| Plan Section |
Amendment |
| Name of Plan |
Change name from “Annuity Plan for the United Church of Christ” to the “United Church of Christ Lifetime Retirement Income Plan” |
| Section 3.05 Time of Payment of Contributions |
Although Employer Contributions are required to be received by the Pension Boards prior to the month that they relate and generally are received by the Pension Boards not later than the following month, the time of payment is revised to track the less restrictive IRS requirements: Elective Deferrals will be paid to the Plan by the Church or Employer within a period that is not longer than is reasonable for the proper administration of the Plan in accordance with Treasury Regulation § 1.403(b)-8(b). Employer Contributions, if any, will be paid to the Plan by the Church or Employer no later than fifteenth day of the tenth calendar month following the end of the Plan Year with respect to which the Contributions relate |
| Section 3.08 Matching Contributions |
Employer Adoption Agreement to permit Employer matching Contributions |
| Section 3.11 In-Plan Roth Conversions |
Permit In-Plan Roth conversions, which allow Members to “convert” all or a portion of their Account balances into Roth Accounts. The conversion triggers current taxation of the pretax amounts converted |
| Section 4.03(A) Lump sum and Installments |
Permit Members to receive all or a portion of any amount eligible for lump sum payment as a periodic installment payment rather than a single payment |
| Section 4.03(A)(2) Distributions |
Currently, members can elect to receive lump sum distributions of their accumulation accounts balances: 100% of employee contributions and 20% of employer contributions. The remaining Plan benefit must be annuitized. Consideration of increasing percentage of the employer contribution available for lump sum distribution. |
| Section 4.05 Lump Sum Distributions of Small Balances |
Currently, Members with a total account balance of less than $10,000 can elect to receive a lump sum distribution. This $10,000 threshold is increasing initially to $15,000 effective September 1, 2023 and $20,000 effective January 1, 2027. |
| Section 4.08 Disability Benefits |
Currently, the Plan states that disability annuities are calculated based on the mortality table, interest rate, and other actuarial specifications for disability annuities approved by the Board. Provision revised to reflect that disability annuities will be calculated using the same actuarial specifications as regular annuities. |
| Section 4.11 Distributions |
Permit After-Tax Employee and Rollover Contributions to be distributed at any time. Referred to as In-Service distributions because separation or retirement not required. |
| Plan Section |
Amendment |
| Section 4.15 Hardship Distributions |
Employer Adoption Agreements to permit Hardship Distributions. Provision drafted to permit hardship distributions from a Member’s Elective Deferrals only. Alternative to also permit hardship distributions from the Employer Contributions. For administrative ease, drafted to utilize both safe harbor Member reasons of hardship distributions and for the Plan to determine that the Member has no other reasonably available means to satisfy the hardship. Loan provisions could also be drafted to require loans before hardship distributions. |
| Section 4.19 Loans |
Employer Adoption Agreements to permit Member loans. General Purpose Loans · maximum loan amount of the lesser of: (i) $50,000, and (ii) greater of 50% of the Member’s accrued benefit, or $10,000 · maximum repayment period of five years with payments no less frequently than quarterly. Additional loan types: · purchase of primary residence, which does not have a maximum five-year repayment period. · Beneficiaries and Alternate Payees eligible Consider which sources of Contributions are available for loans. Pension Boards loan policy to be adopted. Fidelity to administrate loans to alleviate burden on electing employers. |
| Section 4.21 Housing Allowance |
Added provision that all future Plan distributions to ministers are designated as 100% housing allowance, to the extent permitted by the Internal Revenue Code. |
| Section 4.22 Adoption Distributions |
Permit distributions of up to $5,000 for birth or adoption of a child. Plans were permitted, but not required, to offer beginning in 2020 under SECURE 1.0. |