core Defined ContributionPlan for the purpose of recording any Non-MatchingContributions made pursuant to Section B4.1(a),adjusted for contributions, distributions, and earningsand losses attributable to such Non-MatchingContributions.

A2.98 Normal Form of Benefit. A form ofbenefit specified in Section S4.9.1(a).

A2.99 Normal Retirement Benefit. Themonthly pension amount that is computed in accordancewith Section S4.8.1 (and any other applicable provisionsof CRSP-DB) and payable in accordance with CRSP-DB, starting at a Participant’s or Terminated Partici-pant’s Normal Retirement Date.

A2.100 Normal Retirement Date.(a) In the case of a Participant (other than a

Bishop), the first day of the month coinciding with ornext following the earlier of:


years of service under ¶ 358.2c) of the Discipline.



(b) In the case of a Terminated Participant, the firstday of the month coinciding with or next following theTerminated Participant’s 65th birthday.

(c) In the case of a Participant who is a Bishop, thefirst day of the month next following the earlier of:



accordance with ¶ 358.2c) of the Discipline; and(B) the Participant’s years of service assigned as a

Bishop in accordance with ¶ 406 of the Discipline.A2.101 Other Denomination Clergy or

Clergyperson. A Clergyperson who is a member ofanother denomination (within the meaning of ¶¶ 346.2or 346.3 of the Discipline) who is Appointed by theBishop of a Plan Sponsor Conference in which suchClergyperson is not a member (or, where the PlanSponsor is not supervised by a Bishop, who is coveredby a Plan Sponsor’s Adoption Agreement).

A2.102 Other Methodist DenominationClergy or Clergyperson. A Clergyperson who is amember of another Methodist denomination (within themeaning of ¶ 346.1 of the Discipline), other than ThePuerto Rico Methodist Church, who is Appointed by theBishop of a Plan Sponsor Conference in which suchClergyperson is not a member (or, where the PlanSponsor is not supervised by a Bishop, who is coveredby a Plan Sponsor’s Adoption Agreement).

A2.103 Optional Form of Benefit. Any formof annuity that is offered by the Administrator underSection S4.9.1(b).

A2.104 Part. Either Part A or Part B of theProgram, or, in the plural form, both of such subdivi-sions of the Program.

A2.105 Part A. Part A of the Program, alsoknown as the Common Part.

A2.106 Part B. Part B of the Program, alsoknown as the Core Defined Contribution Part, and, whenaggregated with Part A and an Adoption Agreement, asthe Core Defined Contribution Plan.

A2.107 Participant.(a) As used in Part B, an Eligible Clergyperson who

has become a participating Clergyperson as provided inPart B, including such a Clergyperson who has Retired;

(b) As used in Supplement One, a Pre-82Participant;

(c) As used in Supplement Three, a person with anMPP Account Balance as provided in Supplement Three;and

(d) As used in Supplement Four, an EligibleClergyperson who has become a participating

Clergyperson as provided in Supplement Four, includingsuch a Clergyperson who has Retired;

A2.108 Participant Contributions. Contri-butions to UMPIP by a Plan Sponsor in accordance witha Participant’s Salary-Reduction Agreement, that areany of the following types:

(a) Before-Tax Contributions (including Catch-UpContributions);

(b) After-Tax Contributions; or(c) Roth Contributions (including Catch-Up

Contributions);as the terms “Salary-Reduction Agreement,”

“Before-Tax Contributions,” “Catch-Up Contributions,”“After-Tax Contributions,” and “Roth Contributions” areused in UMPIP.

A2.109 Part-Time. Appointed on a one-quar-ter, one-half, three-quarters, or other less than Full-Timebasis, as determined by the Bishop or Conference thatmakes the Appointment.

A2.110 Pastoral Charge. One or more LocalChurches within the meaning of ¶ 205 of the Discipline.

A2.111 Past Service Benefit. The benefitpayable in accordance with Section S1.4 of SupplementOne.

A2.112 Past Service Rate Amount. Asapplied to the Pre-82 Plan, the dollar amount payable foreach year of Approved Service, as determined in accor-dance with Supplement One. The Past Service RateAmount is also sometimes known as: the past servicerate, the pension rate, the annuity rate, the service annu-ity rate, and the pension annuity rate.

A2.113 Personal Contributions Accumulation.As used in Supplement One, the sum of the amountstanding to the credit of a Participant as of December 31,1981, in such Participant’s individual accounts under thePrior Plans, based on contributions made by suchParticipant and interest credited thereon before January1, 1982, and the amount of interest credited thereon afterDecember 31, 1981, by the Trustee.

A2.114 Personal Contributions Annuity. Asused in Supplement One, an annuity during life, payablein monthly installments in advance, on the basis of theactuarial equivalent of the Personal ContributionsAccumulation.

A2.115 Plan. Any of the Core DefinedContribution Plan, the Pre-82 Plan, MPP, or CRSP-DB,as the context requires, when used in this instrument, asamended, as applied to all Plan Sponsors or as applied toany particular Plan Sponsor, as the context requires,including any applicable Adoption Agreements, amend-ments, or supplements hereto, all as further provided inSection A1.4.



A2.116 Plan Sponsor. Any of the entitiesspecified in Sections B1.1 or S4.1.2.

A2.117 Plan Year. The calendar year.A2.118 Pre-82 Assets. The sum of:(a) the assets of the Prior Plans (other than those in

the Disability and Survivor Benefit Fund) that weretransferred to Supplement One to MPP effective January1, 1982 to pay benefits due under the Prior Plans (some-times known as the Reserve Pension Fund); plus

(b) any contributions made to the Pre-82 Plan orits predecessors by the Pre-82 Sponsors or any otherparty for the purpose of funding benefits payable underthe Pre-82 Plan.

A2.119 Pre-82 Participant. A person whohas a Vested benefit under the Pre-82 Plan by his or herAnnuity Starting Date in accordance with Section S1.2.2.

A2.120 Pre-82 Plan. A synonym forSupplement One to MPP, which has been amended,restated, and preserved in Supplements One and Two to,and Part A of, the Program.

A2.121 Pre-82 Plan Vesting Service.(a) In the case of:(i) Local Pastors and ordained ministers of

another denomination within the meaning of ¶¶ 346.2 or346.3 of the Discipline:

(A) service with pension credit before 1982; and/or(B) full years of service with full participation in

CPP (as provided in Section A2.121(d) below) after1981; and

(ii) All other Pre-82 Participants (not covered inSection A2.121(a)(i)):

(A) service Under Episcopal Appointment in aConference, including full years served as a Full-TimeLocal Pastor (within the meaning of ¶¶ 318 and 318.1 ofthe Discipline) with pension credit before having beenadmitted as an Associate Member, affiliate member withinthe meaning of ¶¶ 344.4, 369.1, or 586.4 of the Discipline,Provisional Member, or Elder in Full Connection; or

(B) periods of service in the ordained ministry ofanother denomination to the extent that such denomina-tion grants pension rights in its plan for such service.

(b) Pre-82 Plan Vesting Service will be measuredin 12-month periods or the sum of equivalent partialperiods (measured by days).

(c) In no case will a Pre-82 Participant’s Pre-82Plan Vesting Service be less than he or she had earned onthe Effective Date.

(d) A Pre-82 Participant’s “full participation inCPP” is CPP participation:

(i) during the period from January 1, 1982,through December 31, 1984, for a Plan Year duringwhich:

(A) the required MPP Plan Sponsor Contributionsfor the Pre-82 Participant were made at the contributionrate elected by the Annual Conference; or

(B) a pension supplement was credited to the MPPchurch account (as provided in CPP) of the Pre-82Participant for the Plan Year; or

(ii) for Plan Years after 1984, for a full year of CPPparticipation, based on the following formula to deter-mine fractional years of such participation:

(A) any period of up to and including 45 days willnot be counted;

(B) 46 days up to and including 136 days will becounted as one-quarter of a year;

(C) 137 days up to and including 228 days will becounted as one-half of a year;

(D) 229 days up to and including 319 days will becounted as three-quarters of a year;

(E) 320 days up to and including 365 days will becounted as one year.

Days of participation are days for which a CPPchurch contribution (within the meaning of CPP) wasmade on behalf of a Pre-82 Participant.

A2.122 Pre-82 Sponsor. Any of the followingentities that are responsible to fund the Pre-82 Plan withrespect to Pre-82 Participants:

(a) who are or were members of an AnnualConference, such Annual Conference; and

(b) with service rendered in a missionary confer-ence (as described in ¶¶ 585-588 of the Discipline), pro-visional annual conference (as described in ¶¶ 580-583of the Discipline), or former mission (within the mean-ing of ¶¶ 590-591 of the Discipline) within the UnitedStates, which has been approved by such entities for pre-1982 pension credit, one or more of the following inaccordance with their mutual agreement:

(i) the missionary conference (as described in¶¶ 585-588 of the Discipline), provisional annual con-ference (as described in ¶¶ 580-583 of the Discipline), orformer mission (within the meaning of ¶¶ 590-591 of theDiscipline) concerned;

(ii) the General Board with funds provided byGCFA; and

(iii) the General Board of Global Ministries,National Division (now the Mission Personnel ProgramArea of the General Board of Global Ministries,described in ¶ 1313.6 of the Discipline).

A2.123 Prior Plans. The Ministers ReservePension Fund, the Partial Reserve Pension Fund, theLocal Pastors Reserve Pension Fund, the Senior Plan,the Ministers Reserve Pension Plan, and the CurrentIncome Distribution Pension Plan.



A2.124 Program. This Clergy Defined Contri-bution Retirement Program, i.e., the aggregate of the Parts,Supplements, and Adoption Agreements described inSection A1.3, as they may be amended from time to time.

A2.125 Provisional Member. A personelected to provisional membership in an AnnualConference within the meaning of ¶ 324 of theDiscipline; formerly called a probationary member.

A2.126 QDRO. A qualified domestic rela-tions order in accordance with Code §414(p), approvedby the Administrator in accordance with Section A3.12.

A2.127 Recipient. A Participant, TerminatedParticipant, Beneficiary, Contingent Annuitant, orAlternate Payee who has an Accrued Benefit under, orwho is receiving or is entitled to receive all or a portionof a benefit due under, the Consolidated DB Plan or anyof its components or is receiving or is entitled to receivean annuity payment under one of the Supplements.

A2.128 Regulation. Any applicable regula-tion, including proposed and temporary regulations,issued by the Department of the Treasury or InternalRevenue Service that is codified at Title 26 of the Codeof Federal Regulations. Where a reference is made totemporary or proposed regulations, such reference willinclude any permanent regulations, modified proposedregulations, or temporary regulations issued in lieuthereof.

A2.129 Related Defined Benefit Plan. Anydefined benefit plan (as defined in Code §414(j)) otherthan the Consolidated DB Plan that is maintained by aPlan Sponsor or any Affiliate.

A2.130 Relinquish. The permanent renuncia-tion of a benefit by a Recipient or an Accountholder sothat it does not pass to a Beneficiary or successor.Relinquished benefits are forfeited under Sections B7.2,S1.4.9, S3.4.9, and S4.7.2.

A2.131 Required Beginning Date. Subject toCode §401(a)(9), in the case of a:

(a) Participant or Terminated Participant, April 1of the calendar year following the later of:

(i) the calendar year in which a Participant Retiresor the Terminated Participant incurs a Termination ofConference Relationship, or

(ii) the calendar year in which the Participant orTerminated Participant attains the age of 70½.

(b) Beneficiary who is not the Participant’s orTerminated Participant’s surviving Spouse, December31 of:

(i) the calendar year following the calendar yearof the Participant’s or Terminated Participant’s death, ifbenefits are payable over the remaining life or lifeexpectancy of such Beneficiary; or otherwise


(c) Beneficiary who is the Participant’s orTerminated Participant’s surviving Spouse:

(i) if benefits are payable over the remaining lifeor life expectancy of such surviving Spouse, then byDecember 31 of the later of:


(B) the calendar year in which the Participant orTerminated Participant would have attained age 70½; orotherwise


A2.132 Retire or Retirement. In the case of a:(a) Participant (other than a Bishop), to be placed in

the retired relation in accordance with ¶ 358 of theDiscipline or the condition of being in the retired relation;

(b) Terminated Participant, applying for a distribu-tion under CRSP-DB on or after such TerminatedParticipant’s 62nd birthday; or

(c) Participant who is a Bishop, to have the statusof a retired bishop in accordance with ¶¶ 408.1, 408.2,or 408.3 of the Discipline.

A2.133 Retirement Date. The date on whicha Participant or Terminated Participant Retires.

A2.134 Salary-Paying Unit. Any one of thefollowing units associated with The United MethodistChurch:

(a) Commission on the General Conference, asspecified in ¶ 511 of the Discipline;

(b) a General Agency;(c) a Jurisdictional Conference;(d) a Conference;(e) a Conference board, agency, or commission;(f) a Local Church located in a Conference; or(g) any other entity to which a Clergyperson

Under Episcopal Appointment is appointed.A2.135 Section. Any article, section, subsec-

tion, paragraph, subparagraph, clause, or other portionof this Program.

A2.136 Separation From Covered Service.A Participant ceasing to be Under EpiscopalAppointment in any capacity that is covered by any PlanSponsor under Section S4.1.2, including by reason of:

(a) Retirement;(b) incurring an unpaid Leave of Absence from

which the Participant does not return within the author-



ized period (in which case the Separation From CoveredService will date from the start of such Leave of Absence);

(c) being Appointed to a Salary-Paying Unit that isnot covered by a Plan Sponsor;

(d) incurring a Termination of ConferenceRelationship; or

(e) the death of the Participant.A2.137 Service. A period of time during

which a Clergyperson is:(a) an active member of any Conference (within

the meaning of ¶ 602 of the Discipline) Under EpiscopalAppointment; or

(b) a Bishop who is assigned in accordance with¶ 406 of the Discipline.

A2.138 Service Annuity. As used in Supple-ment One, the Service Annuity Accumulation convertedon an Actuarially Equivalent basis to a monthly annuityfor the life of the Participant or the joint lives of theParticipant and his or her Contingent Annuitant, payableas of the first of each month during such period.

A2.139 Service Annuity Accumulation. Asused in Supplement One, the sum of the amount stand-ing to the credit of a Participant as of December 31,1981, in such Participant’s reserve account under thePrior Plans, based on contributions made by the applica-ble Conference or Salary-Paying Unit on behalf of theParticipant and interest credited thereon before January1, 1982, and the amount of interest credited thereon afterDecember 31, 1981, by the Trustee.

A2.140 70% Pre-Retirement SurvivorBenefit. A monthly benefit payable in accordance withSection S4.9.3(a)(ii)(B) to the surviving Spouse of aParticipant or Terminated Participant who died beforebeginning his or her Early, Normal, or Late RetirementBenefit.

A2.141 Single-Life Annuity. An Early, Normal,or Late Retirement Benefit payable as a monthly annu-ity to a Participant or Terminated Participant, beginningat such Participant’s or Terminated Participant’s AnnuityStarting Date and ending with the payment made on thefirst of the month in which he or she dies, with no fur-ther benefit payable to anyone thereafter.

A2.142 Spouse. The husband or wife or sur-viving husband or wife of a Recipient or anAccountholder who is legally married to such Recipientor Accountholder, or was so legally married on the dateof the Recipient’s or Accountholder’s death, under thelaws of the jurisdiction where the Recipient orAccountholder resides or resided. Notwithstanding theforegoing, the term “Spouse” will not include commonlaw spouses, even in states that recognize common lawmarriage.

A2.143 Supplement. Supplement One, Supple-ment Two, Supplement Three, Supplement Four, or anyother supplement to this Program.

A2.144 Supplement One. The partially frozenpredecessor plan to MPP, also known as the Pre-82 Planand the Ministers Reserve Pension Fund, which, togetherwith the other Prior Plans, was merged into MPP and hasbeen preserved as Supplement One to the Program.

A2.145 Supplement Two. Supplement Two toMPP, which has been preserved as Supplement Two tothe Program.

A2.146 Supplement Three. A frozen versionof MPP, which has been preserved as Supplement Threeto the Program.

A2.147 Supplement Four. The partiallyfrozen defined benefit plan that was one of the prede-cessors to the Program, also known as CRSP-DB, whichhas been preserved as Supplement Four to the Program.

A2.148 Termination of Conference Relation-ship. A Participant ceasing to be a member of anyConference, including by reason of:

(a) being honorably located within the meaning of¶ 359 of the Discipline;

(b) being administratively located within themeaning of ¶ 363.3 of the Discipline;

(c) the Participant’s withdrawal within the mean-ing of ¶ 360 of the Discipline;

(d) the surrender of his or her ministerial creden-tials within the meaning of ¶¶ 360.3 and 2719.2 of theDiscipline;

(e) the surrender of his or her Local Pastor’slicense within the meaning of ¶ 320 of the Discipline; or

(f) a penalty assessed by a trial court within themeaning of ¶ 2711.3 of the Discipline.

A2.149 Terminated Participant.(a) Participants. A person who has been a

Participant, but who has incurred a Termination ofConference Relationship, or, in the case of a ProvisionalMember, Associate Member, affiliate member within themeaning of ¶¶ 344.4, 369.1, or 586.4 of the Discipline,Local Pastor, or Deacon in Full Connection (or somecombination in the case of a Clergyperson who changesclassification), who has incurred a Five-Year No Recordof Appointment.

(b) Bishops. In the case of a former Bishop, a per-son who has been a Participant but who has resigned inaccordance with ¶ 408.4 of the Discipline or beenremoved in accordance with ¶¶ 2704.1, 2711.3, or 2712of the Discipline; provided, in either case, that such for-mer Bishop does not return to being a non-BishopClergyperson (in which case termination will be basedon the previous sentence of this Section A2.149).



(c) Non-Jurisdictional Clergy. A Non-JurisdictionalClergyperson who has terminated his or her membershipwith all Central Conferences and The Puerto RicoMethodist Church without having become a member ofany Conference (or otherwise becoming covered underCRSP-DB and the Core Defined Contribution Plan).

(d) Other Clergy. An Other Denomination Clergy-person or Other Methodist Denomination Clergypersonwho has been classified by the Plan Sponsor he or shewas serving as discontinued or having no record ofAppointment.

A2.150 Trust. The trust or trusts, includingthe Pension Trust of The United Methodist Church,established to fund benefits provided under the Program,as provided in Section A1.6. The term “Trust” alsoincludes, as applicable, any insurance contract pur-chased to fund benefits under the Program.

A2.151 Trustee. The UMC Benefit Board,Inc., an Illinois not-for-profit corporation, or any suc-cessor.

A2.152 UMPIP. The United MethodistPersonal Investment Plan or any successor plan.

A2.153 Under Episcopal Appointment. Thecondition of a Clergyperson who is Appointed by theBishop of the Conference such Clergyperson is serving.

A2.154 USERRA. The Uniformed ServicesEmployment and Re-employment Rights Act of 1994,including pension benefits provided in accordance withCode §414(u). Effective January 1, 2009, references to“USERRA” include the Heroes Earnings Assistance andRelief Tax Act of 2008 (the “HEART Act”) and servicepersons covered thereby, including recognition of con-tributions and benefits due under USERRA toParticipants who are treated as though they returned towork on the day before military-related death or disabil-ity, as provided under the HEART Act.

A2.155 Valuation Account Balance. TheAccount Balance as of the last Accounting Date in theValuation Calendar Year, increased by the amount of anyContributions made and allocated or forfeitures allo-cated to the Account Balance as of dates in the ValuationCalendar Year after such Accounting Date (if any) anddecreased by any distributions made as of dates in theValuation Calendar Year after such Accounting Date.The Valuation Account Balance for the ValuationCalendar Year includes any amounts rolled over or trans-ferred to the Plan, either in the Valuation Calendar Yearor in the Distribution Calendar Year if distributed ortransferred in the Valuation Calendar Year.

A2.156 Valuation Calendar Year. The calen-dar year immediately preceding the DistributionCalendar Year.

A2.157 Vested. The nonforfeitable portion ofany Account or benefit, except as provided in SectionsB7.2, S1.4.9, S3.4.9, and S4.7.2.

A2.158 Year of Credited Service. CreditedService earned while serving a Full-Time Appointmentfor a 12-month period (or the sum of equivalent partialperiods of Credited Service (measured by days)).

SECTION A3—PLAN ADMINISTRATION

A3.1 General Fiduciary Standard ofConduct. Each fiduciary under this Program will dis-charge his or her duties hereunder solely in the interestof the Recipients and Accountholders and for the exclu-sive purpose of providing benefits to the Recipients andAccountholders and defraying the reasonable expensesof administering the Program and the Trust. Each fidu-ciary will act with the care, skill, prudence, and dili-gence under the circumstances then prevailing that aprudent person, acting in a like capacity and familiarwith such matters, would use in the conduct of an enter-prise of a like character and with like aims, in accor-dance with the documents and instruments governingthe Program and the Trust, insofar as such documentsand instruments are consistent with this standard.

A3.2 Allocation of Responsibility AmongFiduciaries. The fiduciaries will have only those spe-cific powers, duties, responsibilities, and obligationsspecifically delegated to them under this Program. EachPlan Sponsor, the Administrator, the Trustee, and anyinvestment manager will each be a fiduciary to theextent that such entity determines benefits payable underthe Program or controls or influences the investment ofthe assets of the Program. The Administrator may dele-gate fiduciary duties (other than the Trustee’s duties) topersons other than the fiduciaries specified in the pre-ceding sentence, and may approve any allocation offiduciary duties among fiduciaries. If there is more thanone Trustee, they may enter into agreements amongthemselves with respect to the allocation of the Trustee’sresponsibilities with the consent of the Administrator.ERISA will not apply to this Program if, when, and forso long as it qualifies as a Church Plan.

A3.3 Administrator. The Administrator ofthe Program is the General Board. The Administratorwill be the “plan administrator” as defined in Code§414(g). The Administrator will have the duty to filesuch plan documents and annual reports as may berequired by ERISA (if any, and if ERISA applies) orsimilar legislation and will be designated to accept serviceof legal process and any other notices for the Program.The Administrator or the Plan Sponsor will furnish eachParticipant with a summary plan description, a summary



annual report (if applicable, and if ERISA applies), andall other notices and other documents required byERISA (if any, and if ERISA applies), the Code, or theProgram. The Administrator may resign on reasonablewritten notice given to the Plan Sponsors, who will then(and only then) have the right to appoint anotherAdministrator by majority vote, with one vote for eachof their Participants on the day the Administrator’s res-ignation was effective.

A3.4 Powers, Authority, and Duties ofAdministrator. The primary responsibility of theAdministrator is to administer the Program for theexclusive benefit of the Recipients and Accountholders,subject to the terms of the Program. The Administratorwill administer the Program in accordance with its termsand will have the power and discretion to construe theterms of the Program and to determine all questions aris-ing in connection with the administration, interpretation,and application of the Program. Any such determinationby the Administrator will be conclusive and bindingupon all persons. The Administrator, in addition to allpowers and authorities under common law, statutoryauthority, and other provisions of the Program, will havethe following powers and authorities, to be exercised inthe Administrator’s sole discretion:

(a) to establish procedures, correct any defect,supply any information, or reconcile any inconsistencyin such manner and to such extent as may be deemednecessary or advisable to carry out the purpose of theProgram;

(b) to determine all questions relating to the eligi-bility of a Clergyperson to participate or remain aParticipant hereunder and to receive benefits under theProgram;

(c) to compute, certify, and direct the Trustee withrespect to the amount and the kind of benefits to whichany Recipient or Accountholder may be entitled here-under and to prescribe procedures to be followed byRecipients and Accountholders when applying for bene-fits;

(d) in its sole discretion, to construe and interpretthe Program and make and publish such administrativerules or regulations relating to the Program as are con-sistent with the terms hereof, and to resolve or otherwisedecide matters not specifically covered by the terms andprovisions of the Program;

(e) to maintain all necessary records for theadministration of the Program;

(f) to file, or cause to be filed, all such annualreports, returns, schedules, descriptions, financial state-ments and other statements as may be required by anyfederal or state statute, agency, or authority;

(g) to obtain from the Plan Sponsors, Clergy,Recipients, and Accountholders such information asmay be necessary to the proper administration of theProgram;

(h) to specify actuarial assumptions and methodsfor use in determining contributions to and benefitsunder Supplements One, Three, or Four or any other partof the Program;

(i) to assist any Recipient or Accountholder tounderstand his or her rights, benefits, or elections avail-able under the Program;

(j) to construe and interpret the provisions of theProgram; to decide the validity of any election or desig-nation made under the Program, and the amount, man-ner and time of any allocation to accounts or payment ofany benefits hereunder; and to make factual determina-tions necessary or appropriate for such decisions ordetermination;

(k) to prepare and distribute information explain-ing the Program;

(l) to appoint or employ advisors, including legaland actuarial counsel (who may also be counsel to theTrustee) to render advice with regard to any responsibil-ity of the Administrator under the Program or to assist inthe administration of the Program;

(m) to select annuity providers to provide benefitsfrom the Program;

(n) to designate in writing other persons to carryout a specified part or parts of its responsibilities here-under (including this power to designate other persons tocarry out a part of such designated responsibility). Anysuch designation must be accepted by the designatedperson who will acknowledge in writing that he, she, orit is a fiduciary with respect to the Program. Any suchperson may be removed by the Administrator at any timewith or without cause;

(o) to adopt reasonable procedures for determiningwhether any order, judgment, or decree constitutes aQDRO and to notify the Participant and all AlternatePayees as to the results of its determination;

(p) to the extent permitted under the agreementestablishing the Trust, to direct the Trustee with respectto the investments of the Trust;

(q) to furnish the Plan Sponsors, upon request,with such annual reports with respect to the administra-tion of the Program as are reasonable and appropriate;

(r) to receive, review, and keep on file (as it deemsconvenient and proper) reports of benefit and expensepayments made by the Trustee; and

(s) to do all other acts that the Administratordeems necessary or proper to accomplish and implementits responsibilities under the Program.



Any rule or procedure adopted by the Admin-istrator, or any decision, ruling, or determination madeby the Administrator, in good faith and in accordancewith applicable fiduciary standards will be final, bind-ing, and conclusive on all Plan Sponsors, Recipients,and Accountholders and all persons claiming throughthem. The Administrator has discretionary authority togrant or deny benefits under this Program. Benefitsunder this Program will be paid only if the Administratordecides in its discretion that the applicant is entitledto them. Rules and procedures adopted by theAdministrator may vary any provision of the Programthat is administrative or ministerial in nature (includingthe time provided for performing any act, if not requiredby law), without the necessity of a formal amendment.

A3.5 Records and Reports. The Administratorwill keep a record of all actions taken and will keep allother books of account, records, and other data that maybe necessary for proper administration of the Programand will be responsible for supplying all information andreports to appropriate government entities, Recipients,Accountholders, and others as required by law.

A3.6 Duties of Each Plan Sponsor. EachPlan Sponsor will assume the following duties withrespect to each Plan:

(a) to determine eligibility and enroll EligibleClergy as provided in the Core Defined ContributionPlan within 60 days of satisfying the eligibility require-ments of such Plan;

(b) to maintain records of a Participant’s Service;(c) to provide the Administrator with notice within

90 days of a Participant’s Separation From CoveredService or any Break in Service;

(d) to calculate and maintain records of aParticipant’s Compensation and to provide to theAdministrator upon request appropriate records reflect-ing such Compensation, such as W-2s;

(e) to calculate and remit Contributions to theAdministrator or Trustee as provided in each Plan;

(f) to provide the Administrator with the statisticaldata and other statistical information satisfactory to theAdministrator, within a reasonable time after a requestby the Administrator, sufficient to enable theAdministrator to discharge its duties under each Plan;

(g) to register with and report to government agen-cies, as appropriate;

(h) to comply with any nondiscrimination or othergovernment testing that may be required by applicablelaw;

(i) to properly notify Clergypersons of their rightsand obligations under each Plan (including notice oftheir eligibility under each Plan); and

(j) to execute an Adoption Agreement indicatingany elections regarding optional Plan provisions and anyother information called for by the Adoption Agreement.

A3.7 Fees and Expenses. All expensesincurred by the Administrator and Trustee in connectionwith the administration of the Program will be paid bythe Program, the applicable Plan, or the Trust.

(a) The Trustee has the authority to determineadministrative and expense charges and the methods forapplying such charges.

(b) The Trustee is authorized to deduct from theProgram’s or each Plan’s reserves, funds, contributions,and/or earnings thereon, the expenses and fees necessaryor appropriate to the administration of the Program orthat Plan, including an allocable share of theAdministrator’s operating expenses.

(c) The Administrator is authorized to determine areasonable charge for providing non-routine reports andservices for Plan Sponsors, Recipients, and Account-holders and to require the Plan Sponsor, Recipient, orAccountholder to pay separately for such non-routinereports and services.

A3.8 Attorney Fees and Costs. The Trusteemay assess, to the extent permitted by law, against theProgram’s or Trust’s assets, reasonable attorney fees andcharges to reimburse the Administrator or Trustee forexpenses related to the Program incurred by theAdministrator or Trustee in responding to pleadings,retaining counsel, entering an appearance, or defendingany case related to the Program in any action at law, ifthe Administrator or Trustee is served with a levy, sub-poena, summons, or other similar pleading by theInternal Revenue Service or by any other party, includ-ing the parties to marital litigation, in litigation or legalproceedings in which the Administrator or Trustee is nota party, or is made a party.

A3.9 Delegation of Authority. The Adminis-trator may authorize one or more of its employees, orone or more agents, to carry out its administrative duties,and may employ such counsel, auditors, and other spe-cialists and such clerical, actuarial, and other services asit may require in carrying out the provisions of thisProgram. The Administrator may rely on any certificate,notice, or direction, oral or written, purporting to havebeen signed or communicated on behalf of a PlanSponsor, a Recipient, an Accountholder, or others thatthe Administrator believes to have been signed or com-municated by persons authorized to act on behalf of thePlan Sponsor, Recipient, Accountholder, or others, asapplicable. The Administrator may also rely on anypower of attorney, guardianship document, or similardocument that it believes to be genuine and operative.



The Administrator may request instructions in writingfrom a Plan Sponsor, Recipient, Accountholder, or oth-ers, as applicable, on other matters, and may rely and actthereon. The Administrator may not be held responsiblefor any loss caused by its acting upon any notice, direc-tion, or certification of a Plan Sponsor, a Recipient, anAccountholder, or others, that the Administrator reason-ably believes to be genuine and communicated by anauthorized person.

A3.10 Indemnification by Plan Sponsors.Each Plan Sponsor will indemnify the Administrator, theTrustee, and any other person or persons to whom thePlan Sponsor, Trustee, or Administrator has delegatedfiduciary or other duties under the Program for, and holdthem harmless from and against, any and all claims,damages, liabilities, losses, costs, and expenses (includ-ing reasonable attorneys fees and all expenses reason-ably incurred in their defense if the Plan Sponsor fails toprovide such defense) of whatsoever kind and naturethat may be imposed on, incurred by, or asserted againstthem at any time by reason of such Plan Sponsor’s fail-ure reasonably to fulfill its duties under Section A3.6 orany other provision of the Program. This provision willsurvive the termination of the Program and the termina-tion of a Plan Sponsor’s participation in the Program asto events that occurred while the Plan Sponsor was par-ticipating in the Program.

A3.11 Claims Procedure. The followingclaims and appeals procedures are subject to any addi-tional rules or procedures that the Administrator mayadopt from time to time that are not inconsistent here-with:

(a) Filing of Claim. A claim for benefits under anyPlan must be filed by a Claimant with the Administratoron a form supplied by the Administrator within one yearafter the later of:

(i) the events giving rise to the claim occurred, or(ii) the Claimant knew or should have known of

the facts or events giving rise to the claim,or the Claimant will be deemed to have waived his

or her right to make a claim or to pursue any other rem-edy, including filing a lawsuit. Notwithstanding the fore-going, a Recipient or an Accountholder is not required toapply for or begin the receipt of benefits under theProgram until his or her Required Beginning Date(except in the case of a small amount cashout). Writtennotice of the disposition of a claim will be sent to thePlan Sponsor and to the Claimant within 45 days afterall required forms and materials related to the claimhave been filed. If special circumstances require anextension of time, written notice of the extension willbe furnished to the Claimant, and written notice of the

disposition of a claim will be sent within an additional90 days.

(b) Denial of Claim. If any claim for benefitsunder a Plan is wholly or partially denied, theAdministrator will send the Claimant written notice ofthe denial, within the period specified in SectionA3.11(a) above, written in a manner calculated to beunderstood by the Claimant, setting forth the followinginformation:

(i) the specific reason(s) for such denial;(ii) specific reference to any pertinent Plan provi-

sion(s) on which the denial is based;(iii) a description of any additional material or

information necessary for the Claimant to perfect theclaim and an explanation of why such material or infor-mation is necessary; and

(iv) an explanation of the Program’s appeals proce-dures.

(c) Appeal of Denial. If a Claimant is denied ben-efits under Section A3.11(b), the Claimant has the rightto appeal the decision within 90 days after the date of theclaim denial, in accordance with the following procedures:

(i) Intermediate Appeals Procedure. The Admin-istrator will establish an intermediate appeals procedurecontaining no more than a three-level process.

(ii) Final Appeals Procedure.(A) If the Claimant wishes to appeal the denial of

benefits under Section A3.11(c)(i), the Claimant mustfile with the Final Appeals Committee a written appealand supporting documents, using any form required bythe Administrator for the purpose, within 90 days afterthe date of the denial issued under Section A3.11(c)(i).Such an appeal may be addressed to the Administrator orin care of the person or persons specified in the notice ofdenial issued under Section A3.11(c)(i).

