Translate
     Other Plan Provisions

Housing Allowance

If you are a minister of the gospel, all or a portion of your monthly annuity may be excluded from federal income tax as housing allowance. However, the amount actually excludable as housing allowance cannot exceed:

• The fair rental value of the furnished home plus the cost of utilities.

• The actual expenses of operating a home.

Minimum Distribution

If you are not working for a participating employer and have not yet annuitized, you have to take a required minimum distribution of Employee Tax-Deferred accumulations each year — starting no later than April 1 of the year after you turn 72 years of age. If you are working, you do not need to take a required minimum distribution until April 1 of the year following when you terminate employment with your current employer. If tax paid money you do not have to take a required minimum distribution until age 75. The Plan will calculate your required minimum distribution and notify you by mail.

What Happens if You Leave Your Job

When you leave your job, there are different Plan rules that apply depending on whether you move from one Pension Plan employer to another.

If you move from one Pension Plan employer to another —

• The contributions that you have already made to the Plan will stay in your account. Your account will be associated with your current employer.

• You must inform the Plan of your new employer and notify your employer of your contribution if you want to make Contributions into the Pension Plan.

If you leave your job and do not take a position with another Pension Plan employer —

• All or a portion of your employee subaccount may be rolled over to another qualified plan, paid to you in a lump sum, or kept in the Plan until you decide to annuitize or withdraw it at a later date. See the section entitled Pre-Retirement Termination Withdrawals for more information on this withdrawal right.

• If the vested amount in your employer subaccount is $5,000 or more when you leave your job, it will remain in the Pension Plan until you are eligible to start an annuity, periodic payment plan, or required minimum distribution.

• Any non-vested portion of your employer account balance will be forfeited back to your employer.

pexels-alex-green-5699857.jpg

What Happens When You or
Your Spouse Dies

Depending on the circumstances, benefits may be paid to your spouse, your children, or another designated person, trust, charitable organization, or estate.

If you are not married and you die before your annuity or periodic payment starts, the payment will be made to your beneficiary in a lump sum or, at the direction of your beneficiary, in five annual installments. See the section entitled Selecting a Beneficiary for more information about beneficiaries. Your beneficiary will receive the total vested amount in your account at the time of your death.

If you have not designated a beneficiary, or if your beneficiary predeceases you, the payment will be made —

• To your surviving children in equal shares.

• To your estate (if you have no surviving children).

If you are married and you die before your annuity or periodic payment starts, your surviving spouse has several options. These options are different depending on whether the distribution is from the employer subaccount or from the employee subaccount.

Employer subaccount. The amount you have in this subaccount can be —

• Paid immediately to your surviving spouse in the form of a single life annuity for his or her life or a periodic payment plan. Payments will begin as soon as administratively feasible after the Pension Plan office receives appropriate completed paperwork and supporting documents such as a copy of the death certificate.

• Kept within the Plan and annuitized or withdrawn at a later date. Distributions must begin no later than the year in which you (the Participant) would have attained age 72 and must be paid as a single life annuity for your spouse’s life, periodic payment plan or withdrawn as applicable.

Employee subaccount. The amount you have in this subaccount is your surviving spouse’s assured return. That means that the payment from the Plan to your spouse will total at least this amount. Your spouse will have three options for this subaccount —

• Combine all or a portion of the funds in the employee subaccount with the funds in the employer subaccount to be paid in the form of a single life annuity for his or her life or a periodic payment plan.

• Keep the money in the Plan and annuitize (only if combined with employer subaccount), start a periodic payment plan or withdraw it at a later date. Distributions must begin no later than the year at which you (the Participant) would have attained age 72 and may be combined with the funds in the employer subaccount to be paid as a single life annuity over your spouse’s life or a periodic payment plan.

• Take a lump-sum distribution of all or a portion of the funds in the employee subaccount. This lumpsum payment can be paid to your spouse directly or rolled over to another eligible plan or an IRA. See the section entitled Direct Rollovers and Mandatory Withholding for more information on rollover rights.

If you die after your retirement benefit starts

If you are receiving payments under a single life annuity and you die, payments will stop and any of the assured return remaining from your employee subaccount will be paid in a lump sum to your beneficiary. If payments that have been made to you under a single life annuity exceed the assured return at the time of your death, no further payments will be made.

If you are receiving annuity payments with a surviving spouse option and you die, a monthly payment based on the surviving spouse option you selected will be paid to your spouse. See the section titled Surviving spouse options. If your spouse is no longer living, monthly payments will stop and the assured return remaining, if any, will be paid in a lump sum to your beneficiary. See the section entitled Selecting a Beneficiary for more information about beneficiaries.

If you opted for the periodic payment benefit in lieu of the annuity benefit and you die, your beneficiary will receive the remainder of your account. See the section entitled Selecting a Beneficiary for more information about beneficiaries.

What happens if your spouse dies and you remarry

If your spouse dies and you remarry before your annuity starts, your new spouse will assume all of the rights under the Plan held by your former spouse unless you and your new spouse agree in writing to segregate your account. You must update your beneficiary designation to name the new spouse. If you segregate your account, it will be considered as that of a single person’s, and your new spouse will have no rights to your account. A new account will be established for any new contributions, to which the new spouse will have all rights and benefits.

