Defined Contribution Interest Rate Earned
The rate of return for the Defined Contribution plan was 5.7 percent as of December 31, 2016.
Please keep in mind with a Defined Contribution plan, each participant has an individual account balance. All benefits in the way of retirement, disability and death are limited to that balance. The Free Methodist Foundation handles all the investments for this plan. Any investment gain or loss will directly affect each participant’s account balance. Due to the impact the investments have on this plan, the assets have been divided into two groups with age-appropriate investment strategies in hopes to provide an optimal return while protecting the participant account balances.
Defined Benefit Interest Rate Earned
The rate of return for the Defined Benefit plan was 6.1 percent as of December 31, 2016. Defined Benefit Plan investment returns help support the plan as a whole in paying for benefits and making benefit improvements for plan participants.