(B) A timely filed appeal will be heard by the FinalAppeals Committee at its next meeting, unless addi-tional time is needed for processing, in which case theClaimant will be so notified and the appeal will be heardat the following meeting of the Final AppealsCommittee. Appeals or documents filed fewer than 30days before the next meeting of the Final AppealsCommittee will not be considered by the Final AppealsCommittee except by its leave and discretion.

(C) The Claimant or a representative of the PlanSponsor may request permission to appear personally orby teleconference before the Final Appeals Committeeto present evidence with respect to the claim, subject toconditions and time limitations set by the Final AppealsCommittee, but the expense for any such personalappearance must be borne by the Claimant or the PlanSponsor.



(D) The Final Appeals Committee will decide aClaimant’s appeal, and its decision will be final. Thedecision will be implemented by the Administrator.

(E) The Claimant will be given written notice ofthe decision on appeal. If the decision is a denial, suchnotice will include specific reason(s) for the decision,written in a manner calculated to be understood by theClaimant, and specific reference to any pertinent Planprovision(s) on which the decision is based. Such writ-ten notice will be mailed to the claimant by theAdministrator within 15 days following the decision bythe Final Appeals Committee.

(iii) Appeals Committees.(A) The Intermediate Appeals Committee is a com-

mittee appointed by the Administrator.(B) The Final Appeals Committee of the

Administrator is a committee of the Board of Directorsof the General Board that is selected from time to timeby that Board.

(C) Each of the Intermediate Appeals Committeeand the Final Appeals Committee may develop rules andprocedures to govern its own meetings and actions andthe filing and decision of claim appeals by Claimants.

(D) Any failure by either appeals committee todecide a claim appeal by the deadline for such a decisionwill be deemed a denial of the claim. The Claimant maythen proceed to the next step of the procedure.

(E) Any failure by the Claimant to appeal anyclaim denial by the deadline for doing so will be deemedto be a final resolution of the claim, and the Claimantwill be deemed to have waived his or her right to file anappeal or a further appeal or to pursue any other remedy,including filing a lawsuit.

(d) Appeal a Condition Precedent to Civil Action.No cause of action in civil law with respect to anyalleged violation of the terms and conditions of thisProgram may be commenced or maintained by anyClaimant, Recipient, or Accountholder unless and untilsuch Claimant, Recipient, or Accountholder has initiatedand completed the claim and appeal process as set forthin Sections A3.11(a) and (c). Any such cause of actionmust be filed with a court of competent jurisdictionwithin six months of the date on the written notice ofdenial described in Section A3.11(c)(ii)(E) or such causeof action will be deemed waived; provided, however,that such six-month limit will apply only if it isdescribed in such notice of denial.

A3.12 Qualified Domestic Relations Orders.The provisions of Section A4.2 notwithstanding, all orpart of a Participant’s Vested benefits arising under thisProgram may be transferred to one or more Alternate

Payees on the basis of a “qualified domestic relationsorder,” as that term is defined in Code §414(p), providedthat: (1) such order was issued by a court having juris-diction over the Administrator; or (2) such order wasentered by any other court and the Administrator, in itssole discretion, determines that the order is a QDRO.

(a) When appropriate, the Administrator will pro-vide a Participant involved in marital litigation withinformation regarding the nature and value of theParticipant’s benefits and will assist the Participant andthe court in interpreting that information.

(b) The Administrator will maintain a written pro-cedure to determine the qualified status of domestic rela-tions orders and to administer distributions under suchqualified orders. Such procedure will provide that dur-ing the period in which a determination is being madewith respect to the qualified status of an order receivedby the Administrator and for 30 days thereafter:

(i) the Administrator will direct the Trustee to seg-regate and separately account for any sums payable tothe Participant that the order requires to be paid to theAlternate Payee; and

(ii) the Participant will be prohibited from electingto receive any distribution that would compromise therights granted to the Alternate Payee by the order, with-out the Alternate Payee’s written consent.

(c) Neither the Alternate Payee nor any personclaiming through the Alternate Payee will have the rightto transfer benefits to another Alternate Payee. The ben-efits transferred pursuant to a QDRO will be adminis-tered in accordance with the provisions of this Program.For the purpose of determining eligibility to receive ben-efits transferred to an Alternate Payee, the AlternatePayee will have all of the rights and duties of a fullyVested Participant who has incurred a Termination ofEmployment, to the exclusion of any claim thereto onthe part of the Participant.

(d) A subpoena or other instrument of judicialprocess that:

(i) is directed to the Administrator, its constituentcorporations, or its officers or employees;

(ii) appears on its face to be issued in the course ofmarital litigation to which a Participant is a party; and

(iii) seeks information regarding the nature or valueof the Participant’s pension benefits, may be honored bythe Administrator, in its sole discretion, without inter-posing any defense on the grounds of technical or juris-dictional defect.

(e) The Administrator may charge to the Programits costs of handling QDROs, including, but not limitedto, attorneys’ fees, litigation expenses, and a reasonablecharge for its services in connection therewith.



SECTION A4—GENERAL PROVISIONS

A4.1 Rules and Forms. The Administratorwill have the authority and responsibility to:

(a) adopt rules, regulations, and policies for theadministration of this Program, in all matters not specif-ically covered by General Conference legislation or byreasonable implication; and

(b) prescribe such forms and records as are neededfor the administration of the Program.

A4.2 Non-Alienation of Benefits. No benefitspayable at any time under the Program will be subject inany manner to alienation, sale, transfer, pledge, attach-ment, garnishment, or encumbrance of any kind, exceptas provided below. Any attempt to alienate, sell, transfer,assign, pledge, or otherwise encumber such benefit,whether presently or thereafter payable, will be void,except as provided below. No benefit nor any fund underthe Program will in any manner be liable for, or subjectto, the debts or liabilities of any Accountholder,Recipient, or other person entitled to any benefit, except:

(a) as provided in Section A3.12 (relating toQDROs);

(b) as provided in a levy in favor of the IRS to theextent required by Regulations;

(c) to the extent required under the MandatoryVictims Restitution Act of 1996 (18 U.S.C. §3663A);

(d) for the payment of retiree or DisabledParticipant health plan premiums;

(e) to the extent that such Accountholder, Recipient,or other person has received an overpayment under anyother plan administered by the Administrator; or

(f) to the extent that such Accountholder,Recipient, or other person has made a voluntary and rev-ocable assignment:

(i) in a writing filed with, and accepted by, theAdministrator;

(ii) that is acceptable to the Administrator in itssole discretion; and

(iii) after such assigned benefit is due and payableunder the terms of the Program, including the making ofany elections and submission of any applicationsrequired of the Accountholder, Recipient, or other person.

A4.3 Non-Reversion. All amounts contributedto a Plan by a Plan Sponsor are irrevocable contributionsexcept to the extent provided below. The Plan Sponsorshave no right, title, or interest in the assets of a Plan or theTrust and no portion of the Trust or the assets of a Plan orinterest therein may at any time revert to or be repaid tothe Plan Sponsors, except as otherwise provided below:

(a) Upon termination of the Consolidated DBPlan, any assets remaining, after the satisfaction of all

fixed and contingent liabilities by the payment of allsuch liabilities due, the transfer, merger, or spinoff ofsuch liabilities and appropriate assets to another plan,and/or the annuitization of any remaining liabilities withan insurance or annuity provider selected by theAdministrator, may revert to the Plan Sponsors as pro-vided in Section A5.2; and

(b) If a contribution is made to a Plan by the PlanSponsor by a mistake of fact, then such contribution willbe returned to the Plan Sponsor (adjusted for any gainsor losses) if:

(i) the Plan Sponsor sends a written request for itsreturn to the Administrator within one year after the con-tribution was made;

(ii) the Plan Sponsor documents such mistake tothe satisfaction of the Administrator; and

(iii) the Administrator has not yet distributed suchcontribution (or the portion sought to be returned).

Contributions to CRSP-DB will not be considered amistake of fact unless they bring funding to a level thatis at least 110% of the actuarially appropriate amount, asdetermined by the Administrator, of funding for thatPlan Year. Refunds to a Plan Sponsor from anAccountholder’s Core Defined Contribution PlanAccount will reduce that Account accordingly.

(c) If a Contribution is made to the Program by aPlan Sponsor that the Administrator determines within30 days is an error or a mistake, the Administrator mayrefuse the payment as a Contribution to the Program andreturn the payment (or an amount equal to it) to the PlanSponsor.

A4.4 Construction. The Program and each ofits provisions will be construed under, and their validitydetermined by, the laws of the State of Illinois, otherthan its laws respecting choice of law, to the extent suchlaws are not preempted by any federal law.

A4.5 Limitation of Liability. All benefitshereunder are contingent upon, and payable solely fromthe assets of the Trust, which derive from such contribu-tions as may be received by the Trustee and the invest-ment results of the Trustee. No financial obligations,other than those that can be met by the contributionsactually received and the investment results, reduced byany of the Administrator’s or Trustee’s expenses orcharges against the Trust’s assets, will be assumed bythe Administrator or the Trustee. To the extent that assetsof a Plan attributable to a Recipient or an Accountholderhave been transferred to a separate dedicated trust, allbenefits to which the Recipient or Accountholder is enti-tled under that Plan will be provided only out of suchtrust and only to the extent the trust is adequate therefor.Further, if the Trustee segregates Trust assets by Plan



within the Program, all benefits to which a Recipient oran Accountholder is entitled under that Plan will be pro-vided only out of such segregated portion of the Trustand only to the extent such segregated portion is ade-quate therefor. Neither the Administrator, nor theTrustee, nor their officers, employees, contractors, oragents will be personally responsible or otherwise liablefor the payment of any benefits hereunder.

A4.6 Alternative Dispute Resolution. If adispute arises out of or related to the relationshipbetween the Plan Sponsor and the Administrator orTrustee, the parties agree first to try in good faith to set-tle the dispute by mediation through the AmericanArbitration Association, or another mediation/arbitra-tion service mutually agreed upon by the parties, beforeresorting to arbitration. Thereafter, any remaining unre-solved controversy or claim arising out of or relating tothe relationship between the Plan Sponsor and theAdministrator or Trustee will be settled by binding arbi-tration through the American Arbitration Association, orthe other mediation/arbitration service mutually agreedupon by the parties.

(a) The site of the mediation and/or arbitrationwill be in a city mutually agreed to by the parties.

(b) The laws of the State of Illinois will apply insituations where federal law is not applicable. The appli-cable rules of the selected arbitration service will apply.If the service allows the parties to choose the number ofarbitrators, unless another number is mutually agreed to,any arbitration hereunder will be before three arbitra-tors. The award of the arbitrators, or a majority of them,will be final. Judgment upon the award rendered may beentered in any court, state or federal, having jurisdiction.

(c) The fees and costs for mediation will be borneequally by the parties. The fees and costs of arbitrationwill be allocated to the parties by the arbitrators.

A4.7 Titles and Headings. The titles andheadings of the Sections of this instrument are placedherein for the convenience of reference only, and in thecase of any conflicts, the text of this Program, ratherthan the titles or headings, will control.

A4.8 Number and Gender. Wherever usedherein, the singular includes the plural and the pluralincludes the singular, except where the context requiresotherwise. Similarly, the male includes the female andvice versa.

A4.9 USERRA. Notwithstanding any provi-sion of the Program to the contrary, contributions, bene-fits, and Service credit with respect to qualified militaryservice will be provided in accordance with USERRA.

A4.10 Participant, Beneficiary, Recipient,and Accountholder Duties. Each person entitled to

benefits under the Program must file with theAdministrator and Plan Sponsor from time to time suchperson’s post office address and each change of postoffice address. Failure to do so may result in the forfei-ture of benefits otherwise due under the Program.

A4.11 Adequacy of Evidence. Evidence thatis required of anyone under the Program must be exe-cuted or presented by proper individuals or parties andmay be in the form of certificates, affidavits, documents,or other information that the person acting on such evi-dence considers pertinent and reliable.

A4.12 Notice to Other Parties. A noticemailed first class, postage prepaid, to a Recipient or anAccountholder at his or her last address known to theAdministrator will be binding on the Recipient orAccountholder for all purposes of the Program and willbe deemed given on the date on the notice or letter. Aclaim for benefits, beneficiary designation, or othernotice mailed first class, postage prepaid, from aRecipient or an Accountholder to the Administrator willbe deemed given on the date of the postmark. Noticemay be addressed to the Administrator at the followingaddress (or such other address as the Administrator maydesignate from time to time):

Administrator of the Clergy Retirement Security ProgramGeneral Board of Pension and Health Benefits of The

United Methodist Church1901 Chestnut AvenueGlenview, IL 60025-1604.

A4.13 Waiver of Notice. Any notice under theProgram may be waived by the person entitled to notice.Waiver of notice in one instance, however, will not bedeemed to be a waiver in a later instance.

A4.14 Successors. This Program is binding onthe Plan Sponsors, and on all persons entitled to benefitshereunder, and their respective successors, heirs, andlegal representatives.

A4.15 Severability. If any provision of theProgram is held illegal or invalid for any reason, suchillegal or invalid provision will not affect the remainingprovisions of the Program, and the Program will be con-strued and enforced as though such illegal or invalid pro-visions had never been contained in the Program.

A4.16 Supplements. The Program may beamended from time to time as provided in Section A5 byadding one or more Supplements to the Program toaddress special situations not applicable to all PlanSponsors or to all Clergypersons, Participants,Beneficiaries, or Accountholders. Any such Supplementwill specify the Plan Sponsors and persons covered andany special rules or benefits related to them. To the



extent that any such rules or benefits are in conflict withthe general provisions of the Program, such rules or ben-efits will supersede the general provisions of theProgram as to the persons covered by the Supplement tothe extent they are in conflict with such general provi-sions. Except as otherwise provided in a Supplement, allof the provisions of the Program will apply to the per-sons covered by the Supplement.

SECTION A5—AMENDMENT AND TERMINATION OF PROGRAM

A5.1 Amendment.(a) General Conference. General Conference may

amend prospectively or retroactively any or all provi-sions of the Program at any time by written instrumentidentified as an amendment of the Program, effective asof a specified date.

(b) Administrator. The Board of Directors of theGeneral Board may amend prospectively or retroactivelyany or all provisions of the Program at any time by res-olution, effective as of a specified date:

(i) to conform the Program to any applicable lawand/or regulations promulgated thereunder; and

(ii) to conform the Program to the Discipline orchanges therein.

A5.2 Termination of Program. GeneralConference may terminate the Program at any time in amanner and to the extent not inconsistent with applica-ble law. Upon termination of the Program, the accountsof Participants will be nonforfeitable and will be eitherdistributed outright or held for distribution in accor-dance with the terms of the Program. The assets remain-ing in the Program after all obligations of the Programhave been satisfied will be distributed pursuant to actionby General Conference.

SECTION A6—BENEFICIARIES

A6.1 Beneficiary Designation. A Participantmay designate in writing a primary Beneficiary, or botha primary and a secondary Beneficiary, in such form asis satisfactory to the Administrator. A Beneficiary desig-nation must be postmarked, sent by private courier, orreceived by the Administrator during the Participant’slifetime to be valid. A secondary Beneficiary willreceive benefits only if the primary Beneficiary prede-ceased the Accountholder, cannot be located, or is oth-erwise unavailable or ineligible. A primary or asecondary Beneficiary may be an individual, an estate, atrust, or a list of persons. If more than one person isspecified as the Participant’s Designated Beneficiary,each such person will take an equal share, per capita,unless the Participant clearly specifies another division.

Per stirpes designations are not acceptable. TheAdministrator reserves the right to reject anyBeneficiary designation that cannot be reasonablyadministered, in the Administrator’s sole discretion.Except as otherwise provided in Sections B8.3(d),S1.4.5, S1.4.7, and S3.4.6, if a Participant leaves novalid Beneficiary designation or if his or her DesignatedBeneficiary predeceases the Participant, then theParticipant’s Default Beneficiary will be his or herSpouse. But if the Participant is not survived by aSpouse or if one of the conditions described in SectionsB8.3(d)(ii)–(iv) exists, then his or her DefaultBeneficiary will be the Participant’s estate.

A6.2 Beneficiary of an Accountholder. Anindividual other than a Participant who becomes anAccountholder and does not receive an immediate dis-tribution of that Account may name a Beneficiary inaccordance with such procedures and in such form as theAdministrator may accept or require. Subject to the pro-visions of Sections B8.6 and S1.4.10, such DesignatedBeneficiary will receive the Accountholder’s Account inthe case of the Accountholder’s death. If an individualwho becomes an Accountholder does not name his orher own Designated Beneficiary as permitted in thisSection A6.2, if a Designated Beneficiary does not sur-vive such individual, or if Sections B8.6 and S1.4.10 donot otherwise provide, such individual’s DefaultBeneficiary will be such individual’s Spouse or, if thereis no surviving Spouse, then the estate of such individual.

A6.3 Affected Plans. An Accountholder or aRecipient may revise his or her Designated Beneficiaryunder the Program from time to time, but the mostrecently designated Beneficiary will be deemed to be theAccountholder’s or Recipient’s Designated Beneficiaryunder the entire Program.

A6.4 Preexisting Beneficiary. If a Participantor Terminated Participant does not designate aBeneficiary under this Program after January 1, 2007 buthas designated a valid beneficiary under any Plan beforeJanuary 1, 2007, then the latest of such validly desig-nated beneficiaries will be deemed such Participant’sinitial Designated Beneficiary under this Program.

SECTION A7—ADOPTION AGREEMENTS

A7.1 Completion of Adoption Agreement.Completion of Adoption Agreement. Each Plan Sponsorwill initially complete one or more AdoptionAgreements in which the Plan Sponsor will indicate anyelections that it is required or permitted to make pur-suant to the provisions of the Program.

A7.2 Form of Adoption Agreement. TheAdoption Agreement will be in a form prescribed by the



Administrator. Different forms may be used for differentPlan Sponsors. The Administrator may use more thanone Adoption Agreement per Plan Sponsor covering dif-ferent Clergy groups.

A7.3 Acceptance of Adoption Agreement.An Adoption Agreement will not become effective untilit is accepted by the Administrator. The Administratormay require the submission of an Adoption Agreementup to 31 days in advance of its effective date (but mayalso waive such deadline in appropriate circumstances).

A7.4 Continuance of Adoption Agreement.An Adoption Agreement will remain in force until it isamended, discontinued, or replaced. Either a PlanSponsor or the Administrator may discontinue an exist-ing Adoption Agreement as of a prospective date speci-fied in a written notice to the other. A Plan Sponsor mayamend or replace an Adoption Agreement if suchamendment or replacement is accepted by theAdministrator under Section A7.3.

A7.5 Supplements. Plan Sponsors with respectto each of the Supplements must execute one or moreAdoption Agreements covering each such Supplement.Each Pre-82 Sponsor having Participants in Partici-pating Group No. Pre-82-1 must execute an AdoptionAgreement setting forth the Past Service Rate Amountapplicable to such Participants. In no case may any Pre-82 Sponsor’s new Adoption Agreement reduce the PastService Rate Amount or the percentage that is payableto surviving spouses in accordance with Section S1.4.2.

Part BCore Defined Contribution PartSECTION B1—INTRODUCTION

B1.1 Plan Sponsors.(a) Each Conference is a Plan Sponsor of the Core

Defined Contribution Plan under this Part B with respectto Participants who are:

(i) Under Episcopal Appointment by a Bishop to:(A) a Local Church located within that Conference;(B) a Pastoral Charge located within that

Conference;(C) a Conference-Responsible Unit located within




(iii) when elected by a Conference under itsAdoption Agreement, members of that Conference who

are placed on Incapacity Leave but not covered underSection B1.1(a)(ii);


(v) entitled to Credited Service under USERRAbut who last served that Conference under SectionB1.1(a)(i).

Each such Conference will complete an AdoptionAgreement covering such Participants with respect tothe Core Defined Contribution Plan.

(b) GCFA will be a Plan Sponsor of the CoreDefined Contribution Plan under this Part B on and afterSeptember 1, 2008 with respect to Participants who are:



Notwithstanding the foregoing, in the case ofBishops who were newly consecrated in 2008, thenGCFA is the Plan Sponsor of the Core DefinedContribution Plan under this Part B on and after the dateof their consecration. GCFA will complete an AdoptionAgreement covering such Participants with respect tothe Core Defined Contribution Plan effective as ofSeptember 1, 2008.

(c) If so elected by the Commission on theGeneral Conference on an Adoption Agreement, theCommission on the General Conference is a PlanSponsor of the Core Defined Contribution Plan underthis Part B with respect to Participants who areAppointed to the Commission on the GeneralConference.

(d) No other entity may be a Plan Sponsor of theCore Defined Contribution Plan.

B1.2 Prospective Application. No benefitsaccrued under the Core Defined Contribution Planbefore January 1, 2007.

SECTION B2—COMPUTATION OFSERVICE

B2.1 Method of Computation.(a) Eligibility Service. A Clergyperson does not

need to complete a specified period of Service to be eli-gible for the Plan (although there are other conditionsnot involving Service).

(b) Credited Service. An Eligible Clergyperson’sContributions under the Plan are not determined withreference to Service.

(c) Vesting Service. Participants are always 100%Vested in their Accounts.



SECTION B3—PARTICIPATION

B3.1 Eligibility for Participation. On andafter the Effective Date, the following eligibilityrules for the Core Defined Contribution Plan apply toClergy:

(a) Eligible Clergyperson. An Eligible Clergy-person is a Clergyperson:

(i) who:(A) is Appointed at least Half-Time and who is one

of the following:(I) a member of a Conference that is a Plan

Sponsor under the terms of the Plan and is UnderEpiscopal Appointment by the Bishop of such PlanSponsor Conference;

(II) a member of a Conference but is UnderEpiscopal Appointment by the Bishop of anotherConference (within the meaning of ¶ 346.1 of theDiscipline) that is a Plan Sponsor under the terms of thePlan; or

(III) paid by a Salary-Paying Unit that is a PlanSponsor under the terms of the Plan;



(ii) who is a Non-Jurisdictional Clergyperson, anOther Methodist Denomination Clergyperson, an OtherDenomination Clergyperson, or a Clergyperson describedin Section B3.1(a)(i)(A)(II) above; and:

(A) who:(I) develops a disability or an incapacity after hav-

ing been Appointed at least Half-Time at some time dur-ing the 24 months (excluding periods while on Leave ofAbsence) immediately preceding the onset of his or herdisability or incapacity;

(II) remains Appointed by the Bishop of the PlanSponsor Conference (or, where the Plan Sponsor is notsupervised by a Bishop, remains covered by the PlanSponsor’s Adoption Agreement); and

(III) is not reported as discontinued or as having norecord of Appointment; or

(B) who is CPP Disabled and was Appointed at leastHalf-Time at some time during the 24 months (exclud-

ing periods while on Leave of Absence) immediatelypreceding his or her grant of CPP disability benefits;





(b) Participation. Each Eligible Clergyperson willbecome a Participant on the Entry Date determinedunder Section B3.2, provided that he or she satisfies allof the following requirements on the Entry Date:





or her Appointment;(B) CPP Disabled or a Bishop on Incapacity Leave

(but in neither of these cases is a Terminated Participant);(C) when elected by a Conference under its

Adoption Agreement, a Conference member who isplaced on an Incapacity Leave but not covered underSection B3.1(b)(iii)(B) above; or


Date, an Eligible Clergyperson must continue to meetthe conditions in Sections B3.1(a) and (b) above toremain a Participant eligible to receive Contributions.Although it will not prevent an Eligible Clergypersonfrom participating in the Plan, the Administrator mayrequire the Plan Sponsor of each Eligible Clergypersonwho is to become (or has become) a Participant (whetheror not such Participant has an Accrued Benefit) to file anapplication for enrollment in the Plan in such form asmay be required by the Administrator or to otherwiseprovide necessary enrollment information in a manneracceptable to the Administrator.

B3.2 Determination of Entry Date. EachEligible Clergyperson’s Entry Date will be:



(a) January 1, 2007, if on that date he or she satis-fied the requirements of Section B3.1; or

(b) the first day of any calendar month thereafteron which he or she first satisfies the requirements ofSection B3.1.

B3.3 Determination of Eligibility. Uponreceipt of enrollment information from the Plan Sponsoras provided in Section B3.1, the Administrator willaccept such information as evidence of eligibility forparticipation in the Plan. However, the Administratormay from time to time audit such information or obtainadditional information, which might result in a determi-nation of ineligibility for a Participant or a determinationof eligibility for a non-Participant. The Administratorhas the final authority to determine the eligibility of anyClergyperson. Such determination will be made pur-suant to the provisions of the Plan and the AdoptionAgreement and will be conclusive and binding upon allpersons.

B3.4 Cessation and Resumption ofParticipation.

(a) Cessation of Participation. A Participant whoreceives a distribution of his entire Account Balanceunder the Plan and who no longer qualifies underSection B3.1 will cease to be a Participant in the Plan.

(b) Reinstatement. A person described in SectionB3.4(a) who again qualifies under Sections B3.1 andB3.2 will again become a Participant entitled toContributions.

(c) Return to Coverage. If a Participant ceases toqualify under Sections B3.1 and B3.2 but does notreceive a distribution of his entire Account Balanceunder the Plan and then requalifies under those Sections,he or she will once again be entitled to Contributionsunder the Plan but will not be entitled to receive distri-butions under the Plan (except to the extent he or shequalifies under Section B8.2), even for amounts that heor she would have been entitled to receive when he orshe previously ceased to qualify under Sections B3.1and B3.2.

(d) Transfer. A Participant who transfers from oneConference (or other Plan Sponsor) to another (or whootherwise transfers under ¶¶ 346, 347, or 348 of theDiscipline such that he or she was covered under thePlan both before and after the transfer) without a Breakin Service will remain a Participant, but his or her PlanSponsor will change from the first Conference (or otherPlan Sponsor) to the second on the date that he or she isUnder Episcopal Appointment with the second.

B3.5 Omission of Eligible Clergyperson. If,in any Plan Year, a Clergyperson who should have beenincluded as a Participant in the Plan is erroneously omit-

ted from participation and if the discovery of such omis-sion is not made until after one or more Contributions byhis or her Plan Sponsor has been made, or is due, forsuch Plan Year, the Plan Sponsor will correct that omis-sion by making one or more replacement contributionsto such Participant’s Non-Matching ContributionAccount or Matching Contribution Account to substitutefor the Non-Matching Contributions or MatchingContributions that would have been made with respect tothe omitted Participant had he or she not been omitted,subject to the limits of Section B5. In addition, thePlan Sponsor will contribute to the Non-MatchingContribution Account or Matching ContributionAccount of the omitted Participant imputed earnings onthe replacement contributions based on a fixed rate ofinterest or on projected earnings as established by theAdministrator from case to case or time to time, creditedfrom the Due Date on which any such Contributionswere due to the Plan until the Accounting Date suchreplacement contributions were actually credited to theomitted Participant’s Non-Matching ContributionAccount or Matching Contribution Account. Moreover,the Plan Sponsor is subject to one or more administra-tive charge(s) under Section A3.7(c). In accordance withRevenue Procedure 2003-44 or its successors, replace-ment contributions made on account of any pastLimitation Year will be deemed made in that pastLimitation Year for the purpose of Code §415.Replacement contributions made on account of imputedearnings will not be treated as annual additions in anyLimitation Year under Code §415.

B3.6 Inclusion of Ineligible Persons. If, inany Plan Year, any person who should not have beenincluded as a Participant in the Plan is erroneouslyincluded and the discovery of such incorrect inclusion isnot made until after one or more Contributions for thePlan Year have been made with respect to such person,any such Contributions will constitute a mistake of factfor the Plan Year in which the Contributions are madeand will be returned to the Plan Sponsor (adjusted forany gains or losses) if it qualifies under Section A4.3(b).Erroneous Contributions that do not qualify underSection A4.3(b) will be permanently forfeited and usedby the Administrator to defray administrative expensesof the Plan.

B3.7 Election Not to Participate. Subject tothe consent of his or her Plan Sponsor, an EligibleClergyperson who is a student Local Pastor (within themeaning of ¶¶ 318 and 318.3 or 318.4 of the Discipline)or who is Appointed on a Part-Time basis may elect vol-untarily not to participate in the entire Program by writ-ten notice to the Plan Sponsor not later than 60 days



after the effective date of such election, which may bemade in any form acceptable to the Administrator. Asthe result of such an election, Contributions will not bemade with respect to the electing Eligible Clergypersonwhile such an election is in force. The EligibleClergyperson may revoke such an election at any timethat such Clergyperson is eligible to be a Participant, butpast Contributions related to periods during which theelection was in force will not be earned or will be per-manently forfeited. If such Clergyperson already has anAccount Balance in the Plan, such election not to partici-pate will not affect the Account Balance or Contributionsalready made to the Plan or the Participant’s right todirect the investment of such Account Balance.

SECTION B4—AMOUNT ANDALLOCATION OF CONTRIBUTIONS

B4.1 Plan Sponsor Contributions.(a) Non-Matching Contributions.(i) On and After Effective Date. For each month

on and after the Effective Date, each Plan Sponsor willmake a Non-Matching Contribution on behalf of each ofits Participants who qualify under Sections B3.1 andB3.2 (and continue to qualify at the end of each suchmonth) in the amount of 8% of the greater of:

(A) such Participant’s Compensation for each suchmonth; or

(B) the product of:(I) one-twelfth of the DAC in effect for each such

month, times(II) such Participant’s Appointment percentage (or,

in the case of a Participant with multiple Appointmentsthat each qualify under the Plan, the sum of suchAppointment percentages) for each such month.

(ii) Before Effective Date. For each month beforethe Effective Date, each Plan Sponsor made aContribution on behalf of each of its Participants whoqualified under the predecessors to Sections B3.1 andB3.2 in the amount of 3% of such Participant’sCompensation for each payroll period. In the case of:

(A) CPP Disabled Participants, CPP made aContribution for each payroll period during such CPPDisability of 3% of such Participant’s Compensationmeasured as of the payroll period immediately preced-ing such Participant’s CPP Disability, with future years’imputed increases in Compensation as were provided inCPP; and

(B) Participants on Incapacity Leave whose PlanSponsors had so elected on their Adoption Agreements,such Plan Sponsors made a Contribution for each pay-roll period during such Incapacity Leave of 3% of suchParticipant’s Compensation measured as of the payroll

period immediately preceding such Participant’sIncapacity Leave, with 3% annual imputed increases inCompensation;

in either case, to the extent permitted under Code§415(c)(3)(C) (or any other applicable provisions).

(b) Matching Contributions. For each month onand after the Effective Date, each Plan Sponsor willmake a Matching Contribution on behalf of each of itsParticipants who qualify under Sections B3.1 and B3.2(and continue to qualify at the end of each such month)in an amount equal to the portion of such Participant’sParticipant Contributions to UMPIP for the current PlanYear to date that does not exceed 2% percent of suchParticipant’s Compensation for the current Plan Year todate, reduced by the amount of Matching Contributionsmade for such Participant for previous months in thecurrent Plan Year. For months before the Effective Date,see the provisions of the predecessor to the Plan.

(c) Disabled Participants. Sections B4.1(a)(i) and(b) above apply to Participants who are CPP Disabled oron Incapacity Leave only as provided in this SectionB4.1(c):

(i) Plan Sponsor Elections. For each month onand after the Effective Date, in accordance with the pro-visions of this Section B4.1(c), Plan Sponsors may electto supplement whatever Non-Matching and MatchingContributions may be made by CPP (if any) for the ben-efit of Participants who are CPP Disabled or onIncapacity Leave during such month who are eligibleunder Sections B3.1 and B3.2 (and continue to qualify atthe end of each such month).

(A) CPP Disabled; No Plan Sponsor Election.When a Participant is CPP Disabled, and the PlanSponsor has not elected on its Adoption Agreement tomake Non-Matching or Matching Contributions for CPPDisabled Participants, then the Participant will receiveContributions only to the extent that CPP makes suchContributions (subject to annual imputed increasesdescribed below). When such CPP Contributions areless than the amount provided under Section B4.1(a)(i)and (b) above, then the CPP Contributions will beapplied first as Non-Matching Contributions.

(B) CPP Disabled; Plan Sponsor Election. When aParticipant is CPP Disabled, and the Plan Sponsor haselected on its Adoption Agreement to make Non-Matching and Matching Contributions for CPP DisabledParticipants, then the Participant will receive:

(I) Non-Matching Contributions each such monthon and after the Effective Date in the amount of 8% ofthe greater of:

(a) such Participant’s Compensation determinedas of the month immediately preceding the start of such



Participant’s CPP Disability (subject to annual imputedincreases described below); or

(b) the product of:(1) one-twelfth of the DAC in effect for each such

month on and after the Effective Date; times(2) such Participant’s Appointment percentage

determined as of the month preceding the start of suchParticipant’s CPP Disability (or, in the case of aParticipant with multiple Appointments that each qual-ify under the Plan, the sum of such Appointment per-centages) for each such month on and after the EffectiveDate; plus

(II) Matching Contributions up to 2% of suchParticipant’s Compensation determined as provided inSection B4.1(c)(i)(B)(I)(a) above, to the extent that suchParticipant makes Participant Contributions underUMPIP for such month on and after the Effective Date.

The Plan Sponsor will make any such Non-Matching and Matching Contributions that are not madeby CPP for the benefit of such Participant.

(C) Incapacity Leave; No Plan Sponsor Election.When a Participant is on Incapacity Leave, but not CPPDisabled, and the Plan Sponsor has not elected on itsAdoption Agreement to make Non-Matching orMatching Contributions for Participants on IncapacityLeave, then the Participant will not receive Non-Matching or Matching Contributions.

