Distinctions have been made between the Board as administrator and the Board as trustee.
Beneficiary provisions have been revised.
The definition of compensation has been revised.
Clergy members serving less than three-quarter time have been included as a category eligible for participation in the death and disability programs.
Nondiscrimination provisions have been revised to require compliance with Section 79(d) of the Internal Revenue Code.
Open enrollment has been provided for eligible clergy and lay employees who experience a "change in family status" during a plan year.
The Social Security definition of disability has been removed and disability will be determined in accordance with the occupational definition currently contained in the plan document.
Disability provisions were also revised to note such benefits will terminate (1) at age 65 if a participant becomes disabled on or before age 60, (2) upon the fifth anniversary of disability if a participant becomes disabled after age 60, or (3) on the June 30th following a disabled clergyperson's 70th birthday.
The disability benefit amounts which may be adopted by plan sponsors have been revised.
The active participant death benefit has been revised by including three options which may be adopted by plan sponsors for their lay and/or clergy participants.
The death benefit payable upon the death of a retired participant, spouse, or child has been revised.
A provision was added to note Illinois law governs the terms of the plan, except where preempted by federal law.
A provision was added requiring disputes between a plan sponsor and the Board to be settled through the use of a mediation/binding arbitration process.
Basic Protection Plan
Article I The Plan
1.01 The Plan. The General Conference of The United Methodist Church previously established a protection plan for the benefit of eligible persons which was known as the Basic Protection Plan (hereinafter referred to as the "Plan"). In addition to the Plan, the Death Benefit Program and the Death Benefit Program Plus (hereinafter collectively referred to as the "Prior Plans") had been established as protection plans for the benefit of certain eligible persons. The Prior Plans were merged into the Plan which was amended and restated effective January 1, 1993. Effective January 1, 1997, the Plan is hereby amended and restated.
1.02 Nature of Plan. This Plan is a church plan as that term is defined under section 414(e) of the Internal Revenue Code of 1986, as amended, and section 3(33) of the Employee Retirement Income Security Act of 1974, as amended.
Article II Definitions
Each word and phrase defined in this Article II shall have the following meaning whenever such word or phrase is capitalized and used herein, unless a different meaning is clearly required by the context of the Plan. The definition of any term herein in the singular may also include the plural.
2.01 Active Participant. A Participant who meets the requirements of Section 3.02a below.
2.02 Administrator. The Administrator shall mean The General Board of Pension and Health Benefits of The United Methodist Church, Incorporated in Illinois, and any successors.
2.03 Adoption Agreement. An Adoption Agreement shall be executed by a Plan Sponsor in accordance with Article X.
2.04 Age. The age at the last birthday, except as otherwise noted in Section 5.05 and Section 6.09.
2.05 Book of Discipline. The body of church law as established by the General Conference of The United Methodist Church, as amended from time to time.
2.06 Clergyperson or Clergy. A bishop of The United Methodist Church, a clergy member of a Conference, including full, probationary, and associate members, and a full-time local pastor of The United Methodist Church who is under episcopal appointment to a charge which is located in a Conference.
2.07 Code. The Internal Revenue Code of 1986, as amended from time to time.
2.08 Compensation. The sum of the following amounts paid to the Participant by his/her Salary-Paying Unit and/or Plan Sponsor in the most recent twelve-month period:
a. the taxable cash salary received by the Participant from the Salary- Paying Unit, but not including the cash value of taxable fringe benefits;
b. the housing allowance, if any, determined in accordance with the provisions of the Ministerial Pension Plan Section 2.11 or the Cumulative Pension and Benefit Fund Section 2.12, as amended from time to time; and
c. any elective deferrals with respect to employment with the Plan Sponsor and/or Salary-Paying Unit: (i) to a plan qualified under Code section 125; or (ii) to a tax-sheltered annuity described in Code section 403(b).
In the event a Participant has less than twelve (12) months of Compensation at the date of benefit determination under Section 5.04 or Section 6.03, the Compensation at such date of determination shall be annualized. For a Participant who is disabled within the terms of Article V, Compensation shall be the amount in effect under the terms of this Section 2.08 as of the date such Participant was determined to be disabled in accordance with Section 5.03.
2.09 Conference. For the purpose of this Plan and the Programs thereunder, the term "Conference" shall include Annual Conferences, Provisional Conferences and Missionary Conferences which are described in the Book of Discipline and which are located in Jurisdictional Conferences.
2.10 Denominational Average Compensation. The average annual Compensation of Clergy appointed to charges located in Conferences, as determined each year by the Administrator.
2.11 Employee. A person who is described as an employee of a church in Code sections 414(e)(3) and/or 7701(a)(20), who is a Clergyperson serving The United Methodist Church, or who is a common- law employee of a Salary- Paying Unit.
2.12 ERISA. The Employee Retirement Income Security Act of 1974, as amended from time to time.
2.13 General Agency. A general agency of The United Methodist Church as defined in the Book of Discipline.
2.14 Hour of Service.
a. Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Salary-Paying Unit and/or Plan Sponsor. These hours shall be credited to the Employee for the computation period in which the duties are performed; and
b. Each hour for which an Employee is paid, or entitled to payment, by the Salary-Paying Unit and/or Plan Sponsor on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. No more than 501 Hours of Service shall be credited under this paragraph for any single continuous period (whether or not such period occurs in a single computation period); and
c. Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Salary-Paying Unit and/or Plan Sponsor. The same Hours of Service shall not be credited both under paragraph (1) or paragraph (2), as the case may be, and under this paragraph (3). These hours shall be credited to the Employee for the computation period or periods to which the award or agreement or payment is made.
Hours of Service will be credited for employment with other Salary-Paying Units and/or Plan Sponsors of The United Methodist Church.
2.15 Normal Retirement Age. The Normal Retirement Age applicable to a Participant who is a Clergyperson identified in Section 3.02b(1)(A) is defined in The Book of Discipline. The Normal Retirement Age applicable to a Participant who is a lay Employee is defined in Section 3.02b(1)(B)(iii).
2.16 Participant. Any Employee who has become eligible to participate and enrolled in the Plan in accordance with Article III.
2.17 Period of Coverage. The Plan Year, except that it may be a fraction of a Plan Year for a Participant who becomes eligible to enroll in the Plan after January 1 of a Plan Year. In those instances, the Period of Coverage is the remainder of the Plan Year.
2.18 Plan. The Basic Protection Plan is a plan of The United Methodist Church which is comprised of a Disability Program and a Death Benefit Program.
