*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.
*The death benefit payable upon the death of a retired participant has been revised to equal 30% of the *Denominational Average Compensation.
*The benefits payable upon the death of a spouse, child, and surviving spouse have been increased.
*A revision was made to the child's death benefit whereby a participant will receive a benefit equal to 10% of the Denominational Average Compensation in the event of the death of his/her child.
*A provision was added to note Illinois law will govern 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.
Comprehensive Protection Plan
Article I The Plan
1.01 The Plan. The General Conference of The United Methodist Church hereby previously established a protection plan for the benefit of participating clergy and their beneficiaries, effective as of January 1, 1982, which was known as the Comprehensive Protection Plan (hereinafter referred to as the "Plan"). Effective January 1, 1997, the Plan is hereby amended and restated.
1.02 Applicability. The provisions set forth in this Plan are applicable only to those persons associated with a Jurisdictional Conference or the Puerto Rico Methodist Church who meet the requirements for participation on or after January 1, 1982.
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" shall mean a Participant, other than a Retired Participant, who meets the eligibility requirements and who is enrolled in the Plan pursuant to the terms of Article III hereof.
2.02 "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" shall mean the agreement executed by a Plan Sponsor in accordance with Article X.
2.04 "Age" shall mean the age of the Participant at the last birthday, except as otherwise noted herein.
2.05 "Beneficiary" shall mean the person(s) designated as set forth in Sections 9.04 or 9.05 who is receiving, or entitled to receive, a deceased Active Participant's, a Retired Participant's, or a Surviving Spouse's residual interest in the Plan which is nonforfeitable upon, and payable in the event of, such Active Participant's, Retired Participant's, or Surviving Spouse's death.
2.06 "Book of Discipline" shall mean the body of church law as established by the General Conference of The United Methodist Church, as amended from time to time.
2.07 "Church" shall mean any local church, conference, board, agency, commission, organization, or unit eligible to participate in a "church plan," as defined under the Employee Retirement Income Security Act of 1974, as amended from time to time.
2.08 "Clergy or Clergyperson" shall mean a person who is a bishop, a clergy member in full connection, probationary member or associate member of a Conference, or a full-time local pastor (as these terms are described in either Chapter Three or Four of the Book of Discipline).
2.09 "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time.
2.10 "Conference" shall mean the following entities: (1) within a Jurisdictional Conference: Annual Conference, Provisional Conference or Missionary Conference; or (2) the Puerto Rico Methodist Church.
2.11 "Conference Average Compensation" shall mean the average annual compensation of Clergy serving a Conference, as determined each year by the Administrator.
2.12 "Conference Board and Conference Board of Pensions" shall mean the Board of Pensions of a Conference.
2.13 "Contribution Base" shall mean the Active Participant's Plan Compensation for a Plan Year, not to exceed the Denominational Average Compensation.
2.14 "Denominational Average Compensation" shall mean the average annual compensation of Clergy in The United Methodist Church, as determined each year by the Administrator.
2.15 "Participant" shall mean a Clergyperson who has become eligible to participate and been enrolled in the Plan pursuant to Article III.
2.16 "Plan" shall mean the Comprehensive Protection Plan which is a plan of The United Methodist Church and which is comprised of a Death Benefit Program and Disability Benefit Program.
2.17 "Plan Compensation" shall mean for an Active Participant the sum of the following amounts paid by his/her Salary-Paying Unit or Plan Sponsor for a Plan Year:
(a) taxable cash salary received from Plan Sponsor- related sources, but not including the cash value of taxable fringe benefits;
(b) housing allowance if any, determined in accordance with the provisions of the Ministerial Pension Plan Section 2.12, as amended from time to time; and
(c) contributions made pursuant to a salary-reduction agreement with respect to employment with the Church: (i) to a plan qualified under Section 125 of the Code, or (ii) to a tax-sheltered annuity described in Section 403(b) of the Code.
2.18 "Plan Sponsor" shall mean an entity described below:
(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 clergy member in full connection, probationary member, or associate member, except if the clergy member is appointed in accordance with 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 appointed to serve 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; or
(d) the Salary-Paying Unit if the Participant is classified in a category not described above.
2.19 "Plan Year" shall mean the calendar year.
2.20 "Program" shall mean any of the benefit plans provided to Plan Sponsors and/or Participants hereunder, which include, but are not limited to the Disability Benefit Program under Section 5.04 and the Death Benefit Program under Section 5.03.
2.21 "Retired Participant" shall mean any person who meets the requirements of Section 3.01(d) hereof.
2.22 "Salary-Paying Unit" shall mean one of the following units associated with The United Methodist Church:
(a) General Conference;
(b) a general agency of The United Methodist Church;
(c) a Jurisdictional Conference;
(d) a Conference;
(e) a Conference board, agency, or commission;
(f) a local church located in a Conference;
(g) any other organization located in a Jurisdictional Conference which is eligible to participate in a church plan in accordance with applicable federal law; or
(h) any other entity to which a Clergyperson under episcopal appointment is appointed.
2.23 "Surviving Spouse" shall mean the widow or widower of a deceased Active Participant or Retired Participant who was married to the Participant on the date of the Participant's death.