(D) Incapacity Leave; Plan Sponsor 3% Election.When a Participant is on Incapacity Leave, but not CPPDisabled, and the Plan Sponsor has elected on itsAdoption Agreement to make 3% Non-MatchingContributions for Participants on Incapacity Leave, thenthe Participant will receive Non-Matching Contributionseach such month on and after the Effective Date in theamount of 3% of the greater of:

(I) such Participant’s Compensation determinedas of the month immediately preceding the start of suchParticipant’s Incapacity Leave (subject to annualimputed increases described below); or

(II) the product of:(1) one-twelfth of the DAC in effect for each such


determined as of the month preceding the start of suchParticipant’s Incapacity Leave (or, in the case of aParticipant with multiple Appointments that each qual-ify under the Plan, the sum of such Appointment per-centages) for each such month on and after the EffectiveDate.

(E) Incapacity Leave; Full Plan Sponsor Election.When a Participant is on Incapacity Leave, but not CPPDisabled, and the Plan Sponsor has elected on its

Adoption Agreement to make full Non-Matching andMatching Contributions for Incapacity LeaveParticipants, then the Participant will receive:

(I) Non-Matching Contributions each such monthon and after the Effective Date in the amount of 8% ofthe greater of:

(a) such Participant’s Compensation determinedas of the month immediately preceding the start of suchParticipant’s Incapacity Leave (subject to annualimputed increases described below); or

(b) the product of:(1) one-twelfth of the DAC in effect for each such


determined as of the month preceding the start of suchParticipant’s Incapacity Leave (or, in the case of aParticipant with multiple Appointments that each qual-ify under the Plan, the sum of such Appointment per-centages) for each such month on and after the EffectiveDate; plus

(II) Matching Contributions up to 2% of suchParticipant’s Compensation determined as provided inSection B4.1(c)(i)(E)(I)(a) above, to the extent that suchParticipant makes Participant Contributions underUMPIP for such month on and after the Effective Date.

When annual imputed increases in Compensationare referred to in Section B4.1(c)(i) above, a Participantwho is CPP Disabled or on Incapacity Leave will becredited, effective on and after January 1, 2013, withimputed 3% annual increases in his or her Compensa-tion on the anniversary date that he or she became CPPDisabled or was placed on Incapacity Leave, startingwith the year following the year in which Contributionswere first made to such Participant. Some of the increasedContributions resulting from such imputed increases inCompensation may be paid by CPP. Notwithstanding theforegoing provisions of this Section B4.1(c)(i):

(F) If a Participant who is CPP Disabled or onIncapacity Leave first receives Non-Matching and/orMatching Contributions at a certain level elected by hisor her Plan Sponsor on the Plan Sponsor’s AdoptionAgreement, that level of Non-Matching and/orMatching Contributions will change prospectively if hisor her Plan Sponsor makes a different election on itsAdoption Agreement for a future month or months thatresults in a different level of Non-Matching and/orMatching Contributions for such Participant.

(G) A Participant will cease to qualify for furtherNon-Matching and Matching Contributions once he orshe becomes a Terminated Participant.

(H) Contributions may be made on account ofParticipants who are CPP Disabled or on Incapacity



Leave only to the extent permitted under Code§415(c)(3)(C) (or any other applicable Code provisions)and Section B5.

(ii) Period of Contributions. For each month onand after the Effective Date, the Contributions providedfor under Section B4.1(c)(i) above will be made fromthe date such Participant is eligible under B4.1(c)(i)above until the earliest of:

(A) the date such Participant ceases to qualifyunder B4.1(c)(i) above;

(B) in the case of a Participant who qualified underB4.1(c)(i) above before age 60, on the earlier of:

(I) the date such Participant Retires on an EarlyRetirement Date; or

(II) such Participant’s Normal Retirement Date(whether or not he or she actually Retires); or

(C) in the case of a Participant who qualified underB4.1(c)(i) above on or after age 60, on the earliest of:

(I) the date that is the five-year anniversary ofsuch Participant’s qualification under B4.1(c)(i) above;

(II) such Participant’s 70th birthday; or(III) in the case of a CPP Disabled Participant, the

date that CPP disability benefits cease.For months before the Effective Date, see the pro-

visions of the predecessor to the Plan.B4.2 Allocation and Deposit of Contributions.

All Contributions will be forwarded to the Administratorby the Plan Sponsor as soon as possible, but in no eventlater than the Due Date. The Administrator will depositContributions in the Trust as soon as possible afterreceiving them. Each Participant’s share of the Non-Matching Contributions will be allocated to theParticipant’s Non-Matching Contribution Account as ofthe Accounting Date coinciding with or next succeedingthe date they are deposited in the Trust. EachParticipant’s share of the Matching Contributions will beallocated to the Participant’s Matching ContributionAccount as of the Accounting Date coinciding with ornext succeeding the date they are deposited in the Trust.

B4.3 Late Contributions. If a Plan Sponsordelays in making a Contribution to the Plan on behalf ofany Participant until after the Due Date specified inSection B4.2, then the Plan Sponsor will make suchdelayed Contribution to the Plan as soon as possiblethereafter, along with missed earnings on such delayedContribution in accordance with any applicable InternalRevenue Service correction program, credited from theday after such Due Date until the Accounting Date suchContribution was actually credited to the Participant’sAccount. For the purpose of Code §415, such replace-ment Contributions (including imputed earnings) will betreated as specified in Section B3.5. Any special services

provided by the Administrator in connection with thisSection B4.3 are subject to the additional charges providedfor in Section A3.7(c). If any Contributions are more thantwo months overdue, the Administrator may compelpayment by bringing the matter to Judicial Council or byany other means the Administrator may elect to pursue.

B4.4 Ineligible Participants. If a Participantceases to qualify under Section B3.1, is on an unpaidLeave of Absence (except as otherwise required underSection A4.9 (relating to USERRA or applicable law), issuspended from employment without pay, or is other-wise not earning Compensation for a month for a reasonnot covered under Section B3.1, but has not Retired orincurred a Termination of Conference Relationship, thenfor any such period the Participant’s Accounts will notbe credited with any Non-Matching Contributions.

SECTION B5—LIMIT ON BENEFITS

B5.1 Limit on Annual Additions.(a) Limitation. Notwithstanding any other provi-

sions of the Plan (except for this Section B5), theamount of Annual Additions allocated to a Participant’sAccount for any Limitation Year will not exceed anamount equal to the limit of Section B5.1(a)(i) below, asincreased, if at all, by the provisions of SectionsB5.1(a)(ii) and B5.1(a)(iii) below.

(i) Standard Limit. The limit of this SectionB5.1(a)(i) is the lesser of:

(A) $49,000 (in 2011 or as indexed under Code§415(d) in later years); or

(B) 100% of the Participant’s 415 Compensationfor the Limitation Year;

reduced, in either case, by the amount of AnnualAdditions credited to the Participant’s account for theLimitation Year under any other Code §403(b) definedcontribution plan maintained by a Plan Sponsor or a 415Affiliate.

(ii) $3,000 Missionary Minimum. To the extentpermitted under Code §415(c)(7) and Regulations, if theamount of Annual Additions allocated to a Participant’sAccount for any Limitation Year exceeds the limit ofSection B5.1(a)(i) above, in the case of a Participant per-forming services outside of the United States for anyentity that is controlled by or associated with The UnitedMethodist Church or any autonomous affiliated church,such limit will be increased (if this Section B5.1(a)(ii)provides an increase) to $3,000, provided that suchParticipant’s adjusted gross income for such LimitationYear (determined separately and without regard to com-munity property laws) does not exceed $17,000.

(iii) $10,000 Minimum. To the extent permittedunder Code §415(c)(7) and Regulations, if the amount



of Annual Additions allocated to a Participant’s Accountfor any Limitation Year exceeds the limit of SectionB5.1(a)(i) above, as increased to the limit of SectionB5.1(a)(ii) above (if such Section provides an increase),such limit will be increased to the lesser of:

(A) $10,000 minus the limit of Section B5.1(a)(i)above as applied to such Participant in such LimitationYear; or

(B) $40,000 minus the aggregate of all previousAnnual Additions for all previous Limitation Years madebecause of the extended limit attributable to Code§415(c)(7).

This Section B5.1(a)(iii) will be applied, to theextent required under Code §415(c)(7) and Regulations,to the Participant’s account for the Limitation Year underany other Code §403(b) defined contribution plan main-tained by any entity controlled by or associated with TheUnited Methodist Church within the meaning of Code§414(e)(3)(B)(ii).

(b) Error in Previous Limitation Year. To the extentpermitted by applicable law, an amount credited to aParticipant’s Account in order to correct an error madein a previous Limitation Year will be treated for the pur-pose of Section B5.1(a) as having been credited to suchAccount in the Limitation Year to which the errorrelates.

(c) Correction of Excess Annual Additions. If theamount otherwise allocable to a Participant’s Account,or with respect to a Participant in any other Code§403(b) defined contribution plan described in SectionB5.1(d) below, in a Limitation Year would exceed thelimitation set forth in Section B5.1(a) above, the amountof such excess will be corrected as soon as is practicablein accordance with any applicable Internal RevenueService correction program, which correction will beimplemented, if permitted:

(1) as provided in UMPIP, or, if there is a conflictin the application of this Plan and UMPIP or anotherplan, then according to the plan with the smaller amountof plan sponsor contributions, or, if the foregoing doesnot correct the excess Annual Additions, then

(2) by the application of one or more of SectionsB5.1(c)(2)(i)-(xi) below in the following order to theextent necessary and to the extent permissible under theCode or Regulations or Internal Revenue Service pro-grams (such as the Employee Plans ComplianceResolution System) thereunder:

(i) first, in the case of a Participant eligible tomake before-tax elective deferral contributions (includ-ing any qualified as 15-year catch-up contributions inaccordance with Code §402(g)(7)) to a Code §403(b)defined contribution plan, by a recharacterization of any

such contributions (and any earnings thereon) for theLimitation Year as age 50 catch-up contributions to theextent permissible under Code §414(v) and any suchdefined contribution plan;

(ii) second, in the case of a Participant eligible tomake Roth elective deferral contributions (including anyqualified as 15-year catch-up contributions in accor-dance with Code §402(g)(7)) to a Code §403(b) definedcontribution plan, by a recharacterization of any suchcontributions (and any earnings thereon) for theLimitation Year as age 50 catch-up contributions to theextent permissible under Code §414(v) and any suchdefined contribution plan;

(iii) third, in the case of a Participant eligible tomake after-tax participant contributions to a Code§403(b) defined contribution plan, by returning all or aportion of such contributions (and any earnings thereon)for the Limitation Year, except that in the case of aParticipant whose Plan Sponsor or employer makesmatching contributions (including conditional contribu-tions under UMPIP), such return of after-tax participantcontributions will be made only to the extent that theywere not pre-requisites to earning matching contribu-tions (including such conditional contributions) andonly to the extent permitted by such defined contributionplan;

(iv) fourth, by returning all or a portion of theParticipant’s before-tax elective deferral contributions toa Code §403(b) defined contribution plan (and any earn-ings thereon) for the Limitation Year, except that in thecase of a Participant whose Plan Sponsor or employermakes matching contributions (including conditionalcontributions under UMPIP), such return of before-taxelective deferral contributions will be made only to theextent that they were not pre-requisites to earningmatching contributions (including such conditional con-tributions) and only to the extent permitted by suchdefined contribution plan;

(v) fifth, by returning all or a portion of theParticipant’s Roth elective deferral contributions to aCode §403(b) defined contribution plan (and any earn-ings thereon) for the Limitation Year, except that in thecase of a Participant whose Plan Sponsor or employermakes matching contributions (including conditionalcontributions under UMPIP), such return of Roth elec-tive deferral contributions will be made only to theextent that they were not pre-requisites to earningmatching contributions (including such conditional con-tributions) and only to the extent permitted by suchdefined contribution plan;

(vi) sixth, in the case of a Participant whose PlanSponsor or employer makes matching contributions



(including conditional contributions under UMPIP) to aCode §403(b) defined contribution plan, by repeatingthe following cycle: returning one dollar of after-tax par-ticipant contributions (and any earnings thereon) for theLimitation Year to the Participant and forfeiting any cor-responding matching contributions (including such con-ditional contributions) (and any earnings on either) andcrediting them to a 415 Suspense Account in the nameof the Plan Sponsor or employer, until such excess iscorrected or all after-tax participant contributions andmatching contributions (including such conditional con-tributions) (and any earnings on either) have beenreturned or forfeited, all to the extent permitted by suchdefined contribution plan;

(vii) seventh, in the case of a Participant whose PlanSponsor or employer makes matching contributions(including conditional contributions under UMPIP) to aCode §403(b) defined contribution plan, by repeatingthe following cycle: returning one dollar of before-taxelective deferral contributions (and any earningsthereon) for the Limitation Year to the Participant andforfeiting any corresponding matching contributions(including such conditional contributions) (and anyearnings on either) and crediting them to a 415 SuspenseAccount in the name of the Plan Sponsor or employer,until such excess is corrected or all before-tax electivedeferral contributions and matching contributions(including such conditional contributions) (and anyearnings on either) have been returned or forfeited, all tothe extent permitted by such defined contribution plan;

(viii) eighth, in the case of a Participant whose PlanSponsor or employer makes matching contributions(including conditional contributions under UMPIP) to aCode §403(b) defined contribution plan, by repeatingthe following cycle: returning one dollar of Roth electivedeferral contributions (and any earnings thereon) for theLimitation Year to the Participant and forfeiting any cor-responding matching contributions (including such con-ditional contributions) (and any earnings on either) andcrediting them to a 415 Suspense Account in the nameof the Plan Sponsor or employer, until such excess iscorrected or all Roth elective deferral contributions andmatching contributions (including such conditional con-tributions) (and any earnings on either) have beenreturned or forfeited, all to the extent permitted by suchdefined contribution plan;

(ix) ninth, by crediting any other non-Vested PlanSponsor or employer contributions made for theLimitation Year to a Code §403(b) defined contributionplan that are not specified in Sections B5.1(c)(vi)through (viii) above (and any earnings thereon) to aCode §415 suspense account in the name of the Plan

Sponsor or employer, to be used to reduce the need forfuture Plan Sponsor or employer contributions, all to theextent permitted under such other plan;

(x) tenth, by crediting any other Plan Sponsor oremployer contributions made for the Limitation Year toa Code §403(b) defined contribution plan that are notspecified in Sections B5.1(c)(vi) through (ix) above (andany earnings thereon) to a Code §415 suspense accountin the name of the Plan Sponsor or employer, to be usedto reduce the need for future Plan Sponsor or employercontributions, all to the extent permitted under suchother plan; and

(xi) finally, by returning any other contributions notpreviously returned (and any earnings thereon) for theLimitation Year, in the case of Plan SponsorContributions under this Plan, to a 415 SuspenseAccount in the name of the Plan Sponsor, to be used toreduce the need for future Contributions from such PlanSponsor.

Any amounts in a Plan Sponsor’s 415 SuspenseAccount will be used to reduce future Contributions toParticipants from that Plan Sponsor to Non-MatchingContribution Accounts and Matching ContributionAccounts. 415 Suspense Account amounts will be soapplied as soon as possible after the amounts are allo-cated to the 415 Suspense Account. If a sum in a 415Suspense Account has not been so reallocated to Non-Matching Contribution Accounts or MatchingContribution Accounts within two Plan Years after theclose of the Plan Year in which the sum was first allo-cated to the 415 Suspense Account, then such sum willbe contributed to the Funding Account of theParticipant’s Plan Sponsor.

(d) Aggregation of Plans. For the purpose of thisSection B5.1, all Code §403(b) defined contributionplans of, and all 415 Compensation from, any PlanSponsor or its 415 Affiliates, whether or not such plansare terminated, are to be aggregated and/or treated asone defined contribution plan. If the limit of SectionB5.1(a) is exceeded, Annual Additions must be limited,more than one plan is aggregated, and the provisions ofSection B5.1(c) do not specify which plan’s AnnualAdditions will be limited, then Annual Additions to aplan with a smaller dollar amount of plan sponsor con-tributions will be limited before a plan with a larger dol-lar amount of plan sponsor contributions.

(e) Contribution Timing. A contribution will bedeemed made for a Limitation Year if all conditions nec-essary for a Participant to earn the contribution are sat-isfied in such Limitation Year and if the plan sponsoractually makes the contribution not later than October15 of the year following such Limitation Year.



B5.2 Contributions to Disabled Persons.Contributions may be made with respect to a DisabledParticipant or a Disabled Terminated Participant only tothe extent (if any) that such Contributions may be madein accordance with:

(a) Code §415(c)(3)(C),(b) Code §§414(e)(3)(E)(ii) and/or 415(c)(7),(c) Code §415(c) because of the 415 Compen-

sation received by such Eligible Clergyperson, or(d) any other applicable provisions of the Code.If Contributions made with respect to a Disabled

Participant or a Disabled Terminated Participant exceedthe above limits because of a reasonable mis-estimationof such Disabled Participant’s or a Disabled TerminatedParticipant’s 415 Compensation or for any other reasondescribed in Regulations, the resulting excess AnnualAdditions will be corrected as provided in SectionB5.1(c).

B5.3 Purpose of Limitations; Authority ofAdministrator. The limitations of this Section B5 areintended to comply with the requirements of Code §415,and the Regulations issued thereunder, and will be con-strued accordingly. To the extent that such Regulationsprovide for any elections or alternative methods of com-pliance not specifically addressed in this Section B5, theAdministrator will have the authority to make or revokesuch election or use such alternative method of compli-ance unless such election or alternative method of com-pliance by its terms requires an amendment to the Plan.

SECTION B6—INVESTMENTS AND PLANACCOUNTING

B6.1 Participant Accounts. The Administratorwill establish and maintain a Non-MatchingContribution Account on behalf of each Accountholderwho is allocated any Non-Matching Contributions underthe Plan or who succeeds to any such amounts. TheAdministrator will establish and maintain a MatchingContribution Account on behalf of each Accountholderwho is allocated any Matching Contributions underthe Plan or who succeeds to any such amounts. EachNon-Matching Contribution Account or MatchingContribution Account represents the aggregate amountof Non-Matching Contributions or Matching Contribu-tions, respectively, less any withdrawals or distributionscharged thereto, and adjusted by the earnings, gains,losses, expenses, and unrealized appreciation or depreci-ation attributable to such Contributions, all in accor-dance with accounting rules and procedures establishedby the Administrator from time to time. The mainte-nance of separate Account Balances will not requirephysical segregation of plan assets with respect to any

Account. The Accounts maintained hereunder representthe Accountholders’ interests in the Plan and Trust andare intended as bookkeeping records to assist theAdministrator in the administration of the Plan. Any ref-erence in the Core Defined Contribution Plan to anAccountholder’s “Account(s)” or “Account Balance(s)”refers to all amounts credited to both the Non-MatchingContribution Account and Matching ContributionAccount maintained in the Accountholder’s name underthe Plan unless the context otherwise requires. TheAdministrator may aggregate similar Accounts frommore than one Plan in the Program for the purposes ofaccounting, investment, distributions, and other pur-poses in accordance with rules and procedures adoptedfrom time to time.

B6.2 Separate Fund Accounting.(a) Manner of Accounting. To the extent the Trust

is divided into separate funds, including funds estab-lished pursuant to Section B6.3, the undivided interest ofeach Accountholder’s Account in each such fund will bedetermined in accordance with the accounting proce-dures specified in the trust agreement, investment man-agement agreement, insurance contract, custodianagreement, or other document under which such fund ismaintained. To the extent not inconsistent with such pro-cedures, the following rules will apply:

(i) Amounts deposited in a fund will be depositedby means of a transfer of such amounts to such fundfrom another fund or from a Plan Sponsor, as required.

(ii) Amounts required to be transferred from afund to satisfy benefit payments will be transferred fromsuch investment fund as soon as practicable followingreceipt by the trustee or investment manager of suchfund of proper instructions to complete such transfers.

(iii) Except as provided in the applicable fund doc-ument, all amounts deposited in a fund will be investedas soon as practicable following receipt of such deposit.Pending investment in the appropriate fund, assets maybe invested in short-term instruments or funds asdirected by the Trustee, an investment manager, or anapplicable policy of the Trustee or Administrator.

(b) Separate Accountholder Accounts. Notwith-standing the foregoing, if any portion of the Trust isinvested in a fund that permits each Accountholder’sinterest in the fund to be accounted for as a separateaccount, all Contributions, distributions, and earningswill be accounted for as they are actually received, dis-bursed, or earned.

B6.3 Accountholder-Directed Accounts.Accountholders may direct the investment of theirAccounts in this Plan among any one or combination ofinvestment funds as are offered for such purpose by the



Administrator from time to time. The Administrator willestablish a written procedure to govern such invest-ments, including specifying a default investment fund orfunds when Accountholders do not direct the investmentof their Accounts.

SECTION B7—VESTING AND FORFEITURE

B7.1 Full Vesting. An Accountholder’s Accountin the Plan will be fully Vested at all times to the extentfunded, and will not be forfeited for any reason exceptas provided in Section B7.2.

B7.2 Forfeitures. Notwithstanding SectionB7.1, an Accountholder may forfeit an otherwise VestedAccount in the following circumstances:

(a) Missing Accountholder. The Accounts ofAccountholders who cannot be located will be handledas described in Section B8.6.

(b) Uncashed Check. Any Accountholder who hasbeen issued a check for benefits due but who does notreturn or cash the check within a reasonable periodestablished by the Administrator, after such reasonablenotice (or in the case of very small benefit amounts, nonotice) as the Administrator may determine, will forfeitsuch benefits. Such forfeited amounts will be con-tributed to the Funding Account of the Accountholder’sPlan Sponsor. Uncashed checks returned to theAdministrator because the payee is missing or for otherreasons are not covered by this Section B7.2(b).

(c) Relinquished Benefits. If a ParticipantRelinquishes a benefit, it is forfeited. The Relinquishedbenefit will be contributed to the Funding Account of theAccountholder’s Plan Sponsor.

(d) Ineligible Person. Benefits credited to an ineli-gible person will be handled as described in Section B3.6.

(e) Election Not to Participate. Eligible Clergywho elect not to participate in the Plan will be handledas described in Section B3.7.

(f) Contributions in Excess of Limits. Contribu-tions and earnings thereon may be forfeited in accor-dance with the terms of Section B5.

SECTION B8—PAYMENT OF BENEFITS

B8.1 Methods of Benefit Payment. The fol-lowing provisions are subject to Section B8.4 (relatingto required minimum distributions).

(a) Normal Form of Payment. The normal form ofpayment of an Accountholder’s benefit is a cash lump-sum distribution equal to the Accountholder’s totalAccount Balance in the Plan valued as of the AccountingDate coincident with or immediately before such distri-bution, and, except as otherwise provided herein, allbenefits will be paid in such form.

(b) Small Account Balance. Except in the case of aDisabled Participant and subject to Section B8.2(a), ifthe Accountholder’s Aggregate Benefit does not exceed$5,000 at the Accountholder’s Retirement, when theAccountholder becomes a Terminated Participant,and/or at the Accountholder’s Annuity Starting Date,subject to policies established by the Administrator fromtime to time, the entire amount of the Accountholder’sVested Account Balance in the Plan will be distributedas a lump sum to the Accountholder as soon as adminis-tratively feasible. A Disabled Participant must consent tosuch distribution.

(c) Payment in Cash Installments. In accordancewith rules established by the Administrator, anAccountholder may elect to receive his or her AccountBalance in this Plan in cash installments. Such install-ments will be made in a series of distributions, payableannually or at more frequent intervals, determined inaccordance with the provisions set forth below and rulesissued by the Administrator. The payments will continueuntil the Accountholder changes his or her distributionoption or until the Accountholder’s entire AccountBalance in the Plan has been distributed. Until such time,income, gains, losses, expenses, and unrealized appreci-ation or depreciation will continue to be allocated to theAccount in accordance with Section B6. All payments ofcash installments will be subject to the following.

(i) When required by Code §401(a)(9), theamount distributed in each calendar year beginning withthe calendar year in which the payment begins will notbe less than the Account Balance in this Plan on the lastAccounting Date in the preceding calendar year dividedby the divisor determined under Regulations issuedunder Code §401(a)(9). If the first payment is made inthe year that includes the last day (April 1) of theRequired Beginning Date, such payment will relate tothe immediately preceding year, will be computed asthough paid in such preceding year, and will be sub-tracted from the Account Balance in computing the sec-ond annual payment, which will be due by December 31of the same year in which the first payment was made.

(ii) Installments may be paid more often thanannually, in accordance with rules established by theAdministrator, so long as, when required by Code§401(a)(9), the total amount distributed in any year sat-isfies the minimum distribution requirement of SectionsB8.1(c)(i) and B8.4. Distributions in excess of the mini-mum requirement in any year will not reduce the mini-mum required distribution in later years. Correctivedistributions made to satisfy any of the limitations ofSection B5 will not be considered distributions for thepurpose of the minimum distribution requirement.



(d) Partial Distributions. An Accountholder mayelect one or more partial distributions of his or herAccount Balance under the Plan, in accordance withrules established by the Administrator, provided thateach such distribution is made on or before the requireddate for such distribution under Section B8.4.

(e) Election Procedures. Wherever the Plan pro-vides for an Accountholder to elect a form of distribu-tion (including the right to defer receiving adistribution), the Administrator will provide a writtenexplanation of the different forms of distribution. Suchexplanation will be provided not fewer than 30 nor morethan 180 days before the scheduled commencement ofsuch benefit, or within such other period as may be pro-vided by any applicable provision of the Code. AnAccountholder who has received such explanation maywaive the 30-day period and elect to have his or her ben-efit distributed as soon as administratively practicable.

B8.2 Distributions. The following provisionsare subject to Section B8.4 (relating to required mini-mum distributions).

(a) Small Account Balances. Except in the case ofa Disabled Participant, and subject to policies estab-lished by the Administrator from time to time, if, at thetime:

(i) a Participant qualifies for Early Retirement,Normal Retirement, or Late Retirement or attains his orher Annuity Starting Date;

(ii) a Terminated Participant first becomes aTerminated Participant or attains his or her AnnuityStarting Date; or

(iii) an Alternate Payee’s benefit is segregated pur-suant to a QDRO or the Alternate Payee attains his or herAnnuity Starting Date,

such person’s Aggregate Benefit does not exceed$5,000, the entire amount of the Accountholder’s VestedAccount Balance will be distributed as a lump sum tothe Accountholder as soon as administratively feasibleunless the Accountholder elects a rollover under SectionB8.5(a) to a specified plan or IRA. Notwithstanding theforegoing, if the portion of the Accountholder’sAggregate Benefit that is being distributed from thisProgram at one time is in excess of $1,000, such distri-bution will be rolled over in accordance with SectionB8.5(b) unless such Accountholder:

(1) actively elects a distribution or a rollover underSection B8.5(a) to a specified plan or IRA;

(2) has attained his or her Normal Retirement Date;(3) is a Beneficiary;(4) is an Alternate Payee; or(5) has attained his or her Required Beginning

Date.

A Disabled Participant must consent to such distri-bution, which will be made in accordance with SectionB8.2(d).

(b) Distribution at Retirement. A Participant withan Aggregate Benefit that exceeds $5,000 who attainshis or her Early, Normal, or Late Retirement Date mayelect to begin receiving the distribution of some or all ofhis or her Account Balance as soon as administrativelyfeasible thereafter (subject to the limitations of SectionsB8.1(e) and B8.2(g)) or he or she will be deemed to haveelected to postpone receiving his or her distributionunder Section B8.2(e). Such distribution will be madeeither in the normal form of payment provided inSection B8.1(a) or, if the Participant so elects, in anyoptional form of payment provided under Section B8.1.

(c) Distribution at Termination. A Participant withan Aggregate Benefit that exceeds $5,000 who under-goes a Termination of Conference Relationship, other-wise becomes a Terminated Participant, or incurs aFive-Year No Record of Appointment may elect to beginreceiving the distribution of some or all of his or herAccount Balance as soon as administratively feasiblethereafter (subject to the limitations of Sections B8.1(e)and B8.2(g)) or he or she will be deemed to have electedto postpone receiving his or her distribution until a laterdate to be specified by the Participant that is not laterthan the latest date determined under Section B8.2(f).Such distribution will be made either in the normal formprovided in Section B8.1(a) or, if the Participant soelects, in any optional form provided by Section B8.1.

(d) Distribution at Disability. A Participant who isDisabled may elect to begin receiving the distribution ofsome or all of his or her Account Balance as soon asadministratively feasible thereafter (subject to the limi-tations of Sections B8.1(e) and B8.2(g)) or he or she willbe deemed to have elected to postpone receiving his orher distribution until a date not later than the latest datedetermined under Section B8.2(f). Such distribution willbe made either in the normal form provided in SectionB8.1(a) or, if the Participant so elects, in any optionalform provided by Section B8.1.

(e) Delayed Distribution. A Participant who hasdeferred the Distribution of some or all of his or herAccounts under the Plan under Sections B8.2(b)-(d)may elect to receive some or all of his or her remainingAccounts under the Plan at any later time (subject to thelimitations of Sections B8.1(e) and B8.2(g), but not laterthan the date specified in Section B8.2(f)) in anyoptional form provided by Section B8.1.

(f) Latest Commencement Date. Notwithstandingany other provision of this Plan, the latest date uponwhich the distribution of a Participant’s Account under



the Plan may begin is the Required Beginning Date.Periodic distributions, including mandatory partial lumpsum distributions, will be required thereafter as providedin Section B8.4.

(g) Tax Notice. Before making any EligibleRollover Distribution, the Administrator will furnisheach Accountholder with a notice describing his or herright to a direct rollover of the distribution and the taxconsequences of the distribution. Such notice will befurnished not more than 180 days nor fewer than 30 daysbefore the Recipient is entitled to receive such distribu-tion, and no distribution will be made until 30 days afterhe or she has received such notice unless he or shewaives such 30 day period in writing in accordance withprocedures established by the Administrator.

B8.3 Payments After an Accountholder’sDeath. The following provisions are subject to SectionB8.4 (relating to required minimum distributions).

(a) Distribution on Death. Upon the death of anAccountholder, all amounts credited to suchAccountholder’s Account will be distributed to his or herBeneficiary in accordance with Section B8.1 or as oth-erwise specified in the Plan.

(b) Proof of Death. The Administrator may requiresuch proof of death and such evidence of the right of anyperson to receive payment of the value of the Account ofa deceased Accountholder as the Administrator maydeem appropriate. The Administrator’s determination ofwhich person will receive payment will be conclusive.

(c) Beneficiary Designation. A Participant mayname a Designated Beneficiary in accordance withSection A6.

(d) Surviving Spouse. Notwithstanding a Partici-pant’s Beneficiary designation to the contrary, if thedeceased Participant’s Spouse survives him or her, theParticipant’s surviving Spouse will be his or herBeneficiary and the Participant’s Account will be paid tothat Spouse unless:

(i) the Spouse consents in writing after theParticipant’s death, or had consented in writing beforethe Participant’s death, witnessed in either case by aPlan Sponsor or Administrator representative or a notarypublic, to the Participant’s designation of anotherDesignated Beneficiary; provided, however, that theAdministrator need not solicit such a Spousal consent.The Spouse must consent as specified above to eachchange in Designated Beneficiary unless the originalconsent expressly permits the Participant to furtherchange his or her Designated Beneficiary without therequirement of further consent by the Spouse;

(ii) the Participant is legally separated from his orher Spouse or has been abandoned (within the meaning

of local law) by his or her Spouse, and, in either case, theParticipant has a court order to such effect;

(iii) the Spouse disclaims the Participant’s Account,in writing in a form acceptable to the Administrator,before receiving it. The disclaimer must be of the entirebenefit. The effect of such disclaimer is to treat theSpouse as if he or she had predeceased the Participant;or

(iv) neither the Participant nor the Administratorcan locate the Spouse (provided, however, that theAdministrator will have no obligation to search for suchSpouse).

(e) Change of Beneficiary. An Accountholder mayat any time revoke his or her designation of aBeneficiary or change his or her Designated Beneficiaryby filing written notice (in such form as may be requiredby the Administrator) of such revocation or change withthe Administrator.

(f) Effect of Divorce. A Participant’s divorce on orafter January 1, 1998 will automatically revoke anyBeneficiary designation in favor of the Participant’sSpouse made before the divorce, unless the Participantcompletes another Beneficiary designation in favor ofthe former Spouse after the divorce. Until such time as anew designation of Beneficiary is filed with theAdministrator in accordance with the provisions of thisSection B8.3(f), benefits will be payable as though theformer Spouse had predeceased the Participant.

B8.4 Required Minimum Distributions. Theprovisions of Sections B8.1, B8.2, and B8.3 are intendedto comply with the requirements of Code §401(a)(9),including specifically the minimum distribution inciden-tal death benefit rule of Code §401(a)(9)(G), and theRegulations issued thereunder, and will be construedaccordingly. Such Code and Regulation provisions arehereby incorporated herein by this reference, and willcontrol over any form of distribution provided in thisPlan that is inconsistent therewith. To the extent thatsuch Regulations provide for any elections or alternativemethods of compliance not specifically addressed inSections B8.1, B8.2, or B8.3, the Administrator willhave the authority to make or revoke such election or usesuch alternative method of compliance. The require-ments of this Section B8.4 will take precedence over anyinconsistent provisions of the Plan.

(a) Time and Manner of Distribution.(i) Required Beginning Date. The Participant’s

entire interest will be distributed, or will begin to be dis-tributed, to the Participant no later than the Participant’sRequired Beginning Date. Unless a Participant or otherAccountholder otherwise elects, a distribution at theRequired Beginning Date or at the time of a later



required distribution will not exceed the amount of theminimum required distribution.

