What are the elements of a more sophisticated Plan Design for a 403(b) Retirement Plan?
We understand that many ministries budgets will not allow for ministry contributions into the retirement plan. Many plans will be voluntary only, meaning that they will only allow for the elective deferrals on behalf of the participants. Nonetheless, we believe there are some plan design principles that you may find interesting. Here are some guidelines to help implement an effective plan. * 1. Encourage total participation. Participation is the first step toward understanding stewardship responsibility. Many Christian Ministry Organizations/Ministries (CMOs) provide a basic retirement plan contribution percentage or dollar amount to every Christian Ministry Professional/Employee (CMP) ranging from 1% to 6% of salary. This is referred to as a Basic Contribution. Christian Ministry Professionals (the employees) must then engage in this part of the long-term stewardship process. We recommend the following: To be eligible for the employer portion of the plan, each new CMP must be with you