2.24 "Trustee" shall mean The General Board of Pension and Health Benefits of The United Methodist Church, Incorporated in Missouri, and any successors.
Article III Participation
3.01 General Rule.
(a) Effective January 1, 1985, a person shall be an Active Participant in this Plan if on such date the person is eligible to participate in a church plan, as defined under federal law, and is:
(1) a bishop of The United Methodist Church elected by a Jurisdictional Conference;
(2) a bishop of the Puerto Rico Methodist Church;
(3) a clergy member in full connection, probationary member, or associate member of a Conference under full-time episcopal appointment;
(4) a full- time local pastor of The United Methodist Church or the Puerto Rico Methodist Church under episcopal appointment; or
(5) a Clergyperson of another denomination and appointed to a charge of a United Methodist Church or the Puerto Rico Methodist Church if such person is not participating in a similar program of the denomination to which such person belongs;
provided that such a person in (3), (4) or (5) is receiving Plan Compensation at least equivalent to 60% of the applicable Conference Average Compensation or 60% of the Denominational Average Compensation, whichever is less. Provided further that the Church contributions required under this Plan on such person's behalf are not delinquent under Section 4.04 hereof, and that such person has satisfied the equivalent of either a certificate of good health or other tests as provided for in paragraph 414.4 of the 1992 Book of Discipline.
(b) After January 1, 1982, a person shall become an Active Participant in this Plan on the date of an assignment or appointment that meets the conditions of paragraph (a) above.
(c) A person who becomes an Active Participant shall continue to be an Active Participant until such person no longer meets the foregoing conditions of this Article III or becomes a Retired Participant.
(d) A person shall be a Retired Participant in this Plan if the individual:
(1) was an Active Participant in this Plan on and after January 1, 1987, and during such period of participation retired and was eligible to receive a benefit on the date of retirement from the Church Account under the Ministerial Pension Plan, provided such person had been an Active Participant in this Plan for the two consecutive years immediately preceding such retirement;
(2) was an Active Participant in this Plan prior to January 1, 1987, and during such period of participation retired and entered into an annuity under the Ministerial Pension Plan;
(3) was receiving an annuity benefit on January 1, 1982, from a Conference and such person had lump- sum death benefit coverage from any such Conference on December 31, 1981. In the event a Conference did not have a death benefit plan on December 31, 1981, a person shall be a Retired Participant in this Plan on January 1, 1982, if on such date the person was receiving an annuity benefit from a Conference and such person received pension credit from any such Conference in the year the person entered into an annuity; or
(4) is a bishop elected by a Jurisdictional Conference who retired prior to January 1, 1982.
3.02 Exceptions.
(a) A person described in Section 3.01(a)(3) who has received an appointment to one of the following categories may participate in this Plan only if the Conference Board of Pensions makes special arrangements with the Administrator to enroll that category in accordance with Section 3.03: sabbatical leave; family leave; attend school as probationary members; attend school after having served under appointment other than to attend school as full or associate members; disability leave not approved for benefits from CPP; leave of absence; appointed to less than full- time service.
(b) A person who has been an Active Participant and who is receiving disability benefits under this Plan shall continue as an Active Participant only for the period during which such disability benefits are paid. Church contributions under Section 4.01 hereof shall not be required to be made by a Plan Sponsor on behalf of such a person during the period of disability.
(c) A person described in Section 3.01(a)(3), (4) or (5) who is otherwise eligible to be an Active Participant under Section 3.01(a), except for receiving less than the equivalent of the applicable Plan Compensation may participate in the Plan if the Conference Board of Pensions makes special arrangements with the Administrator to enroll persons in this category in accordance with Section 3.03.
(d) A person described in Section 3.01(a) (2), (3), (4) or (5) who is serving the Puerto Rico Methodist Church shall participate under special arrangements with the Administrator in accordance with Section 3.03. However, the special arrangements for those Participants who were enrolled in this Plan on December 31, 1992, shall include, for a period of eight years thereafter, the benefits payable under Section 5.05.
(e) A person described in Section 3.01(a)(3) who has received an appointment beyond the local church to a Salary-Paying Unit for which the Conference does not assume enrollment responsibility may be an Active Participant in the Plan only if his/her Salary-Paying Unit agrees to enroll such person in the Plan. If the individual is otherwise eligible to be an Active Participant under Section 3.01(a), except for receiving less than the equivalent of the applicable Plan Compensation, such individual may participate in the Plan if the Salary-Paying Unit makes special arrangements with the Administrator to enroll persons in this category in accordance with Section 3.03.
3.03 Special Arrangements.
(a) A person described in Section 3.02(a) or (c) may participate in the Plan under special arrangements between the Conference Board of Pensions and the Administrator regarding contributions and benefits. Such person must be enrolled and begin participation within 90 days of the later to occur of (1) the date the Participant entered the category or (2) the date the Conference Board of Pensions first makes the arrangements to cover the category.
(b) Special arrangements shall include all Comprehensive Protection Plan benefit coverages except the Ministerial Pension Plan Church Account pension supplement as provided in Comprehensive Protection Plan Section 5.05.