(ii) Death of Participant Before DistributionsBegin. If the Participant dies before a distribution to theParticipant begins, the Participant’s entire interest willbe distributed no later than as follows:

(A) If the Participant’s surviving Spouse is theParticipant’s sole Designated Beneficiary, then distribu-tions will begin to the surviving Spouse:

(I) if the surviving Spouse timely elects the Five-Year Distribution Option, then by December 31 of thecalendar year containing the fifth anniversary of theParticipant’s death; or

(II) if the surviving Spouse does not timely electthe Five-Year Distribution Option, then by December 31of the later of:

(1) the calendar year immediately following thecalendar year in which the Participant died; or

(2) the calendar year in which the Participantwould have attained age 70½;


(III) if the surviving Spouse timely elects the Five-Year Distribution Option, December 31 of the calendaryear containing the fifth anniversary of the Participant’sdeath; and

(IV) if the surviving Spouse does not timely electthe Five-Year Distribution Option, either:

(1) over the Life Expectancy of the survivingSpouse; or

(2) over a period certain not exceeding the LifeExpectancy of the surviving Spouse determined usingthe surviving Spouse’s age as of the surviving Spouse’sbirthday in the calendar year:

(a) that contains the Annuity Starting Date wherethe Annuity Starting Date is before the first DistributionCalendar Year; or

(b) immediately following the calendar year of theParticipant’s death where the Annuity Starting Date isnot before the first Distribution Calendar Year.


(B) If the Participant’s surviving Spouse is not theParticipant’s sole Designated Beneficiary, then distribu-tions will begin to the Designated Beneficiary:

(I) if the Designated Beneficiary timely elects theLifetime Distribution Option (not available toBeneficiaries that are estates or trusts), by December 31of the calendar year immediately following the calendaryear in which the Participant died; or

(II) if the Designated Beneficiary does not timelyelect the Lifetime Distribution Option, by December 31

of the calendar year containing the fifth anniversary ofthe Participant’s death;


(III) if the Designated Beneficiary timely elects theLifetime Distribution Option, then over the life of theDesignated Beneficiary as provided in SectionB8.4(c)(ii)(A); or

(IV) if the Designated Beneficiary does not timelyelect the Lifetime Distribution Option, then byDecember 31 of the calendar year containing the fifthanniversary of the Participant’s death.


(C) If there is no Designated Beneficiary as ofSeptember 30 of the year following the year of theParticipant’s death, the Participant’s entire interest willbe distributed by December 31 of the calendar year con-taining the fifth anniversary of the Participant’s death.

(D) If the Participant’s surviving Spouse is theParticipant’s sole Designated Beneficiary and the sur-viving Spouse dies after the Participant but before dis-tributions to the surviving Spouse begin, this SectionB8.4(a)(ii), other than section B8.4(a)(ii)(A), will applyas though the surviving Spouse were the Participant.

For the purposes of this Section B8.4(a)(ii), unlessSection B8.4(a)(ii)(D) applies, distributions are consid-ered to begin on the Participant’s Required BeginningDate. If Section B8.4(a)(ii)(D) applies, distributions areconsidered to begin on the date distributions are requiredto begin to the surviving Spouse under SectionB8.4(a)(ii)(A).

(iii) Forms of Distribution. Unless a Participant’sinterest is distributed in the form of a single sum on orbefore the Required Beginning Date, as of the firstDistribution Calendar Year, distributions will be made inaccordance with Sections B8.4(b), (c), and (d).

(b) Required Minimum Distributions DuringParticipant’s Lifetime.

(i) Amount of Required Minimum Distribution forEach Distribution Calendar Year. During a Participant’slifetime, the minimum amount that will be distributedfor each Distribution Calendar Year is the lesser of:

(A) the quotient obtained by dividing theParticipant’s Valuation Account Balance by the distribu-tion period in the Uniform Lifetime Table set forth inRegulation §1.401(a)(9)-9, using the Participant’s age asof the Participant’s birthday in the Distribution CalendarYear; or

(B) if the Participant’s sole Designated Beneficiaryfor the Distribution Calendar Year is the Participant’sSpouse, the quotient obtained by dividing the Participant’s



Valuation Account Balance by the number in the Jointand Last Survivor Table set forth in Regulation§1.401(a)(9)-9, using the Participant’s and Spouse’sattained ages as of the Participant’s and Spouse’s birth-days in the Distribution Calendar Year.

(ii) Lifetime Required Minimum DistributionsContinue Through Year of Participant’s Death. Requiredminimum distributions will be determined under thisSection B8.4(b) beginning with the first DistributionCalendar Year and up to and including the DistributionCalendar Year that includes the Participant’s date ofdeath.

(c) Required Minimum Distributions AfterParticipant’s Death.

(i) Death on or After Date Distributions Begin.(A) Participant Survived by Designated Bene-

ficiary. If the Participant dies on or after the date distri-butions begin and there is a Designated Beneficiary, theminimum amount that will be distributed for eachDistribution Calendar Year after the year of theParticipant’s death is the quotient obtained by dividingthe Participant’s Valuation Account Balance by the longerof the remaining Life Expectancy of the Participant orthe remaining Life Expectancy of the Participant’sDesignated Beneficiary, determined as follows:

(I) The Participant’s remaining Life Expectancy iscalculated using the age of the Participant in the year ofthe Participant’s death, reduced by one year for eachyear after the Participant’s death.

(II) If the Participant’s surviving Spouse is theParticipant’s sole Designated Beneficiary, the remainingLife Expectancy of the surviving Spouse is calculatedfor each Distribution Calendar Year after the year of theParticipant’s death using the surviving Spouse’s age asof the Spouse’s birthday in that year. For DistributionCalendar Years after the year of the surviving Spouse’sdeath, the remaining Life Expectancy of the survivingSpouse is calculated using the age of the survivingSpouse as of the Spouse’s birthday in the calendar yearof the Spouse’s death, reduced by one year for each latercalendar year.

(III) If the Participant’s surviving Spouse is not theParticipant’s sole Designated Beneficiary, theDesignated Beneficiary’s remaining Life Expectancy iscalculated using the age of the Designated Beneficiaryin the year following the year of the Participant’s death,reduced by one year for each later year.

(B) No Designated Beneficiary. If the Participantdies on or after the date distributions begin and there isno Designated Beneficiary as of September 30 of theyear after the year of the Participant’s death, the mini-mum amount that will be distributed to the Default

Beneficiary for each Distribution Calendar Year after theyear of the Participant’s death is the quotient obtained bydividing the Participant’s Valuation Account Balance bythe Participant’s remaining Life Expectancy calculatedusing the age of the Participant in the year of theParticipant’s death, reduced by one year for each lateryear. Notwithstanding the foregoing, if the Participant’ssurviving Spouse is the Participant’s sole DefaultBeneficiary, distributions to such surviving Spouse willbe made in accordance with Section C8.4(c)(i)(A)(II)above.

(ii) Death Before Date Distributions Begin.(A) Participant Survived by Designated Bene-

ficiary. Except as otherwise provided in Section B8.4(d),if the Participant dies before the date distributions beginand there is a Designated Beneficiary, the minimumamount that will be distributed for each DistributionCalendar Year after the year of the Participant’s death isthe quotient obtained by dividing the Participant’sValuation Account Balance by the remaining LifeExpectancy of the Participant’s Designated Beneficiary,determined as provided in Section B8.4(c)(i).

(B) No Designated Beneficiary. If the Participantdies before the date distributions begin and there is noDesignated Beneficiary as of September 30 of the yearfollowing the year of the Participant’s death, distributionof the Participant’s entire interest to the DefaultBeneficiary will be completed by December 31 of thecalendar year containing the fifth anniversary of theParticipant’s death.

(C) Death of Surviving Spouse Before Distribu-tions to Surviving Spouse Are Required to Begin. If theParticipant dies before the date distributions begin, theParticipant’s surviving Spouse is the Participant’s soleDesignated Beneficiary, and such surviving Spouse diesbefore distributions are required to begin to the surviv-ing Spouse under Section B8.4(a)(ii)(A), this SectionB8.4(c)(ii) will apply as if the surviving Spouse were theParticipant.

(d) Small Account Balance. Except in the case of aDisabled Participant or a Disabled TerminatedParticipant, notwithstanding the provisions of SectionsB8.4(a)-(c) to the contrary, if an Accountholder’s orDesignated Beneficiary’s Aggregate Benefit at the timeof distribution does not exceed $5,000, his or her entireAccount Balance will be distributed as a lump sum tosuch Accountholder or Designated Beneficiary as soonas administratively feasible in accordance with SectionB8.2(a). A Disabled Participant or a Disabled TerminatedParticipant must consent to such distribution, which willbe made in accordance with Section B8.2(d).



B8.5 Direct Rollovers.(a) Elective Rollovers. If a Participant or

Terminated Participant, or the surviving Spouse orAlternate Payee of either, receives an Eligible RolloverDistribution, the Participant or Terminated Participant,or the surviving Spouse or Alternate Payee of either, hasthe right to direct the rollover of all or a portion of suchdistribution directly to an IRA, a defined contributionpension or profit-sharing trust qualified under Code§401(a), an annuity plan qualified under Code §403(a),a tax-sheltered annuity plan qualified under Code§403(b), or another “eligible retirement plan” as definedin Code §401(a)(31), that will accept such a rollover,provided that the amount so transferred must either bethe entire amount of such distribution or at least $200.Any surviving non-Spouse Beneficiary who receives alump sum cash-out that qualifies as an Eligible RolloverDistribution has the right to elect a direct rollover of allor a portion of such distribution directly to an inheritedIRA that will accept such rollover, provided that theamount so transferred must either be the entire amountof such distribution or at least $200. The Administratormay adopt administrative procedures to implementdirect rollovers, which may vary the time periods andminimum amounts set forth above, to the extent consis-tent with final Regulations issued under Code§401(a)(31). The Administrator will furnish eachAccountholder to whom this Section B8.5(a) applieswith a notice describing his or her right to a directrollover and the tax consequences of a distribution. Suchnotice will be furnished not more than 180 days norfewer than 30 days before the Accountholder is entitledto receive such distribution, and no distribution will bemade until 30 days after he or she has received suchnotice unless he or she waives such 30 day period inwriting. The Administrator may adopt administrativeprocedures to implement direct rollovers, which mayvary the time periods and minimum amounts set forthabove, to the extent consistent with final Regulationsissued under Code §401(a)(31).

(b) Auto-Rollovers. When:(i) a distribution from this Program to an

Accountholder exceeds $1,000;(ii) the Accountholder’s Aggregate Benefit does

not exceed $5,000; and(iii) the Accountholder:(A) has not requested to receive the distribution;(B) has not requested that the distribution be rolled

over to another eligible retirement plan or IRA specifiedby the Accountholder;

(C) has not attained his or her Normal RetirementDate;

(D) is not a Beneficiary;(E) is not an Alternate Payee; and(F) has not attained his or her Required Beginning

Date;then the Administrator will pay the distribution in a

direct rollover to an IRA designated by theAdministrator and invested in an investment type desig-nated by the Administrator for the benefit of theAccountholder. Before making such rollover, theAdministrator will provide, separately or as part of thenotice specified in Section B8.5(a) above, a notice tosuch Accountholder stating that, absent his or her affir-mative election, the distribution will be automaticallyrolled over to an IRA. The notice will also identify thecustodian, trustee, or other issuer of the IRA. In carryingout this Section B8.5(b), the Administrator will complywith IRS Notice 2005-5 and other applicable advicefrom the Internal Revenue Service or Regulations.

B8.6 Unclaimed Benefits. The Administratormay prescribe uniform and nondiscriminatory rules forcarrying out the following provisions:

(a) If a portion (or all) of an Account remains to bedistributed to an Accountholder at a time when it is dueunder the Plan (including, but not limited to, theRequired Beginning Date) and the Administrator is thenunable to locate the Accountholder, the Administratorwill send notice of such benefit due by a certified letterwith return receipt requested to the last known addressof the Accountholder. If the Accountholder fails to con-tact the Administrator within 12 months (except as pro-vided in Section B8.6(b)), such benefit will be forfeited(except as provided in Section B8.6(c)) and will becomethe benefit of, in the case of a Participant or AlternatePayee, such person’s Beneficiary, or, in the case of aBeneficiary, the Participant’s or Alternate Payee’s suc-cessor Beneficiary (including any Default Beneficiariesprovided under the terms of the Plan), except in the casewhere a Beneficiary defers the distribution of anAccount and is permitted to name his or her ownBeneficiary, and in that case the Beneficiary’sBeneficiary. The Administrator will then send notice bycertified letter as provided above to the Beneficiary orsuccessor Beneficiary (including a Default Beneficiary),and the process specified above will be repeated until thelast successor Beneficiary is sent a notification.

(b) If the last successor or Default Beneficiaryfails to contact the Administrator within 12 months afterbeing sent notification of a benefit due as provided inSection B8.6(a), then the amount specified in SectionB8.6(a) will be forfeited. The Administrator will holdsuch forfeitures in a suspense account on behalf of thePlan Sponsor of the Accountholder referred to in Section



B8.6(a) above to be applied against a subsequentContribution to the Plan from that Plan Sponsor.

(c) If, at any time before the expiration of the 12-month period described in Section B8.6(b), anAccountholder who is or was due a benefit described inSection B8.6(a) claims the benefit, the benefit will bepaid to such Accountholder (notwithstanding any previ-ous forfeiture) if it has not previously been paid toanother Accountholder. If the 12-month perioddescribed in Section B8.6(b) has elapsed, then such ben-efit will be permanently forfeited and used by theAdministrator as described in Section B8.6(b).

B8.7 Payment with Respect to IncapacitatedAccountholders. Whenever, in the Administrator’sopinion, a person entitled to receive any payment of abenefit under the Plan is under a legal disability (includ-ing being a minor) or is incapacitated in any way so asto be unable to manage such person’s financial affairs,the Administrator may direct the Trustee to make pay-ments directly to the person, to the person’s legal repre-sentative (including a custodian for such person underthe applicable Uniform Gifts or Transfers to Minors Actor similar legislation), or to a relative or friend of theperson to be used exclusively for such person’s benefit,or apply any such payment for the benefit of the personin such manner as the Administrator deems advisable.The decision of the Administrator, in each case, will befinal, binding, and conclusive upon all persons inter-ested hereunder. The Administrator will not be obligatedto see to the proper application or expenditure of anypayment so made. Any benefit payment (or installmentthereof) made in accordance with the provisions of thisSection B8.7 will completely discharge the obligationfor making such payment under the Plan, and theAdministrator will have no further liability on accountthereof.

B8.8 Limitation on Liability for Distributions.All rights and benefits, including benefit and investmentelections, provided to a Participant in this Plan will besubject to the rights afforded to any Alternate Payeeunder a QDRO. Further, a distribution to an AlternatePayee will be permitted if such distribution is authorizedby a QDRO, even if the affected Participant has notincurred a Termination of Employment or attained anyparticular age.

B8.9 In-Service Withdrawals. A Participantmay withdraw all or any portion of his or her Accountunder this Plan if the Participant is Disabled.

B8.10 Disclaimer. Any Beneficiary may dis-claim any benefit or portion thereof that is due to him orher if done in writing in a form acceptable to theAdministrator and if done before receiving it. The effect

of a disclaimer is to treat such Beneficiary as if he or shehad died before the benefit or portion was due to him orher.

B8.11 Trailing Account Balances. If anAccountholder who has received a distribution of his orher entire Account Balance later receives a credit to suchAccount, because of a delayed Contribution, a delayedcrediting of earnings, or a correction in accounting or forsome other reason, the Administrator will distribute thebalance in the Account to the Accountholder as soon aspracticable thereafter. If the Account Balance is under$200, the Account Balance will be distributed as a lumpsum to the Accountholder as soon as administrativelyfeasible. If the Account Balance is $200 or more, it willbe distributed in the same form of payment that appliedto the Accountholder’s previous distribution.

SUPPLEMENT ONETO THE


PRE-82 PLANSECTION S1.1—THE PLAN

S1.1.1 Prior Plans. Effective January 1, 1982,the Ministers Reserve Pension Fund, the Partial ReservePension Fund, the Local Pastors Reserve Pension Fund,the Senior Plan, the Ministers Reserve Pension Plan, orthe Current Income Distribution Pension Plan (here-inafter collectively referred to as the “Prior Plans”) weremerged into supplement one to the Ministerial PensionPlan. Effective January 1, 2007, MPP was amended andrestated as CRSP, and supplement one to MPP wasamended and restated as this Supplement One to CRSP.On and after the Effective Date, the benefits payableunder the Prior Plans will be paid in accordance with theprovisions of this Supplement One and will benefitmembers of Participating Group No. Pre-82-1 (seeSection S1.2 below).

S1.1.2 Use of Assets of Prior Plans. Theassets of the Prior Plans (other than those in theDisability and Survivor Benefit Fund) are designated asa part of the Pre-82 Plan for the purpose of funding thePast Service Benefits for such persons. Such assets willbe collectively referred to as the Pre-82 Assets and willbe accounted for separate and apart from the other fundsunder the Program, subject to Section A1.6(d). Theassets of the Prior Plans in the Disability and SurvivorBenefit Fund were transferred to CPP, which replacedthe provisions of the Prior Plans related to the Disabilityand Survivor Benefit Fund.



SECTION S1.2—ELIGIBILITY

S1.2.1 Participating Group No. Pre-82-1.Participating Group No. Pre-82-1 consists of:

(a) All participants in supplement one to MPP onJanuary 1, 1982 who:

(i) on December 31, 1981 were covered by thePrior Plans, and

(ii) on December 31, 2006 were receiving pensionbenefits or by their Annuity Starting Dates were entitledto receive deferred Vested pension benefits from the Pre-82 Plan; and

(b) All other persons (other than those specified inSection S1.2.1(a)) who:

(i) on December 31, 1981 were receiving pensionbenefits or were entitled to receive deferred Vested pen-sion benefits from the Prior Plans, and

(ii) on December 31, 2006 were receiving pensionbenefits or by their Annuity Starting Dates were entitledto receive deferred Vested pension benefits from the Pre-82 Plan.

S1.2.2 Eligibility. Members of ParticipatingGroup Pre-82-1 are eligible to receive benefits pursuantto the provisions of this Supplement One and are knownhereunder as Pre-82 Participants.

SECTION S1.3—FUNDING OF BENEFITS

S1.3.1 Liability for Contributions. Except asotherwise specifically provided in this Supplement One,the Past Service Benefits due to or with respect to Pre-82 Participants:

(a) who were members of an Annual Conferencewill be funded by each such Annual Conference; and

(b) with service rendered in a missionary confer-ence (as described in ¶¶ 585-588 of the Discipline), pro-visional annual conference (as described in ¶¶ 580-583of the Discipline), or former mission (within the mean-ing of ¶¶ 590-591 of the Discipline) within the UnitedStates that has been approved by such entities for pre-1982 pension credit, will be funded as provided in¶ 1506.16 of the Discipline.

The responsible Pre-82 Sponsors specified abovewill make annual past service Contributions to theTrustee in accordance with the schedule for suchContributions determined by the Administrator on thebasis of periodic actuarial valuations. All suchContributions will be made by the Due Date specified bythe Administrator to the Funding Account for theresponsible party in the Consolidated DB Plan (althougha separate accounting as Pre-82 Assets will be main-tained as to such contributions for administrative pur-poses). If a Pre-82 Sponsor delays in making a specified

Contribution to the Plan beyond such Due Date, then thePre-82 Sponsor will make such delayed Contribution tothe Plan as soon as possible thereafter. In addition, suchPre-82 Sponsor will pay a Contribution equal to thegreater of:




S1.3.2 Amortization of Liability. The initialunfunded liability for the Past Service Benefits, based onthe past service rate in effect as of January 1, 1982, willbe funded by an annual past service contribution duefrom each Pre-82 Sponsor to its Funding Account underthe Trust not later than December 31 of each Plan Yearthat is at least equal to the greater of:

(a) an amount (when taken together with expectedfuture contributions) determined by the Administrator toamortize the unfunded accrued past service liability overa period ending on or before December 31, 2021; or

(b) the amount of the unfunded Past ServiceBenefits paid out during the year.

S1.3.3 Determination of Initial UnfundedPortion. In determining the initial unfunded portion ofthe accrued past service liability as of January 1, 1982,the following items will be subtracted from the totalaccrued past service liability:

(a) the funded past service liability; and(b) the sum of:(i) the Service Annuity Accumulations; and

(ii) any portion of the Personal ContributionsAccumulation that is required to be applied toward thepayment of the Formula Benefit, to the extent that theseamounts do not exceed the amount necessary to fund theFormula Benefit.

S1.3.4 Past Service Rate Amount Increases.(a) Elective Increases. A Conference is encour-

aged to consider the increased cost of living when set-ting its Past Service Rate Amount. A Conference mayincrease its Past Service Rate Amount as of January 1 of



any Plan Year by amending its Adoption Agreement,subject to the funding requirements of Section S1.3.4(b)below. In no event may a Conference reduce its PastService Rate Amount.


(i) if such Conference does not already have suffi-cient funding in its Funding Account to fully fund anysuch elective increase, fund the liability related to anysuch elective increase by making a Contribution to theTrust of the full amount of the liability incurred as aresult of such increase, being the present value of allfuture additional benefits paid as a result of suchincrease as determined by the Administrator, adjustedusing a reasonable interest rate selected from time totime by the Administrator to reflect any differencesbetween the date the liability was calculated and the datepayment is made, and in accordance with any timing oradministrative rules the Administrator may establish;and

(ii) have, and be in compliance with, a fundingplan to cover all Pre-82 Plan liabilities, including thosegenerated by such increase, which funding plan mustmeet minimum standards set by the Administrator.


(i) elect one Past Service Rate Amount for all Pre-82 Participants in the merged conference, in which casesuch single Past Service Rate Amount may not be anylower than the highest Past Service Rate Amount appli-cable to each merged Conference on the day before themerger; or



(d) Subdividing Conference. When a Conferencesubdivides into two or more Conferences or when a por-tion of a Conference subdivides from its original

Conference to merge with another Conference, eachresulting Conference may maintain one or more PastService Rate Amounts, provided that the Past ServiceRate Amount applicable to any Pre-82 Participant maynot be reduced. Any increases in Past Service RateAmounts under this Section S1.3.4(d) will be treated aselective increases under Section S1.3.4(a) that mustmeet the requirements of Section S1.3.4(b).

S1.3.5 Amortization of Other Liability.Unfunded liability for Past Service Benefits not other-wise covered under another Section, such as liability forbenefits due after December 31, 2021 and liability foractuarial losses, will be funded by Pre-82 Sponsors in anactuarially reasonable manner specified by theAdministrator from time to time.

S1.3.6 Personal Account. The Trustee willmaintain an Account, which may be called the personalaccount, for each Pre-82 Participant who has a PersonalContributions Accumulation under the Plan. The PersonalContributions Accumulation of the Pre-82 Participant willbe held in this Account and will be invested by the Trusteein the same manner as is described in Section S1.3.8.

S1.3.7 Contingent Annuitant Percentage.(a) Fixed Percentage. Before January 1, 2007, a

Pre-82 Sponsor was able to elect in its AdoptionAgreement to increase the Contingent Annuitant per-centage from 70% to a higher percentage, with the Pre-82 Sponsor funding the added liability caused by suchelection by making annual contributions determined bythe Administrator to be sufficient to amortize the liabil-ity over the period from the current year to December31, 2021. On and after January 1, 2007, the ContingentAnnuitant percentage will remain at the level it was foreach Pre-82 Sponsor on the day before January 1, 2007,unless a change is adopted in accordance with SectionS1.3.7(b) below. Funding will continue as previouslyprovided until December 31, 2021. Thereafter, anyremaining funding obligations will be satisfied as pro-vided in Section S1.3.5.

(b) Changes to Percentage. On or after theEffective Date, a Pre-82 Sponsor may elect in itsAdoption Agreement, as of any January 1, to increase(but not decrease) its Contingent Annuitant percentage.Any increases in Contingent Annuitant Percentage underthis Section S1.3.7(b) will be treated as elective increasesthat must meet the requirements of Section S1.3.4(b).

(c) Conference Mergers. When Conferencesmerge or subdivide as described in Sections S1.3.4(c)and (d), a resulting Conference may:

(i) apply the highest Contingent Annuitant per-centage applicable to any of its Pre-82 Participants to allof its Pre-82 Participants; or




Any increases in Contingent Annuitant Percentageunder this Section S1.3.7(c) will be treated as electiveincreases that must meet the requirements of SectionS1.3.4(b).


S1.3.8 Investment of Contributions. TheTrustee will invest amounts in each Pre-82 Sponsor’sFunding Account in accordance with the Trust. TheAdministrator will credit each such Funding Accountwith earnings and debit each such Funding Account withlosses accrued from time to time.

SECTION S1.4—PAST SERVICE BENEFITS

A member of Participating Group No. Pre-82-1, inaddition to any benefits based on service on or afterJanuary 1, 1982, will be entitled to benefits based onservice before January 1, 1982, in accordance with thefollowing provisions:

S1.4.1 Approved Service. A Pre-82 Partici-pant’s Approved Service will be the same under the Pre-82 Plan as it was as of January 1, 1982 determined undersupplement one to MPP or under the Prior Plans.

S1.4.2 Past Service Benefits.(a) Past Benefits Continued. All persons who, as of

December 31, 2006, were receiving pension benefitsfrom supplement one to MPP will thereafter continue toreceive such Past Service Benefits in the same form andamount from this Pre-82 Plan.

(b) Annuity Starting Date. If a Pre-82 Participantwas not receiving pension benefits from supplement oneto MPP as of December 31, 2006 or ceased receivingthem after that date because of reemployment, his or herAnnuity Starting Date for his or her Past ServiceBenefits will be the first day of the month following themonth in which occurs the later of:

(i) his or her Early, Normal, or Late RetirementDate; or

(ii) the date he or she applies for a Past ServiceBenefit;

provided, however, that notwithstanding this provi-sion:

(A) an Annual Conference may designate a Pre-82Participant’s Annuity Starting Date to be the first day ofthe month in which his or her Retirement takes place;

(B) a Pre-82 Participant’s Annuity Starting Datemust meet the conditions of Section S3.4.5(e); and

(C) a Pre-82 Participant’s Annuity Starting Datemay not be later than his or her Required BeginningDate, notwithstanding the foregoing.

Distributions under the Plan will comply with Code§403(b)(10) and its provisions related to compliancewith Code §401(a)(9) and the applicable provisions ofany required minimum distribution Regulations issuedthereunder. Such Code and Regulation provisions arehereby incorporated herein by this reference, and willcontrol over any form of distribution or timing of distri-bution provided in this Plan that is inconsistent there-with. To the extent that such Regulations provide for anyelections or alternative methods of compliance notspecifically addressed in the Plan, the Administrator willhave the authority to provide for such elections or alter-native methods of compliance.

(c) Amount of Benefit. A Pre-82 Participant willreceive a monthly Past Service Benefit equal to thegreater of (on an annual basis):

(i) the sum of:(A) such Pre-82 Participant’s Service Annuity; plus(B) his or her Personal Contributions Annuity, if

any; or(ii) the following sum or amount:(A) such Pre-82 Participant’s Formula Benefit;

plus, if his or her Pre-82 Sponsor does not stipulate in itsAdoption Agreement that the Personal ContributionsAnnuity will apply toward the payment of the Pre-82Participant’s Formula Benefit,

(B) his or her Personal Contributions Annuity, ifany;

provided however, that if such Pre-82 ParticipantRetires on his or her:

(1) Early Retirement Date, the amount of his orher Past Service Benefit will be actuarially adjusted asprovided in ¶ 1506.4i) of the Discipline; or

(2) Late Retirement Date, the amount of his or herPast Service Benefit will be actuarially adjusted toreflect the delay from his or her Normal Retirement Dateto his or her Late Retirement Date. Such actuarialadjustment will be on an Actuarially Equivalent basisdetermined pursuant to procedures developed by theAdministrator.

(d) Form of Benefit.(i) If the Pre-82 Participant has a Spouse at the

time of Retirement and his or her marriage to thatSpouse took place before the cessation of service rendered



by the Pre-82 Participant while Under EpiscopalAppointment, the form of the annuity will be aContingent Annuity with 70% (or 75%, 85%, or 100%,if elected by the applicable Pre-82 Sponsor and so setforth in the Adoption Agreement) payable to theContingent Annuitant on the death of the Pre-82Participant. The Pre-82 Participant will be the primaryannuitant and his or her Spouse will be the ContingentAnnuitant.

(ii) If the Pre-82 Participant is not married at thetime of Retirement or if the Pre-82 Participant’s mar-riage took place after he or she ceased serving UnderEpiscopal Appointment, the form of the annuity will bea Single-Life Annuity.

(e) Funding. The funding for a Pre-82Participant’s Past Service Benefit will come from thefollowing sources in the following order:

(i) First, such Pre-82 Participant’s ServiceAnnuity Accumulation;

(ii) Second, such Pre-82 Participant’s PersonalContributions Accumulation; and

(iii) Finally, the Funding Account in theConsolidated DB Plan for such Pre-82 Participant’s Pre-82 Sponsor.

(f) Supplement Three Benefits. The defined contri-bution organizational reserve and defined benefit Vestedfunds contributed on behalf of a Pre-82 Participant or aRetired Pre-82 Participant will be paid in accordancewith Section S3.4.5 of Supplement Three.

(g) Terminated Participants. Notwithstanding theabove provisions, the pension of a Pre-82 Participantwho became a Terminated Participant before January 1,1982 will be determined in accordance with:

(i) the provisions of the Discipline and the PriorPlans in effect at the time of such termination, or

(ii) the special provisions of Sections S1.4.3(d)-(g).

(h) Non-Revision. Except in the case of a perma-nent suspension of benefits due to re-employment,beginning five business days before the first monthlyPast Service Benefit is due, neither the form of paymentnor the Spouse entitled to survivor payments may bechanged by reason of the death of a Spouse or a divorce.

S1.4.3 Vesting.(a) A Pre-82 Participant will at all times be

fully Vested in his or her Personal ContributionsAccumulation.

(b) A Pre-82 Participant will be fully Vested in hisor her Past Service Benefits at his or her Retirement.

(c) A Pre-82 Participant will be fully Vested afterDecember 31, 1981 in his or her Past Service Benefits ifhe or she has at least:

(i) 10 years of Pre-82 Plan Vesting Service if he orshe is a Bishop, an Elder in Full Connection, aProvisional Member, affiliate member within the mean-ing of ¶¶ 344.4, 369.1, or 586.4 of the Discipline, or anAssociate Member, or

(ii) 10 years of Pre-82 Plan Vesting Service or fourconsecutive years of Pre-82 Plan Vesting Service if he orshe is a Local Pastor or an ordained minister of anotherdenomination within the meaning of ¶¶ 346.2 or 346.3of the Discipline.

(d) A Pre-82 Participant who is a former Elder inFull Connection, Provisional Member, affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, or Associate Member who became aTerminated Participant on or after January 1, 1973, andbefore January 1, 1982, after the completion of 10 ormore years of service with pension credit in one or moreConferences will be Vested in the right to receive a pen-sion beginning on the first of any month following thedate such Pre-82 Participant attains age 62, based on theyears of service approved for pension credit. Such Pre-82 Participant’s pension will be based on all years ofservice with pension credit if such Pre-82 Participanthad 20 or more such years. If such Pre-82 Participanthad fewer than 20 such years but at least 10 years, theyears used in the calculation of the benefit will be a per-centage of the Approved Service years; such percentagewill be determined by multiplying the credited wholeyears by 5%, resulting in 50% of such years for 10 yearsof credited service and 100% for 20 years of such serv-ice. Effective at the close of the 1976 GeneralConference, Pre-82 Participants who were former Eldersin Full Connection, Provisional Members, affiliatemember within the meaning of ¶¶ 344.4, 369.1, or 586.4of the Discipline, or Associate Members of theConference who became Terminated Participants on orafter such date will have any vested pension benefits cal-culated at the annuity rate in effect on the date he or shebecame a Terminated Participant.

(e) The foregoing notwithstanding, a Pre-82Participant who participated in the Ministers ReservePension Fund before January 1, 1973, and, upon his orher Termination of Conference Relationship, allows hisor her Personal Contributions Accumulation to remain inthe Pre-82 Plan until he or she attains age 60, will beVested fully in his or her Service Annuity, payable in thesame form as provided in Section S3.4.5 of SupplementThree.

(f) A Pre-82 Participant who was an Elder in FullConnection, Provisional Member, affiliate memberwithin the meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, or Associate Member and who voluntarily



withdrew from the ministry of The United MethodistChurch to enter the ministry of another church ordenomination, upon

(i) the attainment of age 62,(ii) the recommendation of the board of pensions

of any Conference in which he or she had ApprovedService rendered before January 1, 1982, or the legalsuccessor of such Conference, and

(iii) a three-fourths vote of those present and votingin such Conference,

may be recognized and granted a pension onaccount of Approved Service rendered in suchConference.

(g) A Pre-82 Participant who has been granted theretired relation in a Central Conference or an affiliatedautonomous church will be entitled to a pension from aConference or Conferences for the years of ApprovedService rendered therein upon attainment of the requiredage or the completion of the required years of ApprovedService. Such clergyperson will notify the GeneralBoard of Pension and Health Benefits upon his or herretirement. The Administrator will certify the years ofApproved Service to each Conference concerned.Payments due thereunder will be collected from theConference concerned and forwarded to such Pre-82Participant by the Administrator in such manner as itmay deem most expedient and economical. If such Pre-82 Participant dies before his or her Annuity StartingDate, his or her Spouse will be eligible for a benefitequal to 70% (or 75%, 85%, or 100% percent if electedby the applicable Conference) of such Pre-82Participant’s Formula Benefit. If no Spouse survivessuch Pre-82 Participant, his or her Service AnnuityAccumulation will be paid in accordance with SectionS3.4.6 of Supplement Three.

(h) Any funding for a Pre-82 Plan benefit that isforfeited by an unvested Pre-82 Participant will stay inthe Pre-82 Plan to be used to fund benefits for other Pre-82 Participants of the same Pre-82 Sponsor.

