Greetings from the Financial Administrator's Desk!
Friends,
The requirement that employees work a minimum of 20 hours per week to be eligible to participate in the Retirement Savings Plan of the Presbyterian Church (U.S.A.) ("the RSP") has been eliminated. This change will allow churches and employing organizations to offer the RSP to more staff and will help those that want to consolidate other retirement savings plans and investment offerings into the Retirement Savings Plan as a means of simplifying compliance with the new 403(b) regulations effective January 1, 2009.
Reminder: Churches and employing organizations that offer the Retirement Savings Plan of the Presbyterian Church (U.S.A.) are reminded to complete an Adoption Agreement by December 31, 2008, to continue their participation in the Retirement Savings Plan. This agreement will establish the eligibility requirements, employer contributions, and the responsibilities of each church and employing organization under the Plan as required by the final IRS 403(b) regulations.
If you have questions regarding the increased responsibilities of churches and employing organizations under the final 403(b) plan regulations, please read the Board's Employer Frequently Asked Questions. You may also contact Member Services by phone at 800-773-7752 (800-PRESPLAN) or email at memberservices@pensions.org
New mileage rates from the IRS. Beginning on January 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
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Mileage Rate Changes
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Purpose
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Rates 2009
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Rates 2010
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Business
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55.0
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50.0
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Medical/Moving
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24.0
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16.5
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Charitable
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14.0
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14.0
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Now might be a good time for your pastor to review his/her housing allowance designated for 2010. If they find that their allowance was too low because they incurred more housing expenses than anticipated, it can be increased for the remainder of the year as long as the Session amends the amount and it is recorded in the minutes. Ministers do not pay federal income tax on the amount of their compensation designated in advance by their church as a “housing allowance”. This does not result in any additional compensation being paid to a minister. Rather, a minister's salary can be decreased by the amount of the increase in the housing allowance. An amended housing allowance is only effective from the date of the amendment. And remember that housing allowance is only nontaxable if it is used to pay housing expenses and doesn’t exceed the fair rental value of the minister’s home.
Discover the new Pensions.org with e-learning made easy. The Board of Pensions (PCUSA) has updated their website recently, www.pensions.org. A highlight of the new site is BenefitsConnect, an online tool that provides active Plan members secure access to their personal benefits information. Not only can members submit changes to their contact information and dependent status, but they can use online calculators to estimate their pension and death benefits. To help you understand all that Pensions.org and BenefitsConnect have to offer, the Board of Pensions has created an e-learning tutorial. This educational presentation will guide you through the many new features and tools that make these sites the definitive source for Benefits Plan and Board program information.
Grace and peace,
Lizabeth Hutchinson
