The Church
Retirement Plan
403(b)(9) Retirement Plan for
Southern Baptist Churches
A12-1
THE CHURCH RETIREMENT PLAN
The Retirement Years:
62.6
Men
1950
67.4
Women
Men
Average
65 years
76.2
2010
Women
81.0
Average
79 years
Average life expectancy in the U.S.
Source: Centers for Disease Control and Prevention, as of January 24, 2013.
A12-2
THE CHURCH RETIREMENT PLAN
Retirement Income
 Need 70–90% of preretirement
income to continue lifestyle
 Sources:
• Social Security
• Pensions
• Personal savings
• Continued employment
A12-3
THE CHURCH RETIREMENT PLAN
Retirement Income Sources
• Social Security
‐ Full benefits at 67 if born 1960+
‐ Average benefit $1,294 per month
• Pension
‐ Many companies no longer provide
• Personal savings
‐ Eroding effect of inflation
Source: www.ssa.gov as of January 1, 2014
A12-4
THE CHURCH RETIREMENT PLAN
Preparation for Retirement
 Begin early
 Save consistently
A12-5
THE CHURCH RETIREMENT PLAN
Preparation for Retirement
 Start today!
 Goal: $200,000
 8% earnings rate
• Age 30 $ 88/month
• Age 40 $210/month
• Age 50 $580/month
Rate of return is purely hypothetical and not representative of any specific type of investment.
A12-6
THE CHURCH RETIREMENT PLAN
Preparation for Retirement
 Tax-advantaged
investment for
employees of Southern
Baptist churches
A12-7
THE CHURCH RETIREMENT PLAN
The Church
Retirement Plan
 GuideStone Financial
Resources serving
since 1918
 403(b)(9) Retirement
Plan for Southern
Baptist Churches —
The Church
Retirement Plan
A12-8
THE CHURCH RETIREMENT PLAN
The Church
Retirement Plan
 Who can participate?
• Anyone with taxable
income from a
Southern Baptist
church, church-related
school or association
• Ministers or nonministerial staff
• Full-time, part-time or
bivocational
A12-9
THE CHURCH RETIREMENT PLAN
The Church
Retirement Plan
 What is it?
• 403(b) — tax code
designation for
non-profit
organizations
 Similar to:
• 401(k) — for-profit
businesses
A12-10
THE CHURCH RETIREMENT PLAN
What is it?
 403(b) tax code designation
 Tax-sheltered plan
Preretirement
contributions
and earnings
NOT TAXED
Postretirement
distributions
TAXED
A12-11
THE CHURCH RETIREMENT PLAN
What is it?
 403(b) tax code designation
 Tax-sheltered plan
 Defined contribution plan
Small amount invested
in contribution plan
Larger amount invested
in contribution plan
Small income
payment
Larger income
payment
A12-12
THE CHURCH RETIREMENT PLAN
Why use it?
 No sales commissions
• 100% of your contributions are invested
into your account
A12-13
THE CHURCH RETIREMENT PLAN
Why use it?
 No sales commissions
 Reduction of taxes
• Employee contributions:
‐ Deferral of income taxes
‐ Exclusion from Social Security taxes
for ministers
A12-14
THE CHURCH RETIREMENT PLAN
Why use it?
 No sales commissions
 Reduction of taxes
 Higher contribution limits than IRA
A12-15
THE CHURCH RETIREMENT PLAN
Why use it?




No sales commissions
Reduction of taxes
Higher contribution limits than IRA
Income may be designated as housing
allowance for ministers in retirement
• Distributed tax-free
A12-16
THE CHURCH RETIREMENT PLAN
Why use it?
No sales commissions
Reduction of taxes
Higher contribution limits than IRA
Income may be designated as housing
allowance for ministers in retirement
 Added benefits and contributions for
eligible participants
• Disability and life protection benefits
• Matching retirement contributions




A12-17
THE CHURCH RETIREMENT PLAN
Why use it?
No sales commissions
Reduction of taxes
Higher contribution limits than IRA
Income may be designated as housing
allowance for ministers in retirement
 Added benefits and contributions for
eligible participants
 Christian-screened investment options
 Proven investment management firms




A12-18
THE CHURCH RETIREMENT PLAN
Contribution Sources
Employer
Recommended goal:
10% of employee’s monthly income
A12-19
THE CHURCH RETIREMENT PLAN
Contribution Sources
Employer
Recommended goal:
10% of employee’s monthly income
• Salary reduction
Employee
A12-20
THE CHURCH RETIREMENT PLAN
Contribution Sources
Employer
Recommended goal:
10% of employee’s monthly income
• Salary reduction
Employee
• Rollover
• Other retirement plans or IRA
A12-21
THE CHURCH RETIREMENT PLAN
Contribution Sources
Employer
Recommended goal:
10% of employee’s monthly income
• Salary reduction
Employee
• Rollover
• Other retirement plans or IRA
Baptist state
convention
• Matching retirement contribution
A12-22
THE CHURCH RETIREMENT PLAN
State Convention Contributions
 Disability Income Benefit
• Up to $500 a month disability income
• In addition to insurance or
Social Security
• Contributes to retirement account
$35 each month of disability benefit
A12-23
THE CHURCH RETIREMENT PLAN
State Convention Contributions
 Disability Income Benefit
 Survivor Protection Benefit
• Amount paid to beneficiaries determined by
participant’s age at death
• Can equal as much as $100,000
• Paid in addition to participant’s retirement
account balance
A12-24
THE CHURCH RETIREMENT PLAN
State Convention Contributions
 Disability Income Benefit
 Survivor Protection Benefit
• No medical underwriting required
• Provided at no additional cost
A12-25
THE CHURCH RETIREMENT PLAN
State Convention Contributions
$105.00
Your monthly
contribution
level
$1 for $3 matching
retirement contributions
(maximum $17.50)
$52.50
$1.00
Protection benefits —
Disability Income Benefit
and Survivor Protection
Benefit
A12-26
THE CHURCH RETIREMENT PLAN
State Convention Contributions
Church: must meet convention requirements
Ministers: are eligible for benefits
Non-ministers: may be eligible for benefits
Matching contribution: determined by
state convention
 www.GuideStone.org/SBCChurchBenefits