2.19 Plan Sponsor. An entity described below which has completed an Adoption Agreement which has been accepted by the Administrator and which is participating in a pension program administered by the Administrator:
a. the General Council on Finance and Administration if the Participant is a bishop;
b. the Conference if the Participant is a local pastor or a member in full connection, probationary member, or associate member, except if he/she is appointed pursuant to Paragraphs 443.1a(2), (3), or (4), 443.1b, or 443.1d of the Book of Discipline;
c. the General Council on Finance and Administration if the Participant is an Employee of a General Agency which has a voting representative on the Committee on Personnel Policies and Practices which is a committee of the General Council on Finance and Administration;
d. the Salary- Paying Unit if the Participant is classified in a category not described above.
2.20 Plan Year. The twelve- month period ending on December 31 of each calendar year.
2.21 Program. Any of the benefit plans offered to Plan Sponsors and/or Participants hereunder, which include, but are not limited to, the Disability Program under Article V and the Death Benefit Program under Article VI.
2.22 Retired Participant. A Participant who meets the requirements of Section 3.02b below.
2.23 Salary- Paying Unit. One of the following units which is associated with The United Methodist Church and located in the United States:
a. the General Conference;
b. a General Agency of The United Methodist Church;
c. a Jurisdictional Conference;
d. a Conference located in a Jurisdictional Conference;
e. a Conference board, agency, or commission located in a Jurisdictional Conference;
f. a local church located in a Conference; or
g. any other organization located in a Jurisdictional Conference which is eligible to participate in a church plan in accordance with the provisions of ERISA.
2.24 Trustee. The Trustee shall mean The General Board of Pension and Health Benefits of The United Methodist Church, Incorporated in Missouri, and any successors.
2.25 Year of Service. The completion of at least 1,000 Hours of Service during the Plan Year.
Article III Eligibility
3.01 General Rule. An Employee shall be eligible to participate in this Plan if the Employee meets the requirements of either Sections 3.02, 3.03, 3.04 or 3.05 below, and if he/she is not excluded from participation in accordance with the provisions of Section 3.06.
3.02 Eligibility Requirements. Each Employee of the Plan Sponsor shall be required to meet the following requirements for eligibility:
a. In order to be considered an Active Participant, the Employee must meet all of the following requirements:
(1) One of the following service requirements which has been selected by the Plan Sponsor:
(A) No minimum service shall be required of an Employee in order for the Employee to be eligible to be enrolled in the Plan.
(B) A service requirement shall be imposed with such requirement being at least one month, but no more than 24 months.
(2) One of the following Age requirements which has been selected by the Plan Sponsor:
(A) No minimum Age shall be required of an Employee in order for the Employee to participate in the Plan.
(B) An Age requirement shall be imposed with such requirement being at least 18 years of Age, but no more than 21 years of Age.
(3) Be an Employee as defined below:
(A) For a Clergyperson, a bishop or a member in full connection, probationary member, or associate member of a Conference who is under episcopal appointment and who is serving the appointment at least three-quarters time or a full-time local pastor who is under episcopal appointment or a person who has been granted a disability leave pursuant to Paragraph 451 of the Book of Discipline and who was enrolled in the Plan at the time he/she became disabled.
(B) For a lay Employee, a person who is actively employed and is normally scheduled to work at least 30 hours or more per week or who became disabled while an Active Participant in this Plan.
(C) For a Clergyperson, a member in full connection, probationary member, or associate member of a Conference who is under episcopal appointment and who is serving less than three-quarters time.
b. In order to be considered a Retired Participant, the Employee must be eligible to receive a benefit from a pension program administered by the Administrator and meet all of the following requirements:
(1) The Employee must have been retired in accordance with the requirements which have been selected by the Plan Sponsor in the Adoption Agreement:
(A) For a Clergyperson, a person who has retired (or recognized as being retired) in accordance with
(i) Paragraphs 509.1, 509.2, or 509.3 of the Book of Discipline;
(ii) Paragraphs 452.1, 452.2b, or 452.2c of the Book of Discipline;
(iii) Paragraph 452.2a of the Book of Discipline;
(iv) Paragraph 452.3 of the Book of Discipline; or
(v) Paragraph 410.5 of the Book of Discipline.
(B) For a lay Employee (other than a lay Employee of a General Agency), a person who has retired in accordance with the retirement policy of the Salary-Paying Unit from which he/she has retired:
(i) An early retirement age shall be selected by the Salary-Paying Unit in its Adoption Agreement.
(ii) Said early retirement age shall be the age of the Employee in the year in which the later of two events occur: (a) the year in which the Employee attains age "x," or (b) the year in which the Employee has at least "y" Years of Service with the denomination, where "x" is a number between 55 and 65, inclusively, and where "y" is a number between 0 and 20, inclusively.
(iii) The Normal Retirement Age shall be the year in which the later of two events occur: (a) the year in which the Employee attains age 65, or (b) the year in which the Employee has five Years of Service with the denomination.
(C) For a lay Employee of a General Agency, a person who has retired in accordance with paragraph 814.3 of the Book of Discipline.
(2) An Employee must have participated in the Plan for at least five years immediately prior to being eligible to participate as a Retired Participant. If a Plan Sponsor has covered its Employees under the Plan for less than five years, an Employee who is enrolled by such Plan Sponsor as of the effective date of such Plan Sponsor's adoption of Plan coverage may become eligible to participate as a Retired Participant upon meeting the requirements of Section 3.02b(1); provided, such Plan Sponsor elects to cover Employees in the categories noted in Section 3.02b(1).
(3) An Employee must continuously participate in the Plan after attaining the status of Retired Participant.
3.03 Nondiscrimination. A Plan Sponsor who elects coverage under the Death Benefit Program shall enroll a sufficient number of Employees to meet the nondiscrimination requirements of Code Section 79(d).
3.04 Proof of Insurability. An Employee must show proof of insurability at the time he/she is eligible to enroll for Plan coverage. For the purpose of this Plan, an Employee shall meet this proof of insurability requirement an executed enrollment form is filed with the Administrator within 60 days of the last to occur of the following:
a. the effective date of the Adoption Agreement which has been completed by the Plan Sponsor;
b. the date on which the Employee becomes eligible to participate in the Plan in accordance with Section 3.02 above;
c. the date on which the Employee experiences a change in family status due to his/her marriage or divorce, the birth or adoption of a Child (as defined in Section 6.05) of the Employee, the death of the Employee's Spouse or Child, or the termination or commencement of employment of the Employee's Spouse; or
d. the first day of the month immediately following the approval of the Administrator of the individual's participation based upon the completion (at the expense of the Plan Sponsor, the Salary-Paying Unit, or Employee) of a medical examination indicating a condition of good health acceptable to the Administrator. Such a medical examination shall be required in the event the Employee does not file an enrollment form pursuant to Sections 3.04a, b, or c above.