Article IV Church Contributions
4.01 Church Contributions.
(a) Effective January 1, 1982, the annual Church contribution on behalf of an Active Participant shall be equal to 4.4% of such Active Participant's Contribution Base.
(b) One- twelfth of the annual Church contribution shall be payable to the Plan each month.
4.02 Source of Contributions. Except as provided in (g) below, the obligation to make the Church contribution on behalf of an Active Participant shall fall upon, and be restricted to, the applicable unit as follows.
(a) The local church if the Active Participant is serving a local church.
(b) The applicable Conference if the Active Participant is a district superintendent or a Conference staff member.
(c) The General Council on Finance and Administration from the Episcopal Fund if the Active Participant is a bishop.
(d) The applicable general board or agency if the Active Participant is on the payroll of a board or agency.
(e) The applicable Conference or local church if the Active Participant is appointed to sabbatical leave or to attend school as provided in Section 3.02(a).
(f) The Active Participant's Salary-Paying Unit if the Active Participant is other than described in paragraphs (a) through (e).
(g) The applicable Conference in the case of Active Participants in (a) and (b) above, or the applicable unit in the case of Active Participants in (c), (d), (e), or (f) above, may annually elect to require each Active Participant in that Conference or unit to contribute an amount up to 1% of such Active Participant's Contribution Base. (Such contribution shall be counted toward meeting the required Church contribution under Section 4.01(a).)
(h) A Conference may annually elect to have the contributions under the provisions of Sections 4.02(a), (b) and (e) contributed monthly to the Plan through such Conference pursuant to a system of collection determined by the Conference. The amount so required for each Active Participant shall be credited to the Plan monthly and the Conference charged accordingly.
4.03 Protection Benefit Trust. Church contributions pursuant to Section 4.01 shall be credited, as of the date of receipt by the Plan, to the Protection Benefit Trust. Said Trust shall be maintained and invested by the Trustee to provide for the benefits and the expenses of administration hereunder such that the Trust is for the exclusive benefit of the Participants of the Plan and their Beneficiaries.
4.04 Delinquent Contributions.
(a) In the event the Church contributions required in this Article IV on behalf of any person are more than 180 days in arrears, the participation of, and the benefits related to, any such person under this Plan shall be suspended until arrangements have been made for the resumption of contributions satisfactory to the Administrator.
If the death of a Participant occurs within the first 180 days of participation and the Salary-Paying Unit has failed to make any Church contributions on behalf of such Participant, all Plan benefits will be withheld until the required contributions are paid.
(b) When the participation of, and the benefits related to, any person under this Plan have been suspended due to an arrearage of more than 180 days, the suspension shall remain in effect until (1) Church contributions for six months at the current rate have been paid, (2) the current month's contribution has been paid, and (3) evidence of good health has been established by the Participant. Such evidence of good health will be established by the submission of a medical report which demonstrates to the Administrator that the individual is then in a state of good health. Following any such reinstatement after any such suspension, a new 180- day waiting period, as provided for in Section 5.04(a), shall become effective before the Active Participant will be eligible to receive disability benefits.
Article V Protection Benefits
5.01 Minimum Surviving Spouse Annuity Benefits.
(a) The Surviving Spouse of an Active Participant who dies prior to entering into an annuity under the Ministerial Pension Plan shall be entitled to a single- life annuity in an annual amount equal to (1) less (2), where
(1) is 20% of the Denominational Average Compensation in effect on the date of the Active Participant's death, and
(2) is the annuity benefit (calculated as a single- life annuity increasing 2% annually, regardless of the annuity form actually paid) payable from the Ministerial Pension Plan and from all other Church- related sources including pension benefits for service prior to January 1, 1982, except Social Security benefits.
(3) Effective January 1, 1989, the amount of the benefit payable under (a) to persons receiving such benefits on that date shall be based upon an amount at least equal to 20% of the Denominational Average Compensation for 1989 less (2) above.
(b) The amount of any benefit payable under paragraph (a) above shall be increased by 2% on July 1 of each year through 1988, provided the benefit was in effect on the previous December 31. Effective January 1, 1990, this percentage increase shall be 3% on the anniversary date of the first payment of benefits.
(c) Any benefit payable under this Section 5.01 shall cease upon the remarriage of the Surviving Spouse. The benefit shall be reinstated effective the first day of the month following receipt by the Administrator of evidence that such remarriage has dissolved either by death or legal process.
5.02 Surviving Children Benefits.
(a) In the event of the death of an Active Participant or a Retired Participant, the surviving natural and adopted children of such Active Participant or Retired Participant shall be entitled to benefits under this Section 5.02 provided that, in the case of adopted children of a Retired Participant, the date of legal adoption must have preceded the date of the Retired Participant's retirement.
(b) Any child under age 18 years who is entitled to benefits under paragraph (a) above shall receive, in monthly installments, an annual benefit of 10% of the Denominational Average Compensation in effect on the date of the Active Participant's or Retired Participant's death.
(c) Any child age 18 years but under age 25 years who is entitled to benefits under paragraph (a) above shall receive an annual educational benefit equal to 20% of the Denominational Average Compensation in effect on the later to occur of the date of death of the Active Participant or Retired Participant or the date such child attains age 18 years.