A12-27
THE CHURCH RETIREMENT PLAN
How the Plan Works
Example: $3,000 monthly income
A12-28
THE CHURCH RETIREMENT PLAN
How the Plan Works
Example: $3,000 monthly income
$300.00 employer contribution (10% goal)
A12-29
THE CHURCH RETIREMENT PLAN
How the Plan Works
Example: $3,000 monthly income
$300.00 employer contribution (10% goal)
$150.00 participant contribution
A12-30
THE CHURCH RETIREMENT PLAN
How the Plan Works
Example: $3,000 monthly income
$300.00 employer contribution (10% goal)
$150.00 participant contribution
$ 17.50 state convention contribution
A12-31
THE CHURCH RETIREMENT PLAN
How the Plan Works
Example: $3,000 monthly income
$300.00 employer contribution (10% goal)
$150.00 participant contribution
$ 17.50 state convention contribution
$467.50 total
A12-32
THE CHURCH RETIREMENT PLAN
Contributions Purchase Shares
Monthly
Contribution
Fund
NAV
Shares
Purchased
$467.50
$10.00
46.75
Total Shares
46.75
Account
Value
$ 467.50
Hypothetical example for illustration purposes only, not indicative of future performance.
A12-33
THE CHURCH RETIREMENT PLAN
Contributions Purchase Shares
Monthly
Contribution
Fund
NAV
Shares
Purchased
$467.50
$10.00
46.75
46.75
$ 467.50
$467.50
$ 9.75
47.95
94.70
$ 923.33
Total Shares
Account
Value
Hypothetical example for illustration purposes only, not indicative of future performance.
A12-34
THE CHURCH RETIREMENT PLAN
Contributions Purchase Shares
Monthly
Contribution
Fund
NAV
Shares
Purchased
$467.50
$10.00
46.75
46.75
$ 467.50
$467.50
$ 9.75
47.95
94.70
$ 923.33
$467.50
$10.25
45.61
140.31
$1,438.18
Total Shares
Account
Value
Hypothetical example for illustration purposes only, not indicative of future performance.
A12-35
THE CHURCH RETIREMENT PLAN
Contributions Purchase Shares
Monthly
Contribution
Fund
NAV
Shares
Purchased
$467.50
$10.00
46.75
46.75
$ 467.50
$467.50
$ 9.75
47.95
94.70
$ 923.33
$467.50
$10.25
45.61
140.31
$1,438.18
Total Shares
Account
Value
Hypothetical example for illustration purposes only, not indicative of future performance.
A12-36
THE CHURCH RETIREMENT PLAN
Investment Fund Selection
 One-choice approach
• GuideStone Funds MyDestination Funds®
 Asset allocation approach
• GuideStone Funds Asset Allocation Funds
 Build-your-own approach
• GuideStone Funds Select Funds
• GuideStone Financial Resources Capital
Preservation Fund
A12-37
THE CHURCH RETIREMENT PLAN
The MyDestination Funds attempt to achieve their objectives by investing in the
GuideStone Select Funds. These funds are managed to a retirement date (“target
date”) by adjusting the percentage of fixed-income securities and equity securities to
become more conservative each year until reaching the retirement year and then
approximately 12 years thereafter. The target date in the name of the funds is the
approximate date when an investor plans to start withdrawing money. By investing in
them, you will also incur the expenses and risks of the underlying Select Funds. The
principal risks of the Funds will change depending on the asset mix of the Select Funds
in which they invest. You may directly invest in the Select Funds. The Funds’ value will
go up and down in response to changes in the share prices of the investments that they
own. There is no guarantee that the Funds’ principal value will increase, including at the
targeted date. It is possible to lose money by investing in the Fund. The Asset Allocation
Funds attempt to achieve their objectives by investing in the GuideStone Select Funds.
By investing in these Funds, you will also incur the expenses and risks of the underlying
Select Funds. The principal risks of the Funds will change depending on the asset mix
of the Select Funds in which they invest. You may directly invest in the Select Funds. The
Funds’ value will go up and down in response to changes in the share prices of the
investments that they own. It is possible to lose money by investing in the Funds.
A12-38
THE CHURCH RETIREMENT PLAN
Getting Started in the
Church Retirement Plan
 Church Retirement Plan
application
 Rollover application
 Information kit
• Online at
www.GuideStone.org
• Call 1-888-98-GUIDE
(1-888-984-8433)
Monday–Friday,
7 a.m.–6 p.m. CST
A12-39
THE CHURCH RETIREMENT PLAN
Mission/Church
Assistance Fund
 Annual church budget
under $75,000
 Up to $3,000
additional retirement
contributions
A12-40
A12-41