1901 Chestnut Avenue • Glenview, IL 60025-1604 1-800-851-2201 • www.gbophb.org

© 2014 General Board of Pension and Health Benefits

Are you on track to retire?

4487/051215

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Are you on track to retire?

If your service record is inaccurate, update it immediately by contacting your conference office.

Eligibility for Benefits

Pension and annuity benefits — You can begin your benefits when you retire or at age 62, whichever is later.*

Defined contribution accounts — You can access your accounts at retirement. If you retire before the year you reach age 55 and take a distribution before age 59½, the IRS may assess a penalty.

Social Security — You are eligible for your full benefit at your normal retirement age (i.e., 66 or 67). Alternately, you may take a reduced benefit at age 62 or delay benefits beyond normal retirement age for increased benefits.

Medicare — You may qualify at age 65 (sooner in limited circumstances). *Unless you take early retirement under the 30 years of service rule.

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» Project your income using the Retirement Benefits Projection, Retirement Readiness Tool or LifeStage Retirement Income Calculator.

» Review your Social Security projection at www.ssa.gov/planners/benefitcalculators.htm.

» Request a retirement plan from EY.

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Many experts recommend annual retirement income that is 85% of what you earned during your last year of work — OR — 100% if you were living in a parsonage and will now pay for housing. However, your needs may be different. Don’t underestimate the expenses that can fluctuate dramatically based on life circumstances, for example:

» Health care» Housing and utilities» Taxes

For a closer look, review the resources offered by the General Board to help you estimate expenses. Look at the difference between what you spend now and what you expect to spend in retirement.

Contact EY or use the Retirement Readiness Tool for help with an estimate.

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In addition to your regular retirement income, you’ll need to set aside an emergency fund that is equal to at least three to six months of expenses.

If your projections show less income than you’ll need, here are five strategies that can help you get on track:

» Save more» Postpone retirement» Delay receiving Social Security benefits» Delay receiving retirement benefits

(Note: Benefits will not always increase. See the full Are You on Track to Retire? brochure)

» Reduce your retirement budget

EY Financial Planning Services can help you implement these strategies to prepare for retirement. 4

The General Board will send you a retirement kit with your application(s) for benefits once your conference notifies us of your impending retirement. However, you can also view estimated benefits and apply online via Benefits Access at www.benefitsaccess.org.

Our Retirement Team specialists are available to help you through the process and paperwork.

EY representatives also can help you understand how the available benefit options could impact your retirement and/or walk you through your online application for benefits.

If you are considering rolling your money out of a General Board-administered account, be sure to consult your tax advisor. A rollover could cause you to lose the housing allowance exclusion for tax purposes.

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Estimate your retirement income.Review your service record for accuracy, then determine when you can begin benefits.

Make sure your finances are on track.Determine your income needs.

It’s also important to be physically, emotionally and spiritually ready for a meaningful, fulfilling retirement.

» Which activities are you looking forward to, and how will you schedule your day?

» Does your spouse support your decision to retire? Do you both share the same ideas about retirement?

» Do you have a support system of family and friends?» Where will you live during retirement?

Consider non-financial retirement-readiness criteria.

When you decide that you’re ready to retire, notify your conference of your intended retirement date. Conferences typically require 120 days notice or more, so check your conference policies and review the Clergy Retirement Process Timeline on the back of this brochure.

Contact the conference office when you’re ready to retire. Make your retirement benefits decisions.

Apply online and/or send completed applications for benefits and accompanying forms to the General Board at least one month before the date you want your benefits to begin. Your first monthly payment will be direct-deposited to your account on the fifth business day of the month. However, if you are retiring June 1 and your annual conference session ends in June, your first payment may be delayed. Be sure to have an emergency fund to bridge any gap.

Apply for Medicare and Social Security three months before you want these benefit payments to begin. Even if you delay receiving Social Security benefits, be sure to enroll in Medicare at age 65. If your Medicare application is received more than three months after you reach age 65, you will pay a penalty, unless you are still employed and covered by an active health plan.

Meet your benefits timelines.

Retirement Readiness Tool

The General Board of Pension and Health Benefits (General Board) helps you make informed decisions in order to meet retirement goals. Whether you’re planning to retire now, in five years or even 10 years, this chart can help you find your place on the road to retirement. 

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Resources to support you on the road to retirement1 Service Record — To review your service record in Benefits Access, go to www.benefitsaccess.org, click

“My Benefits” and select “Service and Compensation” from the Personal Profile drop-down menu.

2 Projection Tools — Log in to Benefits Access at www.benefitsaccess.org, click “Take Action,” then use the PROJECT FUTURE VALUES drop-down menu to access:

a) The Retirement Readiness Tool, for an assessment of your retirement readiness

b) The Retirement Benefits Projection, for a more detailed estimate of your General Board-administered retirement plan benefits

c) The LifeStage Retirement Income Calculator, for an estimate of how much your monthly income will be if you use LifeStage Retirement Income to take distributions from your defined contribution accounts. The distributions are designed to keep up with inflation and continue throughout your retirement. 

3 Budgeting and Expenses — Detailed retirement information: To view the full Are You on Track to Retire? brochure, go to www.gbophb.org/assets/1/7/3434.pdf. It lists some of the larger expenses you may face in retirement, as well as explores other important issues related to your retirement decisions. For an expense worksheet, visit www.gbophb.org/resources/publications-materials/.