(1) One- half of such benefit is payable for each year during attendance as a full- time student at a secondary school and, in addition, for each year (not to exceed four years) during attendance as a full- time student at a standard school or college beyond the secondary school level. The annual benefit shall be payable in monthly installments.
(2) One- half of such benefit is payable for each academic year (not to exceed four years) that the child is in full- time attendance at a standard school or college beyond the secondary level up to age 25 years. If such child completes the secondary education level and enrolls in an institution of higher education prior to attaining age 18 years, the educational benefit may be effective at the time of such enrollment and shall be based on the Denominational Average Compensation in effect on the date of such enrollment. The annual benefit shall be prorated in equal installments, not to exceed four per academic year, as requested in writing by the child.
(3) Satisfactory certificate of enrollment and attendance in school or college shall be provided periodically as may be required by the Administrator in order for an educational benefit to be paid.
(d) The amount of any benefit payable under this Section 5.02 shall be increased by 2% on July 1 of each year through 1988, provided the benefit was in effect on the previous December 31. Effective January 1, 1990, this percentage increase shall be 3% on the anniversary date of the first payment of benefits. Effective January 1, 1989, the amount of the benefits payable under Sections 5.02(b) and 5.02(c) to persons receiving such benefits on that date shall be based upon the Denominational Average Compensation for 1989.
5.03 Death Benefits.
(a) In the event of the death of an Active Participant or a Retired Participant, death benefits shall be payable in accordance with the provisions of this Section 5.03.
(b) Active Participants who are receiving disability benefit payments in accordance with Section 5.04 shall continue to be eligible for the death benefit coverage set forth in this Section 5.03.
(c) An Active Participant who ceases to be an Active Participant for any reason other than retirement shall continue to be eligible for the death benefit coverage for a period of thirty- one days following the date on which participation was terminated.
(d) Upon the death of an Active Participant or a Retired Participant eligible for death benefit coverage hereunder, a benefit shall be paid, based upon:
(1) the Age of the Active Participant at the time of death;
(2) whether the person is an Active Participant or a Retired Participant at the time of death;
(3) the Denominational Average Compensation in effect at the time of the death of the Active Participant or Retired Participant; and
(4) the following table of percentages of the Denominational Average Compensation payable as a benefit:
Age at Age at
Death % of Death % of
(Years) DAC (Years) DAC
under 47 150% 60 80%
47 145% 61 75%
48 140% 62 70%
49 135% 63 65%
50 130% 64 60%
51 125% 65 55%
52 120% 66 51%
53 115% 67 47%
54 110% 68 44%
55 105% 69 41%
56 100% 70 38%
57 95% Retired
58 90% at any
59 85% age 30%
(e) The benefit shall be paid to the Beneficiary of the Active Participant under this Plan in twelve equal monthly installments. A benefit payable due to the death of a Retired Participant shall be paid in a single- sum for the full amount of the benefit, both as provided in subsection (h) below. Any benefit payable to the estate of a deceased Participant shall be made in a single-sum for the full amount of the benefit.
(f) Upon the death of the spouse of an Active Participant or a Retired Participant eligible for death benefit coverage hereunder, a single- sum spouse death benefit equal to 20% of the Denominational Average Compensation shall be paid to the Active Participant or Retired Participant.
(g) Upon the death of a Surviving Spouse of a deceased Active Participant or Retired Participant, a Surviving Spouse who is receiving a pension benefit from a Conference on December 31, 1981, or a Surviving Spouse of a bishop elected by a Jurisdictional Conference or the Puerto Rico Methodist Church, a single- sum Surviving Spouse death benefit equal to 15% of the Denominational Average Compensation shall be paid, as provided in Section (h) below.
(h) Any benefit specified in Sections (e) and (g) above shall be paid to a Beneficiary or Beneficiaries as described in Sections 9.04 and 9.05, as applicable.
(i) Upon the death of a Child of an Active Participant or Retired Participant who is, or was at the time of his/her death, eligible for death benefit coverage hereunder, and upon the receipt of a death certificate:
(1) if the Participant survives the Child, a single- sum death benefit equal to 10% of the Denominational Average Compensation shall be paid to the Active Participant or Retired Participant; or
(2) if the Participant predeceases the Child, a single- sum death benefit equal to 10% of the Denominational Average Compensation shall be paid, in the order stated, to:
(i) the Surviving Spouse of the deceased Active or Retired Participant if he/she was the guardian of the Child at the time of the Child's death or if the deceased Child was dependent upon the Surviving Spouse;
(ii) the guardian of the deceased Child, if any; or
(iii) the person paying the funeral expenses of the deceased Child.
(j) For purposes of Section 5.03(i) above, the term "Child" shall mean a person who is a natural or legally adopted child of an Active Participant or Retired Participant and who, at the time of his/her death satisfies one of the following:
(1) was under age 19;
(2) was dependent upon the Active or Retired Participant or upon the Surviving Spouse of the Active or Retired Participant due to the mental or physical disability that existed prior to age 19; or
(3) was receiving a Surviving Child Benefit in accordance with Section 5.02.