S1.4.4 Disability Benefits.(a) Eligibility. All persons who:(i) as of December 31, 1981, were receiving dis-

ability benefits under the Current Income DistributionPension Plan; and

(ii) continued to receive such benefits onDecember 31, 2006 under supplement one to MPP

will be entitled to continue the annual disabilitybenefit, payable in monthly installments, for as long asthey remain disabled within the meaning of that plan.

(b) Amount. Each eligible person described inSection S1.4.4(a) will continue the monthly benefit he orshe was receiving as of December 31, 2006 for as long

as he or she remains eligible. Effective January 1, 2007,that amount will increase by 3% annually thereafter onthe anniversary date of the first payment of each recipi-ent’s disability benefits.

(c) Payment. Payment of the disability benefits setforth in this Section S1.4.4 will be subject to the provi-sions of subsections 5.04(d), (e), and (f) of CPP as ofJanuary 1, 1982 or their successors.

S1.4.5 Surviving Spouse Benefits.(a) All surviving Spouses who:(i) as of December 31, 1981, were receiving sur-

viving spouse benefits from the Prior Plans; and(ii) as of December 31, 2006, were receiving such

benefits under supplement one to MPPwill thereafter continue to receive such benefits

from this Plan, except that such benefits that were for-merly being paid from the Disability and SurvivorBenefit Fund will be continued under CPP.

(b) The benefit payable hereunder to a survivingSpouse who remarried before January 1, 1982, willcease upon his or her remarriage. Upon the earlier of:

(i) the dissolution of the marriage; or(ii) the spouse attaining age 65,and after application to the Administrator, the ben-

efit will begin again with no consideration being givenfor the period during which no benefit was being paid.

(c) Notwithstanding the definition of “Spouse” inSection 2, a surviving “Spouse” under Supplement Onemust have been married to a Pre-82 Participant:

(i) at some point while the Pre-82 Participant wasUnder Episcopal Appointment;

(ii) at the Pre-82 Participant’s Retirement; and(iii) at the Pre-82 Participant’s Annuity Starting

Dateto receive a surviving Spouse benefit. During the

period starting January 1, 1982 and continuing throughDecember 31, 1997, such surviving Spouse must alsohave been married to the Pre-82 Participant at the Pre-82Participant’s death.

(d) Upon the death of a Pre-82 Participant on orafter January 1, 1982, and before his or her Retirement,the following provisions will apply:

(i) His or her surviving spouse will receive amonthly benefit equal to the sum of such Pre-82Participant’s Service Annuity and Personal Contribu-tions Annuity. If the Service Annuity, on an annual basis,is less than 70% (or 75%, 85%, or 100% if elected by theapplicable Pre-82 Sponsor and so set forth in theAdoption Agreement) of the Pre-82 Participant’sFormula Benefit, and if the applicable Pre-82 Sponsordoes not stipulate that a Pre-82 Participant’s PersonalContributions Annuity applies toward the payment of his



or her Formula Benefit, a past service supplement willbe added so that the sum of the Service Annuity and thepast service supplement is equal, on an annual basis, to70% (or 75%, 85%, or 100% if elected by the applicablePre-82 Sponsor and so set forth in the AdoptionAgreement) of the Pre-82 Participant’s Formula Benefit.

(ii) The Surviving Spouse Benefit will be based onall of the Pre-82 Participant’s years of ApprovedService, provided the marriage took place before thecessation of service rendered by the Pre-82 Participantwhile Under Episcopal Appointment.

(iii) If the applicable Pre-82 Sponsor stipulates inthe Adoption Agreement that the Personal ContributionsAnnuity will apply toward the payment of the Pre-82Participant’s Formula Benefit, and if the Pre-82 Partici-pant’s Service Annuity plus the Pre-82 Participant’sPersonal Contributions Annuity, on an annual basis, isless than 70% (or 75%, 85%, or 100% if elected by theapplicable Pre-82 Sponsor and so set forth in theAdoption Agreement) of the Pre-82 Participant’sFormula Benefit, a past service supplement will beadded so that the sum of the Service Annuity, thePersonal Contributions Annuity, and the past servicesupplement is equal, on an annual basis, to 70% (or75%, 85%, or 100% if elected by the applicable Pre-82Sponsor and so set forth in the Adoption Agreement) ofthe Pre-82 Participant’s Formula Benefit.

S1.4.6 Small Benefit. Notwithstanding any-thing to the contrary in Section S1.4:

(a) if any person entitled to a Formula Benefitunder Section S1.4 has an Aggregate DB Benefit atRetirement, Termination of Conference Relationship,and/or Annuity Starting Date, as determined by theAdministrator, that does not exceed the amount specifiedin Section S4.9.1(d), his or her Formula Benefit payableunder Section S1.4 will be paid under Section S4.9.1(d)as though such person were a Participant thereunder; and

(b) if any person entitled to a Service AnnuityAccumulation under Section S1.4 or a benefit underSection S1.4.8 has, when such benefits are converted toan annuity, an Aggregate DB Benefit at Retirement,Termination of Conference Relationship, and/or his orher Annuity Starting Date, as determined by theAdministrator, that does not exceed the minimum annu-ity amount established by the Administrator from timeto time, such Section S1.4 benefits will be converted toan Actuarially Equivalent lump sum and transferred tothe Core Defined Contribution Plan in accordance withSection S4.9.1(d).

S1.4.7 Survivor Death Benefits. Effective atthe close of the 1988 General Conference, upon thedeath of a Pre-82 Participant or Retired Pre-82

Participant before his or her Annuity Starting Datewhere no spouse survives him or her or where the Pre-82 Participant’s marriage took place after his or her ces-sation of service Under Episcopal Appointment, theService Annuity Accumulation will be paid in accor-dance with Section S3.4.6 of Supplement Three.

S1.4.8 Deferred Vested Benefits. Any personwho, as of December 31, 1981, was entitled to receivedeferred Vested pension benefits from any of the PriorPlans, will receive such benefits from this Plan in theamount and form determined to be payable under thePrior Plans in effect at the time of such person’s termi-nation of service.

S1.4.9 Forfeitures. Notwithstanding SectionS1.4.3, a Recipient may forfeit an otherwise Vested ben-efit under the Plan in the following circumstances:

(a) Missing Recipient. The benefit of a Recipientwho cannot be located will be handled as described inSection S1.4.10.

(b) Uncashed Check. Any Recipient who has beenissued a check for benefits due but who does not returnor cash the check within a reasonable period establishedby the Administrator, after such reasonable notice (or inthe case of very small benefit amounts, no notice) as theAdministrator may determine, will forfeit such benefits.Such forfeited amounts will be returned to the FundingAccount of the Plan Sponsor sponsoring such Recipientand will be used to pay other benefits due under thePlan. Uncashed checks returned to the Administratorbecause the payee is missing or for other reasons are notcovered by this Section S1.4.9(b).


(d) Death. If a Pre-82 Participant dies without aSpouse before his or her Annuity Starting Date, all ofsuch Pre-82 Participant’s Vested benefits will be for-feited except as otherwise provided in Section S1.4.5 orS1.4.7. A Pre-82 Participant, Contingent Annuitant, orBeneficiary who dies will also forfeit any monthly ben-efits that have not already been paid to such person. Allsuch forfeitures will remain in the Funding Account(s)of the Plan Sponsor(s) from which the forfeited benefitswere due to be paid, and will be used to pay other bene-fits due under the Plan.

(e) Unvested Benefits. A Pre-82 Participant whohas not Vested in his or her Pre-82 Plan benefits underSection S1.4.3 by his or her Annuity Starting Date willforfeit those benefits. Any funding for a Pre-82 Plan



benefit that is forfeited by an unvested Pre-82 Partici-pant will stay in the Pre-82 Plan to be used to fund benefitsfor other Pre-82 Participants of the same Pre-82 Sponsor.

S1.4.10 Unclaimed Benefits. The Admin-istrator may prescribe uniform and nondiscriminatoryrules for carrying out the following provisions:

(a) If a portion (or all) of a benefit under the Planremains to be distributed to a Recipient at a time when itis due under the Plan (including, but not limited to, theRequired Beginning Date) and the Administrator is thenunable to locate the Recipient, the Administrator willsend notice of such benefit due by a certified letter withreturn receipt requested to the last known address of theRecipient. If the Recipient fails to contact theAdministrator within 12 months (except as provided inSection S1.4.10(b)), such benefit will be forfeited(except as provided in Section S1.4.10(c)) and willbecome the benefit of the next Recipient in line in accor-dance with the applicable form of payment. TheAdministrator will then send notice by certified letter asprovided above to the next Recipient in line, and theprocess specified above will be repeated until the lastsuccessor Recipient is notified.

(b) If the last successor or default Recipient fails tocontact the Administrator within 12 months after beingsent notification of a benefit due as provided in SectionS1.4.10(a), then the amount specified in SectionS1.4.10(a) will be forfeited. Such forfeitures will remainin the Funding Account from which they would other-wise have been paid to fund other benefits payable underthe Plan.

(c) If, at any time before the expiration of the 12-month period described in Section S1.4.10(b), aRecipient who is or was due a benefit described inSection S1.4.10(a) claims the benefit, the benefit will bepaid to such Recipient (notwithstanding any previousforfeiture) if it has not previously been paid to anotherRecipient. If the 12-month period described in SectionS1.4.10(b) has elapsed, then such benefit will be perma-nently forfeited and will remain in the Funding Accountfrom which it would otherwise have been paid to fundother benefits payable under the Plan.

SUPPLEMENT TWOTO THE


SECTION S2.1—GROUP 2 BENEFIT

S2.1.1 Description of Participating GroupNo. Pre-82-2. Any Participant in the Pre-82 Plan beforeJanuary 1, 1982, who:

(a) before January 1, 1982, served a GeneralAgency or other institution under special appointmentwithout pension credit on his or her Conference; and

(b) on December 31, 2006 was a Participant inParticipating Group No. 2 of supplement two to MPP,

is, if the General Agency or other institution servedby any such individual chose to contribute to one ormore of the Prior Plans, a member of ParticipatingGroup No. Pre-82-2 and will be entitled to a benefitbased upon the contributions made by the GeneralAgency or other institution on behalf of such Participantplus interest credited thereon.

S2.1.2 Eligibility to Receive Benefit. AParticipant who is a member of Participating Group No.Pre-82-2 will be eligible to receive benefits from thecontributions and interest specified in Section S2.1.1according to the provisions of Section S3.4 ofSupplement Three.

SUPPLEMENT THREETO THE


MINISTERIAL PENSION PLANSECTION S3.1—THE PLAN

S3.1.1 The Plan. The General Conference ofThe United Methodist Church authorized the establish-ment of the Ministerial Pension Plan effective January 1,1982. Effective as of January 1, 2007, the GeneralConference amended and restated the Ministerial PensionPlan (hereinafter referred to as the “Plan”) as SupplementThree to CRSP. The Plan’s benefits were frozen as ofDecember 31, 2006 for all Participants and theirBeneficiaries, except for Bishops, whose benefits werefrozen on August 31, 2008. Effective as of the EffectiveDate, CRSP is restated as the Program, and the Plan’s ben-efits are paid under this Supplement Three of the Program.

S3.1.2 Type of Plan. The Plan is intended tomeet the requirements of a Church Plan and be adminis-tered pursuant to the retirement income account provi-sions of Code §403(b)(9).

S3.1.3 Frozen Plan. Notwithstanding anyother provision of this Supplement Three, no furtherContributions to anyone’s MPP Account will be earnedunder this Supplement Three after August 31, 2008except in the case of corrections of earlier administrativeerrors. Interest, gains, and losses may still accrue on theinvestments in a Participant’s Account under thisSupplement Three, but only until all benefits payableunder Supplement Three are distributed.



S3.1.4 Termination of Plan. Once all the ben-efits of all Participants in Supplement Three have beenpaid under this Supplement Three, this SupplementThree will automatically terminate and become a nullityexcept to the extent that it is needed to:

(a) help specify the benefit due under anotherSupplement or another Plan;

(b) cure errors in the computation or determinationof benefits due under this Supplement Three or MPP; or

(c) accept and adjudicate a claim (or appeal) forbenefits due under this Supplement Three.

SECTION S3.2—ELIGIBILITY FORPARTICIPATION

S3.2.1 Conditions of Eligibility.(a) No new Participant is eligible for MPP on or

after September 1, 2008, when the Plan was frozen.(b) An MPP Participant who has an Account

Balance in MPP on or after September 1, 2008 may con-tinue to participate in Supplement Three for the purposesof having his or her Account Balance paid in accordancewith the terms of Supplement Three and/or invested inaccordance with the provisions of Supplement Three.

S3.2.2 Enrollment by MPP Plan Sponsor.No new MPP Participants will be enrolled on or afterSeptember 1, 2008 except as required under SectionS3.2.3.

S3.2.3 Omission of Eligible Minister. If, forany Plan Year, any minister who should have beenincluded as a Participant in the Plan was erroneouslyomitted and such omission was not discovered until afterthe Contribution by his or her Plan Sponsor for suchPlan Year has been made, the Plan Sponsor will make alater Contribution, subject to the Annual AccountAddition limits of Section S3.3.3 with respect to theomitted minister in the amount that such Plan Sponsorwould have contributed with respect to him or her had heor she not been omitted.

S3.2.4 Inclusion of Ineligible Minister. If,with respect to any Plan Year, any person who should nothave been included as a Participant in the Plan was erro-neously included, the amount contributed with respect tothe ineligible person will constitute a mistake of fact forthe Plan Year in which the discovery is made.

SECTION S3.3—CONTRIBUTIONS ANDINVESTMENTS

S3.3.1 Contributions. No Contributions aredue to MPP other than those due under Sections S3.2.3and S3.3.5.

S3.3.2 Vesting. Contributions credited to aParticipant’s MPP Account are fully Vested.

S3.3.3 Maximum Annual Addition. The onlyAnnual Additions contributed to MPP will be correctiveones relating to a year before the Effective Date. Thelimitations of Section B5 (as they existed in such previ-ous year) will apply to such corrective contributions asthough they were contributed in the previous year forwhich they are contributed.

S3.3.4 Investment of Accounts. Existing MPPAccounts will be invested as determined by the Trustee(including the possible use of a computerized asset allo-cation and rebalancing program) until each Participant’sAccount is distributed in accordance with Section S3.4.The Trustee may invest each Accountholder’s Accountin one or more investment funds or other investmentmedia or permit Accountholders to direct the investmentof their own Accounts, which self-direction may begranted to Accountholders entirely, partially, and/or instages as the Accountholder nears his or her Early,Normal, or Late Retirement Date or other expected dis-tribution date, all in accordance with such rules and reg-ulations as the Trustee may promulgate.

S3.3.5 Annuity Funding. The annuities pro-vided under Section S3.4 will be funded initially byassets from the portion of each Participant’s andTerminated Participant’s MPP Account that is convertedinto an annuity benefit provided under Section S3.4.After conversion, such assets are commingled and areavailable to fund the annuities of all such Participantsand Terminated Participants. Effective June 1, 2012, ifthe Administrator determines that such annuity assetsare insufficient to fund such annuities under the FundingPolicy from time to time, the Administrator may requireMPP Plan Sponsors to make additional Contributions tothe MPP annuity assets by the Due Date set by theAdministrator in an amount established by theAdministrator that is sufficient to satisfy the FundingPolicy. If a Plan Sponsor delays in making a specifiedContribution to the MPP annuity assets beyond suchDue Date, then the Plan Sponsor will make such delayedContribution to the MPP annuity assets as soon as pos-sible thereafter. In addition, such Plan Sponsor will paya Contribution equal to the greater of:


(b) missed net earnings (but ignoring net losses)on such delayed Contribution (determined in accordancewith the actual returns on MPP annuity assets);



computed, in either case, from the Due Date untilthe date such delayed Contribution was actually trans-ferred to the Trustee. Any special services provided bythe Administrator in connection with this SectionS3.3.5 are subject to the additional charges providedfor in Section A3.7(c). If any amounts are more thantwo months overdue, the Administrator may compelpayment by bringing the matter to Judicial Councilor by any other means the Administrator may elect topursue.

SECTION S3.4—DETERMINATION ANDDISTRIBUTION OF BENEFITS

S3.4.1 Determination of Benefits UponRetirement. A Participant may elect an AnnuityStarting Date for his or her benefits payable under thisSupplement Three that is the first of a month on or afterhis or her Retirement Date. Such election must be madeon an Application for Benefits or such other form orforms as the Administrator may specify.

(a) If such Participant Retires at his or her EarlyRetirement Date or Normal Retirement Date, allamounts credited to such Participant’s Account willbecome distributable at such date, if by such date theParticipant has submitted an Application for Benefits, orat such later date as is provided in Section S3.4.1(d).


(c) Unless otherwise provided in SectionS3.4.1(d), upon a Participant’s Retirement Date, if bysuch date the Participant has submitted an Applicationfor Benefits, or as soon thereafter as is practicable, theAdministrator will direct the Trustee to distribute allamounts credited to such Participant’s Account in accor-dance with Sections S3.4.5 and S3.4.8.

(d) A Participant who has Retired may elect todefer his or her Annuity Starting Date to a date of his orher choosing in accordance with rules and regulationsestablished from time to time by the Administrator, butsuch date may not be later than his or her RequiredBeginning Date nor be a date other than the first of amonth. A Participant who has deferred his or herAnnuity Starting Date will begin his or her benefit as of

his or her Annuity Starting Date in accordance withSections S3.4.5 and S3.4.8.

S3.4.2 Determination of Benefits Upon Death.(a) Upon the death of a Participant or Terminated

Participant before his or her having received a benefitfrom the Plan, the Administrator will direct the Trusteeto distribute, in accordance with the provisions ofSections S3.4.6 and S3.4.8, any remaining amountscredited to the Account of the deceased Participant orTerminated Participant to such Participant’s orTerminated Participant’s Beneficiary.

(b) The Administrator may require such proof ofdeath and such evidence of the right of any person toreceive payment of the value of the Account of adeceased Participant or Terminated Participant as theAdministrator may deem desirable. The Administrator’sdetermination of death and of the right of any person toreceive payment will be conclusive.

(c) Unless otherwise elected in the mannerdescribed below, the Default Beneficiary of the deathbenefit will be the Participant’s Spouse.

(i) Notwithstanding the foregoing, the Participantmay designate a Beneficiary other than his or her Spouseif:

(A) his or her Spouse consents in writing to thedesignation of another Beneficiary, which designation iswitnessed by a Plan Sponsor representative or a notarypublic; or

(B) the Participant is legally separated from his orher Spouse or has been abandoned (within the meaningof local law) by his or her Spouse, and, in either case, theParticipant has a court order to such effect; or

(C) the Participant has no Spouse; or(D) his or her Spouse cannot be located.(ii) In such event, the designation of a Beneficiary

must be made in a form that is satisfactory to theAdministrator and must be received by the Administratorduring the Participant’s lifetime.

(iii) A Participant may at any time revoke his or herdesignation of a Beneficiary or change his or herBeneficiary by filing written notice (in such form as maybe required by the Administrator) of such revocation orchange with the Administrator. However, the Participant’sSpouse must again consent in writing in accordance withthe provisions of Section S3.4.2(c)(i)(A) to any changein the Participant’s Designated Beneficiary unless theoriginal consent expressly permits such changes by theParticipant without the requirement of further consentby his or her Spouse.

(iv) A Participant’s divorce will revoke anyBeneficiary designation in favor of the Participant’sSpouse made before the divorce. Until such time as a



new designation of Beneficiary is filed with theAdministrator in accordance with the provisions of thisSection S3.4.2, benefits will be payable as if the formerSpouse had predeceased the Beneficiary.

(v) If no valid designation of Beneficiary exists atthe time of the Participant’s death and there is no sur-viving Spouse, the death benefit will be payable to theParticipant’s estate as the Default Beneficiary.

S3.4.3 Determination of Benefits UponDisability. In the event of the Disability of a Participantor Terminated Participant, the Participant or TerminatedParticipant may elect to receive benefits in an amountequal to 35% of the value of his or her Account in accor-dance with the provisions of Section S3.4.7. TheAdministrator may require the Participant or TerminatedParticipant to provide such documentation as is neces-sary to substantiate the Disability of the Participant orTerminated Participant.

S3.4.4 Determination of Benefits UponTermination. If a Participant becomes a TerminatedParticipant, the Participant’s Account will be distributedas follows:

(a) A Terminated Participant’s Annuity StartingDate may be as early as the Participant’s Early, Normal, orLate Retirement Date, if by such date the Participant hassubmitted an Application for Benefits. Otherwise, suchTerminated Participant’s Annuity Starting Date will be thefirst of the month following the date the Participant hassubmitted an Application for Benefits, but not later thanhis or her Required Beginning Date. Such a TerminatedParticipant’s Account will be distributed in accordancewith Sections S3.4.5(g)(i) or (ii) without taking intoaccount the increases provided for in Section S3.4.8.

(b) Notwithstanding Section S3.4.4(a), theAdministrator will pay the Participant’s entire benefit ina single lump sum upon the Participant’s Termination ofConference Relationship:

(i) in accordance with Section B8.2(a) if theTerminated Participant’s Aggregate Benefit does notexceed $5,000; or

(ii) upon such Terminated Participant’s consent ifhis or her Aggregate Benefit is $5,000 or more, but hisor her Account Balance under Supplement Three is lessthan one-fourth of the Denominational Average Compen-sation as of the date on which he or she becomes aTerminated Participant.

S3.4.5 Distribution of Benefits for AnyReason Except Death or Disability. If a benefit ispayable under this Section S3.4.5, then it may be dis-tributed as follows:

(a) Married Participants. Unless otherwise electedas provided in Section S3.4.5(c) below, a Participant

who is married on his or her Annuity Starting Date andwho does not die before such Annuity Starting Date willreceive the value of 65% of his or her MPP AccountBalance in the form of a 70% Contingent Annuity withhis or her Spouse as Contingent Annuitant.

(i) Such Contingent Annuity benefits followingthe Participant’s death will continue to the Spouse(determined as of the Annuity Starting Date) during theSpouse’s lifetime at a rate equal to 70% of the rate atwhich such benefits were payable to the Participant.


The remaining 35% of the Participant’s MPPAccount Balance will be distributed at the Participant’sAnnuity Starting Date (as provided in Section S3.4.5(f),which Annuity Starting Date may be different from theone applicable to the 65% of the Participant’s MPPAccount Balance provided for above), in the form of asingle lump sum distribution or a 100% direct rollover inaccordance with the provisions of Section B8.5(a) (orpartially directly rolled over and partially distributed,provided that 100% of the MPP Account is so disposedof at one time). Alternately, the Participant may elect onan Application for Benefits a distribution (or a directrollover) of the 35% of his or her MPP Account first,leaving the remainder to be distributed as providedabove in this Section S3.4.5(a) at his or her later electionon an Application for Benefits (but not later than his orher Required Beginning Date).

(b) Single Participants. Unless otherwise electedas provided in Section S3.4.5(c) below, a Participantwho is not married on his or her Annuity Starting Dateand who does not die before such Annuity Starting Datewill receive the value of 65% of his or her MPP AccountBalance in the form of a Single-Life Annuity.



The remaining 35% of the Participant’s MPPAccount Balance will be distributed at the Participant’sAnnuity Starting Date (as provided in Section S3.4.5(f),which Annuity Starting Date may be different from theone applicable to the 65% of the Participant’s MPPAccount Balance provided for above), in the form of asingle lump sum distribution or a 100% direct rollover inaccordance with the provisions of Section B8.5(a) (or



partially directly rolled over and partially distributed,provided that 100% of the MPP Account is so disposedof at one time). Alternately, the Participant may elect onan Application for Benefits a distribution (or a directrollover) of the 35% of his or her MPP Account first,leaving the remainder to be distributed as providedabove in this Section S3.4.5(a) at his or her later electionon an Application for Benefits (but not later than his orher Required Beginning Date).

(c) Waiver. Any election to waive the 70%Contingent Annuity under Section S3.4.5(a) or theSingle-Life Annuity under Section S3.4.5(b) must bemade by the Participant in writing during the electionperiod and be consented to by the Participant’s Spouse,if the Participant has a Spouse at his or her AnnuityStarting Date.

(i) If the Participant’s Spouse is legally incompe-tent to give consent, such Spouse’s legal guardian maygive consent, even if such guardian is the Participant.

(ii) Such election may designate a Beneficiary (ora form of benefit) that may not be changed withoutSpousal consent (unless such Spouse’s consent expresslypermits future designations by the Participant withoutthe requirement of further consent by such Spouse).

(iii) Such Spouse’s consent will be irrevocable andmust acknowledge the effect of the election and be wit-nessed by a Plan Sponsor representative or a notary pub-lic.

(iv) Such consent will not be required if it is estab-lished to the satisfaction of the Administrator that therequired consent cannot be obtained because there is noSpouse, the Participant’s Spouse cannot be located, orother circumstances pertain as may be prescribed byRegulations. Spousal consent will also not be required ifthe Participant elects an optional form of annuity underSection S3.4.5(g)(i) that provides a surviving Spouseannuity of at least 70% of the periodic annuity amountthe Participant received during the Participant’s lifetime.

(v) The election made by the Participant and con-sented to by his or her Spouse may be revoked by theParticipant in writing without the consent of his or herSpouse at any time during the election period.

(A) The number of revocations will not be limited.(B) Any new election must comply with the

requirements of this Section S3.4.5(c).(iv) A former Spouse’s waiver will not bind a new

Spouse.(d) Election Period. The election period to waive

the Contingent Annuity will be the 180-day period end-ing on the Annuity Starting Date.

(e) Notice. With regard to the election to waive the70% Contingent Annuity, the Administrator will provide

to the Participant, no fewer than 30 days and no morethan 180 days before the Annuity Starting Date, a writ-ten explanation of:

(i) the terms and conditions of the 70%Contingent Annuity;

(ii) the Participant’s right to make, and the effectof, an election to waive the 70% Contingent Annuity;

(iii) the right of the Participant’s Spouse to consentto any election to waive the 70% Contingent Annuity;and

(iv) the right of the Participant to revoke such elec-tion, and the effect of such revocation.

A Participant’s Annuity Starting Date may notoccur and no distribution may be made until 30 dayshave elapsed after such written explanation has beenprovided, except that a Participant may waive the 30-dayperiod in writing in a form specified by theAdministrator and begin his or her benefit as soon asadministratively practicable.

(f) Annuity Starting Date. If a Participant was notreceiving pension benefits from MPP as of December31, 2006 or ceased receiving them after that datebecause of reemployment, then his or her AnnuityStarting Date for his or her MPP benefits will be the datespecified in Section S3.4.1, S3.4.4, S3.4.5(g), or S3.4.7,whichever date applies to such Participant; provided,however, that notwithstanding this provision suchParticipant’s Annuity Starting Date:

(i) must be a date that satisfies the requirements ofSection S3.4.5(e), unless

(ii) Sections S3.4.5(i) or (j) otherwise provide.(g) Optional Forms of Distribution. If a married

Participant elects pursuant to Section S3.4.5(c) abovenot to receive his or her benefit in the form of a 70%Contingent Annuity, or if an unmarried Participant electspursuant to Section S3.4.5(c) above not to receive his orher benefit in the form of a Single-Life Annuity, theAdministrator, pursuant to the election of the Participanton an Application for Benefits, will direct the Trustee todistribute, as determined and limited by rules and regu-lations of the Administrator, on a date specified by theParticipant (which date may not be later than suchParticipant’s Required Beginning Date and which datemust be as of the first of a month), to the Participant orto the Participant and his or her Contingent Annuitant:

(i) with respect to 65% of such Participant’s MPPAccount Balance, the purchase of or providing of a life-time (including a lifetime with years certain) annuity orjoint and survivor lifetime annuity (including the dis-abled adult child annuity options described in SectionS4.9.1(b)(iii)). However, such annuity may not beelected in any form that will guarantee, through a years



certain provision, payments over a period extendingbeyond either the life of the Participant (or the lives ofthe Participant and his or her designated ContingentAnnuitant) or the life expectancy of the Participant (orthe life expectancy of the Participant and his or her des-ignated Contingent Annuitant).

(ii) with respect to the remaining 35% of suchParticipant’s MPP Account Balance, a one-time lump-sum payment, subject to the Participant’s right to requesta direct rollover in accordance with the provisions ofSection B8.5(a).

(h) Spousal Consent to Optional Form. If theParticipant is married at the time he or she makes anelection pursuant to Section S3.4.5(g) above, such elec-tion will not be valid without the consent of theParticipant’s Spouse, given in accordance with the pro-cedures specified in Section S3.4.5(c).

(i) Small Amount Cash Out. If the Participant’sAggregate Benefit is equal to or less than $5,000, theAdministrator will direct the Trustee to distribute the fullamount of the Participant’s Account in this Plan to theParticipant in a lump sum in accordance with SectionB8.2(a) without the consent of the Participant or his orher Spouse.

(j) Required Minimum Distributions. Notwith-standing any provision in the Plan to the contrary, the entireinterest of a Participant under the Plan will be distributed:

(i) no later than the Required Beginning Date; or(ii) beginning no later than the Required

Beginning Date over:(A) the life of the Participant;(B) the lives of the Participant and a designated

Contingent Annuitant;(C) a period not extending beyond the life

expectancy of the Participant; or(D) a period not extending beyond the life expectan-

cies of the Participant and a designated ContingentAnnuitant.

Notwithstanding anything in the Plan to the con-trary, distributions under the Plan will comply withCode §403(b)(10) and its provisions related to compli-ance with Code §401(a)(9) and the applicable provisionsof any required minimum distribution Regulationsissued thereunder. Such Code and Regulation provisionsare hereby incorporated herein by this reference, andwill control over any form of distribution or timing ofdistribution provided in this Plan that is inconsistenttherewith. To the extent that such Regulations providefor any elections or alternative methods of compliancenot specifically addressed in the Plan, the Administratorwill have the authority to provide for such elections oralternative methods of compliance.

(k) Non-Revision. Subject to Sections S3.4.9 andS4.3.4(d), beginning five business days before the firstmonthly annuity benefit is due, neither the form of pay-ment nor the Spouse or Contingent Annuitant entitled tosurvivor payments may be changed by reason of achanged election, the death of a Spouse, or a divorce.

S3.4.6 Distribution of Benefits Upon Death.If a benefit is payable under this Section S3.4.6, then itmay be distributed as follows:

(a) Distribution to Beneficiary. If a Participant diesbefore his or her Annuity Starting Date, his or herAccount under the Plan will be paid to the Participant’sBeneficiary in accordance with Section B8.3, subject tothe requirements of Section S3.4.6(b) below.

(b) Required Minimum Distribution. Notwith-standing any provision in the Plan to the contrary, distri-butions upon the death of a Participant will be made inaccordance with the following requirements and willotherwise comply with Code §401(a)(9) and theRegulations thereunder.

(i) If the Participant’s surviving Spouse is his orher Beneficiary, the Account will be paid according toone of the distribution options described in SectionS3.4.5(g) as elected by the surviving Spouse, but in nocase may any distribution provide for payments over aperiod extending beyond either the life of the survivingSpouse or the life expectancy of the surviving Spouse.

(A) Distributions to the surviving Spouse Bene-ficiary must begin on or before the later of:

(I) December 31 of the calendar year immediatelyfollowing the calendar year in which the Participantdied; or

(II) December 31 of the calendar year in which theParticipant would have attained age 70½.

(B) If no election is made before the RequiredBeginning Date, 65% of the Account will be paid to thesurviving Spouse Beneficiary in the form of a Single-Life Annuity, and 35% of the Account will be paid to thesurviving Spouse Beneficiary in a lump sum.

(ii) If the Participant’s Beneficiary is not his or hersurviving Spouse, the Participant’s Account under thePlan will be distributed to his or her Beneficiary:

(A) by December 31 of the calendar year in whichthe fifth anniversary of the Participant’s date of deathoccurs; or

(B) over the life of such Beneficiary (or over aperiod not extending beyond the life expectancy of suchBeneficiary) provided such distribution begins not laterthan December 31 of the calendar year immediately fol-lowing the calendar year in which the Participant died.

(I) For the purpose of Section S3.4.6(b)(ii)(A), tobe excepted from the 5-year distribution requirement the



election by a Beneficiary must be made no later thanDecember 31 of the calendar year following the calen-dar year of the Participant’s death.

(II) An election by a Beneficiary must be in writ-ing and will be irrevocable as of the last day of the elec-tion period stated herein.

(iii) In the absence of an election by the Participantor a Beneficiary, the 5-year distribution requirement willapply.

(iv) Notwithstanding the provisions of SectionsS3.4.6(b)(i) or (ii), if the present value of a deceasedParticipant’s Aggregate Benefit is equal to or less than$5,000 at the time of his or her death, the Administratorwill direct the Trustee to distribute the full amount of theParticipant’s Account Balance to the Participant’sBeneficiary in accordance with Section B8.2(a) withoutthe consent of the Beneficiary.

(v) If the distribution of a Participant’s interest hadbegun and the Participant dies before his or her entireinterest has been distributed to him or her, the remainingportion of such interest will be distributed at least as rap-idly as under the method of distribution selected pur-suant to Section S3.4.5 as of his or her date of death.

S3.4.7 Distribution of Benefits UponDisability. If a benefit is payable under this SectionS3.4.7, then it may be distributed as follows:

(a) At any time after becoming Disabled (but notlater than his or her Required Beginning Date and as ofthe first of a month), a Disabled Participant may elect onan Application for Benefits to receive a one-time lump-sum payment in the amount of 35% of his or her MPPAccount Balance.

(b) If the Participant is married at the time he orshe makes an election pursuant to Section S3.4.7(a)above, such election will not be valid without the con-sent of the Participant’s Spouse given in accordancewith the procedures stated in Section S3.4.5(c).


