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| Annual Church P&B Fund Contribution | Life Insurance | Base APS | Bonus APS | 403(b) Match |
| $0 of P&B Fund Goal | $0 | $0 | $0 | $0 |
| $1 to 49% of P&B Fund Goal | $15,000 | $0 | $0 | $0 |
| 50% to 99% of P&B Fund Goal | $15,000 | $200 | $0 | $0 |
| 100% of P&B Fund Goal | $15,000 | $200 | 10% of P&B Fund Paid | 50% Match of 403(b) Contributions (up to $250) |
Q: What is an Annual Pension Supplement (APS) contribution?
A: This is intended as a basic retirement contribution to the Nazarene 403(b)
Retirement Savings Plan accounts of eligible full-time Nazarene ministers whose
churches pay at least 50 percent of their Pensions and Benefits Fund goal according
to Funding the Mission. The 2012 base APS contribution amount is $200.
Q: What is a bonus APS contribution?
A: If a church pays 100 percent or more of its P&B Fund goal, each minister who
received an APS base contribution will also receive an APS bonus contribution equal
to 10 percent of the P&B Fund amount paid by his or her church. Bonus amounts for
churches with more than one eligible minister will be shared equally by all who serve
that church.
Q: What is the 403(b) match?
A: If a church pays 100 percent of its P&B Fund goal, each minister who received an
APS base contribution will also receive a 50 percent match of his or her personal (by
salary reduction or salary addition) Nazarene 403(b) Retirement Savings Plan
account contributions (to a maximum of $250 annually).
Q: Does P&B provide complimentary life insurance for pastors?
A: Yes. Basic life insurance coverage is provided for all eligible full-time Nazarene
ministers whose churches contribute to the P&B Fund. The amount of coverage is
$15,000. Additional life insurance may be purchased by the minister or the local
church (see pbusa.org for details).
Q: Does P&B provide complimentary long-term disability insurance for pastors?
A: Yes. Basic disability insurance coverage is provided for all eligible full-time Nazarene
ministers receiving their first year of retirement credit after January 1, 1996, whose
churches contribute to the P&B Fund. The maximum monthly amount of the benefit
is $400. Additional disability insurance may be purchased by the minister or the local
church (see pbusa.org for details).
Q: For those not serving a local church, or who are serving under district
assignment, what benefits are they eligible for?
A: Full-time evangelists, full-time district-assigned minsters, and district
superintendents will receive $1,000 base APS contributions. Basic life insurance
coverage will be the same ($15,000) as for all ministers whose churches contribute
to the P&B Fund.
Q: When will base and bonus APS contributions be made?
A: Since these contributions are based upon the amount of P&B Fund paid, payments
are not made until after the close of the fiscal year for which they are payable. This
is typically at least 90 days after the end of your district’s fiscal year.
Q: When will the matching contributions be made?
A: It is anticipated that these contributions will be processed in the first quarter of the
calendar year following the calendar year in which your contributions were made.
For example, any salary reduction or salary addition contributions made in 2012 will
be matched in the first quarter in 2013.
Q: I am a grandfathered participant under the Basic Pension Plan (BPP). Will the
403(b) match contributions be used as an offset against my BPP benefit like
the base/bonus contributions are?
A: No.
Q: My church contributes to a retirement plan other than the Nazarene 403(b)
Plan. Can we instruct P&B to send 403(b) match contributions to that plan?
A: No. All matching funds will be determined by your contributions to and contributed
into the Nazarene 403(b) Retirement Savings Plan account with Fidelity
Investments.
Q: My church pays less than 100 percent of our P&B Fund goal. How will this
affect what I receive in benefits from P&B?
A: We understand that reaching 100 percent is not always possible, but every church
can pay something. If a church pays only $1, insurance benefits will be available.
Depending on the percentage paid, an eligible full-time minister will have either basic
life insurance or basic life insurance and retirement benefits.
Q: My church does not pay anything to the P&B Fund. How will this affect what I
receive in benefits from P&B?
A: Because of funding constraints, it is no longer possible to provide any benefits to
ministers serving churches that contribute nothing to the P&B Fund.
Q: My church employs more than one full-time minister. How do you determine
how much each minister will receive in benefits from P&B?
A: P&B uses the chart below to determine the number of APS base grants provided per
church. As you can see, the more money contributed into the P&B Fund provides for
a larger number of APS base grants.
| Annual Church P&B Fund Contribution (at least 50% of P&B Fund Goal) |
Number of APS Grants Available per Church |
Total Base APS $ Available per Church |
| $1 to $1,500 | 1 | $200 |
| $1,501 to $3,000 | 2 | $400 |
| $3,001 to $5,000 | 3 | $600 |
| $5,001 to $10,000 | 4 | $800 |
| $10,001 to $15,000 | 5 | $1,000 |
| $15,001 to $20,000 | 6 | $1,200 |
| $20,001 to $25,000 | 8 | $1,600 |
| $25,001 and up | 15 | $3,000 |
Q: What are the significant APS changes in 2012 compared to 2011?
A: P&B could no longer afford to provide retirement benefits to ministers that paid only
$1 or minimal amounts of their P&B Fund goal. You must pay at least 50% of your
P&B Fund goal, according to Funding the Mission, to receive retirement benefits.
Also, a match contribution is being introduced in 2012.
Q: Why do you keep changing the way P&B benefits are determined?
A: When the budget formula was changed in 2009, P&B implemented a temporary
benefit schedule to allow us to monitor how giving to the P&B Fund would be
affected. Now that we have some experience under the new formula, the Board of
Pensions and Benefits USA has adjusted the benefit schedule accordingly.
Q: Will I receive less in benefits under this new schedule?
A: It isn’t likely, but it is possible. If your church pays 100% of your P&B Fund goal, and
if you are contributing to the Nazarene 403(b) Plan, each eligible full-time minister
should receive the same amount as in previous years, if not more.
Q: Who determines the eligibility criteria of ministers for P&B Fund benefits?
A: We rely on each district office for assistance in making this determination.
 2012 Nazarene APS Program FAQ |
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