Basic Long-Term Disability Insurance Plan

Disabling injuries and illnesses strike without warning. Statistics indicate 50 percent of Americans have a chance of becoming disabled for a time during their working years. With this in mind, the Church of the Nazarene provides every qualified minister Basic Long-term Disability Insurance coverage of $400 a month. This benefit is made possible because of contributions from churches and districts to the Nazarene Pensions and Benefits USA Fund.

Who is Eligible to Participate in This Plan?

Each active, full-time and full-livelihood* ordained elder, deacon, district-licensed minister and district-credentialed lay person who is an employee of a Nazarene church or a Nazarene church agency on a U.S. district that pays Pensions and Benefits Fund allocations, and who is less than the limiting age (which is defined as Social Security normal retirement age minus the elimination period). Additionally, each person must meet the following requirements:

• Does not have service credit under the Basic Pension portion of the Church of the Nazarene Single Defined Benefit Plan
• Eligible to receive an Annual Pension Supplement (APS) contribution for the current calendar year
• Has received no fewer than five APS contributions.

* Full-time service is defined as serving no fewer than 30 hours per week for no fewer than 30 weeks each calendar year in Nazarene churches or district offices on U.S. districts that pay Pensions and Benefits Fund allocations. Full-livelihood is defined as deriving no less than 50 percent of personal net income for the calendar year from the local church or district being served. For evangelists, full-time and full-livelihood service is defined as no fewer than 30 Sundays or 26 revival events per calendar year (as defined by the General Board of the Church of the Nazarene) in Nazarene churches on U.S. districts that pay Pensions and Benefits Fund allocations.

What Are the Benefits Under This Plan?

• The maximum monthly benefit under this plan is $400.
• This benefit is paid for from Pensions and Benefits Fund receipts.

How Can I Enroll in This Plan?

You are enrolled automatically.

When Does My Coverage Start?

If you are actively at work on any January 1 and you meet all eligibility requirements as noted above, your coverage starts on that date.

Do I Have to Wait to be Covered?

Once the eligibility requirements are met, there is no waiting period. See the note below regarding pre-existing conditions.

Do I Have to Wait to Begin Receiving Benefits?

To be eligible for benefits, you must be out of work for three continuous months due to an occupational or non-occupational injury or illness.

How Long Will I Receive Benefits?

As long as you remain totally disabled, LTD benefit payments will continue to be made to you until you reach the 1983 amended Social Security normal retirement age. Disability occurring at the following ages will be paid in this manner:

Age 61 - you will receive 48 monthly payments
Age 62 - you will receive 42 monthly payments
Age 63 - you will receive 36 monthly payments
Age 64 - you will receive 30 monthly payments
Age 65 - you will receive 24 monthly payments
Age 66 - you will receive 21 monthly payments
Age 67 - you will receive 18 monthly payments

Important Features and Limitations to the Plan

Pre-Existing Conditions: If you were diagnosed or treated or received medical services within the six months immediately preceding your effective date of long-term disability coverage (the "look-back period"), then you are not eligible to receive benefits if:

• disability occurs within 12 months following the effective date of coverage and
• that disability is caused by the same condition for which you were diagnosed or treated or received medical services in the look-back period (as defined above).

Rehabilitation: Our ultimate goal is to help you return to gainful employment. Our consultants review each disability claim and determine if Aetna rehabilitation services would be appropriate and effective. After reviewing your claim, if we feel you would benefit from our services, we will contact you. During your active participation in an Aetna approved rehabilitation program, Aetna will pay you an additional 10 percent of your monthly benefit after all applicable reductions for other income benefits. Not more than a maximum of $500 monthly will be paid for a one-time maximum of six consecutive months for each period of disability.

Legal Reference Program**: With Legal Reference services, offered and administered by ARAG North America (ARAG), you have access to free legal forms, consumer information, identity theft services and discounted legal services through a toll-free phone line and website. Call toll-free 1-888-257-2934 or visit the website at www.ichooselegal.com to learn more.

** Legal Reference is independently administered by ARAG North America (ARAG). ARAG has built the largest network of law firms in the U.S. and Canada. Neither your employer nor Aetna participates in attorney selection or review, or in the design, content, or maintenance of the ARAG website, and neither has reviewed ARAG services, content, or network for quality. Therefore, neither your employer nor Aetna warrants or guarantees the services of ARAG or of an attorney in the ARAG network.

This Summary of Benefits explains the general purpose of the insurance described, but in no way change or affect the policy as it is actually issued. In the event of any discrepancy between any of these documents and the policy, the terms of the policy apply. To receive more details or to ask additional questions please contact the Pensions and Benefits office.

Policy Effective Date: January 1, 2009