S3.4.8 Benefit Increases. The amount of anymonthly annuity benefit payable under Sections S3.4.5or S3.4.6 will be determined actuarially on the basis ofthe value of the Participant’s Account under the Plansuch that such value:


(b) will not be increased or will be increased by3%, 4%, or 5% annually, if so elected by the Participantat the time of application, or the Beneficiary at the timebenefits commence, as applicable, under Sections S3.4.5or S3.4.6.

These increases will occur once a year on a datespecified by the Administrator from time to time, whichmay be the same date for all Participants andBeneficiaries or may vary with each benefit recipient.

S3.4.9 Other Provisions Incorporated. Inaccordance with rules established by the Administrator,Supplement Three includes provisions similar to thosefound in Sections B7.2, B8.1(a), B8.2(e) and (f), B8.4,B8.5, B8.6, B8.7, B8.10, S4.3.4(d) and (e), S4.7.2,S4.9.1(d), S4.9.1(f), S4.9.2(b), S4.9.4, S4.9.5, S4.9.6,and S4.9.8.

SUPPLEMENT FOURTO THE


CLERGY RETIREMENT SECURITYPROGRAM—DEFINED BENEFITPLANSECTION S4.1—INTRODUCTION

S4.1.1 The Plan. CRSP-DB (the Plan) is adefined benefit plan that began on January 1, 2007(September 1, 2008 for Bishops) as part of the CRSPrestatement of MPP. Benefits accrued under the Planfrom January 1, 2007 through the day before theEffective Date. The Plan is partially frozen on and afterthe Effective Date. No new Participants will become eli-gible for the Plan on or after the Effective Date. No ben-efits may accrue to an individual under the Plan beforeJanuary 1, 2007, and no Credited Service may accrue onor after the Effective Date. But changes in FinalCompensation and Final DAC will continue to be recog-nized on and after the Effective Date when computingbenefits under the Plan.

S4.1.2 Plan Sponsors.(a) Each Conference is a Plan Sponsor of CRSP-

DB under this Supplement Four with respect toParticipants who, after December 31, 2006 and beforethe Effective Date, were:



Conference;



(ii) Clergy Appointed by the Bishop of thatConference who are covered by CPP and become CPPDisabled;

(iii) when elected by a Conference under itsAdoption Agreement, members of that Conference whoare placed on Incapacity Leave but not covered underSection S4.1.2(a)(ii);


(v) entitled to Credited Service under USERRAbut who last served that Conference under SectionS4.1.2(a)(i).

Each such Conference will complete an AdoptionAgreement covering such Participants with respect toCRSP-DB.

(b) GCFA is the Plan Sponsor of CRSP-DB underthis Supplement Four with respect to Participants who,on and after September 1, 2008 and before the EffectiveDate, were:



Notwithstanding the foregoing, in the case ofBishops who were newly consecrated in 2008, thenGCFA is the Plan Sponsor of CRSP-DB under thisSupplement Four on and after the date of their consecra-tion. GCFA will complete an Adoption Agreement cov-ering such Participants with respect to CRSP-DBeffective as of September 1, 2008.

(c) If so elected by the Commission on theGeneral Conference on an Adoption Agreement, theCommission on the General Conference is a PlanSponsor of CRSP-DB under this Supplement Four withrespect to Participants who are Appointed to theCommission on the General Conference.

(d) No other entity may be a Plan Sponsor ofCRSP-DB.

(e) No entity may be a Plan Sponsor of CRSP-DBwithout simultaneously being a Plan Sponsor of theCore Defined Contribution Plan.

SECTION S4.2—COMPUTATION OFSERVICE

S4.2.1 Kinds of Service.(a) Eligibility Service. A Clergyperson does not

need any Service to be eligible for the Plan (althoughthere are other conditions to eligibility not involvingService).

(b) Credited Service. A Participant’s CreditedService will be determined as described in Section S4.2.2,

(i) with one-day computation periods beginning atmidnight of:


(B) each day thereafter until the Participant incursa Separation From Covered Service; and

(ii) with one-year computation periods beginningon:


(B) each anniversary of such date thereafter untilthe Participant incurs a Separation From CoveredService.

(c) Vesting Service. Participants are always 100%Vested in their Accrued Benefits.

S4.2.2 Computation of Credited Service.(a) General Rule. A Participant will receive one

day of Credited Service for each one-day computationperiod specified in Section S4.2.1(b)(i) during which heor she is:

(i) Under Episcopal Appointment to and receivingCompensation related to such Appointment from:

(A) a Local Church;(B) a Pastoral Charge;(C) a Conference-Responsible Unit; or(D) a Conference-Elective Entity;(ii) A Bishop receiving Compensation as such

from GCFA;(iii) CPP Disabled;(iv) when elected by a Conference under its

Adoption Agreement, a member of that Conference whois placed on an Incapacity Leave but not covered underSection S4.2.2(a)(iii); or

(v) entitled to Credited Service under USERRA;for any portion of such one-day computation

period, regardless of whether such condition continuesthroughout such one-day computation period. A Year ofCredited Service is equal to 365 days (even in leapyears) of Credited Service. Notwithstanding the fore-going provisions of this Section S4.2.2(a), however, aParticipant who qualifies under Section S4.2.2(a)(iii) or(iv) above and who was Appointed on a Part-Time basisimmediately before such qualification will receiveCredited Service in accordance with Section S4.2.2(b),based on such Participant’s highest Appointment per-centage during the 24 months before such qualification.Such 24-month period will not include any period(s)during which a Participant is on a Leave of Absence.

(b) Part-Time Appointments. A Participant who isAppointed as described in Section S4.2.2(a)(i) to lessthan a Full-Time Appointment, is otherwise qualifiedunder Section S4.2.2(a) for Part-Time Credited Service,



or who is Appointed on a Full-Time basis but servesonly a portion of an annual appointment will receivedays of Credited Service equal to his or her actual daysof Service, times his or her Appointment percentage(which will be deemed 50% if no percentage is specifiedin the Appointment). Each Plan Sponsor will report tothe Administrator on the degree of each Part-TimeAppointment and on the portion of a full year of Serviceactually rendered by a Participant when it is less than afull year.

(c) Exceptions. A Participant will not receive anyCredited Service for periods before January 1, 2007 orduring which he or she is on an unpaid:

(i) Leave of Absence (except as otherwise pro-vided in Section A4.9, relating to USERRA); or

(ii) any other layoff or leave,whether or not Service would otherwise have been

credited. Further, a Participant will not receive morethan one day of Credited Service for each 24-hour day.

SECTION S4.3—PARTICIPATION

S4.3.1 Eligibility for Participation. The fol-lowing provisions of this Section S4.3.1 and the provi-sions of Section S4.3.2 apply only before the EffectiveDate. As of the Effective Date no further Clergy willbecome eligible for CRSP-DB. Clergy who wereParticipants on the day before the Effective Date willremain Participants to the extent they have CreditedService already accrued as of that date.

(a) Eligible Clergyperson. An Eligible Clergy-person is a Clergyperson:

(i) who:(A) is Appointed at least Half-Time and:(I) whose Conference or Salary-Paying Unit is a

Plan Sponsor under the terms of the Plan; or(II) who is a member of a Conference but is Under

Episcopal Appointment by the Bishop of another PlanSponsor Conference (within the meaning of ¶ 346.1 ofthe Discipline);



(ii) who is a Non-Jurisdictional Clergyperson, anOther Methodist Denomination Clergyperson, an Other

Denomination Clergyperson, or a Clergypersondescribed in Section S4.3.1(a)(i)(A)(II) above) and:

(A) develops a disability or an incapacity after hav-ing been Appointed at least Half-Time at some time dur-ing the 24 months (excluding periods while on Leave ofAbsence) immediately preceding the onset of his or herdisability or incapacity;

(B) remains Appointed by the Bishop of the PlanSponsor Conference (or, where the Plan Sponsor is notsupervised by a Bishop, remains covered by the PlanSponsor’s Adoption Agreement); and

(C) is not reported as discontinued or as having norecord of Appointment;





(b) Participation. Each Eligible Clergyperson willbecome a Participant on the Entry Date determinedunder Section S4.3.2, provided that he or she satisfies allof the following requirements on the Entry Date:





or her Appointment;(B) CPP Disabled or a Bishop on an Incapacity

Leave (but in neither of these cases is a TerminatedParticipant);

(C) when elected by a Conference under itsAdoption Agreement, a Conference member who isplaced on an Incapacity Leave but not covered underSection S4.3.1(b)(iii)(B) above; or


Date, an Eligible Clergyperson must continue to meetthe conditions in Sections S4.3.1(a) and (b) above to



remain a Participant eligible to receive Credited Service.Although it will not prevent an Eligible Clergypersonfrom participating in the Plan, the Administrator mayrequire the Plan Sponsor of each Eligible Clergypersonwho is to become (or has become) a Participant (whetheror not such Participant has an Accrued Benefit) to file anapplication for enrollment in the Plan in such form asmay be required by the Administrator or to otherwiseprovide necessary enrollment information in a manneracceptable to the Administrator.

S4.3.2 Determination of Entry Date. EachEligible Clergyperson’s Entry Date will be:

(a) January 1, 2007, if on that date he or she satis-fied the requirements of Section S4.3.1; or

(b) the first day of any calendar month thereafteron which he or she first satisfies the requirements ofSection S4.3.1.

S4.3.3 Determination of Eligibility. Uponreceipt of enrollment information from the Plan Sponsoras provided in Section S4.3.1, the Administrator willaccept such information as evidence of eligibility forparticipation in the Plan. However, the Administratormay from time to time audit such information or obtainadditional information, which might result in a determi-nation of ineligibility for a Participant or a determinationof eligibility for a non-Participant. The Administratorhas the final authority to determine the eligibility of anyClergyperson. Such determination will be made pur-suant to the provisions of the Plan and the AdoptionAgreement and will be conclusive and binding upon allpersons.

S4.3.4 Cessation and Reinstatement ofConference Relationship.

(a) General Rule. A Participant who incurs aTermination of Conference Relationship will continue tobe a Participant but will cease to earn further CreditedService or to earn an Accrued Benefit.

(b) Reinstatement. A Participant described inSection S4.3.4(a) who again becomes an EligibleClergyperson will again become a Participant entitled toaccrue Credited Service once he or she qualifies underSection S4.3.1, without again having to qualify underSection S4.3.2. Such Participant’s Accrued Benefit willbe computed with respect to Section S4.6.2, dependingon how long such Participant’s Break in Service lasted.

(c) Transfer. A Participant who transfers from oneConference to another (or who otherwise transfers under¶¶ 346, 347, or 348 of the Discipline such that he or shewas covered under the Plan both before and after thetransfer) without a Break in Service will remain aParticipant, but his or her Plan Sponsor will change fromthe first Conference (or other entity) to the second on the

date that he or she is Under Episcopal Appointment withthe second. If such a Participant does incur a Break inService, then he or she will be treated as provided inSections S4.3.4(a) and (b).

(d) Reemployment After Termination of Confer-ence Relationship. If a Terminated Participant, after hav-ing earned an Accrued Benefit under the Plan, ceases toqualify under Section S4.3.1 because of a Terminationof Conference Relationship or a Five-Year No Record ofAppointment, and if such Terminated Participant:

(i) is not In Pay Status when he or she once againqualifies under Section S4.3.1, then he or she will onceagain accrue a benefit in accordance with SectionS4.3.4(b); or

(ii) is In Pay Status when he or she once againqualifies under Section S4.3.1, his or her benefit will bepermanently suspended until he or she again Retires orincurs a Termination of Conference Relationship.Thereafter, in accordance with the provisions of SectionS4.6.1, his or her Accrued Benefit will be recomputed,actuarially adjusted for amounts already paid, and paidas one benefit in accordance with the terms of the Planas of such later Retirement or Termination ofConference Relationship.

(e) Reemployment After Retirement. If a Partici-pant, after having earned an Accrued Benefit under thePlan, ceases to qualify under Section S4.3.1 because ofRetirement, and if such Participant:

(i) is not In Pay Status when he or she once againqualifies under Section S4.3.1, then he or she will onceagain accrue a benefit in accordance with SectionS4.3.4(b);

(ii) is In Pay Status and then is Appointed to aposition in accordance with ¶ 358.6 of the Discipline orfunctions as a retired Bishop in accordance with ¶ 409 ofthe Discipline, his or her benefit will continue In PayStatus, and he or she will not earn any further AccruedBenefit under the Plan; or

(iii) is In Pay Status and then returns to the effectiverelationship with a Conference in accordance with¶ 358.7 of the Discipline, his or her benefit will be per-manently suspended until he or she again Retires.Thereafter, in accordance with the provisions of SectionS4.6.1, his or her Accrued Benefit will be recomputed,actuarially adjusted for amounts already paid, and paidas one benefit in accordance with the terms of the Planas of such later Retirement.

S4.3.5 Omission of Eligible Clergyperson.If, in any Plan Year, an Eligible Clergyperson whoshould have been included as a Participant in the Plan iserroneously omitted from participation in the Plan, theomitted Participant will be retroactively enrolled and



granted missed Credited Service under the Plan, and, ifthe discovery of such omission is not made until afterthe Due Date for Contributions for such Plan Year and ifthe missed Contributions are material in theAdministrator’s opinion, the Plan Sponsor will correctthat omission by making one or more replacement con-tributions toward such Participant’s Accrued Benefit inan amount specified by the Administrator to substitutefor the Contributions that would have been made withrespect to the omitted Participant had he or she not beenomitted, subject to the limits of Section S4.5. Moreover,the Plan Sponsor is subject to an administrative chargeunder Section A3.7(c).

S4.3.6 Inclusion of Ineligible Persons. If, inany Plan Year, any person who should not have beenincluded as a Participant in the Plan is erroneouslyincluded, such person will be removed as a Participant.Any funding for such person contributed by a PlanSponsor that does not lead to funding that is at least110% of the actuarially appropriate amount, as deter-mined by the Administrator, of funding for that PlanYear will remain as part of the Plan Sponsor’s FundingAccount. If funding for one or more such persons con-tributed by one Plan Sponsor during any Plan Year leadsto funding that is at least 110% of the actuarially appro-priate amount, as determined by the Administrator, offunding for that Plan Year and if the erroneous fundingqualifies under Section A4.3(b) (relating to a mistake offact), then the Administrator will return to the PlanSponsor any such funding that exceeds full fundingunder the Funding Plan.

S4.3.7 Election Not to Participate. Subject tothe consent of his or her Plan Sponsor, an EligibleClergyperson who is a student Local Pastor (within themeaning of ¶¶ 318 and 318.3 or 318.4 of the Discipline)or who is Appointed on a Part-Time basis may elect vol-untarily not to participate in the entire Program by writ-ten notice to the Plan Sponsor not later than 60 daysafter the effective date of such election, which may bemade in any form acceptable to the Administrator. Suchan election will prevent benefits from accruing under thePlan for such Eligible Clergyperson. Such an electionmay be revoked at any time that such EligibleClergyperson is eligible to be a Participant, but pastAccrued Benefits related to periods during which theelection was in force will not be earned or will be per-manently forfeited. If such Eligible Clergypersonalready has an Accrued Benefit under the Plan, suchelection not to participate will not affect the AccruedBenefit already earned by such Eligible Clergyperson.

SECTION S4.4—AMOUNT ANDALLOCATION OF CONTRIBUTIONS

S4.4.1 Plan Sponsor Contributions. Subjectto Section S4.4.3(d), the Plan Sponsors will makeContributions to the Trustee annually not later than theDue Date (on or about December 31) each year inamounts that are specified by the Administrator as beingdue by that date, as determined in accordance with theFunding Policy, based on the Participants who:

(a) in the case of a Conference, qualify underSection S4.1.2(a); and

(b) in the case of GCFA, qualify under SectionS4.1.2(b)

with respect to that Plan Sponsor. Participants areneither required nor permitted to make contributionsunder the Plan.

S4.4.2 Late Contributions. If a Plan Sponsordelays in making a specified Contribution to the Planbeyond the date specified in Section S4.4.1, then thePlan Sponsor will make such delayed Contribution tothe Plan as soon as possible thereafter. In addition, such PlanSponsor will pay a Contribution equal to the greater of:



computed, in either case, from the Due Date untilthe date such delayed Contribution was actually trans-ferred to the Trustee. Any special services provided bythe Administrator in connection with this Section S4.4.2are subject to the additional charges provided for inSection A3.7(c). If any amounts are more than twomonths overdue, the Administrator may compel pay-ment by bringing the matter to Judicial Council or byany other means the Administrator may elect to pursue.In addition to the foregoing remedies, the Administrator,after giving written notice to the Plan Sponsor (and allother Plan Sponsors) with a prospective effective date(such effective date being no sooner than two monthsafter the Due Date), may suspend further AccruedBenefit accruals under Section S4.6 (including increasesin Credited Service, Final DAC, and/or FinalCompensation under appropriate Sections of theProgram) for Participants whose Accrued Benefits arefunded by such delinquent Plan Sponsor under SectionS4.4.1 until such Plan Sponsor:

(a) makes up delayed Contributions and missedearnings as provided above in this Section S4.4.2; and/or



(b) satisfies Section S4.4.3(d)(iii) below.Accrued Benefit accruals will be retroactively rein-

stated if and when the Administrator gives written noticeto such Plan Sponsor that it is in compliance with thisSection S4.4.2.

S4.4.3 Funding Accounts.(a) Contributions. Contributions under Sections

S4.4.1 and S4.4.2 by any Plan Sponsor will be creditedas soon as practicable by the Administrator to a FundingAccount in the name of all Plan Sponsors that sponsorCRSP-DB under Section S4.4.1, with each PlanSponsor’s interest in such pooled Funding Accountbeing proportional to its liabilities. A Plan Sponsor’sproportional interest in the pooled Funding Accountmay be included in that Plan Sponsor’s separate FundingAccount in its own name to the extent needed for anypurpose under the Program.

(b) Earnings. The Trustee will invest amounts insuch pooled Funding Account in accordance with theTrust. The Administrator will credit such FundingAccount with earnings and debit such Funding Accountwith losses accrued from time to time.

(c) Forfeitures. Forfeitures of benefits arisingunder the Plan for any reason that are not already pro-vided for under the Plan will be applied to reduce thecontribution to the Plan of the Plan Sponsor relating tothe Participant (or his or her Beneficiary or other personclaiming under him or her) who has suffered the forfei-ture and will not increase the benefits under the Planotherwise payable to Participants or others.

(d) Funding Benefits. Except as otherwise pro-vided in Sections S4.4.3(d)(ii) and S4.4.3(d)(iii), eachPlan Sponsor will be responsible to fund the AccruedBenefit of each Participant in proportion to the periodsuch Participant rendered Credited Service that the PlanSponsor is responsible for under Section S4.4.1, in rela-tion to all of such Participant’s Credited Service deter-mined at his or her Annuity Starting Date.

(i) Except as otherwise provided in SectionsS4.4.3(d)(ii) and S4.4.3(d)(iii), the funding obligationof:

(A) Conferences will be based on the benefit for-mula of non-Bishop Clergy; and

(B) GCFA will be based on the benefit formula forBishops.

(ii) Notwithstanding anything to the contrary inCRSP-DB, the Alaska Missionary Annual Conference,Oklahoma Indian Missionary Annual Conference, RedBird Missionary Annual Conference, and the RioGrande Annual Conference will not be responsible tofund the Accrued Benefits of Participants who renderedService to such Plan Sponsors (which funding exemp-

tion will not extend to any other Plan under theProgram). Nevertheless, such Participants will still beentitled to the same benefits under CRSP-DB as theywould otherwise be entitled to thereunder. To fund suchbenefits, the Administrator will authorize debits eachPlan Year against the Funding Accounts of all other PlanSponsors (except the Plan Sponsors listed above and anyother Plan Sponsor with a zero Funding Account bal-ance), pro rata in proportion to the Liabilities of eachsuch other Plan Sponsor as a percentage of all Liabilitiesunder the Plan (as determined by the Administrator).

(iii) If a Plan Sponsor does not have sufficientassets in its Funding Account (including its portion ofany pooled Funding Account) to pay Plan benefits asthey come due, in order to pay such benefits theAdministrator will authorize debits from time to timeagainst the Funding Accounts of all other Plan Sponsors(except any Plan Sponsor with a zero Funding Accountbalance), pro rata in proportion to the Liabilities of eachsuch other Plan Sponsor as a percentage of all Liabilitiesunder the Plan (as determined by the Administrator). Ifthe delinquent Plan Sponsor later makes Contributionsto the Plan, such Contributions will first be allocated prorata in the same fashion to repay amounts taken fromother Plan Sponsors’ Funding Accounts, plus interest ata market rate to be determined by the Administratorfrom time to time, and only thereafter to the delinquentPlan Sponsor’s separate Funding Account.

(e) Reversions. No Plan Sponsor may receive areversion of assets in its Funding Account unless assetsremain after all liabilities of all Plan Sponsors and thePlan have been satisfied as to all Participants,Beneficiaries, and any other persons entitled to benefitsunder the Plan. When all such liabilities have been satis-fied by the payment of all benefits due, the transfer,merger, or spinoff of benefits and assets to another plan,and/or by annuitizing any remaining benefits with aninsurance or annuity provider selected by theAdministrator, any remaining assets in each PlanSponsor’s Funding Account will be returned by theTrustee to that Plan Sponsor. Except to the extent theyhave actually funded CRSP-DB, the Alaska MissionaryAnnual Conference, Oklahoma Indian MissionaryAnnual Conference, Red Bird Missionary AnnualConference, and the Rio Grande Annual Conference willnot receive any reversions under CRSP-DB. As providedin the Plan certain forfeitures may be turned over to theAdministrator to pay for the administrative expenses ofthe Plan.

S4.4.4 Benefits Payable Only from Trust.Benefits provided by this Plan will be paid solely fromthe Trust assets, and neither any Plan Sponsor nor any



agent or representative of a Plan Sponsor will be liableto a Participant, Beneficiary, Recipient, or Account-holder in any manner for any such benefits, or for thesufficiency of the Trust assets to pay any such benefits.Nothing in this Section S4.4.4 will release a PlanSponsor from its obligation to fund the Plan in accor-dance with its terms.

SECTION S4.5—LIMIT ON BENEFITS

S4.5.1 General Limitation on Benefits.Notwithstanding any other provisions of the 415 DBPlan to the contrary (other than this Section S4.5), theAnnual Retirement Benefit payable with respect to aParticipant under the 415 DB Plan may not exceed anamount equal to the lesser of:

(a) $195,000 (or such greater amount as may bedetermined from time to time in accordance with Code§415(d) for calendar years ending after December 31,2011 that begin within the Plan Year, including PlanYears after a Participant or Terminated Participantincurred a severance from employment or commencedhis or her 415 DB Plan benefit); or

(b) 100% of the Participant’s average 415 Com-pensation for the three consecutive calendar years (asprovided in Section S4.5.3) in which he or she receivedthe highest aggregate 415 Compensation. For Plan Yearscommencing on or after January 1, 2007, to the extentrequired by Code §415(b), a Participant’s 415 Compen-sation in excess of the limit in Code §401(a)(17)($245,000 in 2011, adjusted each Plan Year to take intoaccount any applicable cost-of-living adjustment pro-vided for that year pursuant to Regulations under Code§401(a)(17)(B)) will be disregarded. Notwithstandingthe foregoing, the limit of this Section S4.5.1(b) will notapply to Accrued Benefits accrued by a Clergyperson ina Plan Year before the date on which he or she firstbecame highly compensated within the meaning ofCode §414(q) to the extent that such Accrued Benefitsqualify under Code §415(b)(11).

If the benefits otherwise payable under the 415 DBPlan exceed the foregoing limit, they will be reduceduntil they meet that limit, but benefits exceeding theforegoing limit may be paid in a future Plan Year if theythen do not exceed such limits. If more than one separateplan comprises the 415 DB Plan and if benefits must belimited under this Section S4.5.1, the benefit under aplan with a smaller dollar amount of plan sponsor bene-fit will be reduced before a plan with a larger amount.

S4.5.2 Adjustments to Annual RetirementBenefit. The Annual Retirement Benefit payable withrespect to a Participant under the 415 DB Plan will beactuarially adjusted as follows:

(a) If a Participant’s Annual Retirement Benefit ispaid in a form other than a single-life annuity (with noancillary benefits), it will be actuarially adjusted to itssingle-life annuity equivalent in accordance withRegulations under Code §415(b)(2)(B).

(b) If a Participant’s Annual Retirement Benefit ispaid before the Participant attains age 62, the determi-nation as to whether the dollar limitation set forth inSection S4.5.1(a) has been satisfied will be made, inaccordance with Regulations under Code §415(b)(2)(C),by reducing the limitation specified in Section S4.5.1(a)so that such limitation (as so reduced) equals an annualbenefit (beginning when such Annual RetirementBenefit begins) that is actuarially equivalent to a$195,000 (in 2011, or as indexed thereafter) AnnualRetirement Benefit beginning at the Participant’s attain-ment of age 62.

(c) If a Participant’s Annual Retirement Benefit ispaid after the Participant attains age 65, the determina-tion as to whether the dollar limitation set forth inSection S4.5.1(a) has been satisfied will be made, inaccordance with Regulations under Code §415(b)(2)(D),by increasing the limitation of Section S4.5.1(a) so thatsuch limitation (as so increased) equals an annual bene-fit (beginning when such Annual Retirement Benefitbegins) that is equivalent to a $195,000 (in 2011, or asindexed thereafter) Annual Retirement Benefit begin-ning at the Participant’s attainment of age 65.

(d) When making the benefit or limitation adjust-ments specified in:

(i) Sections S4.5.2(a) or (b), the interest rateassumption may not be less than the greater of:

(A) five percent, or(B) the rate used to compute Actuarial Equivalents;

and(ii) Section S4.5.2(c), the interest rate assumption

may not be greater than the lesser of:(A) five percent, or(B) the rate used to compute Actuarial Equivalents.For the purpose of the foregoing adjustments, no

limitation indexing under Code §415(d)(1) will be takeninto account before the year for which such adjustmentfirst takes effect.

S4.5.3 High Three Years Compensation. Forthe purpose of Section S4.5.1(b), a Participant’s highthree years will be the period of consecutive calendaryears (not less than one nor more than three, and ignor-ing breaks in service), including fractional portions, dur-ing which the Participant was an employee of a 415 DBPlan sponsor or a 415 Affiliate (whether or not he or shewas a participant in the 415 DB Plan for such period)and had the greatest aggregate:



(a) 415 Compensation from his or her 415 DBPlan sponsor or a 415 Affiliate, or

(b) in the case of an employee within the meaningof Code §401(c)(1), earned income (within the meaningof Code §401(c)(2) but determined without regard toany exclusion under Code §911).

S4.5.4 Pro Rating Fewer Than 10 Years.(a) In the case of a Participant who has fewer than

10 years of participation in the 415 DB Plan, the limita-tion referred to in Section S4.5.1 will be the limitationdetermined under Section S4.5.1 (determined withoutregard to this Section S4.5.4), multiplied by a fraction:

(i) the numerator of which is the number of years(or portion thereof) of participation in the 415 DB Plan;and

(ii) the denominator of which is 10.(b) The provisions of Section S4.5.4(a) will apply

to the limitations under Section S4.5.1(b), except thatSection S4.5.4(a) will be applied with respect to years ofservice with the Plan Sponsor, a Salary-Paying Unit, ora 415 Affiliate of either, rather than years of participa-tion in the 415 DB Plan. Periods during which aParticipant or Terminated Participant was totally andpermanently disabled within the meaning of Code§415(c)(3)(C)(i) will be credited as service for the pur-pose of Section 5.4(a)(i).

(c) In no event may Sections S4.5.4(a) or (b)reduce the limitations referred to in Section S4.5.1(a) toan amount less than 1/10 of such limitation (determinedwithout regard to this Section S4.5.4(c)).

S4.5.5 Defined Contribution Limits. To theextent required by Code §§403(b) and 415(c), the limitsof Code §415(c) will also apply to annual increases in aParticipant’s Accrued Benefit. Those limits may befound in Section B5.1, Code §415(c), and Regulations.To the extent permitted by the Code and under rulesestablished from time to time by the Administrator, if aParticipant’s Accrued Benefit in a Limitation Year islimited under this Section S4.5.5, the portion of suchAccrued Benefit in excess of such limit may be deemedto have accrued in one or more later Limitation Years tothe extent applicable limits allow.

S4.5.6 Purpose of Limitations; Authority ofAdministrator. The limitations of this Section S4.5 areintended to comply with the requirements of Code §415(and especially Code §415(b)), and the Regulationsissued thereunder, and will be construed accordingly. Tothe extent that such Regulations provide for any elec-tions or alternative methods of compliance not specifi-cally addressed in this Section S4.5, the Administratorwill have the authority to make or revoke such electionor use such alternative method of compliance unless

such election or alternative method of compliance by itsterms requires an amendment to the Plan.

SECTION S4.6—ACCRUED BENEFIT

S4.6.1 Monthly Benefit Formula. A Partici-pant’s (or other Recipient’s) monthly benefit formulaamount as of any date is (a), plus (b), where:

(a) is (i), times (ii), times (iii), where:(i) is 1.25%;

(ii) is 1/12th of the Participant’s Final DAC; and(iii) is the Participant’s Credited Service as of that

date for any periods that the Participant was not a Bishop.(b) is (i), times (ii), times (iii), where:(i) is 1.25%;

(ii) is 1/12th of the Participant’s Final Compensa-tion; and

(iii) is the Participant’s Credited Service as of thatdate for any periods that the Participant was a Bishop.

Notwithstanding the foregoing, no further CreditedService will accrue on or after the Effective Date,although neither Final DAC nor Final Compensationwill be frozen as of the Effective Date.

S4.6.2 Break in Service. If a Participantincurs a Separation From Covered Service, his or herCredited Service will cease and his or her AccruedBenefit will be determined as of such date. Except asotherwise provided in Section S4.9.1(b)(iv)(B), if suchParticipant later requalifies under Section S4.3.1 beforebeginning his or her benefit, his or her Credited Servicewill resume, and

(a) if such Participant did not suffer a Break inService lasting at least 365 consecutive days, his or herAccrued Benefit may once again be computed as of adetermination date after such Separation From CoveredService, using the sum of the Participant’s CreditedService for both periods of Appointment and the FinalDAC and/or the Participant’s Final Compensation, asapplicable, on the earlier of the determination date suchAccrued Benefit is computed or the date the secondperiod of Credited Service ends.

(b) if such Participant did suffer a Break in Servicelasting at least 365 consecutive days, his or her AccruedBenefit as of a determination date after such Break inService will be the sum of:

(i) such Participant’s Accrued Benefit computedas of the day before the start of the Break in Service last-ing at least 365 consecutive days, based on the FinalDAC and/or the Participant’s Final Compensation, asapplicable, on that date and the Participant’s CreditedService as of that date; and

(ii) such Participant’s Accrued Benefit computedas of such determination date after the end of the Break



in Service lasting at least 365 consecutive days, basedonly on his or her Credited Service after such Break inService and the Final DAC and/or the Participant’s FinalCompensation, as applicable, on such determinationdate.

Notwithstanding the foregoing, nor the definition ofBreak in Service, for the purpose of this Section S4.6.2,any period of time during which a Participant is notemployed by a Plan Sponsor but is:

(1) Under Episcopal Appointment;(2) an active member of a Conference;(3) an active member of a Central Conference; or(4) an active member of The Puerto Rico

Methodist Churchwill not count toward a Break in Service for such

Participant.S4.6.3 Change of Classification. If a Partici-

pant’s Clergy classification is changed from Bishop,Elder in Full Connection, Local Pastor, Deacon in FullConnection, Associate Member, affiliate member withinthe meaning of ¶¶ 344.4, 369.1, or 586.4 of theDiscipline, Provisional Member, or any otherClergyperson classification to another of those classifi-cations, the Participant’s Accrued Benefit will not beaffected and will continue to accrue as long as he or sheremains as an Eligible Clergyperson and does not suffera Break in Service.

SECTION S4.7—VESTING ANDFORFEITURE

S4.7.1 Full Vesting. A Participant’s AccruedBenefit will be fully Vested at all times to the extentfunded, and will not be forfeited for any reason exceptas provided in Section S4.7.2.

S4.7.2 Forfeitures. Notwithstanding SectionS4.7.1, a Recipient may forfeit an otherwise VestedAccrued Benefit in the following circumstances:

(a) Missing Recipient. The Accrued Benefit of aRecipient who cannot be located will be handled asdescribed in Section S4.9.5.

(b) Uncashed Check. Any Recipient who has beenissued a check for benefits due but who does not returnor cash the check within a reasonable period establishedby the Administrator, after such reasonable notice (or inthe case of very small benefit amounts, no notice) as theAdministrator may determine, will forfeit such benefits.Such forfeited amounts will be returned to the FundingAccount of the Plan Sponsor sponsoring such Recipientand will be used to pay other benefits due under thePlan. Uncashed checks returned to the Administratorbecause the payee is missing or for other reasons are notcovered by this Section S4.7.2(b).


(d) Death. If a Participant or Terminated Partici-pant dies without a Spouse before his or her AnnuityStarting Date, all of such Participant’s or TerminatedParticipant’s Vested benefits will be forfeited except asotherwise provided in Section S4.9.3. A Participant,Terminated Participant, Contingent Annuitant, orBeneficiary who dies after his or her Annuity StartingDate will also forfeit any monthly benefits that have notalready become payable to such person, although bene-fits may continue to another person in accordance withSection S4.9. Unless otherwise specifically provided, allsuch forfeitures will remain in the Funding Account(s)of the Plan Sponsor(s) from which the forfeited benefitswere due to be paid, and will be used to pay other bene-fits due under the Plan.

(e) Ineligible Participant. Benefits credited to anineligible Participant will be handled as described inSection S4.3.6.