5.04 Disability Benefits.
(a) Eligibility. An Active Participant who becomes disabled as defined in paragraph (b) below shall be entitled to a disability benefit under this Section 5.04 under the following conditions:
(1) If the disability results from sickness:
(i) the Active Participant must have been an Active Participant for at least 180 days before the disability occurred; and
(ii) no disability benefit shall be payable in the event the Active Participant becomes disabled as the result of any pre- existing conditions within the two- year period since becoming an Active Participant. A pre- existing condition is any condition of health or sickness for which the Active Participant received medical treatment or consultation within 365 days prior to the date the person became an Active Participant and then is the condition which is the basis for a claim for disability benefits under the Plan. No condition will be considered pre- existing if the disability begins after the end of the two- year period.
(2) If the disability results from an accident, disability benefits shall be payable from the date of the disability (without regard to the passage of 180 days as provided in Section (1) above).
(3) 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.
(4) 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.
(5) Section 5.04(a) above becomes effective at the close of the 1988 General Conference.
(b) Definition of Disability. An Active Participant will be considered disabled for purposes of the Plan 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 a United Methodist Clergyperson by reason of a 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:
(1) service in the armed forces of any country;
(2) warfare;
(3) intentionally self- inflicted injury; or
(4) participation in any criminal or unlawful act.
After having received benefit payments for 24 months, the Active Participant shall be considered disabled only if such Active Participant is unable to engage in substantially all of the usual and customary duties pertaining to any employment for remuneration or profit in such occupation for which such Active Participant is reasonably qualified by training, education, or experience. The Administrator shall have the responsibility for determining whether an Active Participant has incurred a disability and, before approving payment of any disability benefit, may require medical proof of such disability including, but not limited to, a requirement that the Active Participant submit to medical examination at the request of the Administrator. The Plan shall pay all reasonable medical fees, as determined by the Administrator, for any medical examinations requested more frequently than annually.
(c) Amount of Disability Benefit. The Administrator shall have the full authority to grant disability benefits to an Active Participant under this Plan as follows:
(1) An annual disability benefit, payable in monthly installments, shall be made from the Protection Benefit Trust to the Active Participant in an amount equal to 40% of the Denominational Average Compensation in effect on the date of first payment.
(2) An annual allocation from the Protection Benefit Trust, made in monthly installments, shall be credited to the Active Participant's Church Account in the Ministerial Pension Plan in an amount equal to 12% of the Denominational Average Compensation in effect on the date of first payment.
(3) The amount of the benefit payable in accordance with (1) and (2) shall be increased by 2% on July 1 of each year through 1988, provided the benefit was in effect on the previous December 31. Effective January 1, 1990, this percentage increase shall be 3% on the anniversary date of the first payment of the disability benefit and annually thereafter, provided the benefit was in effect on the previous December 31. Effective January 1, 1989, the amount of the benefit payable under (1) and (2) to persons receiving disability benefits on that date shall be based upon the Denominational Average Compensation for 1989.
(4) The date of first payment is the date on which disability benefit payments are first made effective.
(5) Payment of disability benefits shall begin on the first day of the month following the determination of disability by the Administrator under the provisions of paragraph (b) above.
(6) In the event the commencement and/or discontinuance of disability benefit payments hereunder occurs other than on January 1 of the Plan Year, the amount of the disability benefit shall be prorated based upon the number of days of disability during the Plan Year.
(d) Discontinuance of Disability Benefits. An Active Participant's disability benefit will be payable pursuant to paragraph (c) above, subject to the following:
(1) If an Active Participant refuses to submit to a medical examination as requested by the Administrator for the purpose of verifying the continuance of disability, the disability benefits otherwise payable shall be suspended for the duration of the refusal to submit to such examination. Such suspension shall become effective ninety days following the date of the written request for the medical examination, provided that if the duration of such refusal exceeds twelve calendar months, the Active Participant's rights to disability benefits shall cease. If an adequate medical examination report is submitted to the Administrator within the nine- month period following the effective date of suspension and such report verifies the continuance of disability, disability benefit payments shall be reinstated, provided, however, that retroactive payments to the date of suspension shall be at the discretion of the Administrator.
(2) If the Administrator determines that such Active Participant is no longer disabled, payment of all disability benefits shall cease irrespective of the period that has elapsed since the Active Participant first became disabled.
(3) If the basis for disability benefits is mental or emotional disease or disorder, all such benefits shall cease after five years of benefit payments unless, in the judgment of the Administrator, such individual requires, and is receiving, continuous substantial supervision, medical or otherwise, which, at the discretion of the Administrator, will constitute sufficient grounds for the continuation of benefits.
