Contribution Processing for Local Churches Guidelines

In response to Resolution 19 from General Conference 2011, the FMCUSA Human Resources (HR) office began transitioning in January of this year from quarterly conference billings for pension contributions to monthly contributions that will come directly from the local church.  As each conference converts to the new process, this will mean the conference offices will no longer be collecting the pension contributions and sending them on to the Human Resources office.  For 2012, this is voluntary participation.

How does it work?

BILLINGS AND PAYMENTS

Each church treasurer will receive a “welcome” email to test the email address provided on the form.  There will also be a spot to verify the pastor’s current salary for the HR office. Each church treasurer will receive an email by the 5th of the month that will have an invoice attached that will indicate what the charge is for the contribution amount.  The contribution is based on 10.5 percent of the compensation (salary, housing, social security reimbursement, any 403B monies, or Section 125 medical monies).

On the 15th of each month, electronic withdrawals will be made by the Human Resources office to collect the amount due from the local church bank account.

In the event a church has been set up for the ACH withdrawal and they determine they will not have funds available for the 15th of the month, they may switch to a credit card payment.  A minimum notice by the 10th of the month is required so the HR office will have time to notify the bank and make the necessary changes.  Credit card forms are supplied for alternate use when necessary.

Non-sufficient fees (NSF) from the bank will be charged to the local church.

In the event a payment date of the 15th falls on a Saturday, Sunday, or holiday, the payment will be withdrawn the next business day.

A direct ACH withdrawal form will need to be completed for each local church and sent to the Human Resources office.   This may be mailed or scanned and emailed to theresa.portwood@fmcusa.org.   Faxes do not always come through clearly.

CHANGES IN COMPENSATION

Compensation changes will continue to be reported on the Change of Status form (http://fmcusa.org/hr/pension-change-of-status-form/) as soon as a compensation has changed.  This provides the Human Resources office and the conference office the ability to receive a copy of the change.  If a church is unable to electronically complete the form, there are also paper (PDF) copies available that can be completed by printing this form.  Conference offices maintain a supply of forms as well.

CONTRIBUTIONS THAT ARE NOT PAID

In the event a church does not pay their contribution for their pastor, after 60 days the conference office will be notified.  We will ask them to review the situation. Negligent churches that do not pay will not be allowed to continue in the plan.  The pastor will maintain their current accrued benefit, but will stop accumulating additional benefits.  Based on the church’s ability to pay, benefits may be reinstated later.

DELINQUENT CHARGES

We currently charge for payments that are not paid on time and we will continue to do so.  These late charges will be charged directly to the local church and will be billed on the invoice. The charge is a minimum of 5 and a maximum of 15 percent based on the investment return from the prior year.

Delinquent charges will apply to late enrollment forms if they are received in the HR office after the end of the year in which an employee was hired.