(f) Election Not to Participate. Eligible Clergywho elect not to participate in the Plan will be handledas described in Section S4.3.7.

(g) Benefits in Excess of Limits. Benefits may beforfeited in accordance with the terms of Section S4.5.

(h) Disabled Adult Child Annuity Conditions.When a disabled adult child is a secondary ContingentAnnuitant (receiving an annuity benefit after theParticipant’s or Terminated Participant’s Spouse or otherContingent Annuitant has died), such disabled adultchild will not be eligible for benefits unless, or benefitsalready payable will be forfeited unless:

(i) benefits to the disabled adult child are payableto a special needs trust for the benefit of such child; and

(ii) such special needs trust complies with applica-ble law.

Further, the disabled adult child benefits above forwhich such disabled adult child was not eligible, or thatwere forfeited, will not be restored to the estates of thedeceased Participant, Terminated Participant, survivingSpouse, or other primary Contingent Annuitant, nor willany of them receive any retroactive change to the actu-arially reduced benefits that were paid to them thatfunded the secondary Contingent Annuitant benefits.

SECTION S4.8—AMOUNT OF BENEFITS

S4.8.1 Normal Retirement. A Participant orTerminated Participant who Retires on his or her Normal



Retirement Date will receive a monthly NormalRetirement Benefit or Late Retirement Benefit at his orher Annuity Starting Date that is computed using his orher Accrued Benefit as of his or her Normal RetirementDate and payable in accordance with the provisions ofSection S4.9. If distribution is delayed under SectionS4.9.2(b), such a Participant or Terminated Participantmay receive a Late Retirement Benefit.

S4.8.2 Early Retirement. A Participant whoRetires on his or her Early Retirement Date or aTerminated Participant who incurs a Termination ofConference Relationship or a Five-Year No Record ofAppointment on or before his or her Early RetirementDate will receive (at his or her Annuity Starting Datethat is before his or her Normal Retirement Date) areduced monthly Early Retirement Benefit that is theActuarial Equivalent of his or her Accrued Benefit com-puted as of his or her Normal Retirement Date, com-puted using Credited Service accrued to his or her EarlyRetirement Date, and that is payable in accordance withthe provisions of Section S4.9. If his or her AnnuityStarting Date is delayed under Section S4.9.2(b), such aParticipant or Terminated Participant may receive aNormal Retirement Benefit or a Late Retirement Benefit.

S4.8.3 Late Retirement. A Participant orTerminated Participant who Retires on his or her LateRetirement Date will receive a monthly Late RetirementBenefit computed using his or her Accrued Benefit as ofhis or her Late Retirement Date and payable in accor-dance with the provisions of Section S4.9.

S4.8.4 Death of Participant. If a Participantor a Terminated Participant dies before his or her Early,Normal, or Late Retirement Benefit begins and:

(a) if he or she had no Spouse on the date of his orher death, then no benefit of any kind will be payablefrom the Plan to any person; or

(b) if he or she had a Spouse on the date of his orher death, then such Spouse will be entitled to a 70%Pre-Retirement Survivor Benefit, payable in accordancewith the provisions of Section S4.9.

If a Retired Participant or a Terminated Participantdies after his or her Early, Normal, or Late RetirementBenefit begins, whether a continued benefit will be paidor not will depend on the form of benefit the RetiredParticipant or Terminated Participant was receiving andthe terms of Section S4.9.

SECTION S4.9—PAYMENT OFRETIREMENT BENEFITS

S4.9.1 Form of Payment. The following pro-visions are subject to Section S4.9.4 (relating to requiredminimum distributions).

(a) Normal Form. Except as otherwise provided inthis Section S4.9.1, a Participant or a TerminatedParticipant entitled to an Early Retirement Benefit, aNormal Retirement Benefit, or a Late RetirementBenefit will receive such benefit in the Normal Form ofBenefit, which is:

(i) Single Participant. In the case of a RetiredParticipant or Terminated Participant who has no Spouseon his or her Annuity Starting Date, a Single-LifeAnnuity that is equal to such Participant’s or TerminatedParticipant’s Accrued Benefit as of his or her AnnuityStarting Date (subject to any Early Retirement Benefitactuarial reduction). In the case of a Retired Participant,the monthly amount of such benefit will be increasedannually by 2% on each January 1 for benefits that wereIn Pay Status on the preceding July 30, which July 30limit will not apply to a Retired Bishop in the first par-tial Plan Year after his or her Retirement. Notwith-standing the foregoing, the 2% increase rate will bereduced if required by Regulation §1.401(a)(9)-6, Q&A-14, or any other applicable Regulation.

(ii) Married Retired Participant. In the case of aRetired Participant who has a Spouse on his or herAnnuity Starting Date, a 70% Contingent Annuity that isequal to such Participant’s Accrued Benefit as of his orher Annuity Starting Date (subject to any EarlyRetirement Benefit actuarial reduction), with 2% annualincreases thereafter, with such Spouse as the ContingentAnnuitant, as further provided below:

(A) Following the Retired Participant’s death, if hisor her Spouse (determined on his or her Annuity StartingDate) survives him or her, such surviving Spouse willreceive a monthly benefit for the remainder of his or herlifetime equal to 70% of the benefit paid to the RetiredParticipant immediately before his or her death, with 2%annual increases as further provided in SectionS4.9.1(a)(ii)(B) below.

(B) The monthly amount of the 70% ContingentAnnuity, both the portion payable to the RetiredParticipant during his or her lifetime, and the portion, ifany, payable to his or her surviving Spouse, will beincreased annually by 2% on each January 1 for benefitsthat were In Pay Status on the preceding July 30, whichJuly 30 limit will not apply to a Bishop in the first par-tial Plan Year after his or her Retirement. Notwith-standing the foregoing, the 2% increase rate will bereduced if required by Regulation §1.401(a)(9)-6, Q&A-14, or any other applicable Regulation.

(iii) Married Terminated Participant. In the case ofa Terminated Participant who has a Spouse on his or herAnnuity Starting Date, a 70% Contingent Annuity that isreduced to be the Actuarial Equivalent of such



Terminated Participant’s Accrued Benefit as of his or herAnnuity Starting Date (subject to any Early RetirementBenefit further actuarial reduction). During theTerminated Participant’s lifetime, he or she will receivea monthly benefit that is equal to his or her AccruedBenefit, actuarially reduced to reflect the cost of provid-ing a 70% surviving Spouse benefit and further actuari-ally reduced to reflect any commencement of the benefitbefore the Terminated Participant’s Normal RetirementDate. Following the Terminated Participant’s death, ifhis or her Spouse (determined on his or her AnnuityStarting Date) survives him or her, such survivingSpouse will receive a monthly benefit for the remainderof his or her lifetime equal to 70% of the benefit paid tothe Terminated Participant immediately before his or herdeath. The monthly amount of such benefit, both theportion payable to the Terminated Participant and theportion, if any, payable to the surviving Spouse, will notbe increased annually.

(b) Optional Form.(i) Waiving Normal Form of Benefit. Notwith-

standing Section S4.9.1(a), a Participant or TerminatedParticipant:

(A) who has no Spouse on his or her AnnuityStarting Date may waive receipt (in writing in a formacceptable to the Administrator) of his or her benefit inthe Normal Form of Benefit, and elect, instead, anOptional Form of Benefit.

(B) who has a Spouse on his or her AnnuityStarting Date may waive receipt (in writing in a formacceptable to the Administrator) of his or her benefit inthe Normal Form of Benefit, and elect, instead, anOptional Form of Benefit if his or her Spouse consentsas provided in Section S4.9.1(c).

(ii) Optional Form of Benefit. The Administrator,in its discretion, may offer as an Optional Form ofBenefit, from time to time, any form of annuity, such asa life annuity, a life and period certain annuity, or a jointand survivor annuity (with any permitted percentagepayable to any permitted named survivor), other than theNormal Form of Benefit due to a Participant orTerminated Participant, that is the Actuarial Equivalentof the Normal Form of Benefit; provided, however,that any benefit that increases periodically must usean increase rate that complies with Regulation§1.401(a)(9)-6, Q&A-14, or any other applicableRegulation.

(iii) Disabled Adult Child as Contingent Annuitant.As Optional Forms of Benefit, the Administrator willoffer one or more Contingent Annuity options that paysurvivor benefits to a special needs trust for a disabledadult child of the Participant or Terminated Participant,

which Contingent Annuity options may provide for dualContingent Annuitants (such as a Spouse and the specialneeds trust as a successor). As further described in anApplication for Benefits (or in accompanying informa-tion), these Contingent Annuity options will be subjectto any conditions or limitations the Administrator mayspecify and to actuarial reductions in benefits that makethese Contingent Annuities Actuarially Equivalent to theNormal Form of Benefit otherwise payable to theParticipant or Terminated Participant.

(iv) Lump Sums. Except as otherwise provided in thisSection S4.9.1(b)(iv), in Section S4.9.1(d), or in SectionS4.9.2(c), no Recipient may receive his or her benefitunder this Plan in a lump sum, partial lump sum, install-ment form, or any other non-annuity form of payment.

(A) Termination by Withdrawal. A Participant whoincurs a Termination of Conference Relationship under¶ 360.2 of the Discipline on or after January 1, 2013 mayelect an Actuarially Equivalent lump sum transfer of hisor her CRSP-DB Accrued Benefit to an Account of theAdministrator’s choosing in the Core Defined Contribu-tion Plan, as further provided in Section S4.9.2(c).

(B) Re-Employment. If a Terminated Participantelects a lump sum transfer under Section S4.9.1(b)(iv)(A)above and is later re-employed (see Section S4.3.4(d)),he or she may not reverse or repay the earlier lump sumtransfer and, notwithstanding any provision of SectionS4.6.2, will not receive any Credited Service for periodsthat were included when computing his or her AccruedBenefit that was transferred in a lump sum as providedin Section S4.9.1(b)(iv)(A) above.

(c) Spousal Consent. A Spouse must consent to aParticipant’s or a Terminated Participant’s election of anOptional Form of Benefit in writing and in such form asmay be required by the Administrator, provided that anelection to reject the Normal Form of Benefit will not beeffective unless:

(i) the Spouse’s consent acknowledges the effectof such election and is witnessed by an authorized rep-resentative of the Salary-Paying Unit, Plan Sponsor, orAdministrator or a notary public; or

(ii) it is established to the satisfaction of theAdministrator that the consent required under SectionS4.9.1(c)(i) may not be obtained because:

(A) the Participant or Terminated Participant hasno Spouse;

(B) the Participant or Terminated Participant islegally separated from his or her Spouse or has been aban-doned (within the meaning of local law) by his or herSpouse, and, in either case, the Participant or TerminatedParticipant has a court order to such effect (and there isno QDRO that provides otherwise); or



(C) neither the Participant or Terminated Partici-pant nor the Administrator can locate the Spouse (pro-vided, however, that the Administrator will have noobligation to search for such Spouse).

Any consent by a Spouse (or establishment that theconsent of a Spouse may not be obtained) under the nextpreceding sentence will be effective only with respect tosuch Spouse. Notwithstanding anything else to the con-trary in this Section S4.9.1(c), a Spouse’s consent willnot be required if the Participant or TerminatedParticipant elects an Optional Form of Benefit that pro-vides a benefit to that Spouse that is at least the ActuarialEquivalent of what the Normal Form of Benefit wouldprovide to that Spouse.

(d) Small Benefit. The Administrator may establisha minimum annuity amount from time to time. If theamount of a Recipient’s Aggregate DB Benefit is orwould be less than the minimum annuity amount, suchAggregate DB Benefit will be converted on anActuarially Equivalent basis to a lump sum. TheAdministrator may make such minimum annuity deter-mination and conversion, in its discretion, at theRecipient’s Retirement, when the Recipient becomes aTerminated Participant, and/or at the Recipient’sAnnuity Starting Date. Once such conversion is made,the Administrator will transfer such lump sum to anAccount of its choosing in the Core Defined Contri-bution Plan or partly to an account in another definedcontribution plan when so required by another planadministered by the Administrator. Neither theRecipient’s consent nor the consent of the Recipient’sSpouse will be required to make such conversion ortransfer.

(e) Election Procedures. Wherever the Plan pro-vides for a Recipient to elect a form of distribution(including the right to defer receiving a distribution), theAdministrator will provide a written explanation of thedifferent forms of distribution. Such explanation will beprovided not fewer than 30 nor more than 180 daysbefore the Recipient’s Annuity Starting Date for suchbenefit, or within such other period as may be providedby any applicable provision of the Code. A Recipientwho has received such explanation may waive the 30-day period and elect to have his or her benefit distributedas soon as administratively practicable.

(f) Rollover. If a Participant or TerminatedParticipant, or the surviving Spouse or Alternate Payeeof either, receives a distribution that qualifies as anEligible Rollover Distribution, such person has the rightto direct the rollover of all or a portion of such distribu-tion directly to an IRA, a defined contribution pension orprofit-sharing trust qualified under Code §401(a), an

annuity plan qualified under Code §403(a), a tax-sheltered annuity plan qualified under Code §403(b), oranother “eligible retirement plan” as defined in Code§401(a)(31), that will accept such a rollover, providedthat the amount so transferred must either be the entireamount of such distribution or must be at least $200.Any surviving non-Spouse Beneficiary who receives adistribution that qualifies as an Eligible RolloverDistribution has the right to elect a direct rollover of allor a portion of such distribution directly to an inheritedIRA that will accept such rollover, provided that theamount so transferred must either be the entire amountof such distribution or be at least $200. The Adminis-trator may adopt administrative procedures to imple-ment direct rollovers, which may vary the time periodsand minimum amounts set forth above, to the extentconsistent with final Regulations issued under Code§401(a)(31).

(g) Non-Revision. Subject to Section S4.3.4, begin-ning five business days before the first monthly benefit isdue, neither the form of payment nor the Spouse entitledto survivor payments may be changed by reason of achanged election, the death of a Spouse, or a divorce.

S4.9.2 Time of Payment. The following pro-visions are subject to Section S4.9.4 (relating to requiredminimum distributions).

(a) Distribution at Retirement. A Participant’s orTerminated Participant’s Annuity Starting Date will bethe Early Retirement Date, Normal Retirement Date, orLate Retirement Date on or immediately following suchParticipant’s Retirement or Terminated Participant’s62nd birthday, unless:

(i) the Participant’s or Terminated Participant’sAggregate DB Benefit exceeds the amount specified inSection S4.9.1(d), and the Participant or TerminatedParticipant fails to submit an accurately completedApplication for Benefits to the Administrator beforesuch Early, Normal, or Late Retirement Date (or, in thecase of a Terminated Participant, his or her 62nd birth-day), in which case the payment of his or her EarlyRetirement Benefit, Normal Retirement Benefit, or LateRetirement Benefit will be made in accordance withSection S4.9.2(b); or

(ii) the Participant’s or Terminated Participant’sAggregate DB Benefit does not exceed the amount spec-ified in Section S4.9.1(d), in which case the payment ofhis or her Accrued Benefit will be made in accordancewith Section S4.9.2(c).

Notwithstanding the provisions of the previous sen-tence, such Participant’s or Terminated Participant’sAnnuity Starting Date will be delayed if required to sat-isfy the conditions of Sections S4.9.1(e) and S4.9.2(d).



(b) Delayed Distribution. If Section S4.9.2(a)(i)applies, the Annuity Starting Date for a Participant’s orTerminated Participant’s Early Retirement Benefit,Normal Retirement Benefit, or Late Retirement Benefitwill be the earlier of:

(i) the date that is:(A) the first of the month following the

Administrator’s acceptance of the Participant’s orTerminated Participant’s Application for Benefits; or

(B) such later date, if any, as is necessary to satisfythe conditions of Sections S4.9.1(e) and S4.9.2(d); or

(ii) the Participant’s or Terminated Participant’sRequired Beginning Date.

(c) Lump Sums.(i) Small Benefit. Except in the case of a Disabled

Participant, if, as of the time:(A) a Participant qualifies for Early Retirement,

Normal Retirement, or Late Retirement or attains his orher Annuity Starting Date;

(B) a Terminated Participant first becomes aTerminated Participant or attains his or her AnnuityStarting Date; or

(C) an Alternate Payee’s benefit is segregated pur-suant to a QDRO or the Alternate Payee attains his or herAnnuity Starting Date,

such person’s Aggregate DB Benefit does notexceed the amount specified in Section S4.9.1(d), thensuch Aggregate DB Benefit will be administered asdescribed in Section S4.9.1(d). A Disabled Participantmust consent to such distribution.

(ii) Termination by Withdrawal. A Participantentitled to a lump sum transfer under SectionS4.9.1(b)(iv)(A) must elect such lump sum transfer:

(A) within 180 days of his or her Termination ofConference Relationship under any subparagraph of¶ 360.2 of the Discipline;

(B) subject to all applicable provisions of SectionsS4.9.1 and S4.9.2; and

(C) in accordance with such rules as theAdministrator may make from time to time.

Such Terminated Participant’s lump sum transferwill be completed as soon as reasonably practicableafter the Administrator’s receipt of the TerminatedParticipant’s lump sum election. The lump sum transferwill constitute the complete transfer of such TerminatedParticipant’s Accrued Benefit under CRSP-DB to anAccount of the Administrator’s choosing in the CoreDefined Contribution Plan. Following such transfer, theTerminated Participant may leave the transferred lumpsum in the Account to which it was transferred or applyfor and receive a distribution of such transferred lumpsum in accordance with Section B8.

(d) Tax Notice. Before making any EligibleRollover Distribution, the Administrator will furnisheach Recipient with a notice describing his or her rightto a direct rollover of the distribution and the tax conse-quences of the distribution. Such notice will be fur-nished not more than 180 days nor fewer than 30 daysbefore the Recipient is entitled to receive such distribu-tion, and no distribution will be made until 30 days afterhe or she has received such notice unless he or shewaives such 30-day period in writing in accordance withprocedures established by the Administrator.

S4.9.3 Payments After a Participant’s Death.The following provisions are subject to Section S4.9.4(relating to required minimum distributions).

(a) Distribution on Death. On or after the death ofa Participant or a Terminated Participant whose AnnuityStarting Date:

(i) has already passed, further Plan benefits willbe paid (or will cease) in accordance with the terms ofthe Normal Form of Benefit or Optional Form ofBenefit, whichever is in force; or

(ii) has not yet arrived,(A) no benefits under the Plan will be payable if

such Participant or Terminated Participant has no sur-viving Spouse; or

(B) a monthly 70% Pre-Retirement SurvivorBenefit will be paid to such Participant’s or TerminatedParticipant’s surviving Spouse as follows:

(I) If the Participant or Terminated Participantdied while married to a Spouse, that surviving Spousewill receive 70% of the Participant’s or TerminatedParticipant’s portion of:

(1) the benefit payable under Section S4.9.1(a)(ii)in the case of a surviving Spouse of a Participant; or

(2) the benefit payable under Section S4.9.1(a)(iii)in the case of a surviving Spouse of a TerminatedParticipant,

in either case as though the Participant orTerminated Participant commenced the benefit payableunder Section S4.9.1(a)(ii) or (iii), respectively, on theday before his or her death (disregarding any limitationson when such benefit may be paid) and died immedi-ately thereafter without receiving any payments thereun-der, leaving only the surviving Spouse portion of thebenefit. Monthly surviving Spouse benefits will be actu-arially reduced, as determined by the Administrator, toreflect early commencement in the case of paymentsbeginning before the Participant’s or TerminatedParticipant’s Normal Retirement Date.

(II) Monthly benefits will begin on:(1) the first of the month following the Partici-

pant’s or Terminated Participant’s date of death; or



(2) such later date as such surviving Spouse mayelect (in accordance with rules and procedures adoptedby the Administrator from time to time); and

will end with the payment made on the first of themonth in which such surviving Spouse dies.

(III) Monthly benefits will be increased 2% peryear, in accordance with the provisions of SectionS4.9.1(a)(ii), when paid to the surviving Spouse of adeceased Participant, but no annual increase will be paidto the surviving Spouse of a deceased TerminatedParticipant.

(b) Proof of Death. The Administrator may requiresuch proof of death and such evidence of the right of anyperson to receive payment of a Normal Form of Benefit,Optional Form of Benefit, or 70% Pre-RetirementSurvivor Benefit as the Administrator may deem appro-priate. The Administrator’s determination of which per-son will receive payment will be conclusive.

(c) Effect of Divorce. A Participant’s or Termina-ted Participant’s divorce after his or her Annuity StartingDate will not change how benefits are paid under theNormal Form of Benefit or an Optional Form of Benefitunless a QDRO otherwise provides. A Participant’s orTerminated Participant’s divorce (but not his or her legalseparation) before his or her Annuity Starting Date willresult in benefits being paid as though the Participant orTerminated Participant does not have a Spouse, unlessthe Participant or Terminated Participant remarriesbefore his or her Annuity Starting Date or unless aQDRO otherwise provides.

S4.9.4 Required Minimum Distributions.Notwithstanding anything in the Plan to the contrary,distributions under the Plan will comply with Code§403(b)(10) and its provisions related to compliancewith Code §401(a)(9) and the applicable provisions ofany required minimum distribution Regulations issuedthereunder. Such Code and Regulation provisions arehereby incorporated herein by this reference, and willcontrol over any form of distribution or timing of distri-bution provided in this Plan that is inconsistent there-with. To the extent that such Regulations provide for anyelections or alternative methods of compliance notspecifically addressed in the Plan, the Administrator willhave the authority to provide for such elections or alter-native methods of compliance.

(a) Time of Distribution.(i) Required Beginning Date. Monthly benefits

will begin to be distributed to the Participant no laterthan the Participant’s Required Beginning Date.

(ii) Death of Participant Before DistributionsBegin. If the Participant dies before a distribution to theParticipant begins, monthly benefits will be distributed

to the Participant’s surviving Spouse, if any, beginningno later than December 31 of the later of:

(A) the calendar year in which the Participantwould have attained age 70½; or



(b) Determination of Amount to be DistributedEach Year.

(i) General Annuity Requirements. If a Partici-pant’s interest is paid in the form of an annuity distribu-tion under the Plan, payments under the annuity mustsatisfy the following requirements:

(A) the annuity distribution will be paid in periodicpayments made at intervals not longer than one year;

(B) the distribution period will be over a life (orlives) or over a period certain not longer than the perioddescribed in Section S4.9.4(c) or (d);

(C) once payments have begun over a period cer-tain, the period certain will not be changed, even if theperiod certain is shorter than the maximum permitted;and

(D) payments will either be nonincreasing or willincrease only as follows:

(I) by an annual percentage increase that does notexceed the annual percentage increase in a cost-of-livingindex that is based on prices of all items and issued bythe Bureau of Labor Statistics;

(II) to the extent of the reduction in the amount ofthe Participant’s payments to provide for a survivor ben-efit upon death, but only if the Beneficiary whose lifewas being used to determine the distribution perioddescribed in Section S4.9.4(c) dies or is no longer theParticipant’s Beneficiary pursuant to a QDRO;

(III) to provide cash refunds of participant contribu-tions upon the Participant’s death;

(IV) to pay increased benefits that result from a Planamendment; or

(V) by an annual percentage increase that complieswith any other applicable Regulation.

(ii) Amount Required to be Distributed by RequiredBeginning Date. The amount that must be distributed onor before a Participant’s Required Beginning Date (or, ifthe Participant dies before distributions begin, the datedistributions are required to begin under SectionS4.9.4(a)(ii)) is the payment that is required for one pay-ment interval (i.e., the period for which an annuitypayment is received (e.g., bi-monthly, monthly, semi-annually, or annually)). The second payment need not bemade until the end of the next such payment interval



even if that payment interval ends in the next calendaryear. All of the Participant’s benefit accruals as of thelast day of the first distribution calendar year will beincluded in the calculation of the amount of the annuitypayments for such payment intervals ending on or afterthe Participant’s Required Beginning Date.

(iii) Additional Accruals After First DistributionCalendar Year. Any additional benefits accruing to aParticipant in a calendar year after the first DistributionCalendar Year will be distributed beginning with the firstpayment interval ending in the calendar year immedi-ately following the calendar year in which such amountaccrues.

(c) Requirements for Annuity Distributions thatBegin During Participant’s Lifetime.

(i) Joint-Life Annuities Where the ContingentAnnuitant Is Not the Participant’s Spouse. If aParticipant’s interest is being distributed in the form of aContingent Annuity for the joint lives of the Participantand a non-Spouse Contingent Annuitant, annuity pay-ments to be made on or after the Participant’s RequiredBeginning Date to the Contingent Annuitant after theParticipant’s death must not at any time exceed theapplicable percentage of the annuity payment for suchperiod that would have been payable to the Participantusing the table set forth in Regulation §401(a)(9)-6,Q&A-2. If the form of distribution combines aContingent Annuity for the joint lives of the Participantand a non-Spouse Contingent Annuitant and a periodcertain annuity, the requirement in the preceding sen-tence will apply to annuity payments to be made to theContingent Annuitant after the expiration of the periodcertain.

(ii) Period-Certain Annuities. Unless a Partici-pant’s Spouse is the sole Designated Beneficiary and theform of distribution is a period certain with no lifetimebenefit annuity, the period certain for an annuity distri-bution commencing during the Participant’s lifetimemay not exceed the applicable distribution period for theParticipant under the Uniform Lifetime Table set forth inRegulation §1.401(a)(9)-9 for the calendar year thatcontains the Annuity Starting Date. If the AnnuityStarting Date precedes the year in which the Participantattains age 70, the applicable distribution period for theParticipant is the distribution period for age 70 under theUniform Lifetime Table set forth in Regulation§1.401(a)(9)-9 plus the excess of 70 over the age of theParticipant as of the Participant’s birthday in the yearthat contains the Annuity Starting Date. If theParticipant’s Spouse is the Participant’s sole DesignatedBeneficiary and the form of distribution is a period cer-tain and joint-life annuity, the period certain may not

exceed the longer of the Participant’s applicable distri-bution period, as determined under this SectionS4.9.4(c)(ii), or the joint life and last survivorexpectancy of the Participant and the Participant’sSpouse as determined under the Joint and Last SurvivorTable set forth in Regulation §1.401(a)(9)-9, using theParticipant’s and Spouse’s attained ages as of theParticipant’s and Spouse’s birthdays in the calendar yearthat contains the Annuity Starting Date.

(d) Small Benefit. Notwithstanding the foregoingportions of this Section S4.9.4, except in the case of adistribution to a Disabled Participant, if a Participant’sor a Terminated Participant’s Aggregate DB Benefitdoes not exceed the amount specified in SectionS4.9.1(d) at the time of distribution, then such AggregateDB Benefit will be administered as described in SectionS4.9.1(d) as soon as administratively feasible. ADisabled Participant must consent to such administra-tion, subject to the foregoing provisions of this SectionS4.9.4.

S4.9.5 Unclaimed Benefits. The Administra-tor may prescribe uniform and nondiscriminatory rulesfor carrying out the following provisions:

(a) If a portion (or all) of an Early, Normal, or LateRetirement Benefit or a 70% Pre-Retirement SurvivorBenefit remains to be distributed to a Recipient at a timewhen it is due under the Plan (including, but not limitedto, the Required Beginning Date) and the Administratoris then unable to locate the Recipient, the Administratorwill send notice of such benefit due by a certified letterwith return receipt requested to the last known addressof the Recipient. If the Recipient fails to contact theAdministrator within 12 months, the Recipient will bepresumed dead and such benefit will be forfeited (exceptas provided in Section S4.9.5(c)) and will become thebenefit of the next Recipient in line (except as providedin Section S4.9.5(b)) in accordance with the applicableform of payment. The Administrator will then sendnotice by certified letter as provided above to the nextRecipient in line, and the process specified above will berepeated until the last successor Recipient is sent a noti-fication.

(b) If the last successor or default Recipient fails tocontact the Administrator within 12 months after beingsent notification of a benefit due as provided in SectionS4.9.5(a), then the amount specified in Section S4.9.5(a)will be forfeited. Such forfeitures will remain in theFunding Account from which they would otherwisehave been paid to fund other benefits payable under thePlan.

(c) If, at any time before the expiration of the 12-month period described in Section S4.9.5(b), a Recipient



who is or was due a benefit described in SectionS4.9.5(a) claims the benefit, the benefit will be paid tosuch Recipient (notwithstanding any previous forfeiture)if it has not previously been paid to another Recipient. Ifa benefit has been paid to a successor Recipient, the for-feiture as to all predecessor Recipients will become per-manent. If the 12-month period described in SectionS4.9.5(b) has elapsed, then such benefit will be perma-nently forfeited and will remain in the Funding Accountfrom which it would otherwise have been paid to fundother benefits payable under the Plan.

S4.9.6 Payment with Respect to Incapaci-tated Recipients. Whenever, in the Administrator’sopinion, a person entitled to receive any payment of abenefit under the Plan is under a legal disability (includ-ing being a minor) or is incapacitated in any way so asto be unable to manage such person’s financial affairs,the Administrator may direct the Trustee to make pay-ments directly to the person, to the person’s legal repre-sentative (including a custodian for such person underthe applicable Uniform Gifts or Transfers to Minors Actor similar legislation), or to a relative or friend of theperson to be used exclusively for such person’s benefit,or apply any such payment for the benefit of the personin such manner as the Administrator deems advisable.The decision of the Administrator, in each case, will befinal, binding, and conclusive upon all persons inter-ested hereunder. The Administrator will not be obligatedto see to the proper application or expenditure of anypayment so made. Any benefit payment (or installmentthereof) made in accordance with the provisions of thisSection S4.9.6 will completely discharge the obligationfor making such payment under the Plan, and the

Administrator will have no further liability on accountthereof.

S4.9.7 Limitation on Liability for Distribu-tions. All rights and benefits, including benefit elec-tions, provided to a Participant or Terminated Participantunder this Plan will be subject to the rights afforded toany Alternate Payee under a QDRO. Further, a distribu-tion to an Alternate Payee will be permitted if such dis-tribution is authorized by a QDRO, even if the affectedParticipant or Terminated Participant has not incurred aTermination of Conference Relationship or attained anyparticular age.

S4.9.8 Relinquishment. Any Recipient mayRelinquish any benefit or portion thereof that is due tohim or her under the Plan if it is done in writing in aform acceptable to the Administrator and before receiv-ing it. The Relinquishment will be effective for anymonthly benefit payments due after it is made, willremain in effect in accordance with its terms for futurebenefit payments (until revoked), and may be revoked atany time (prospectively only), in accordance with rulesor procedures adopted from time to time by theAdministrator, as to monthly benefits not yet due.Relinquished monthly benefits will be handled in accor-dance with Section S4.7.2.

Rationale:This is one of two alternate petitions sponsored by

GBPHB to replace the current clergy retirement plan.This petition would cease accrual of future pensionliabilities, but the other petition is recommended forits lifetime clergy income. Both plans would reducebenefits and costs to help address conference financialconcerns.



Retirement Plan for General Agencies Amendments

Make the following revisions to the RetirementPlan for General Agencies (“RPGA”), which is incorpo-rated by reference in ¶1504.1 of the Book of Discipline,(including any needed revisions to RPGA section num-bering, formatting, pagination, or Table of Contents),effective on a date or dates specified by the GeneralBoard of Pension and Health Benefits that are as soon assystems can reasonably be reconfigured to administerthe revisions, which dates are not later than January 1,2014, except where another effective date is specifiedbelow:

1. Revise Section 2.53(a) as follows, effectiveJanuary 1, 2010:

in the case of a Clergy Employee, the earlierlater of:2. Add the following clause to all Sections where

“Associate Member” is also used, effective January 1,2010:

an affiliate member within the meaning of ¶¶344.4,369.1, or 586.4 of the Discipline,

3. Revise Section 2.101(a) as follows, effectiveJanuary 1, 2010:

(a) In the case of a Participant, the first day of themonth coinciding with or next following the earlierear-liest of:


years of service to The United Methodist Church asdescribed in ¶714.3 of the Discipline.

(ii) the date on which a Clergy EmployeeParticipant attains 40 years of service under ¶358.2c ofthe Discipline and is placed in the retired relation by hisor her Conference; or

(iii) the date on which a Lay Employee Participantattains 40 years of service under ¶714.3 of theDiscipline.

4. Add the following after the first sentence ofSection 2.120, effective January 1, 2010:

In the case of a:(1) Beneficiary who is not the Participant’s or

Terminated Participant’s surviving Spouse, December31 of:

(i) the calendar year following the calendar year ofthe Participant’s or Terminated Participant’s death, ifbenefits are payable over the remaining life or lifeexpectancy of such Beneficiary; or otherwise


(2) Beneficiary who is the Participant’s orTerminated Participant’s surviving Spouse:

(i) if benefits are payable over the remaining life orlife expectancy of such surviving Spouse, then byDecember 31 of the later of:


(B) the calendar year in which the Participant orTerminated Participant would have attained age 70 ½; orotherwise


5. Amend the second sentence of Section 2.147 asfollows, effective January 1, 2009:

Effective January 1, 2009, references to“USERRA” include the Heroes Earnings Assistance andRelief Tax Act of 2008 (the “HEART Act”) and servicepersons covered thereby, including recognition of con-tributions and benefits due under USERRA toParticipants who are treated as though they returned towork on the day before military-related death or disabil-ity, as provided under the HEART Act.

6. Amend Section 4.1(b)(i) as follows:(i) By the Due Date for each payroll period each

Plan Sponsor will contribute to the Active Plan on behalfof each of its Full-Time and Part-Time Participants whoqualify under Sections 3.1 and 3.2 (and continue to qual-ify at the end of each such payroll period) MatchingContributions in an amount equal to 100% of the portionof such Participant’s Participant Contributions:

(A) for such payroll period that does not exceed2% percent of such Participant’s Compensation for suchpayroll period.; or

(B) alternately, if the Plan Sponsor so elects inaccordance with rules specified by the Administrator, forthe current Plan Year to date that does not exceed 2%percent of such Participant’s Compensation for the cur-rent Plan Year to date, reduced by the amount ofMatching Contributions made for such Participant forprevious months in the current Plan Year.

