2027 Pension Plan Church Direct Billing
Effective January 1, 2027, church direct invoicing by the Conference for clergy participants under Rio Texas Conference Church or Conference Office appointment for current active service will include:
Compass Pension Plan – Church - (Full-time clergy 100% service appointment):
- $1,800 Flat Annual Amount ($150/month) for each eligible full-time clergy invoiced monthly
- 3% Base Contribution (Plan Compensation) for each eligible full-time clergy invoiced monthly
- 4% Employer Match (Plan Compensation) for each eligible full-time clergy invoiced monthly
Compass Pension Plan – Clergy
- For clergy to receive the maximum church-funded employer pension benefits of 4% into Compass, they will also need to contribute a minimum 4% personal match into Compass as a payroll deduction from salary. The match can be a pre-tax or after-tax contribution into Compass.
- This $1 for $1 match on the individual's contribution (up to 4% of compensation) encourages clergy participants to share in the responsibility to save for their own retirement.
- The personal Compass Contribution will be automatically auto escalated to 5% for those with contributions at or below 4%. Clergy may opt out of the auto-escalation.
Comprehensive Protection Plan (CPP) - (Full-time clergy 100% service appointment):
- 3% of Plan Compensation invoiced monthly
- Applies to full-time clergy (100% appointment), with compensation cap set at two times the Denominational Average Compensation (DAC)
United Methodist Personal Investment Plan (UMPIP) - (Part-time clergy 25%, 50% and 75% service appointment):
- 9% contribution of Plan Compensation invoiced monthly
The Compass Plan
The Compass Pension Plan was adopted at General Conference in 2024. Compass is a new account-based, defined contribution (DC) retirement plan for U.S. clergy. Compass replaces the Clergy Retirement Security Program (CRSP), which is the current mandatory retirement plan for U.S. clergy. Wespath has offered the CRSP since 2007, which combines both defined benefit and defined contribution components. That program will be frozen at the end of 2025, with Compass taking effect on Jan. 1, 2026. Clergy will retain CRSP benefits earned through the end of 2025, then begin earning benefits through Compass. The benefits of clergy who already have retired are not affected by the plan. With Compass, clergy will have retirement accounts that they control. Compass also will provide matching contributions to help clergy pay off student loans. In addition, Wespath developed a program called LifeStage Retirement Income that will guide Compass members in how much they can take out of their accounts without risking depletion of the funds they have for retirement.
Comprehensive Protection Plan (CPP)
The Comprehensive Protection Plan (CPP) is a welfare benefit plan administered by Wespath Benefits and Investments. The CPP includes long-term disability, death and other welfare benefits for eligible full-time clergy. The CPP plan is an Internal Revenue Code 414(e) "church plan" funded by plan sponsor contributions. The CPP required direct billing to churches is 3% of Plan Compensation for eligible full-time clergy up to two times the 2027 denominational average compensation or DAC.
United Methodist Personal Investment Plan (UMPIP)
The United Methodist Investment Plan (UMPIP) is an Internal Revenue Code section 403(b) defined contribution retirement savings plan administered by Wespath for part-time clergy and lay employees of The United Methodist Church and affiliated organizations. Eligible participants may make personal contributions through payroll deductions for before-tax, Roth or after-tax contributions in a flat dollar amount or percentage of eligible compensation, up to Internal Revenue Code limits. Churches are encouraged to offer the UMPIP to lay employees and may contact Wespath for additional plan provisions and sponsorship.
Any clergy appointed to a church for less than full-time service is eligible to participate in the UMPIP and receive a required church contribution of 9% of Plan Compensation. Also, all active clergy are encouraged to participate in the UMPIP with personal contributions.
Historical Pension Plans 1972-2025
Clergy Security Retirement Plan (CRSP)
The Clergy Retirement Security Program (CRSP) is a 403(b) retirement plan for eligible clergy of The United Methodist Church from 2007-2025. The plan was required for eligible full-time clergy is the Clergy Security Retirement Plan or CRSP administered by Wespath and effective January 1, 2007. The Plan was comprised of both a defined contribution (DC) and defined benefit (DB) component. Clergy will not lose CRSP benefits they earn through December 31, 2025.
Pre-82 Pension Plan
The Pre-82 Pension Plan, also known as Supplement One to the Clergy Retirement Security Plan (CRSP), is a defined benefit pension plan administered by Wespath and provides eligible clergy with a pension benefit for their years of ministry with The United Methodist Church before 1982. Vesting schedules in this plan began in 1972. The Pre-82 Pension Plan was replaced by the Ministerial Pension Plan (MPP) effective January 1, 1982. One of the responsibilities of the Board of Pensions is to recommend to the annual Conference the Past Service Rate or (PSR) to clergy for each year of eligible service in the Pre-82 Pension Plan.
Ministerial Pension Plan (MPP)
The Ministerial Pension Plan, also known as Supplement Three to the Clergy Security Retirement Plan (CRSP), provides clergy with a pension benefit for their years of ministry with The United Methodist Church from 1982 through 2006. The MPP is an Internal Revenue Code Section 403(b) retirement plan. The Conference is required to fund any liability attributable to MPP annuities due to market fluctuations, mortality/demographic assumptions, and Wespath Plan policies. As of the January 1, 2025, actuarial valuation for 2026, for the MPP and CRSP plan, annuities no additional contributions are required in 2026 and 2027.