DALLAS (BP)–A new plan aimed at providing a retirement savings option for ministers has been announced by the Annuity Board of the Southern Baptist Convention. The new product will provide a savings option for income earned by ministers whose income might not have been an eligible source for contributions to a retirement plan offered by the Dallas-based church pension board.
“Those who will be most impacted by this new product are those who receive ministerial income from self-employment, such as self-employed chaplains, evangelists and speakers,” said project manager Barbara Medlin.
“The Annuity Board recognizes that there are people serving in ministry positions who are ordained as Southern Baptist ministers, but who until now were unable to invest that income in an Annuity Board retirement program,” she said. “The Minister’s Annuity Plan was designed to provide an additional option in our product line for these ministers.”
Medlin said the plan could serve as a supplemental account for those who earn self-employment income from weddings, funerals and other services. The plan is also available for ministers who are employed by for-profit and some not-for-profit organizations that do not sponsor retirement plans for their employees.
This new opportunity to invest is important to ministers because an account with a church pension board such as the Annuity Board offers many unique tax advantages, such as a non-taxed minister’s housing allowance on certain retirement benefits.
“Obviously, we need to educate ministers about who qualifies for this plan,” Medlin said. “The requirements are complicated. In many instances, we will need to work with individuals to help them determine whether they qualify.”
Interested ministers may contact the Annuity Board customer relations specialists at 1-800-262-0511 or access the Internet website at www.absbc.org for more information.