3.05 Effective Date of Participation. An Employee who initially becomes eligible to participate pursuant to Section 3.02 shall become a Participant in the Plan on the first day of the month following the Administrator's receipt and acceptance of such Employee's executed enrollment form; provided the terms of Section 3.04 have been satisfied. An Employee who experiences a change in family status pursuant to Section 3.04c during a Plan Year shall become a Plan Participant on the following January 1; provided the terms of Section 3.04 have been satisfied. An Employee who has met the terms of Section 3.04a shall have his/her coverage renewed as of the effective date of his/her Plan Sponsor's annual Adoption Agreement.
3.06 Special Rules. Notwithstanding anything herein to the contrary,
a. For a Plan Sponsor with seven or more Employees eligible to participate pursuant to Section 3.02a(3), such Plan Sponsor and its Employees may not participate in the Plan if the Plan Sponsor does not enroll at least seventy percent of those Employees who are eligible to participate in a Program.
(1) A Plan Sponsor may enroll clergy only, lay employees only, or both.
(2) For the purpose of the seventy percent rule, a Plan Sponsor must enroll at least seventy percent of eligible active Employees and at least seventy percent of eligible retired Employees if coverage is elected for retired Employees.
b. For a Plan Sponsor with less than seven Employees eligible to participate pursuant to Section 3.02a(3), such Plan Sponsor and its Employees may not participate in the Plan if the Plan Sponsor does not enroll its Employees in accordance with the following schedule:
Total Number of Eligible Employees Number of Employees Required to be
Enrolled
6 4
5 3
4 3
3 2
2 2
(1) A Plan Sponsor may enroll clergy only, lay employees only, or
both.(2) The schedule of required enrollment noted above must be applied separately to eligible active Employees and eligible retired Employees if coverage is elected for retired Employees.
c. The Administrator shall determine the eligibility of each Employee for participation based upon information furnished by the Plan Sponsor. Such determination shall be conclusive and binding upon all persons, as long as the same is made pursuant to the Plan and the Adoption Agreement.
d. The Administrator may reject any Adoption Agreement, or terminate the participation of a Plan Sponsor at the end of any Plan Year, in accordance with criteria established by the Administrator.
e. Transition Rule. Notwithstanding anything in this Article to the contrary, any person who is enrolled in the Plan or a Prior Plan as of December 31, 1992, shall continue to be eligible to continue his/her participation in the Plan provided that his/her Plan Sponsor enrolls him/her as of January 1, 1993, and said person is continuously enrolled thereafter.
Article IV Contributions
4.01 Premium Contributions. The Administrator shall charge the Plan Sponsor, or at the request of the Plan Sponsor, the Salary-Paying Unit, for the premiums for the Programs for which the Employee is enrolled.
a. Said contributions shall be payable in annual installments. However, a Plan Sponsor may elect to pay the premium in quarterly or monthly installments. Less than annual installments shall include a reasonable finance charge which shall be determined by the Administrator and communicated to the Plan Sponsor at the time of renewal.
b. A Plan Sponsor may elect in the Adoption Agreement to have the Participant contribute towards the cost of the premium by requiring a certain percentage of the premium be paid by the Employee. However, the premium shall be collected by the Plan Sponsor (or Salary-Paying Unit) and shall be forwarded to the Administrator on the same basis as the Plan Sponsor premium.
c. Said premium shall be established by the Administrator in accordance with rules and regulations as may be established by the Administrator from time to time.
4.02 Protection Benefit Trust. Premium contributions made pursuant to Section 4.01 shall be credited as of the date of receipt by the Plan to the Protection Benefit Trust.
4.03 Delinquent Contributions. In the event the premium contributions required in Section 4.01 on behalf of any person are:
a. more than thirty days in arrears, the participation of, and the benefits related to any such person under the Plan shall be suspended until arrangements have been made for the resumption of contributions satisfactory to the Administrator;
b. more than ninety days in arrears, the participation of, and the benefits related thereto, shall be terminated. Such terminated Participant shall have the right to re-enroll if he/she meets the proof of insurability requirement described in Section 3.04d herein.
Article V Disability Program
5.01 In General. A Plan Sponsor who has adopted this Plan may elect to enroll its Employees in a Disability Program option which may be established by the Administrator in accordance with this Plan.
5.02 Eligibility, Enrollment and Termination. An Active Participant whose Plan Sponsor has enrolled said Active Participant in this Program shall receive benefits under this Program in accordance with the provisions of this Article and this Plan. Enrollment and termination of participation under the Plan shall constitute enrollment and termination of participation under this Program.
5.03 Disability Benefits.
a. Eligibility for Benefits.
(1) By Reason of Illness. In the event an Active Participant who has been an Active Participant in this Program for at least six months becomes disabled (as defined in Section 5.03b) by reason of illness, such Active Participant shall be entitled to a disability benefit under this Program.
(2) By Reason of Accident. In the event an Active Participant becomes disabled (as defined in Section 5.03b) by reason of an accident, the Active Participant shall be entitled to a disability benefit under this Program.
b. Definition of Disability. An Active Participant will be considered disabled for the purposes of this Program as of the date the Administrator determines on the basis of medical evidence that such Active Participant was unable to perform the usual and customary duties of his/her employment by reason of bodily injury, disease, or mental or emotional disease or disorder which will presumably last for at least six continuous months, exclusive of any disability resulting from (A) service in the armed forces of any country, (B) warfare, (C) intentionally self-inflicted injury, or (D) participation in any criminal or unlawful act.
After having received benefit payments for twenty-four months, the Active Participant shall be considered disabled only if such Active Participant is unable to engage in any occupation for which such Active Participant is reasonably qualified by training, education, experience, or age. In order to continue disability benefit payments after twenty-four months, an Active Participant will be required to submit medical evidence of such disability to the Administrator in accordance with Subsection c below.
c. Application for Benefit. An Active Participant shall complete an application for benefit form provided by the Administrator. The Administrator shall require medical evidence of initial and continuing disability, including, but not limited to, a requirement that the Active Participant submit to medical examination at the request of the Administrator. The Program shall pay all reasonable medical fees, as determined by the Administrator, for any examinations requested more frequently than annually. Documentation from the Social Security Administration shall constitute medical evidence for the purposes of this Section 5.03c. Medical evidence must be received by the Administrator within 90 days of an Administrator request for such information, otherwise disability benefits will be denied for initial disability and terminated. Determinations as to disability made by the Administrator shall be made in accordance with the procedures set forth in Section 7.01.
d. Commencement of Benefit.
(1) For an Active Participant, payment of benefits shall begin retroactive to the first day of the month following the date of disability as determined by the Administrator.
(2) No disability benefits shall be payable for any period of time when the Active Participant is still receiving a salary from his/her Salary-Paying Unit. Notwithstanding the foregoing, a Participant who is actively enrolled in a rehabilitation program approved by the Administrator may be entitled to receive a portion of his/her disability benefits even though he/she may be receiving a salary from an employer.