(4) The amount of the disability benefit payable under this Section 5.04 shall be reduced on a dollar- for- dollar ratio when the gross income of the Active Participant from the sources specified below exceeds the smaller of (i) the Plan Compensation of the Active Participant at the time the disability occurred, adjusted annually by the percentage change in the Denominational Average Compensation, or (ii) three- fourths of the Denominational Average Compensation in effect during the period for which disability benefits are approved. The sources of gross income to be considered in making this calculation are those resulting from earned income of the Plan Participant or payments received by the Plan Participant which, by their nature, are designed to be a substitute for earned income for the Plan Participant, and are limited to (i) compensation for services, including fees, commissions, and similar items, and gross income derived from a business, as provided in section 61(a) of the Code, (ii) compensation payments received from Worker's Compensation Insurance in respect to lost earnings, (iii) payments received from any branch of the United States Armed Forces or any other agency of the United States Government, excluding Social Security, or from any State of the United States, in respect to disability, and (iv) disability benefits payable under the Comprehensive Protection Plan of The United Methodist Church. To enable the Administrator to make this calculation, the Active Participant shall supply, on an Earnings Test Form furnished by the Administrator, all relevant financial data requested. An Active Participant who fails, without good cause, to furnish such information as requested by the Administrator may have his/her disability benefit payments suspended until he/she has supplied the required data. The payment of rehabilitation benefits, under Section (e) below, may, at the discretion of the Administrator, be in lieu of, or in addition to, disability benefits as provided in Section 5.04. Payment of rehabilitation benefits will not cause a reduction of disability benefits with respect to the limits imposed under this Section.
(5) In the event such an Active Participant becomes disabled prior to age 60 and such person is receiving disability benefits in the Conference year in which such person attains age 65 and disability continues, then such benefits will terminate on June 30 next following such person's 65th birthday anniversary (if the final day of the regular session of such person's Conference falls in the month of May or June, otherwise the end of the month in which the closing day of such Conference session occurs).
(6) In the event such an Active Participant becomes disabled after age 60 years and disability continues, then such benefits will terminate on the earlier to occur of (i) June 30 following the end of a five- year period from the date of disability (if the final day of the regular session of such person's Conference falls in May or June, otherwise the end of the month next following the end of such five- year period in which the closing day of such Conference session occurs); or (ii) June 30 following such person's 70th birthday anniversary (if the final day of the regular session of such person's Conference falls in May or June, otherwise the end of the month in which the closing day of such Conference session occurs).
(7) All disability benefits shall cease upon the death of the Active Participant.
(e) Rehabilitation Benefits. The Administrator is authorized to allocate reasonable amounts, as it deems appropriate, (not to exceed two- thirds of the Denominational Average Compensation) on behalf of a disabled Active Participant when, in the judgment of the Administrator, it is presumed that such allocation could:
(1) result in the qualification of the Active Participant to engage in an occupation which can be expected to provide compensation commensurate with the Denominational Average Compensation; or
(2) result in the return of such Active Participant to the duties performed prior to the occurrence of the disability.
Allocation of such amounts shall not disqualify the Active Participant for continued disability benefits if following such allocation the Active Participant continues to be unable to engage in any occupation for remuneration or profit as defined in paragraph (b) above. If a disabled Active Participant engages in any employment or occupation while receiving disability benefits and, in the judgement of the Administrator, such employment or occupation could be expected to result in the rehabilitation of the Active Participant, such disability benefits may be continued in whole or in part and the Administrator may waive annually any compliance with an earnings test.
(f) The Administrator shall have full authority to determine application procedures, eligibility for benefits, amounts of benefits, the commencement or discontinuance dates of any benefit payments, and the development of an earnings test. The Administrator, in the exercise of such authority, shall follow the provisions of this Section 5.04 and principles consistent with the Book of Discipline.
5.05 Pension Supplement. In the event an Active Participant in this Plan is an Active Participant in the Ministerial Pension Plan and the Church contribution under such pension plan to such Active Participant's Church Account is based upon a Contribution Base less than the Denominational Average Compensation, an allocation shall be made from this Plan to such Active Participant's Church Account in the Ministerial Pension Plan sufficient to make the total allocation to such account equivalent to the Church contribution such Active Participant would have received under Section 4.02 of the Ministerial Pension Plan had the Active Participant's Contribution Base been the Denominational Average Compensation. Any such allocation will be suspended if:
(a) the Church contributions to this Plan are more than 180 days in arrears;
(b) the Active Participant becomes a Retired Participant or a Vested former Participant in the Ministerial Pension Plan;
(c) the Active Participant is disabled as set forth in Section 5.04; or
(d) the Active Participant is appointed as set forth in Sections 3.02 (a), (c), or (e).
If the Church contribution to the Active Participant's Church Account under the Ministerial Pension Plan is based on less than a full month of Plan participation, then the amount of the allocation from this Plan shall be prorated based upon the number of days of participation during the month covered by such Church contribution. Notwithstanding the foregoing, any contributions made hereunder which are allocated to an Active Participant's Church Account under the Ministerial Pension Plan shall be subject to the terms of Code Section 415 as applied to the Ministerial Pension Plan.
Article VI Trustee
6.01 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 deaths, to their Beneficiaries;
(c) To maintain records of receipts and disbursements and furnish to the Administrator for each Plan Year a written annual report;
(d) To invest the assets of the trust for the exclusive purpose of providing benefits to Participants and Beneficiaries and defraying reasonable expenses of the Plan. Such investing shall be done in accordance with investment policies that reflect the Social Principles of The United Methodist Church.
6.02 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 the Employee Retirement Income Security Act.
(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.
6.03 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 assessments 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.
6.04 Valuation. Participants' Accounts shall be credited with interest 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.
6.05 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.
6.06 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.
Article VII Administration
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 Clergypersons 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 Clergypersons 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 Clergypersons, 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 Clergypersons 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 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 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 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.