If you remarry after your annuity starts, your new spouse will not be eligible to receive a surviving spouse annuity when you die.

If you opted for the periodic payment benefit in lieu of the annuity benefit and you remarry, you must update your beneficiary designation to name your new spouse as beneficiary. See the section entitled Selecting a Beneficiary for more information about beneficiaries.

pexels-cottonbro-4098224.jpg

What Happens if You Divorce

You should notify the Pension Plan office in writing if you are involved in divorce proceedings. No information about your account will be released without your written permission, unless the Pension Plan office is ordered to do so by a court of law. The following sections describe what happens to your Plan benefits if you and your spouse divorce.

If you divorce before your annuity starts

Property Settlement: If you are involved in divorce proceedings and your annuity has not started, you may want to satisfy any property settlement out of assets other than from your Plan account, if possible.

Qualified Domestic Relations Order: If the above option is not possible, your Plan benefit can be divided in a divorce. To do so, however, you must obtain a Qualified Domestic Relations Order. A QDRO is an order that is made pursuant to a state domestic relations law (including a community property law). A domestic relations order must meet certain specific requirements to be considered a QDRO. Contact the Pension Plan office if you need more information on QDROs. If the Plan receives a QDRO, your account will be divided as of the date set by the court and in the proportions set forth in the QDRO.

Benefits to Former Spouse: Once your account has been divided through the QDRO process, you and your former spouse will have separate accounts. Your former spouse’s participation in the Plan is subject to the same rules and restrictions stipulated in the Plan document. For example, his or her employer subaccount must be distributed as an annuity (in this case, a single-life annuity), or through periodic payments. Only employee subaccount money may be withdrawn as a lump sum or rollover.

If your former spouse dies before his or her annuity starts, his or her beneficiary will receive the total amount in your former spouse’s account.

In the event your former spouse has not designated a beneficiary or the beneficiary predeceases him or her, the payment will be made to the former spouse’s surviving children in equal shares or, if there are no surviving children, to the former spouse’s estate.

If you divorce after your annuity starts

If you divorce after your annuity starts and you predecease your former spouse, he or she will receive the surviving spouse annuity, if you selected one of the spouse options.

If your former spouse dies after beginning to receive an annuity, payments will stop. Any remaining assured return will be paid in a lump sum to his or her beneficiary. If there is no beneficiary on record or if the beneficiary dies before the former spouse, the payment will be made to the spouse’s surviving children. If there are no surviving children, the payment will be made to the former spouse’s estate.

Benefits to new spouse

If you remarry before you begin to receive annuity benefits, your new spouse will be eligible for spousal benefits upon annuitization and/or your death, but only with respect to your Account established through the QDRO proceedings, if applicable.

If you remarry after annuitization, your new spouse is not eligible to receive benefits from your annuity, whether or not there is a QDRO.

What Happens if You Become Disabled

You can receive disability benefits from the Plan if you become totally disabled before age 59 1/2. Total disability will mean you have been determined by the Social Security Administration to be disabled. For a participant who has opted out of Social Security, total disability will be based on medical evidence submitted to the Plan. Total disability will mean you are unable to perform the duties of any employment because of physical or mental capacity.

A disability ruling will be determined by the Plan.

The disability benefits are the same benefits to which you are entitled when you retire (see the section entitled Receiving your Retirement Benefits).

While you are disabled, neither you nor your employer will be able to contribute to the Pension Plan. However, if you return to work for your employer and meet the eligibility requirements, contributions will again be made to the Plan.

Selecting a Beneficiary

It is important that you designate primary and contingent beneficiaries on your account so the Pension Plan office will know who is to receive the money in your account if you should die. You can update this information by logging into your account at www.brethrenpension.org or calling us at 866-723-0001.

If you are married and you want to select someone other than your spouse as your beneficiary, your spouse must consent to your beneficiary designation. This means you will have to provide the Pension Plan office with your spouse’s consent to your choice of beneficiary. If you remarry, you will need to get the consent of your new spouse to any choice of beneficiary other than the new spouse. This is true even if your first spouse consented to your initial beneficiary designation.

If you wish, you can select more than one beneficiary to receive your benefits when you die. If you choose multiple beneficiaries, your account will be divided in equal shares for each beneficiary, unless you specifically notify the Pension Plan office otherwise.

Your designated beneficiary does not have to be a person. In fact, you can designate a trust, a charitable organization, or any other entity to be your beneficiary.

 

Joining the Plan

Receiving your Retirement Benefit

Contributions

Withdrawals

Investments

Plan Facts

Other Plan Provisions

Glossary

Building financial security

Bettering the world

Together

Brethren Benefit Trust provides retirement benefits, health and welfare benefits, asset management, and financial advocacy to pastors, employees, and members of the greater Church of the Brethren community.

Since it began as the Pension Board in 1943, BBT has been called to serve its members and clients, and we are thankful for that opportunity.