(3) Even if the Active Participant is otherwise eligible to receive disability benefits, no disability benefit shall be approved on a retroactive basis for any period of time in excess of 365 days from the date the payment of disability benefits is approved by the Administrator.
e. Termination of Benefits. Disability benefits will be payable under the Program until the earliest of one of the events noted below.
(1) Upon the death of the Active Participant, disability benefits shall terminate.
(2) If the Administrator determines that an Active Participant is no longer disabled, based on medical evidence, disability benefits will terminate. The Participant will assume the cost of providing the Administrator with such medical evidence in accordance with the procedures established under Section 5.03c.
(3) If the Active Participant fails to submit medical evidence of continuing disability within 90 days of a request from the Administrator for such information pursuant to Section 5.03c, disability benefits will be terminated in accordance with the procedures set forth in Section 7.01.
(4) If an Active Participant becomes disabled in accordance with the terms of Section 5.03b on or before age 60, disability benefits will terminate upon the attainment of age 65.
(5) If an Active Participant becomes disabled in accordance with the terms of Section 5.03b after age 60, disability benefits will terminate after five years.
(6) Upon the June 30th following his/her 70th birthday, the disability benefits of a Clergyperson will terminate.
5.04 Amount of Disability Benefit. The Plan Sponsor shall indicate in the Adoption Agreement the amount of the benefit coverage to be payable hereunder. This amount shall be stated as a percentage of an Active Participant's Compensation in effect as of the date on which the Active Participant became disabled.
a. Options Available For Active Participants Who Are Clergypersons. For those Active Participants who are Clergypersons, a Plan Sponsor may elect one of the following benefit options:
(1) 10% of the greater of Compensation or the Denominational Average Compensation;
(2) 60% of the greater of Compensation or of the Denominational Average Compensation less any disability benefits received under the Comprehensive Protection Plan and from the Social Security Administration of the United States; or
(3) 70% of the greater of Compensation or of the Denominational Average Compensation less any disability benefits received under the Comprehensive Protection Plan and from the Social Security Administration.
b. Options Available For Active Participants Who Are Lay Employees. For those Active Participants who are lay Employees, a Plan Sponsor may elect one of the following benefit options:
(1) 40% of Compensation;
(2) 60% of Compensation less any disability benefits received from the Social Security Administration; or
(3) 70% of Compensation less any disability benefits received from the Social Security Administration.
5.05 Premiums. A premium for each Program option shall be established by the Administrator in accordance with insurance industry standards taking into consideration certain factors including, but not limited to, age and compensation of the Participant, amount of exposure, and mortality tables. For the purposes of this Section 5.05, the term "age" as used herein shall mean the Participant's age as of the birthday nearest the premium effective date; and the term "compensation" as used herein shall mean the same as that defined in Section 2.08, except compensation for the purposes of this Section 5.05 will be an amount paid to the Participant for the year period nearest the prospective premium effective date.
5.06 Rules and Regulations. The Administrator shall establish all necessary rules, regulations, and procedures for the proper administration of this Program.
Article VI Death Benefit Program
6.01 In General. A Plan Sponsor who has adopted this Plan may elect to enroll its Employees in a Death Benefit Program option which may be established by the Administrator in accordance with this Plan.
6.02 Eligibility, Enrollment and Termination. A Participant whose Plan Sponsor has enrolled said Participant in this Program shall receive benefits under this Program in accordance with the provisions of this Article and this Plan. Enrollment and termination of participation under the Plan shall constitute enrollment and termination of participation under this Program.
6.03 Participant Death Benefit Options. In the event of the death of a Participant, the Beneficiary (as defined in Section 6.08) of such Participant shall be entitled to a death benefit in an amount determined pursuant to Section 6.03 herein:
a. Active Participant. A Plan Sponsor may elect to provide its Active Participants with coverage according to one of the following options:
(1) Option 1. Active Participants (eligible to participate pursuant to Section 3.02a(3)(A), (B), or (C)) may be provided with coverage according to one of the following:
(A) One of the following amounts: $10,000 or $25,000.
(B) One of the following percentages of Compensation: 100%, 150%,or 200%. The benefit under this option shall be payable in amounts which are whole multiples of $10,000. Accordingly, the benefit shall be rounded to the next highest $10,000. The maximum benefit payable hereunder shall be $200,000.
(2) Option 2. Active Participants (eligible to participate pursuant to Sections 3.02a(3)(A) or (C)) may be provided with coverage equal to the greater of 150% of the Denominational Average Compensation or 150% of Compensation, minus his/her death benefit provided under Section 5.03(d) of the Comprehensive Protection Plan.
(3) Option 3. Active Participants (eligible to participate pursuant to Section 3.02a(3)(A), (B), or (C)) may be provided with coverage based on the Denominational Average Compensation multiplied by the percentage (noted under either Schedule A, B, or C below, as applicable) which corresponds to the Participant's Age at his/her death. For Active Participants covered pursuant to Sections 3.02a(3)(A) or (C), a Plan Sponsor shall elect either Schedule (A) or (B) below; whereas, for Active Participants covered pursuant to Section 3.02a(3)(B), a Plan Sponsor shall select either Schedule (B) or (C) below.
Age Schedule A Schedule B Schedule C
46 75.0% 150% 300%
47 72.5% 145% 290%
48 70.0% 140% 280%
49 67.5% 135% 270%
50 65.0% 130% 260%
51 62.5% 125% 250%
52 60.0% 120% 240%
53 57.5% 115% 230%
54 55.0% 110% 220%
55 52.5% 105% 210%
56 50.0% 100% 200%
57 47.5% 95% 190%
58 45.0% 90% 180%
59 42.5% 85% 170%
60 40.0% 80% 160%
61 37.5% 75% 150%
62 35.0% 70% 140%
63 32.5% 65% 130%
64 30.0% 60% 120%
65 27.5% 55% 110%
66 25.0% 50% 100%
67 22.5% 45% 90%
68 to 20.0% 40% 80%
retirement
Notwithstanding the foregoing, no benefit provided under Option 3 shall exceed $200,000.
b. Retired Participant. A Plan Sponsor may elect to provide its Retired Participants death benefit coverage as follows:
(1) For a Retired Participant who was a Clergyperson prior to retirement: $5,000.
(2) For a Retired Participant who was a lay Employee prior to retirement: either 30% of the Denominational Average Compensation or $5,000.
6.04 Spouse Death Benefit Option. A Plan Sponsor may elect to provide one of the following death benefit options which would be payable to an Active Participant upon the death of his/her Spouse: (1) $5,000 for an Active Participant covered pursuant to Sections 3.02a(3)(A) or (C), or (2) 20% of the Denominational Average Compensation or $5,000 for an Active Participant covered pursuant to Section 3.02a(3)(B). For the purpose of this section, the term "Spouse" shall mean the person to whom the Active Participant is married in accordance with the law of the jurisdiction in which the Active Participant resides.