(i) The Notice of Appeal shall be executed by the claimant.
(ii) 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.
(iii) 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.
(iv) 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.
(v) 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.
(vi) 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's accounts have been transferred to a trust as provided in Section 6.02(c), 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 Amendment and Termination
8.01 Amendment of the Plan. The General Conference may amend any or all provisions of this Plan at any time by written instrument identified as an amendment of the Plan effective as of a specified date. However, the Administrator is authorized to amend any or all provisions of this Plan at any time by such written instrument in order to conform the Plan to any applicable law and/or regulations promulgated thereunder.
8.02 Termination of the Plan. The General Conference shall have the right to terminate the Plan at any time in a manner and to the extent not inconsistent with the Book of Discipline. Upon termination of the Plan, the accounts of Participants shall be nonforfeitable and either distributed outright or held for distribution in accordance with the terms of the Plan. The assets remaining in the Plan after all obligations of the Plan have been satisfied shall be distributed pursuant to action by the General Conference.
Article IX Miscellaneous
9.01 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.
9.02 Unclaimed Benefits. If an Active Participant, Retired Participant or Beneficiary fails to claim a benefit to which the Active Participant, Retired Participant or Beneficiary is entitled, and if such Participant's or Beneficiary's whereabouts are unknown to the Administrator after the Administrator has sent a registered letter to the last- known address and has made inquiry of the last- known applicable unit of the Church, the Administrator may terminate benefit payments as the Administrator deems appropriate, fully discharging the Plan and the Administrator of all liability with respect thereto.
9.03 Relinquishment of Benefits. An Active Participant, Retired Participant or Beneficiary may voluntarily relinquish in writing, for not more than a year at a time, all or any part of benefit payments that are in pay status. Benefit payments that are relinquished shall not thereafter be recoverable by the Active Participant, Retired Participant or Beneficiary.
9.04 Beneficiary Designation. 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, but 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.
Each Participant may designate, in such form as required by the Administrator, a primary and contingent 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 9.04) as of the Participant's death, the death benefit hereunder 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.
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 a new spouse.
A Participant may designate multiple Beneficiaries who will divide any benefit payable under Section 5.03 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.
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.
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.
9.05 Surviving Spouse Beneficiary Designation. Each Surviving Spouse as provided in Section 5.03(g) may designate, in such form as required by the Administrator, a Beneficiary who is to receive the Surviving Spouse's interest in the Plan in the event of the Surviving Spouse's death, but the designation of a Beneficiary shall not be effective for any purpose unless and until it has been filed by the Surviving Spouse with the Administrator during the Surviving Spouse's lifetime in such form as required by the Administrator.
Each Surviving Spouse may designate, in such form as required by the Administrator, a primary and contingent Beneficiary who is to receive the Surviving Spouse's interest in the Plan in the event of the Surviving Spouse's death. In the event a Surviving Spouse's designated primary Beneficiary is not available (for any reason such as one noted below in this Section 9.05) as of the Surviving Spouse's death, the death benefit under Section 5.03(g) hereof shall be paid to the Surviving Spouse's designated contingent Beneficiary. The designation of Beneficiary shall not be effective for any purpose unless and until it has been filed by the Surviving Spouse with the Administrator during the Surviving Spouse's lifetime.
A Surviving Spouse may, from time to time, in such form as required by the Administrator, during the Surviving Spouse's lifetime, change the Beneficiary. Notwithstanding the foregoing, the Beneficiary of a Surviving Spouse shall automatically be deemed to be his/her spouse, and a Surviving Spouse may not designate another person as a 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 Surviving Spouse, 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 a new spouse.
A Surviving Spouse may designate multiple Beneficiaries who will divide any benefit payable under Section 5.03(g) in equal shares. Any election made by a Surviving Spouse and consented to by his/her spouse may be revoked by the Surviving Spouse 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 Surviving Spouse's lifetime.
A Surviving Spouse's divorce shall revoke any Beneficiary designation in favor of the Surviving Spouse's spouse made prior to the divorce. Until such time as a new designation 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 Surviving Spouse.
In the event a Surviving Spouse 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 Surviving Spouse, then the Beneficiary shall be deemed to be the estate of the deceased Surviving Spouse.
9.06 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.
9.07 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 has 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.
9.08 Alternative Dispute Resolution. If a dispute arises out of or related to the relationship between the Plan Sponsor and the Administrator or Trustee, 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 or Trustee 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 number 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.
9.09 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.
9.10 Number. Wherever used herein, the singular shall include the plural and the plural shall include the singular, except where the context requires otherwise.
Article X Adoption Agreement
10.01 A Plan Sponsor shall annually complete an Adoption Agreement in which the Plan Sponsor shall indicate the various elections which it is required to make pursuant to the provisions of the Plan.
10.02 The Adoption Agreement shall be in a form prescribed by the Administrator.
10.03 The Adoption Agreement shall not become effective until it is accepted by the Administrator.
10.04 If a Plan Sponsor fails to complete a new Adoption Agreement for the next Plan Year at least thirty days prior to the beginning of the next Plan Year, and:
(a) if the Plan Sponsor is one described in Section 2.18(a), (b), or (c) herein, the current Adoption Agreement will remain in force for the next Plan Year.