7. Amend Section 4.1(c)(i)(2) as follows, effectiveJanuary 1, 2010:

Matching Contributions under Section 4.1(b) abovebased on such Participant’s Participant Contributions, ifany, made during his or her LTD or STD Plan Disabilityand his or her rate of Compensation on the day before he


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or she became LTD or STD Plan Disabled (as adjustedin Section 4.1(c)(ii) below),

8. Amend the last sentence of Section 4.3, effectiveJanuary 1, 2013:

If any Non-Matching and/or Matching Contribu-tions are more than two months overdue, theAdministrator may compel payment by the delinquentPlan Sponsor byoffsetting against any other amounts thedelinquent Plan Sponsor may have on deposit with theAdministrator, by bringing the matter to JudicialCouncil, or by invoking the provisions of Section 12.6.

9. Amend Section 5.1(a)(i)(A) as follows, effectiveJanuary 1, 2011:

(A)$49,000$45,000 (in 20112007 or as indexedunder Code §415(d) in later years); or

10. Delete the last two sentences of Section 8.12(d)as follows:

Notwithstanding the foregoing, any Participant’sdesignation of Beneficiary Form received and acceptedby the Administrator under any predecessor to the Planbefore January 1, 1993 will continue to be effective onand after January 1, 1993, notwithstanding suchParticipant’s marriage after January 1, 1993, whether ornot such Participant’s Spouse consented to theBeneficiary designated on such Form. Any designationof Beneficiary Form accepted by the Administrator on orafter January 1, 1993 will revoke any such pre-January1, 1993 designation of Beneficiary Form.

11. Revise the first sentence of Section 10.10 asfollows, effective January 1, 2013:

TheEach Plan Sponsor s, jointly and severally, willindemnify the Administrator, the Trustee, and any otherperson or persons to whom the Plan Sponsor, Trustee, orAdministrator has delegated fiduciary or other dutiesunder the Plan for, and hold them harmless from andagainst, any and all claims, damages, liabilities, losses,costs, and expenses (including reasonable attorneys feesand all expenses reasonably incurred in their defense ifthe Plan Sponsors fails to provide such defense) of what-soever kind and nature that may be imposed on, incurredby, or asserted against them at any time by reason oftheir service under the Plan or the Trust, unless the sameis determined to be due to gross negligence, willful mis-conduct, or willful failure to actsuch Plan Sponsor’s fail-ure reasonably to fulfill its duties under Section 10.6 orany other provision of the Plan.

12. Revise Section S1.3.4 as follows, effectiveJanuary 1, 2010:

If a Vested USPF Participant dies before his or herAnnuity Starting DateRetiring, a survivor benefit will bepaid, beginning as of the first of the month coincidentwith or next following his or her death:

(a) in the case of a USPF Participant with a Spouseon his or her date of death, to his or her Spouse in theform of a life annuity in the amount of 70% of the USPFParticipant’s USPF Formula Benefit or USPF RevisedFormula Benefit (whichever was elected as provided inSection S1.3.2); or

Rationale: This petition revises the Retirement Plan for

General Agencies, incorporated in Book of Discipline¶1504.1, with various technical and substantive amend-ments dealing with retirement and clergyperson defini-tions, a beneficiary’s required beginning date, militaryservice credit, true-ups of matching contributions, dis-abled participant contributions, plan sponsor liability,and spouse benefits.

Petition Number: 20439-FA-NonDis-G; Chu, WilliamW. - Williamston, MI, USA for West Michigan AnnualConference.

Peace with Justice Sunday Offering

The West Michigan Conference urges the GeneralConference to continue the Peace With Justice offeringand as an important mission of The United MethodistChurch.

Rationale: For more than 25 years The United Methodist

Church has carried out a Peace with Justice Program asfulfillment of Old and New Testament heritage and theteachings of Jesus Christ.

The annual Peace with Justice Sunday provideslocal congregations an occasion to observe this impor-tant mission and the Peace...

Petition Number: 20445-FA-NonDis-G; Wenner,Rosemarie - Frankfurt, Germany for Germany CentralConference; Wenner, Rosemarie - Frankfurt, Germanyfor Central and Southern Europe Central Conference.

Carbon Emissions Offsetting

Building on the experience of annual and centralconferences (e.g. Germany) who have started the jour-ney towards adoption of comprehensive mandatorymobility concepts, the General Conference of the UnitedMethodist Church resolves

1. that for all travel related to the activities ofannual, central, jurisdictional and general conferencebodies, a threefold strategy of avoiding (avoiding travelwhere possible, replacing physical meetings throughphone or videoconferencing), reducing (choosing less



polluting means of travel than air travel) and offsetting(where the first two strategies are not applicable) isbeing pursued;

2. that action be taken by the General Council onFinance and Administration in cooperation with theGeneral Board of Church and Society to proposemandatory guidelines for climate-friendly travel and forcarbon offsetting in the case of unavoidable air travelrelated to the activities of annual, central, jurisdictionaland general conference bodies;

3. that in the case of offsetting, projects will beselected that operate according to the CDM (CleanDevelopment Mechanism) Gold Standard;

4. the offsetting costs will be covered by the rele-vant bodies responsible for the meeting and the relatedtravel.

Rationale: The Council of Bishops stated in the Pastoral Letter

“God’s renewed creation - a call to hope and action”:“We pledge to measure the “carbon footprint” of ourepiscopal and denominational offices, determine how toreduce it, and implement those changes.” Therefore TheUMC has to develop and implement a...

Petition Number: 20645-FA-NonDis-G; Derso, JosephP. - Roswell, GA, USA.

No Book of Resolutions

The Book of Resolutions will no longer be printed.Rationale: Since its creation, the Book of Resolutions has

become an overwhelmingly large and cumbersome vol-ume of statements of positions which are to be construedas representing the universally accepted views of TheUnited Methodist Church. This book has evolved tobecome virtually as large as the Holy Bible itself.Surely...

Petition Number: 20671-FA-NonDis-G; Davis, Jan -Rowlett, TX, USA for North Texas General ConferenceDelegation.

2013-2016 UMC Budget Reduction

The 2012 General Conference instructs the GeneralCouncil on Finance and Administration to bring to thePlenary of the 2012 General Conference a final 2013-2016 denominational budget that is at least 15% lessthan the 2009-2012 denominational budget.

Rationale:

The United Methodist Church is embarking on a10-year emphasis of developing vital congregations. Localchurches need adequate financial resources to achievevitality. In the current global economic crisis, the pro-posed 15% reduction will allow these essential financialresources to remain in local congregations to ‘jumpstart’local church vitality.

Petition Number: 20721-FA-NonDis-G; Robbins, BruceW. - Minneapolis, MN, USA.

Same Sex Marriage Pension Benefit

The 2012 General Conference directs the GeneralBoard of Pensions and Health Benefits to modify itspension plan documents so that they are always consis-tent with the Social Principles found in ¶162.J including:

• providing for surviving partner benefits of pen-sion plan participants under the same rules which applyto legally married couples whenever the couple is in acivil union or registered domestic partnership even ifthey no longer reside within the country, state, county orcity in which the civil union or domestic partnership isregistered; and

• providing for surviving spouse benefits of pen-sion plan participants for all legally married same sexcouples under the same rules which apply to legallymarried opposite sex couples even if the country or statein which the couple may reside does not recognize samesex marriage.

Rationale: The surviving partner of a lay person covered by the

pension plan does not receive benefits if the couple isjoined by domestic partnership or civil union. A married,same sex spouse could lose pension benefits if the cou-ple moves to a state which doesn’t recognize same sexmarriage.

Petition Number: 20748-FA-NonDis-G; Myers, KevinRice - Sun Prairie, WI, USA for Wisconsin AnnualConference.

AC Stewardship Emphasis

The 2012 General Conference directs all AnnualConferences of The United Methodist Church to appointor elect a “Generosity Task Force” that shall focus on(a) Developing Stewardship resources for localchurches; (b) Assisting the Council on Finance andAdministration in launching long-term financial plan-ning; (c) Promoting connectional giving at all levels;(d) Encouraging and educating every United Methodist



member and congregation to become a “tither” anda “tithing faith community;” (e) leading the peoplecalled “United Methodist” from scarcity to abundanceand generosity.

The General Council on Finance and Admini-stration is directed to develop an accountability systemto assess and monitor the effectiveness of all GenerosityTask Forces to continue their work with an attitude ofhope and generosity.

Petition Number: 20773-FA-NonDis; Hernandez,Russell - Harlingen, TX, USA.

501(d) as Option

The United Methodist Church recognizes the501(d) tax-exempt nonprofit classification as a comple-mentary structure for missions of the local body.

Rationale: “It is natural to those who are in the tradition of

John Wesley to seek out and respond to new opportuni-ties... and to work closely together. Our instinct is toshare as fully as possible with all who share with us inthe same mission.” (#3143: The Book of Resolutions)

Petition Number: 20815-FA-NonDis-G; Nickerson,Michael - Parker, CO, USA for South Denver ClergyCluster.

No Annuities

The General Board of Pensions and Health Benefitsshall cease to issue new annuities.

Rationale: The Rocky Mountain Annual Conference approved

this petition by 75% (conference rules only send 80%+votes to the General Conference). Annuities add futureliabilities. Present and future pension funds are betterprotected if no new liabilities are added diminishing thepossibility of future capital campaigns to fund pensionsby annual...

Petition Number: 20845-FA-NonDis-!-G; Rash, DavidA. - Woodstock, VA, USA.

Study Benevolence Bank for the Poor

The 2012 Session of the General Conference of theUnited Methodist Church directs the General Board ofChurch and Society, the General Council on Finance andAdministration, or other appropriate agency(ies), toenter into a period of study and conversation with other

agencies of the United Methodist Church, and/or withother denominations for the purpose of determining ifthere is the possibility of founding, organizing, andestablishing a national ministry of financial assistancealong the protocols of a lending institution, with the pur-pose of meeting the needs of the poor, through budgetplanning classes, personal counseling, and loans, initi-ated and supported with gifts and offerings from ourUnited Methodist Churches and other churches, corpo-rations, charitable organizations or individuals.

Rationale: The Wesleyan revivals of the 1700’s provided for

financial support “a bank”. This was a way to help meetthe needs of the poorest Methodists. The need today isenormous for those who are constantly taken advantageof by for-profit corporations.

Petition Number: 20974-FA-NonDis-G; Puhr, Roger -Moss Point, MS, USA for Mississippi Annual Conference.

Vote Count Printed with Resolution

The 2012 General Conference of the UnitedMethodist Church will provide the vote record (for-against-abstain) in the heading of each passed resolutionin each subsequent printing of the Book of Resolutionsbeginning with the 2012 edition.

Rationale: Simply and immediately, the margin whereby a res-

olution has passed provides information for UnitedMethodists not in attendance and this level of trans-parency allows local congregations to know the level ofsupport for a particular resolution.

Petition Number: 21004-FA-NonDis-G; Childs, Mike -Louisville, MS, USA for First United Methodist Church(Louisville, MS) Administrative Board. 10 similarpetitions.

Division with Retention of Property

Those local churches and/or charges that show by atleast a 2/3rd vote of a properly called ChurchConference that they cannot in good conscience agreewith the official position or the accepted practice of theUnited Methodist Church on the issue of homosexualityshall be permitted to amicably separate from the UnitedMethodist Church in peace and love, retaining full rightsto the property and funds.

Rationale: The United Methodist Church is deeply divided

over the issue of homosexual practice and the ordination



of practicing homosexuals. Part of the United MethodistChurch sincerely believes that the practice of homosex-uality, homosexual marriage covenants, and the opportu-nity for the ordination of practicing homosexuals is ahuman right, while another...

Petition Number: 21005-FA-NonDis-!-G; Williams,Wendell - Mauston, WI, USA.

Division Task Force

The 2012 General Conference of the UnitedMethodist Church will appoint a theologically diverseand balanced task force to develop a process that wouldallow congregations to amicably separate from theirAnnual Conference while keeping their church buildingsand property so that they may be about “MakingDisciples of Jesus Christ for the Transformation of theWorld,” as they see themselves led by the Holy Spirit.

Rationale: The United Methodist Church is experiencing the-

ological division, with deep disagreements over author-ity of Scripture, who is Jesus Christ, the bodilyresurrection, the nature of salvation and the possibilityof continuing revelation (among many foundational doc-trines). This theological divide is reflected in our conver-sations over homosexuality and over the full...

Petition Number: 21007-FA-NonDis-!-G; Ruff, Garry -Long Beach, MS, USA.

Two Denomination Task Force

Appoint a task force to develop a plan to split theUnited Methodist Church into two denominations,which plan:

• Defines the new denominations in relationship tothe practice of homosexuality;

• Provides that each charge decide by vote of achurch conference which denomination it will be a partof;

• Provides that each pastor in connection with theChurch decide which denomination to be a part of;

• Establishes a task force with representatives ofeach new denomination to establish the details of thesplit and the division of non-local church real propertybetween them.

Rationale: The United Methodist Church is clearly not of one

mind concerning the practice of homosexuality, and theopinions are incompatible with the other. The Churchcontinues to discuss, debate, and fight about the issue;

diverting energy and resources from our mission ofmaking disciples for Jesus Christ.

Petition Number: 21071-FA-NonDis-G; Winkler, James- Washington, DC, USA for General Board of Churchand Society; Lewis, Dan - Pasadena, CA, USA forCalifornia-Pacific Annual Conference; Ruggles, Bruce -Minneapolis, MN, USA for Minnesota AnnualConference; Ryder, Jack E. - LaGrange Park, IL, USAfor Northern Illinois Annual Conference; Wilson, LauraCean - Worthington, OH, USA for West Ohio AnnualConference; Oduor, Ralph R.R. - Lawrence, MA, USAfor New England Annual Conference. 4 similar petitions.

Aligning UMC Investments with Resolutions onIsrael/Palestine

The 2012 General Conference calls on The UnitedMethodist Church to end its financial involvement inIsrael’s occupation by divesting from companies thatsustain the occupation.

The 2012 General Conference:• instructs all United Methodist general boards and

agencies to divest promptly from Caterpillar, MotorolaSolutions, and Hewlett Packard until they end theirinvolvement in the Israeli occupation. These companieshave been engaged repeatedly by the United Methodistgeneral agencies, boards and annual conferences on thisissue.

• calls on all United Methodist general boards andagencies to immediately engage with other companies intheir portfolios that have been identified by researchersin United Methodist general boards and agencies andannual conferences as being involved in the occupation(United Methodists’ Holy Land Task Force, “Companiesof Concern,” November 2010 <http://www.umhltf.org/Companies_of_Concern.html Web. November 2010>.).If these companies do not change their involvementwithin two years, they should be removed from UnitedMethodist portfolios.

• requires all United Methodist general boards andagencies to provide updates on their Web sites regardingthe process of corporate engagement with and/or divest-ment from companies that support the Israeli occupation.

• directs all United Methodist general boards andagencies to provide a report to the 2016 GeneralConference regarding their progress toward complyingwith this resolution.

• calls on United Methodist general boards andagencies, annual conferences, local churches and indi-viduals to prayerfully consider corporate involvement inIsrael’s occupation when making investment decisions.




• encourages United Methodists to partner withJews, Christians, Muslims and other people of con-science working for corporate accountability, humanrights and an end to the occupation.

Rationale: The Book of Discipline discourages investment in

companies “that directly or indirectly support the viola-tion of human rights.” We should not invest in compa-nies that sustain Israel’s illegal settlements, segregatedroads, checkpoints, the separation wall, home demoli-tions and other realities of occupation in Palestinian ter-ritory.

Petition Number: 21072-FA-NonDis-G; Ross, Lana -Des Moines, IA, USA for Iowa Annual ConferenceBoard of Church & Society.

Divestment

The 2012 General Conference calls upon the UMCGeneral Board of Pension and Health Benefits, and allgeneral boards, administrative agencies and institutions,including hospitals, homes, educational institutions,annual conferences, foundations, and local churches todivest themselves of funds they have invested in corpo-rations whose business and products are supporting theIsraeli occupation of Palestinian land.

The United Methodist Church at the same timeaffirms our longstanding support of Christian presencein the Holy Land through forms of economic supportand investment that promote capacity building in part-nership with poor and marginalized communities inPalestine/Israel.

Rationale: The General Conference of the United Methodist

Church in 2008 readopted Resolution 6073 entitled“Opposition to Israeli Settlements in Palestinian Land.”The 2008 Book of Discipline states, “It shall be the pol-icy of The United Methodist Church that all generalboards and agencies, including the General Board ofPension and...

Petition Number: 21074-FA-NonDis-G; Mitchell,Douglas - Mason, OH, USA.

Oppose Divestment and Encourage Relationships

The General Conference will establish diplomaticrelationships with leaders of Israel, Arab countries andthe Palestinian territories for the purpose of creatingforums on peace and justice. The General Conferencewill establish support relationships with existing min-istries in Israel, Arab countries and the Palestinian terri-tories for the purpose of enhancing reconciliation andrestoration efforts. The General Conference will call theChristian community to a collaborative enterprise for thetransformation of the Middle East.

Rationale: Jesus Christ commands that we love others as He

has loved us, John 15. Paul declares that the gifts andcallings of God to Israel are irrevocable, Romans 11.Paul describes the love command as Jesus Christ stand-ing between the Circumcised and the Uncircumcised,taking on the enmity between them...



Proposed Resolutions

R4071.

Petition Number: 20369-FA-R4071-G; Kumar, A.Moses Rathan - Nashville, TN, USA for GeneralCouncil on Finance and Administration; Boigegrain,Barbara - Glenview, IL, USA for General Board ofPension and Health Benefits.

Investment Ethics

Replace current Resolution 4071 with the follow-ing:

Investment Ethics (Resolution 4071)Churches in the Wesleyan tradition have a long his-

tory of witness for justice in the economic order. JohnWesley and the early Methodists, for example, werefirmly opposed to the slave trade, to smuggling and towhat we today call conspicuous consumption.Beginning in 1908, social creeds adopted by our prede-cessor churches focused attention on working conditionsand child labor.

The United Methodist Church’s investment philos-ophy is based on the biblical concept that all resourcesare God-given and can be used to promote the reign ofGod on earth. Accordingly, the Church believes thatsocial justice must be given consideration together withfinancial security and financial yield in the investment offunds by individuals, churches, agencies and institutionsin the United Methodist family.

The Social Principles recognize “that corporationsare responsible not only to their stockholders, but also toother stakeholders: their workers, suppliers, vendors,customers, the communities in which they do business,and for the earth, which supports them.” (¶163I.) UnitedMethodist investors, therefore, are active owners, callingupon the companies in which they invest to be good cor-porate citizens. Significantly, the 2010 Dodd-Frank WallStreet Reform and Consumer Protection Act (alsoknown as the Dodd-Frank Act) provides investors addi-tional tools to influence corporations. The legislationgives shareholders increased rights to vote on executivecompensation and to nominate directors to serve on cor-porate boards. It also requires US companies to discloseminerals originating in the Democratic Republic of theCongo, a country where mining activity has been linkedto violence and the violation of human rights.

In recent years, leaders across The UnitedMethodist Church have identified four areas of focus to

continue and deepen the transforming work ofMethodism in the world. Two of the focus areas, engag-ing in ministry with the poor and eradicating deadly dis-eases by improving health globally, are especiallyimportant as we consider the investments ethics of theChurch. Church investors are well-positioned to pro-mote the Church’s ministry in these two areas.

Socially Responsible Investment PolicyThe investment policy goals of The United

Methodist Church are to:1. invest in corporations, companies, institutions or

funds making a positive contribution to the realization ofthe goals outlined in the Social Principles and The Bookof Resolutions;

2. exclude from investment companies that violateChurch values;

3. persuade corporations to integrate responsiblebusiness practices on environmental, social, and gover-nance issues into their operations and to be transparentin monitoring and documenting these practices in publicreports;

4. seek to invest in corporations with environmen-tal “best practice” policies and strategies that addressconservation, sustainable development, renewableenergy, the reduction of greenhouse gas emissions,increased energy efficiency, recycling, eliminating theuse of toxic chemicals and materials, and the disclosureof environmental risk.

5. seek opportunities to invest in companies, banks,funds, or ventures owned by women and persons ofcolor or with positive records in hiring and promotingwomen and persons of color;

6. seek opportunities to invest in Native Americanfinancial institutions, non-gambling-related economicenterprises and community development projects;

7. seek opportunities to invest in affordable hous-ing and community development projects;

8. seek opportunities to invest in companies, banks,funds, or ventures located in developing countries ordedicated to alleviating poverty in developing countriesprovided that those countries respect human and laborrights and have a record of trying to raise national livingstandards while working to maintain ecologicalintegrity;

9. encourage companies to adopt, implement andmonitor for compliance a supplier code of conduct thatis consistent with the International Labor Organization’score labor standards and designed to prevent the manu-


facture, or purchase through subcontracting, of productsmade with sweatshop, forced or child labor;

10. encourage companies to honor and promotehuman rights and the dignity of human life consistentwith the 10 principles of the United Nations GlobalCompact and provide disclosure and transparency con-sistent with the Dodd-Frank Wall Street Reform andConsumer Protection Act;

11. seek opportunities to encourage companies towork in partnerships to address treatment for HIV/AIDS, tuberculosis and malaria and to promote access tomedicines and global health care;

12. seek opportunities to commend corporationspublicly for transparency, disclosure, socially responsi-ble behavior and efforts to raise industry standards onenvironmental, social, and governance issues that are ofmajor concern to The United Methodist Church; and

13. consider using investment-portfolio managersand funds that specialize in corporate social responsibil-ity screening or are owned by women and persons ofcolor.

Socially Responsible Investing StrategiesThe Church shall pursue its investment policy goals

through widely practiced socially responsible investingtools such as:

1. Portfolio screeningBased on long-standing United Methodist values,

the Church does not invest in companies deriving signif-icant revenue (usually 10% or more) from:

• alcoholic beverages• tobacco products;• gambling equipment or enterprises;• pornography;• anti-personnel weapons, armaments, ammunition

or weapons-related systems provided for commercialand private markets and nuclear weapons.

2. Social Impact InvestingGeneral Conference has instructed all Church-

related investors to “make a conscious effort to invest ininstitutions, companies, corporations, or funds whosepractices are consistent with the goals outlined in theSocial Principles....” Investment strategy, therefore, isbased on careful consideration not only of financialreturns, but also of social returns across a wide range ofissues. Some investments are designed to achieve veryspecific social outcomes, such as the construction ofaffordable housing, the renewal of neighborhoods or theexpansion of business ownership among those tradition-ally excluded from such ownership.

3. Shareholder AdvocacyCompanies may meet the broad investing guide-

lines of the Church but still fall short of the goals out-lined in the Social Principles and The Book ofResolutions. Responsible Christian investing includesseeking to change company business practices to matchmore closely articulated Church values. As shareholdersof corporations, Church investors may engage corporatemanagement in a variety of ways – from writing lettersto voting proxies, filing shareholder resolutions, build-ing investor coalitions and engaging in corporate dia-logues.

4. Strategic PartnershipsWorking in collaboration with others strengthens

the socially responsible voice and allows the conver-gence of strategies to engage corporations more force-fully on issues of corporate governance, environmentalsustainability and social justice. Strategic partners mayinclude United Methodist boards, agencies, foundationsand universities, other faith-based investors, domesticand global nongovernmental organizations, responsibleinvesting affinity groups such as those connected withthe United Nations Principles for Responsible Investment(PRI) and other socially responsible investors.

5. DivestmentDivestment is one of the socially responsible invest-

ing tools available to United Methodist investors butshould be considered an investment strategy of lastresort. Shareholder advocacy – though it takes time –generally is a more effective and, constructive way toinfluence corporate decision-making.

6. Public Policy InitiativesInvestors, as shareholders, work directly with com-

panies to promote greater corporate responsibility, butgood corporate responsibility also is dependent onactions beyond the individual corporate boardroom.Policies emanating from the Securities and ExchangeCommission, the Federal Reserve, state and federal leg-islatures and other regulatory bodies play a significantrole in the operation and behavior of companies.Responsible investing involves influencing these bodiesto craft policies and procedures that promote greater cor-porate responsibility.

Investing GuidelinesThe General Council on Finance and Admini-

stration (GCFA) is responsible for preparing and distrib-uting the socially responsible investment guidelines thatare to be used by all general agencies receiving generalChurch funds. The council shall review and update theseguidelines periodically, inviting the input of the agenciesand other interested sectors of the Church. GCFAencourages investing agencies to be actively involved inthe overview of socially responsible investing asdescribed in this policy.



Each general agency receiving general Churchfunds shall provide GCFA with a copy of its investmentpolicy. The policy shall be made available upon requestto any interested member of the Church.

All organizations affiliated with The UnitedMethodist Church, including annual conferences, localchurches, foundations, health-care systems, colleges anduniversities are strongly urged to follow these guidelinesand to make public, either on the Internet or by request,their specific investing policies. Investing organizationsmay want to consider disclosing all of their sociallyresponsible investing activities on publicly accessibleweb sites.

Where financial considerations preclude immediatedivestment of securities held in violation of the abovepolicies, the affected boards, agencies, and institutionsof The United Methodist Church shall develop a plan forcomplying with the guidelines no later than the 2016General Conference.

All United Methodist investors and users of finan-cial services, whether institutional or individual, arestrongly encouraged to use these guidelines.

ADOPTED 1992AMENDED AND ADOPTED 2000AMENDED AND READOPTED 2004AMENDED AND READOPTED 2008Resolution #213, 2004 Book of ResolutionsResolution #202, 2000 Book of ResolutionsSee Social Principles, ¶ 163D.

R5012.

Petition Number: 20370-FA-R5012; Kumar, A. MosesRathan - Nashville, TN, USA for General Council onFinance and Administration.

Clergy Housing Allowance

Amend Resolution 5012 as follows:Delete the final paragraph under the heading “A

Statement Concerning Church-Government Relationsand Tax Exemption,”

We believe that governments recognize the uniquecategory of religious institutions. To be in this uniquecategory is not a privilege held by these institutions fortheir own benefit or self-glorification but is an acknowl-edgment of their special identity designed to protecttheir independence and to enable them to servehumankind in a way not expected of other types of insti-tutions.

We urge churches to consider at least the followingfactors in determining their response to the granting ofimmunity from property taxes:

1. responsibility to make appropriate contributionsfor essential services provided by government; and

2. the danger that churches become so dependentupon government that they compromise their integrity orfail to exert their critical influence upon public policy.

We support the abolition of all special privilegesaccorded to members of the clergy in US tax laws andregulations and call upon the churches to deal with theconsequent financial implications for their ministers.Conversely, we believe that all forms of discriminationagainst members of the clergy in US tax legislation andadministrative regulations should be discontinued. Webelieve that the status of an individual under ecclesiasti-cal law or practice ought not to be the basis of govern-mental action either granting or withholding a specialtax benefit ...

Add at the end of the resolution:(The provisions of Resolution 5012 shall be effec-

tive at the conclusion of the 2012 General Conference.)Rationale: The housing allowance has historically been very

important to the clergy and local churches of The UnitedMethodist Church in the United States.

R8007.

Petition Number: 20955-FA-R8007-G; Carlsen,Jonathan - Arcadia, FL, USA.

UMC Name in Periodicals

Amend and readopt Resolution No. 8007:Use of the Name: The United Methodist Church

in Periodicals and AdvertisementsThe 1980 United Methodist General Conference,

sympathetic ... anniversary of the United UnitingConference and passed ...

We call on our members to ...We call on our church periodical editors ...We further direct the General Council on Finance

and Administration and the General Commission onCommunication, when they become it becomes aware...compliance with this directive.

Rationale: The petitioner wrote the resolution. In 2004,

Heritage Sunday was moved back to Aldersgate Sunday.The United Methodist Reporter and others regularlysubstitute “Methodist” for “United Methodist.” UMCom




has done little to comply since 2004. Pairing them withthe General Council on Finance and Administration maybring mutual accountability.

R9999.

Petition Number: 20058-FA-R9999-G; Hawkins, ErinM. - Washington, DC, USA for General Commission onReligion and Race.

Inclusive Language

WHEREAS, we live in an ever changing globalcommunity with a diversity of multi-racial identitieswhere racial/ethnic identification is not limited to onecategory and much of the world bases identity on ethnicnationality rather than racial ethnic categories; and

WHEREAS, The United Nations and countriesother than the U.S. have varying racial/ethnic classifica-tions; and

WHEREAS, the inclusion and naming of personswith more than one racial or ethnic identity gives visibil-ity to people who often are excluded; and

WHEREAS, many of our own forms within ourchurch are exclusive requiring the growing population ofbiracial/multiracial people to choose between one iden-tity or another, by requiring people to identify them-selves by selecting only one of the six dominant racialoptions: Asian, Black, Hispanic/Latino(a), NativeAmerican, Pacific Islander and White;

Therefore, be it resolved, that The UnitedMethodist Church expand its inclusive language in allaspects of the church to include biracial/multiracial per-sons by offering racial identification options that are notlimiting but embracing of persons with more than oneracial or ethnic background.

R9999.

Petition Number: 20958-FA-R9999-G; Carlsen,Jonathan - Arcadia, FL, USA.

Proper Use of UMC Name

Add new Resolution:Proper Use of the Name: The United Methodist

ChurchWHEREAS, The United Methodist Church and The

Evangelical United Brethren Church were united under

the name The United Methodist Church in the year 1968and that name ha great historical significance for bothbodies,

Therefore, be it resolved, that insofar as possible,all materials used in correspondence, advertisements,and signs of said churches and other denominationalorganizations use the complete proper name: “TheUnited Methodist Church,” capitalizing the word “The”when referring to the denomination as a whole.

Rationale: This was in The Book of Resolutions from 1980 to

2008. Bishop Paul Washburn noted in 1984 that manymembers “do not know, or do not seem to know thename of our church” (An Unfinished Church, Abingdon,p. 153). The neglect continues shamelessly, depreciatingand wounding former EUBs.

R9999.

Petition Number: 21073-FA-R9999-G; Lomperis, JohnS.A. - Arlington, VA, USA. 1 similar petition.

Oppose Divestment

ADD this new resolution to the Book ofResolutions:

Oppose Divestment From IsraelWHEREAS, Israel is nearly the only long-standing

democracy among its neighbors in the Middle East; andWHEREAS, both the president of Iran and Hamas

have called for the destruction of Israel; andWHEREAS, some church groups have selectively

advocated for divestment of firms doing business withIsrael while ignoring severe human rights abuses by thegovernments of Israel’s neighbors; and

WHEREAS, this type of selective attention toIsrael’s mistakes will not create lasting peace in theMiddle East; and

WHEREAS, the Arab-Israeli conflict is very com-plex, and it is irresponsible to simply place all blame onIsraelis while ignoring the serious failures of thePalestinian leadership and of other Middle Easternnations; and

WHEREAS, divestment campaigns against Israeltypically ignore such important historical realities as theexpulsion of Jews from nearby Arab lands, Israel’s occu-pation of the Occupied Territories resulting from a warof self-defense against armies preparing for its annihila-tion, and the subsequent refusals of the aggressornations to negotiate for the return of the occupied land inexchange for recognizing Israel’s right to exist; and



WHEREAS, it would be extremely unbalanced,unfair, and unjust for The United Methodist Church totake any action of divestment from Israel without alsotaking divestment action against Iran and Syria, whosestate sponsorship of terrorism has claimed many innocentlives and played an unquestionably negative and deadlyrole in hindering peace and justice in the region; and

WHEREAS, while no nation, including Israel, hasbeen perfect in upholding human rights, Israel has a bet-ter human rights records than its neighbors;

WHEREAS, Israel stands nearly alone amongMiddle Eastern nations in its guarantees of religiousfreedom, upholding women’s equality, and protectinghomosexuals from severe repression; and

WHEREAS, while we decry accusations of anti-Semitism being used to stifle legitimate criticisms of theIsraeli government, we also cannot ignore the fact thatsuch campaigns to single out the world’s lone Jewishstate for criticism and punitive action do amount to tar-geting Jews for negative treatment and exclusion; and

WHEREAS, we can likewise not afford to ignorehistory of centuries of horrendous anti-Semitism perpe-trated by Christians, including complicity and even par-

ticipation in the Holocaust, which precipitated the cre-ation of the Jewish state; and

WHEREAS, for this General Conference to supportany action of anti-Israel divestment would have negativeconsequences for Jewish-United Methodist relations;and

Be it therefore resolved, that the 2012 GeneralConference of The United Methodist Church goes on therecord as opposing any effort to selectively target Israelfor divestment; and

Be it further resolved, that we affirm Israel’s right toexist within secure borders and to use appropriate meansto protect its citizens from terrorism as non-negotiable;and

Be it further resolved, that we decry the terroristviolence of Hamas, Hezbollah, and other extremistgroups in the region; and

Be it further resolved, that we affirm our commit-ment to justice, human rights, and self-determination forall people in the region, including Israelis, Palestinians,religious minorities in other Middle Eastern nations, andArabs and other minorities within Israel.


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When Christians Get It Wrong

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“hot-button” issues like homosexuality. But it doesn’t have to be this way. For those who too often have seen Christiansgetting it wrong, Adam Hamilton offers ways in which we can get it right.

For information on seasonal studies by Adam Hamilton, including The Journey, 24 Hours,

and Final Words (available in December), visit AdamHamilton.AbingdonPress.com

Available: Book and DVD with Leader Guide

Available: Book, Group Study DVD, and Group Study Participant Book

—Adam Hamilton

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The United Methodist Publishing House (UMPH) 2009–2012 ...

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Transcript of The United Methodist Publishing House (UMPH) 2009–2012 ...