6.05 Child Death Benefit Option. A Plan Sponsor may elect to provide one of the following death benefit options which would be payable to an Active Participant upon the death of a Child of the Active Participant: (1) $5,000 for an Active Participant covered pursuant to Sections 3.02a(3)(A) or (C), or (2) 10% of the Denominational Average Compensation or $5,000 for an Active Participant covered pursuant to Section 3.02a(3)(B). For the purposes of this Section, the term "Child" means a natural or legally adopted child of a Participant who, at the time of his/her death, was under the age of 19 years (or under the age of 24 years if he/she was a full-time student at an accredited school).
6.06 Payment of Benefits. The benefits payable under any of the Program options shall be paid to the beneficiary in a single sum.
6.07 Application for Benefit.
a. The benefits payable pursuant to this Program shall be paid only after application for payment has been made to the Administrator in such form approved by the Administrator.
b. The Administrator may require such proper proof of death and such evidence of the right of any person to receive payment of a benefit on account of the death of a Participant, Spouse, or Child as the Administrator may deem appropriate. The Administrator's determination of death and of the right of any person to receive payment shall be conclusive.
c. Application for benefits payable under this Article must be made within two years after the death which gives rise to the benefit. In the case of a benefit payable to a person with a legal disability, said beneficiary must apply for benefits within two years of the removal of the legal disability.
d. If a beneficiary fails to make an application for benefit within the time period required in Section 6.07c above, the Administrator shall consider such a failure as a refusal to accept the benefit and shall notify the next secondary beneficiary as to his/her eligibility to receive a benefit. Such determination shall be made only after a sixty-day period commencing on the date on which the Administrator sends a certified letter to the beneficiary at his/her last known address.
6.08 Designation of Beneficiary.
a. Each Participant may designate, in such form as required by the Administrator, a Beneficiary who is to receive the Participant's interest in the Plan in the event of the Participant's death. In the event a Participant's designated primary Beneficiary is not available (for any reason such as one noted below in this Section 6.08) as of the Participant's death, the death benefit under Article VI hereof shall be paid to a Participant's designated contingent Beneficiary. The designation of a Beneficiary shall not be effective for any purpose unless and until it has been filed by the Participant with the Administrator during the Participant's lifetime.
b. A Participant may, from time to time, in such form as required by the Administrator, during the Participant's lifetime, change the Beneficiary. Notwithstanding the foregoing, the Beneficiary of a married Participant shall automatically be deemed to be his/her spouse, and a Participant may not designate another person as primary or contingent Beneficiary without the written consent of the spouse on a form required by the Administrator. If the spouse is legally incompetent to give consent, the spouse's legal guardian, even if such guardian is the Participant, may give consent. Such consent shall not be required if it is established to the satisfaction of the Administrator that the required consent cannot be obtained because there is no spouse, the spouse cannot be located, or due to other relevant facts and circumstances. A former spouse's waiver shall not be binding on the new spouse.
c. A Participant may designate multiple beneficiaries who will divide any benefit payable under Article VI in equal shares. Any election made by a Participant and consented to by his/her spouse may be revoked by the Participant in writing without the consent of the spouse, provided such revocation is filed by a form provided by the Administrator and filed with the Administrator during the Participant's lifetime.
d. A Participant's divorce shall revoke any Beneficiary designation in favor of the Participant's spouse made prior to the divorce. Until such time as a new designation of Beneficiary is filed with the Administrator in accordance with the provisions of this Section, benefits will be payable as if the former spouse had predeceased the Participant.
e. In the event a Participant shall not designate a Beneficiary in the manner heretofore stated, or if for any reason such designation shall be legally ineffective, or if such Beneficiary predeceases the Participant, then the Beneficiary shall be deemed to be the estate of the deceased Participant.
6.09 Premiums. A premium for each Program option shall be established by the Administrator in accordance with insurance industry standards taking into consideration certain factors including, but not limited to, the age and compensation of the Participant, amount of exposure, and mortality tables. For the purposes of this Section 6.09, the term "age" as used herein shall mean the Participant's age as of the birthday nearest the premium effective date; and the term "compensation" as used herein shall mean the same as that defined in Section 2.08 except compensation for the purposes of this Section 6.09 will be an amount paid to the Participant for the year period nearest the prospective premium effective date.
6.10 Rules and Regulations. The Administrator shall establish all necessary rules, regulations, and procedures for the proper administration of this Program.
6.11 Protection of Benefits from Prior Plans.
a. Any person who as of December 31, 1992, had paid-up death benefit coverage as a Retired Participant in the Basic Protection Plan shall thereafter continue to have the same death benefit coverage at no additional cost to the Retired Participant or his/her Plan Sponsor.
b. Any person who as of December 31, 1992, had death benefit coverage from the former Death Benefit Program or the Death Benefit Program Plus shall thereafter continue to have the same death benefit coverage, provided his/her Plan Sponsor continues to make the required premium contributions in the amount to be established by the Administrator.
Article VII Administration of the Plan
7.01 Powers and Duties of the Administrator. The primary responsibility of the Administrator is to administer the Plan for the exclusive benefit of the Participants and their Beneficiaries, subject to the terms of the Plan. The Administrator shall administer the Plan in accordance with its terms and shall have the power and discretion to construe the terms of the Plan and to determine all questions arising in connection with the administration, interpretation, and application of the Plan. Any such determination by the Administrator shall be conclusive and binding upon all persons. The Administrator, in addition to all powers and authorities under common law, statutory authority, including the Act, and other provisions of the Plan, shall have the following powers and authorities, to be exercised in the Administrator's sole discretion:
a. To establish procedures, correct any defect, supply any information, or reconcile any inconsistency in such manner and to such extent as shall be deemed necessary or advisable to carry out the purpose of the Plan;
b. To determine all questions relating to the eligibility of Employees to participate or remain a Participant hereunder and to receive benefits under the Plan;
c. To compute, certify, and direct the Trustee with respect to the amount and the kind of benefits to which any Participant shall be entitled hereunder;
d. In its sole discretion, to construe and interpret the Plan and make administrative rules in accordance therewith, and to resolve or otherwise decide matters not specifically covered by the terms and provisions of the Plan;
e. To maintain all necessary records for the administration of the Plan;
f. To interpret the provisions of the Plan and make and publish such rules for regulation of the Plan as are consistent with the terms hereof;
g. To file, or cause to be filed, all such annual reports, returns, schedules, descriptions, financial statements and other statements as may be required by any federal or state statute, agency, or authority;
h. To obtain from the Plan Sponsors and Employees such information as shall be necessary to the proper administration of the Plan;
i. To specify actuarial assumptions and methods for use in determining contributions and benefits under the Plan.
j. To assist any Participant regarding his/her rights, benefits or elections available under the Plan.