(b) if the Plan Sponsor is one described in Section 2.18(d) herein, the current Adoption Agreement would remain in force until sixty days after such time as a new Adoption Agreement is accepted by the Administrator.
Article XI Prior Plan Benefits
11.01 Amendment of Prior Plan. Effective as of January 1, 1982, this Article XI shall supersede and replace the provisions of the Ministers Reserve Pension Fund relating to the Disability and Survivor Benefit Fund with respect to all persons who, on December 31, 1981, were receiving or are entitled to receive future benefits from the Disability and Survivor Benefit Fund of the Ministers Reserve Pension Fund (hereinafter referred to as the Prior Plan).
11.02 Transfer of Assets. The assets of the Prior Plan shall be transferred to this Plan as soon as administratively feasible after January 1, 1982.
11.03 Disability Benefits.
(a) All persons who, as of December 31, 1981, were receiving a disability benefit under the Prior Plan, effective January 1, 1982, shall be entitled to an annual disability benefit, payable in monthly installments, equal to 40% of the Denominational Average Compensation in effect as of January 1, 1982.
(b) In addition, all such persons shall have credited to a Church Account established on their behalf under the Ministerial Pension Plan an annual amount equal to 12% of the Denominational Average Compensation in effect as of January 1, 1982. Such amount shall be credited, commencing January 1, 1982, in monthly installments.
(c) The amount of the benefit payable in accordance with (a) and (b) shall be increased by 2% on July 1 of each year through 1988. Effective January 1, 1990, this percentage increase shall be 3% on the anniversary date of the first payment of the disability benefit and annually thereafter, provided the benefit was in effect on the previous December 31. Effective January 1, 1989, the amount of the benefit payable under (a) and (b) to persons receiving disability benefits on that date shall be based upon the Denominational Average Compensation for 1989.
(d) Payment of the disability benefits set forth in this Section 11.03 shall be subject to the provisions of Section 5.04(d), (e) and (f) of this Plan.
11.04 Surviving Spouse Benefits. All Surviving Spouses who, as of December 31, 1981, were receiving Surviving Spouse benefits from the Prior Plan shall thereafter continue to receive such benefits from this Plan.
All Surviving Spouses who, as of December 31, 1981, were receiving Surviving Spouse benefits from the Prior Plan shall be entitled to a minimum single- life annuity in an annual amount equal to (a) less (b), where,
(a) is 20% of the Denominational Average Compensation in effect on January 1, 1982; and
(b) is the annuity benefits (calculated on a single- life basis, regardless of the annuity form actually paid) otherwise payable from this Plan and from all other Church- related sources, except Social Security benefits.
(c) Effective January 1, 1989, the amount of the benefit payable under this Section 10.04 to persons receiving such benefits on that date shall be based upon an amount at least equal to 20% of the Denominational Average Compensation for 1989 less (b) above.
(d) The amount determined above shall be increased by 2% on July 1 of each year, provided the benefit was in effect on the previous December 31. Effective January 1, 1990, this percentage increase shall be 3% on the anniversary date of the first payment of benefits.
(e) A Surviving Spouse who had remarried prior to December 31, 1981, and who was not receiving a Surviving Spouse benefit on that date will be eligible for benefits in (a), (b), (c) or (d) above at the time of the dissolution of the marriage or upon attainment of age 65 years. Upon the death of such Surviving Spouse, a Surviving Spouse death benefit shall be payable in accordance with Section 5.03(g), provided that the Surviving Spouse was receiving a Surviving Spouse monthly benefit at the time of death.
11.05 Surviving Children Benefits. All surviving children of deceased former members of the Prior Plan who, as of December 31, 1981, were receiving or could in the future receive surviving children benefits under the Prior Plan shall, effective January 1, 1982, be entitled to the following benefits from this Plan:
(a) Any such surviving child under age 18 years shall receive in monthly installments an annual benefit of 10% of the Denominational Average Compensation in effect as of January 1, 1982.
(b) Any such surviving child age 18 years but under age 25 years shall receive an annual educational benefit equal to 10% of the Denominational Average Compensation in effect on the later to occur of January 1, 1982, or the date such child attains age 18 years. Such benefit is payable for each year during attendance as a full- time student at a secondary school and, in addition, for each year not to exceed four years during attendance as a full- time student at a standard school or college beyond the secondary school level. The annual benefit shall be payable in monthly installments.
(c) Satisfactory certificate of enrollment and attendance in school or college shall be provided periodically as may be required by the Administrator in order for an educational benefit to be paid.
(d) The amount of any benefit payable under this Section 11.05 shall be increased by 2% on July 1 of each year, provided the benefit was in effect on the previous December 31. Effective January 1, 1990, this percentage increase shall be 3% on the anniversary date of the first payment of benefits. Effective January 1, 1989, the amount of the benefits payable under Sections 11.05(a) and 11.05(b) to persons receiving such benefits on that date shall be based upon the Denominational Average Compensation for 1989.
General Conference Webmaster: Susan Brumbaugh
PETS Creator: John Brawn
Petition Text: 21494-FA-NonDis-O
1996 United Methodist General Conference