“Freezing” the pension means that people who are not yet retired or not receiving their pension will receive a lump sum payment of the current present value of their accrued benefit at the time of the freeze. People who are retired will continue to receive their benefits with no change. At the time of the freeze no new entrants will be allowed, no employer contributions will be collected, and no new benefits will accrue.

1. 1. We believe it is missional to do so. Many local churches, pastors and superintendents have expressed that the current pension plan is too costly and is taking resources away from mission. For example, some churches discourage people from becoming ordained due to the cost of the pension.
   2. Increasingly, younger pastors do not see the pension as a benefit as they prefer more mobility with their retirement that will move with them when and where they serve. Ultimately, we believe that local churches can contribute to a qualified retirement account for pastors that will cost the church less while providing similar or better benefits for the pastors.
   3. It is expected that freezing the plan after reaching 107% funded will allow the plan to pay full lump sums to active and terminated vested participants and leave the remaining retiree plan with a high likelihood of remaining sufficiently funded to make all benefit payments.

The Book of Discipline names our Trustees as having authority over the pension plan to enact the freeze and voted to do so at their October 2025 meeting. Additionally, for many years, the FMCUSA has been in conversation with our Benefits Committee, superintendents, and pastors about the need for our churches to provide quality retirement options for their pastors at a reduced cost.

When the pension reaches a funding level of 107%. Actuaries estimate that this will occur between 2031-2033 under the current plan assumptions; however, the actual timing may vary based on future market conditions.

Until the plan is frozen, it remains in effect with no changes to the plan requirements or operation. Participation in the plan remains mandatory and is necessary to reach 107% funded as quickly as possible.

All active participants will be vested automatically at the time of the freeze.

1. 1. Yes. Pension payments will continue as they have been.
   2. Participants currently receiving a monthly benefit will not have an option for a lump sum.

All active plan participants who are not yet retired will receive a lump sum payment of the present value of their accrued benefit. Terminated participants with a vested benefit will be included.

Typically, the options available to you would be to either receive a check for the lump sum or to have it directly rolled over into a retirement account of your choosing that is already established. For information about tax implications and other questions you may have, please consult our friends at FM Financial.

1. 1. Yes, FM Financial, the financial services ministry of the FMCUSA, stands ready to enroll people in 403(b)s to continue or begin their retirement savings. The BOA will mandate that churches make contributions to a pastor’s retirement at a specified minimum level yet to be decided.
   2. Please note that any lump sum can be rolled over to a 403(b), so the lump sum will not be immediately taxable. It would be immediately taxable if not rolled over to a qualified retirement account.

Information will be sent out to all parties affected by the changes to the plan as it becomes available, and at regular intervals.

Regular communications will show current funding percentage and an updated timeline for the expected freeze. As soon as it happens, additional communications will be sent.