7.02 Records and Reports. The Administrator shall keep a record of all actions taken and shall keep all other books of account, records, and other data that may be necessary for proper administration of the Plan and shall be responsible for supplying all information and reports to appropriate government entities, Participants, Beneficiaries and others as required by law.
7.03 Duties of the Plan Sponsor. The Plan Sponsor shall assume the following duties with respect to the Plan:
a. To enroll employees, as applicable;
b. To maintain records of a Participant's Compensation;
c. To remit contributions to the Trustee;
d. To provide the Administrator with the statistical data and other statistical information satisfactory to the Administrator within a reasonable time after a request by the Administrator sufficient to enable the Administrator to discharge its duties under the Plan;
e. To register with and report to government agencies, as appropriate;
f. To properly notify Employees of their rights and obligations under the Plan.
7.04 Fees and Expenses. All expenses incurred by the Administrator and Trustee in connection with the administration of this Plan shall be paid by the Plan.
a. The Trustee has the authority to determine administrative and expense charges and the methods for applying such charges.
b. The Trustee is authorized to deduct from the Plan's reserves, funds, contributions, and/or earnings thereon, the expenses and fees necessary or appropriate to the administration of the Plan, including an allocable share of the Administrator's operating expenses.
c. The Administrator is authorized to determine a reasonable charge for providing non-routine reports and services for Plan Sponsors and for Participants and to require the Plan Sponsor or Participant to pay for such non-routine reports and service.
7.05 Attorney Fees and Costs. The Trustee may assess, to the extent permitted by law, against the assets it manages for any Participant, reasonable attorney fees and charges to reimburse the Administrator or Trustee for expenses incurred by the Administrator or the Trustee, through no fault of its (their) own, in responding to pleadings, retaining counsel, entering an appearance or defending any case in any action in civil law, in the event the Administrator or Trustee is served with a levy, subpoena, summons or other similar pleading by the Internal Revenue Service or by any other party, including the parties to marital litigation, in litigation or legal proceedings in which the Administrator or Trustee is not a party, or is a party only by virtue of its (their) role as a fiduciary in administering assets on behalf of a Participant.
7.06 Delegation of Authority. The Administrator may authorize one or more of its number, or any agent, to carry out its administrative duties, and may employ such counsel, auditors, and other specialists and such clerical, actuarial and other services as it may require in carrying out the provisions of this Plan. The Administrator may rely on any certificate, notice or direction, oral or written, purporting to have been signed or communicated on behalf of the Plan Sponsor, Participant, or others which the Administrator believes to have been signed or communicated by persons authorized to act on behalf of the Plan Sponsor, Participant or others, as applicable. The Administrator may request instructions in writing from the Plan Sponsor, Participant or others, as applicable, on other matters, and may rely and act thereon. The Administrator may not be held responsible for any loss caused by its acting upon any notice, direction or certification of the Plan Sponsor, Participant or others, which the Administrator reasonably believes to be genuine and communicated by an authorized person.
7.07 Submission of Claims. Claims for benefits under the Plan shall be filed with the Administrator on forms supplied by the Administrator. Written notice of the disposition of a claim shall be furnished to the Plan Sponsor and to the claimant within 45 days after all required forms and materials related to the application therefor are filed.
7.08 Denial of Claims. If any claim for benefits under the Plan is wholly or partially denied, the claimant shall be given notice in writing, within a reasonable period of time after receipt of the claim by the Plan, written in a manner calculated to be understood by the claimant, setting forth the following information:
a. the specific reasons for such denial;
b. specific reference to pertinent Plan provisions on which the denial is based;
c. a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and
d. an explanation of the Plan's appeals procedures.
A "reasonable time" for such notice shall not exceed 45 days after the filing of the original claim or 45 days after the request for or submission of any additional data or documents requested by the Administrator, or, if special circumstances require an extension of time, written notice of the extension shall be furnished to the claimant and an additional 90 days will be considered reasonable.
7.09 Appeals from Denial of Claims. If a Participant is denied benefits hereunder, the Participant shall have the right to appeal the decision in accordance with the following procedures:
a. Intermediary Appeal Procedure. The Administrator shall establish an intermediary appeals procedure containing no more than a three- level process.
b. Final Procedure.
(1) There shall be an Appeals Committee of the Administrator nominated by its President and elected by the Administrator which shall hear and decide appeals after the intermediary appeal procedure has been followed.
(2) The Appeals Committee decision shall be final and not subject to action of the Administrator.
(3) After the final intermediary process has been completed and if the Participant's claim is still fully or partially denied, the claimant shall be advised that he/she may, in writing, request a review by the Appeals Committee of the decision denying the claim by filing with the Appeals Committee, on forms supplied by it, within 90 days after such notice has been received by the claimant.
(A) The Notice of Appeal shall be executed by the claimant.
(B) After filing the Notice of Appeal, the claimant may submit issues and comments and other relevant, supporting documents to the Appeals Committee for its consideration.
(C) If such Notice of Appeal is timely filed, the appeal will be heard by the Appeals Committee at its next meeting, unless special circumstances require an extension of time for processing, in which case the claimant shall be so notified and the appeal will be heard at the subsequent meeting of the Appeals Committee.
(D) To allow sufficient time for handling and processing, all Notices of Appeal and supporting documents must be filed with the Appeals Committee at least 30 days prior to the next meeting of the Appeals Committee, and no documents submitted to the Appeals Committee after that time can or will be considered by the Appeals Committee except by its leave and discretion.
(E) The claimant, his or her duly authorized representative, or a representative of the Plan Sponsor, may request permission to appear personally before the Appeals Committee to present evidence with respect to the claim, subject to conditions and time limitations set by the Appeals Committee, but the expense for any such personal appearance must be borne by the claimant or the Plan Sponsor.
(F) The claimant shall be given written notice of the decision resulting from an appeal. Such notice shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, and specific references to the pertinent Plan provisions on which the decision is based, and such written notice shall be mailed to the claimant by the staff of the Administrator within 15 days following the action by the Appeals Committee.
7.10 Appeal a Condition Precedent to Civil Action. No cause of action in civil law with respect to any alleged violation of the terms and conditions of this contract shall be commenced or maintained by any Participant unless and until such Participant shall have initiated and completed the process of an Appeal as set forth in Sections 7.07 to 7.09 of this Plan.
7.11 Limitation of Liability. All benefits hereunder are contingent upon, and payable solely from, such contributions as shall be received by the Trustee and investment results of the Trustee. No financial obligations, other than those which can be met by the contribution actually received and the investment results, shall be assumed by the Administrator or the Trustee. To the extent assets of the Plan attributable to a Participant have been transferred to a trust as provided in Section 8.02c, all benefits to which the Participant is entitled under this Plan shall be provided only out of such trust and only to the extent the trust is adequate therefor. The members of the Administrator shall not personally be responsible or otherwise liable for the payment of any benefits hereunder.