4 Financial Planning — For help from EY Financial Planning Services on any of these topics and more, call  1-800-360-2539 Monday through Friday from 8:00 a.m. to 7:00 p.m., Central time. For more information or to schedule a phone consultation, visit http://gbophb.eyfpc.com (company code: gbophb; company program: gbophb).

5 Retirement Team — Contact a General Board Retirement Team Specialist at 1-800-883-4078.

6 Customer Call Center—The General Board’s Call  Center is available to answer questions about General Board-administered plans, programs and services at 1-800-851-2201.

Resources to support you during retirementLifeStage Investment Management ServiceThis service is available to manage the investment of your retirement accounts both during your active service  and once you retire. The service develops a customized target investment mix (called a “target fund allocation”) based on key personal information, including your age, the risk tolerance that you specify and whether you will qualify to receive Social Security benefits. 

LifeStage Retirement IncomeAs you move from saving for retirement to spending in retirement, you have distribution decisions to make. It may be difficult to decide how much to take from your retirement  plan accounts to assure your payments last your lifetime, when to adjust those payments and by how much. LifeStage Retirement Income manages your distributions by issuing monthly payments to you from your defined contribution accounts. It is intended to make your payments last your lifetime. Payments are adjusted annually based on changes in inflation, your age and your account balance.

EY Financial Planning ServicesThis service is offered at no charge to all active participants,  and to retired and terminated participants with at least $10,000  in a General Board-administered retirement plan account. A professional, objective financial planner can provide confidential guidance on making investment decisions, managing debt, understanding tax issues, evaluating insurance needs and options, buying a home and more.

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Clergy Retirement Process Timeline June 1 Retirement July 1 Retirement

A letter outlining the retirement process is sent from the General Board to participants who are newly eligible for full retirement.

October October

Retirees should have notified their conference of their intent to retire. The Book of Discipline requires notification at least 120 days before the retirement date unless waived, but check your conference policies.

January 31 February 28

A retirement package is sent from the General Board to participants who have notified their conference of their intent to retire.*

January–February February–March

Retirement Team specialists are available to retirees who have received retirement packets to answer questions and assist in applying for benefits.

January–May January–June

Retiree webcasts are offered to answer questions. April–May April–May

Retirees apply online and/or return all completed forms and other necessary paperwork to their Retirement Team Specialist.

March–May April–June

Retirement benefits are processed.** June July

* The General Board is notified by the conference benefits officer once retirement is approved by the conference.

** Payments are made via electronic funds transfer (EFT). Your first payment will be in your account on the fifth business day of the month. However, if you are retiring June 1 and your annual conference session ends in June, your first payment may be delayed, because it cannot be set up until the close of the conference session. Every effort will be made to ensure that you receive subsequent payments on the first business day of each month.

1 Proven track record: Our funds have earned competitive investment returns compared to mutual funds with similar investments.1

2 Lower expenses: Our fund expenses are below the median for mutual funds with similar investments.

3 No front-end loads or back-end fees: We don’t charge sales commissions or redemption fees.

4 Financial guidance: EY Financial Planning Services are available at no charge2 to equip and empower you to make informed investment decisions.3

5 Investment management: The LifeStage Investment Management Service is available to manage your retirement account at no charge,2 simplifying your investment decisions.

6 Distribution management: LifeStage Retirement Income is available to manage your distributions in retirement at no charge.2 It issues monthly payments to you from your defined contribution account. LifeStage is intended to make your retirement income last for your lifetime and keep pace with inflation.

7 Diversified fund offering: If you prefer to self-manage your account, you can select among a diversified offering of General Board funds.

8 Easy access to account information: Access to your account information 24/7 on the Benefits Access website (www.benefits access.org) and through the Benefits Access Mobile App (available from the App StoreSM or Google PlayTM). General Board representatives are also available by phone weekdays during normal business hours, and statements of your account are sent quarterly via mail or online notification.

9 Planning tools: The Retirement Readiness Tool, Retirement Benefits Projection and Retirement Income Calculator online applications are available in Benefits Access to help you plan for retirement.

10 Sustainable investing: We are committed to investing in a sustainable and responsible manner, creating long-term value for our participants. We promote environmental stewardship, human rights and sound corporate governance; and we seek to avoid investing in companies whose products and/or services are not aligned with Church values. Through our Positive Social Purpose Lending Program, we make market rate investments in affordable housing, community development and business opportunities for the working poor around the world.

1 Historical returns are not indicative of future results. The investment funds are neither insured nor guaranteed by the government. For more information about the funds, please see the Investment Funds Description at www.gbophb.org/assets/1/7/3052.pdf.

2 Costs for these services are included in the General Board’s administrative expenses that are paid for by the funds.

3 Services are available to active participants and surviving spouses with account balances, and to retired and terminated participants with account balances of at least $10,000.

10 advantages of keeping your retirement assets with the General Board

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1901 Chestnut Avenue • Glenview, IL 60025-1604 1-800-851-2201 • www.gbophb.org

© 2014 General Board of Pension and Health Benefits

Are you on track to retire?

4487/051215