Investment Returns

Defined Contribution Interest Rate Earned

The rate of return for the Defined Contribution plan was 15.7 percent as of December 31, 2017.

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 19.3 percent as of December 31, 2017. Defined Benefit Plan investment returns help support the plan as a whole in paying for benefits and making benefit improvements for plan participants.

The Defined Benefit Plan offers each participant a benefit based on a predetermined formula using the number of credited service years and average annual compensation, multiplied by a percentage. This formula generates each participant a monthly benefit that is paid for the retiree’s lifetime, as long as the plan is in place. Individual accounts with cash balances are not maintained. The funds in a defined benefit pension fund are all working together in a pool. The Defined Benefit Plan investment returns help support the plan as a whole in paying for benefits and making improvements for plan participants.