Article VIII Trustee
8.01 Responsibilities of the Trustee. The Trustee shall have the following categories of responsibilities in addition to those responsibilities set out in Section VII:
a. To invest, manage and control the Plan assets;
b. At the direction of the Administrator, to pay benefits required under the Plan to be paid to Participants, or, in the event of their death, to their Beneficiaries;
c. To maintain records of receipts and disbursements and furnish to the Administrator for each Plan Year a written annual report.
8.02 Investment Powers and Duties of the Trustee.
a. The Trustee shall invest and reinvest the assets of the Plan to keep the assets of the Plan invested without distinction between principal and income and in such securities or property, real or personal, wherever situated, as the Trustee shall deem advisable, including, but not limited to, stocks, common or preferred, bonds and other evidences of indebtedness or ownership, and real estate or any interest therein. The Trustee shall at all times in making investments of the assets of the Plan consider, among other factors, the short and long- term financial needs of the Plan on the basis of information furnished by the Plan Sponsor. In making such investments, the Trustee shall not be restricted to securities or other property of the character expressly authorized by the applicable law for trust investments; however, the Trustee shall give due regard to any limitations imposed by the Code or ERISA.
b. The Trustee may employ a bank or trust company pursuant to the terms of its usual and customary bank agency agreement, under which the duties of such bank or trust company shall be of a custodial, clerical and record- keeping nature.
c. The Trustee may create a trust to hold and invest all or any part of the assets of the Plan. The Trustee shall have the right to determine the form and substance of each trust agreement under which any part of the assets of the Plan is held, subject only to the requirement that they are not inconsistent with the terms of the Plan.
8.03 Other Powers of the Trustee. The Trustee, in addition to all powers and authorities under common law, statutory authority, including the Act, and other provisions of the Plan, shall have the following powers and authorities, to be exercised in the Trustee's sole discretion:
a. To purchase, or subscribe for, any securities or other property and to retain the same. In conjunction with the purchase of securities, margin accounts may be opened and maintained.
b. To sell, exchange, convey, transfer, grant options to purchase, or otherwise dispose of any securities or other property held by the Trustee, by private contract or at public auction. No person dealing with the Trustee shall be bound to see to the application of the purchase money or to inquire into the validity, expediency, or propriety of any such sale or other disposition, with or without advertisement.
c. To vote upon any stocks, bonds, or other securities; to give general or special proxies or powers of attorney with or without power of substitution; to exercise any conversion privileges, subscription rights or other options, and to make any payments incidental thereto; to oppose, or to consent to, or otherwise participate in, corporate reorganizations or other changes affecting corporate securities, and to delegate discretionary powers, and to pay any assessment or charges in connection therewith; and generally to exercise any of the powers of an owner with respect to stocks, bonds, securities, or other property;
d. To cause any securities or other property to be registered in the Trustee's own name or in the name of one or more of the Trustee's nominees, and to hold any investments in bearer form, but the books and records of the Trustee shall at all times show that all such investments are part of the assets of the Plan;
e. To borrow or raise money for the purposes of the Plan in such amount, and upon such terms and conditions, as the Trustee shall deem advisable; and for any sum so borrowed, to issue a promissory note as Trustee, and to secure the repayment thereof by pledging all, or any part, of the assets of the Plan; and no person lending money to the Trustee shall be bound to see to the application of the money lent or to inquire into the validity, expediency, or propriety of any borrowing;
f. To keep such portion of the assets of the Plan in cash or cash balances as the Trustee may, from time to time, deem to be in the best interests of the Plan, without liability for interest thereon;
g. To accept and retain for such time as the Trustee may deem advisable any securities or other property received or acquired as trustee hereunder, whether or not such securities or other property would normally be purchased as investments hereunder;
h. To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted;
i. To settle, compromise, or submit to arbitration any claims, debts, or damages due or owing to or from the Plan, to commence or defend suits or legal or administrative proceedings, and to represent the Plan in all suits and legal and administrative proceedings;
j. To employ suitable agents and counsel and to pay their reasonable expenses and compensation, and such agent or counsel may or may not be agent or counsel for the Plan Sponsor;
k. To invest in Treasury Bills and other forms of United States government obligations;
l. To sell, purchase and acquire put or call options if the options are traded on and purchased through a national securities exchange registered under the Securities Exchange Act of 1934, as amended, or, if the options are not traded on a national securities exchange, are guaranteed by a member firm of the New York Stock Exchange;
m. To deposit monies in federally insured savings accounts or certificates of deposit in banks or savings and loan associations;
n. To pool all or any of the assets of the Plan, from time to time, with assets belonging to any other employee benefit plan created by a unit of The United Methodist Church or an affiliated unit of The United Methodist Church, and to commingle such assets and make joint or common investments and carry joint accounts on behalf of this Plan and such other trust or trusts, allocating undivided shares or interests in such investments or accounts or any pooled assets of the two or more trusts in accordance with their respective interests.
o. To do all such acts and exercise all such rights and privileges, although not specifically mentioned herein, as the Trustee may deem necessary to carry out the purposes of the Plan.
8.04 Services. Nothing herein shall prevent the Trustee from contracting for services with another entity, including one that is, with the Trustee, part of a controlled group.
8.05 Valuation. Participants' Accounts shall be credited with interests at a rate to be determined by the Trustee. Any excess of the actual investment experience, including unrealized appreciation over the interest credited to accounts in a Plan Year, shall be credited to an investment reserve account from which the Trustee may withdraw funds in succeeding years in order to stabilize the rate of interest credited to Accounts from year to year.
8.06 Funding Through Insurance Contracts. The Trustee may, in lieu of paying benefits to a Participant or a Participant's Beneficiary from assets held by the Trustee, enter into a contract (or contracts) or an agreement (or agreements) with one or more insurance companies for the purchase (from such assets) of one or more insurance contracts which provide benefits which are substantially the actuarial equivalent of those provided for such Participant or Beneficiary under the Plan.
Article IX Amendment and Termination
9.01 Amendment of the Plan. The General Conference hereby authorizes the Administrator to amend prospectively or retroactively any or all provisions of this Plan or the Adoption Agreement at any time by written instrument identified as an amendment of the Plan effective as of a specified date.
9.02 Termination of Plan. This Plan may be terminated in whole or in part at any time by the General Conference.
9.03 Preservation of Rights. No amendment shall, without written consent of the Administrator or Trustee, deprive the Administrator of any of its exemptions and immunities; nor shall such amendment change the duties, responsibilities, rights, or privileges of any Administrator or Trustee or the provisions of any contract. If any amendment by the Plan Sponsor affects the rights, duties, responsibilities, or obligations of the Administrator or Trustee hereunder, such amendment may be made only with the consent of the Administrator or Trustee.
