Retirement Plan How to Get Started 403b9 Church

Retirement Plan: How to Get Started 403(b)(9) Church Plan Presented: January 20, 2012 © 2012 Envoy Financial, Inc. All rights reserved. Envoy Financial, 8415 Explorer Drive, Suite 115, Colorado Springs, CO 80920 Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc. , Registered Investment Advisor. First Use: January 20, 2012

Retirement Plan: How to Get Started 403(b)(9) Church Plan Presented: August 20, 2012 © 2012 Envoy Financial, Inc. All rights reserved. Envoy Financial, 8415 Explorer Drive, Suite 115, Colorado Springs, CO 80920 Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc. , Registered Investment Advisor. First Use: August 20, 2012

Speaker Bruce H. Bruinsma Envoy Financial CEO & Co-Founder Direct: 719. 268. 2711, ext. 203 Cell: 626. 399. 2247 Email: bbruinsma@Envoy. Financial. com

A Future-Funded Ministry Plan What is retirement? ◦ That depends on your perspective. ◦ Retirement years are also “ministry” years. At Envoy, we see retirement as “not only a reward for past service, but a stepping-stone to future ministry” Future-Funded Ministry: ◦ Managing God’s resources God’s way so His purposes can be carried out in and through our lives, to the very end.

403(b)(9) Church Plan A plan for those with ministerial status and named executives is required: ◦ 10% minimum contribution ◦ Additional options such as an additional matching component are possible Staff may participate on a voluntary basis immediately beginning with employment A plan for staff composed of a basic contribution, matching contribution, or both is available and up to each church to decide

Key Features of the Plan Housing Allowance: Distributions taken by those with ministerial status can be tax-protected A Roth Provision: After-tax contribution and tax -free growth Loan Provision Default Investment: Where the money goes if the participant does not select one Automatic Enrollment: Starts the contribution even if the eligible participant has not enrolled

Roth Contribution Options Traditional 403(b) Roth 403(b) Pre-Tax Contributions Taxed Contributions Tax-Deferred Savings Tax-Free Earnings* Taxable Withdrawals Tax-Free Withdrawals* *Subject to Qualification Rules

Legal and Operational Framework The Retirement Plan Oversight committee: Minimum of 5 members: ◦ Minister with investment knowledge ◦ Minister with no retirement plan expertise ◦ Investment specialist ◦ Communication specialist ◦ COO of ECO ◦ Additional member as needed Support for the Plan will come from: Envoy TPA and Recordkeeping Envoy Advisory Envoy Financial ◦ Legal and Compliance ◦ Recordkeeping and reporting ◦ Investment Counsel ◦ Education and Information

A Plan to Benefit All: Key Highlights A National Plan: Reduces costs, simplifies administration A 403(b)(9) Church Plan: Maintains key benefits 10% required church contribution for all Ministers and Designated Executives All Churches, Presbyteries, and National office a part of the plan: An Opt Out Option for Churches

Key Decisions National Office: ◦ Legal ◦ Investment menu ◦ Administrative oversight Local Church: ◦ Who Participates ◦ How much is contributed (10% for ministers) ◦ When do the church contributions start ◦ [Universal eligibility on a voluntary basis]

A Key Thought From Long Ago: Thomas à Kempis “It is vanity to wish to live long. . . and then not to live it impacting others. A life well spent”

How Will This Impact Me? Ministers: ◦ Your PCUSA defined benefit plan will remain and be distributed according to its formula and age availability ◦ All future contributions will go into the ECO 403(b)(9) Church plan ◦ All current 403(b)(9) account values may be transferred to the new ECO Plan ◦ Transfers from other plans and eligible IRA’s to the ECO Plan are allowed

What does getting started mean? Decisions Understanding the process Following the sequence

Prerequisites Be an official member of ECO, or the Fellowship Decide WHO will participate: Pastors required Decide What contributions will be made Decide on a Plan Representative If there are 403 b accounts at the Pension Plan, know who has them Pick a first payroll date

Overview of Getting Started Goal of the RPOC and Envoy is to make the transition easy The process clear Staff encouraged Most of the heavy lifting has been done by ECO Legal, Structure, Investments, Systems RPOC will give oversight to the plan on your behalf Envoy will handle the administration of the Plan

WHO are the Key Players? ECO Retirement Plan Oversight Committee The Member Sponsor, Church, adopts the plan The Plan Representative is the connecting point

Steps to Getting Started Fellowship of Presbyterians Website: About ECO Retirement Planning “Click here to start” Welcome and Plan Representative Information and Instruction

Plan Representative Easy Start Guide - An easy-to-follow guide that takes you through the steps to Register and Setup your participation in the ECO 403(b) Retirement Plan. Click the cover image to access the Plan Representative Guide (PDF format).

Member Sponsor Forms - We have provided PDF versions of the forms your church will need to complete in order to establish your church's participation in the ECO 403(b) Retirement Plan. The forms can be filled out online and then printed for signing and Returning. Click the cover image to access the Member Sponsor Forms (PDF format).

Sample Personal Retirement Guide for Participants - A sample of an easy-to-follow guide that takes Participants through the steps to Register and Enroll into the ECO 403(b) Retirement Plan. Also includes helpful tools, a Christian perspective on retirement, and a glossary of retirement and investment terms. Please do not distribute this sample. A customized version with your specific plan highlights will be available to you once your church adopts the plan. Click the cover image to access the Personal Retirement Guide (PDF format).

Clear Instructions: Easy to follow, Easy to implement How to use this guide: For many, retirement plan administration is not the first thing on their “to do” list because they think it is complicated or confusing. That’s why we’ve made this easy to use guide with three main sections: Section 1: Member Sponsor Registration - Provides an overview of the four required documents that need to be completed by your church to proceed with the adoption and installation of the ECO retirement plan. Section 2: Member Sponsor Setup – Provides an overview as to the implementation steps that will follow once you have submitted your registration documents, along with payment, to Envoy for processing. Section 3: Participant Instructions - Provides an overview as to how it is that your staff will become participants within the plan. And a brief description of the online tools available to them. We look forward to partnering with and serving you for many years to come. Seize The Day!

The Envoy Web Portal Our Smart. Plan Interactive Guide helps Participants determine their risk profile, select investments, complete account reviews, and more!

Connect to the Envoy Web Portal

The Envoy Web Portal Provides clear, concise, easy to understand information: ◦ Plan information ◦ Keys to understanding ◦ Enrollment : Risk Profile, $ goals, Investment allocation suggestion ◦ Periodic reviews ◦ All administrative activities: Loans, Distributions, Contributions, and Investment changes

The Envoy Web Portal Delivery services, education, and information will come to you through the Envoy Web Portal

Resources For You Envoy Website Envoy Web Portal ◦ Plan Sponsor Resource Center ◦ Participant Resource Center

Check out Envoy at: www. envoyfinancial. com

Bruce H. Bruinsma Direct: 719. 268. 2711, ext. 203 Cell: 626. 399. 2247 Email: bbruinsma@Envoy. Financial. co m Web: www. Envoy. Financial. com Services provided by: Envoy TPA and Recordkeeping, Inc. Envoy Advisory, Inc. Envoy Securities, LLC Envoy Financial, Inc. Third Party Administration Recordkeeping Services Registered Investment Advisor Broker/Dealer Member FINRA/SIPC Education, Sales and Marketing

End of Presentation: Time to ask questions now or join us for Q&A Session Envoy Personnel are available to consult with you or your church.