HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC The Church Retirement Plan Catalogue...

The Church Retirement Plan403(b)(9) Retirement Plan forSouthern Baptist Churches

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2010

1950

81.0

67.4

76.2

62.6

Source: Centers for Disease Control and Prevention, as of January 24, 2013.

The Retirement Years:

THE CHURCH RETIREMENT PLAN

Men

Average life expectancy in the U.S.

Women

Men

Women

Average65 years

Average79 years

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Retirement Income


Need 70–90% of preretirementincome to continue lifestyle

Sources:• Social Security• Pensions• Personal savings• Continued employment

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Retirement Income Sources


• Social Security‐ Full benefits at 67 if born 1960+‐ Average benefit $1,294 per month

• Pension‐ Many companies no longer provide

• Personal savings‐ Eroding effect of inflation

Source: www.ssa.gov as of January 1, 2014

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Preparation for Retirement


Begin early Save consistently

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Start today! Goal: $200,000 8% earnings rate• Age 30 $ 88/month• Age 40 $210/month• Age 50 $580/month

Rate of return is purely hypothetical and not representative of any specific type of investment.

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Tax-advantaged investment for employees of Southern Baptist churches

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The Church Retirement Plan


GuideStone Financial Resources serving since 1918

403(b)(9) Retirement Plan for Southern Baptist Churches —The Church Retirement Plan

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Who can participate?• Anyone with

taxable income from a Southern Baptist church, church-related school or association

• Ministers or non-ministerial staff

• Full-time, part-time or bivocational

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What is it?• 403(b) — tax

code designation for non-profit organizations

Similar to:• 401(k) — for-

profit businesses

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What is it?


403(b) tax code designation Tax-sheltered plan

Preretirementcontributionsand earningsNOT TAXED

Postretirementdistributions

TAXED

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What is it?


403(b) tax code designation Tax-sheltered plan Defined contribution plan

Larger incomepayment

Small incomepayment

Small amount investedin contribution plan

Larger amount investedin contribution plan

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Why use it?


No sales commissions• 100% of your contributions are

invested into your account

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Why use it?


No sales commissions Reduction of taxes• Employee contributions:

‐ Deferral of income taxes‐ Exclusion from Social Security

taxes for ministers

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Why use it?


No sales commissions Reduction of taxes Higher contribution limits than IRA

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Why use it?


No sales commissions Reduction of taxes Higher contribution limits than IRA Income may be designated as

housing allowance for ministers in retirement• Distributed tax-free

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Why use it?


No sales commissions Reduction of taxes Higher contribution limits than IRA Income may be designated as housing

allowance for ministers in retirement Added benefits and contributions for

eligible participants• Disability and life protection benefits• Matching retirement contributions

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Why use it?


No sales commissions Reduction of taxes Higher contribution limits than IRA Income may be designated as housing

allowance for ministers in retirement Added benefits and contributions for

eligible participants Christian-screened investment options Proven investment management firms

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Contribution Sources


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EmployerRecommended goal:10% of employee’s monthly income



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Employee

• Salary reduction



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Employee

• Salary reduction• Rollover

• Other retirement plans or IRA




Employee

• Salary reduction• Rollover

• Other retirement plans or IRA

Baptist stateconvention

• Matching retirement contribution

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State Convention Contributions


Disability Income Benefit• Up to $500 a month disability income• In addition to insurance or

Social Security• Contributes to retirement account

$35 each month of disability benefit

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Disability Income Benefit Survivor Protection Benefit• Amount paid to beneficiaries

determined by participant’s age at death

• Can equal as much as $100,000• Paid in addition to participant’s

retirement account balance

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Disability Income Benefit Survivor Protection Benefit• No medical underwriting required• Provided at no additional cost

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$1 for $3 matchingretirement contributions

(maximum $17.50)

Protection benefits —Disability Income Benefitand Survivor Protection

Benefit

$105.00

$52.50

$1.00

Your monthlycontributionlevel

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Church: must meet convention requirements Ministers: are eligible for benefits Non-ministers: may be eligible for benefits Matching contribution: determined by

state convention www.GuideStone.org/SBCChurchBenefits

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http://www.guidestone.org/SBCChurchBenefits

How the Plan Works


Example: $3,000 monthly income

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How the Plan Works


Example: $3,000 monthly income$300.00 employer contribution (10% goal)

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How the Plan Works


Example: $3,000 monthly income$300.00 employer contribution (10% goal)$150.00 participant contribution

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How the Plan Works


Example: $3,000 monthly income$300.00 employer contribution (10% goal)$150.00 participant contribution$ 17.50 state convention contribution

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How the Plan Works


Example: $3,000 monthly income$300.00 employer contribution (10% goal)$150.00 participant contribution$ 17.50 state convention contribution$467.50 total

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Contributions Purchase Shares


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Hypothetical example for illustration purposes only, not indicative of future performance.

Monthly Contributio

n

Fund NAV

Shares Purchase

d

Total Shares

Account Value

$467.50 $10.00 46.75 46.75 $ 467.50



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Monthly Contributio

n

Fund NAV

Shares Purchase

d

Total Shares

Account Value

$467.50 $10.00 46.75 46.75 $ 467.50

$467.50 $ 9.75 47.95 94.70 $ 923.33



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Monthly Contributio

n

Fund NAV

Shares Purchase

d

Total Shares

Account Value

$467.50 $10.00 46.75 46.75 $ 467.50

$467.50 $ 9.75 47.95 94.70 $ 923.33

$467.50 $10.25 45.61 140.31 $1,438.18


Monthly Contributio

n

Fund NAV

Shares Purchase

d

Total Shares

Account Value

$467.50 $10.00 46.75 46.75 $ 467.50

$467.50 $ 9.75 47.95 94.70 $ 923.33

$467.50 $10.25 45.61 140.31 $1,438.18




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Investment Fund Selection One-choice approach

• GuideStone Funds MyDestination Funds®

Asset allocation approach• GuideStone Funds Asset Allocation Funds

Build-your-own approach• GuideStone Funds Select Funds• GuideStone Financial Resources Capital

Preservation Fund

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The MyDestination Funds attempt to achieve their objectives by investing in the GuideStone Select Funds. These funds are managed to a retirement date (“target date”) by adjusting the percentage of fixed-income securities and equity securities to become more conservative each year until reaching the retirement year and then approximately 12 years thereafter. The target date in the name of the funds is the approximate date when an investor plans to start withdrawing money. By investing in them, you will also incur the expenses and risks of the underlying Select Funds. The principal risks of the Funds will change depending on the asset mix of the Select Funds in which they invest. You may directly invest in the Select Funds. The Funds’ value will go up and down in response to changes in the share prices of the investments that they own. There is no guarantee that the Funds’ principal value will increase, including at the targeted date. It is possible to lose money by investing in the Fund. The Asset Allocation Funds attempt to achieve their objectives by investing in the GuideStone Select Funds. By investing in these Funds, you will also incur the expenses and risks of the underlying Select Funds. The principal risks of the Funds will change depending on the asset mix of the Select Funds in which they invest. You may directly invest in the Select Funds. The Funds’ value will go up and down in response to changes in the share prices of the investments that they own. It is possible to lose money by investing in the Funds.

Getting Started in theChurch Retirement Plan


Church Retirement Plan application

Rollover application Information kit• Online at

www.GuideStone.org

• Call 1-888-98-GUIDE(1-888-984-8433) Monday–Friday,7 a.m.–6 p.m. CST A12-39

Mission/ChurchAssistance Fund


Annual church budget under $75,000

Up to $3,000 additional retirement contributions

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HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC The Church Retirement Plan Catalogue...

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