Article X Adoption of Plan
10.01 Adoption by a Plan Sponsor. The Plan Sponsors described in Section 2.19 may adopt this Plan by completing an Adoption Agreement on an annual basis, effective for a Plan Year. A Plan Sponsor may adopt the Plan after the commencement of the Plan Year, with participation in the Plan effective as of the first day of the month following the receipt of an executed Adoption Agreement by the Administrator and ending as of the last day of the Plan Year.
10.02 Adoption Agreement. The Administrator shall issue an Adoption Agreement to be executed by a Plan Sponsor. The Adoption Agreement shall allow the Plan Sponsor to make elections in accordance with the provisions of the Plan. Any amendment made to an Adoption Agreement by a Plan Sponsor must become effective as of the next following January 1.
10.03 Program Election. A Plan Sponsor may elect to participate in the Disability Program described in Article V, in the Death Benefit Program described in Article VI, or both.
10.04 Premium Obligation. By signing an Adoption Agreement, the Plan Sponsor is obligated to participate in the Plan for the remainder of the Plan Year and to pay the full cost of the premium thereunder. The premium for a Plan Sponsor adopting the Plan after the commencement of the Plan Year shall be prorated based on the number of months remaining in the Plan Year.
Article XI Miscellaneous
11.01 Distribution for Minor Beneficiary. In the event a distribution is to be made to a minor, the Administrator may direct that such distribution be paid to the legal guardian, or if none, to a parent of such Beneficiary or a responsible adult with whom the Beneficiary maintains his/her residence, or to the custodian for such Beneficiary under the Uniform Gift to Minors Act or Gift to Minors Act, if such is permitted by the laws of the state in which said Beneficiary resides. Such a payment to the legal guardian, custodian or parent of a minor Beneficiary shall fully discharge the Administrator, Plan Sponsor, and Plan from further liability on account thereof.
11.02 Unclaimed Benefit. The failure of a beneficiary to properly claim a benefit due hereunder during the stated time period, or if no time period is stated, within two years of being eligible to receive the benefit, shall cause the benefit to be considered to have been refused and forfeited and shall cause the benefit to be paid to the secondary beneficiary or default beneficiary in accordance with the Plan. If the last default beneficiary does not claim the benefit within a two-year period commencing with the date on which he/she became eligible to receive the benefit, the benefit shall be considered to be refused and forfeited by said beneficiary. After the last two-year period has expired, the Administrator shall send a certified letter to the last known address of the last default beneficiary indicating that the beneficiary has 60 days to claim such benefit. Failure to claim the benefit within the 60-day time period shall cause the benefit to be forfeited. Such forfeited amounts shall be added to the reserves of the Plan. However, any such forfeited amount will be reinstated and become payable if a claim is made by the estate of the Participant or beneficiary. The Administrator shall prescribe uniform and nondiscriminatory rules for carrying out this provision.
11.03 Funding. The obligations of the Plan Sponsors and/or Salary-Paying Units under this Plan may be funded through contributions to a trust or otherwise but need not be except to the extent required by law. Nothing contained in the Plan shall give a Participant any right, title, or interest in any property of the Plan Sponsors and/or Salary-Paying Units.
11.04 Titles and Headings. The titles and headings of the Articles and Sections of this instrument are placed herein for convenience of reference only, and in the case of any conflicts, the text of this instrument, rather than the titles or headings, shall control.
11.05 Number. Wherever used herein, the singular shall include the plural and the plural shall include the singular, except where the context requires otherwise.
11.06 Construction. The Plan and each of its provisions shall be construed and their validity determined by the laws of the State of Illinois, other than its laws respecting choice of law, to the extent such laws are not preempted by any federal law.
11.07 Indemnification. To the extent permitted by law, the Plan Sponsor shall indemnify and hold harmless the Administrator, Trustee, Participants, any employee, and any other person or persons to whom the Plan Sponsor, Trustee or Administrator have delegated fiduciary or other duties under the Plan, against any and all claims, losses, damages, expenses, and liabilities arising from any act or failure to act that constitutes or is alleged to constitute a breach of such person's responsibilities in connection with the Plan under any applicable law, unless the same is determined to be due to gross negligence, willful misconduct, or willful failure to act.
11.08 Continuation of Benefits Not Guaranteed. Nothing contained in this Plan, nor in the descriptions of the Program options offered hereunder, shall be construed to guarantee the continuation of benefits beyond the current Period of Coverage in which a Participant is participating. Any and all specific Program options may be created, amended or terminated by the Administrator in its sole discretion.
11.09 Pooling of Assets and Claims. The Administrator, at its own discretion, may pool the assets and claims of this Plan with the assets and claims of other welfare benefit programs administered by the Administrator in accordance with rules and regulations adopted by the Administrator.
11.10 Alternative Dispute Resolution. If a dispute arises out of or related to the relationship between a Plan Sponsor and the Administrator, the parties agree first to try in good faith to settle the dispute by mediation through the American Arbitration Association, or another mediation/arbitration service mutually agreed upon by the parties, before resorting to arbitration. Thereafter, any remaining unresolved controversy or claim arising out of or relating to the relationship between the Plan Sponsor and the Administrator shall be settled by binding arbitration through the American Arbitration Association, or the other mediation/arbitration service which had been mutually agreed upon by the parties.
a. The site of the mediation and/or arbitration shall be in a city mutually agreed to by the parties which is not located within the boundaries of the Plan Sponsor.
b. The laws of the State of Illinois shall apply in situations where federal law is not applicable. The applicable rules of the selected service shall apply. If the service allows the parties to choose the number of arbitrators, unless another member is mutually agreed to, any arbitration hereunder shall be before at least three arbitrators, and the award of the arbitrators, or a majority of them, shall be final, and judgment upon the award rendered may be entered in any court, state or federal, having jurisdiction.
c. The fees and costs for mediation shall be borne equally by the parties. The fees and costs of arbitration shall be allocated to the parties by the arbitrators.
11.11 Non-Alienation of Benefits. No benefits payable at any time under the Plan shall be subject in any manner to alienation, sale, transfer, pledge, attachment, garnishment, or encumbrance of any kind. Any attempt to alienate, sell, transfer, assign, pledge, or otherwise encumber such benefit, whether presently or thereafter payable, shall be void. No benefit nor the fund under the Plan shall in any manner be liable for, or subject to the debts or liabilities of, any Active Participant, Retired Participant or other person entitled to any benefit.
General Conference Webmaster: Susan Brumbaugh
PETS Creator: John Brawn
Petition Text: 21493-FA-NonDis-O
1996 United Methodist General Conference