Associate Ministers Retirement Program

Many pastors and ministers of nondenominational churches have not had an adequate retirement plan established by the church that rewards them for their many years of service to the congregation. The Associate Ministers Retirement Program is a way to provide this benefit for ministers, even though funds have not been set aside during the years in a qualified retirement plan. With a Rabbi Trust or deferred compensation program within the church, the funds remain an asset of the church until paid out to the minister and could be subject to depletion if the church has financial problems or loss of benefits if a future church board would decide not to honor the commitment. With the Associate Ministers Retirement Program the funds are placed in a neutral environment, The Joy to the World Foundation, which protects the minister and the church from future conflict over the ongoing funding and administration of a retirement plan. The church can make one payment or a series of payments to the Foundation and investment products will be purchased by the Foundation that provides a life-time income to the minister and spouse. The church’s obligation and liability for the retirement plan is completed with the funding of the plan and the minister is secure knowing that his retirement plan is protected, regardless of what happens at the church after he leaves. Because this is not a qualified retirement plan, the church does not need to provide the same benefit to other ministers or employees. When the minister and spouse pass away, the principal left in the program can go to the minister’s heirs or wherever he or she designates depending on the Associate Ministers Retirement Funding Agreement between the church, the Foundation and the minister. Funds received by the minister during retirement can qualify for the Minister’s Housing Allowance and be tax-free to that extent to the minister.

HERE IS HOW IT WORKS:
1.      The church makes a decision that they would like to fund a retirement plan for a minister. 2.      An Associate Ministers Retirement Plan is established for the minister at The Joy To The World Foundation that will qualify for the Minister’s Housing Allowance and may provide regular or guaranteed tax-free payouts at retirement for the minister, regardless of the age of retirement, under the provisions of the Minister's Housing Allowance.

3.      The church, minister and Joy to the World Foundation enter into an Associate Ministers Retirement Funding Agreement that specifies how and when the funds will be paid out to the minister and spouse and what will happen to the principal after the minister and spouse pass away.

4.      The church may fund the retirement plan with a lump sum payment if they have not provided for the minister in previous years or the plan may be funded with a series of payments determined annually by the church even though he or she is still a minister at the church.

5.      When the minister retires, is disabled or is otherwise unable to work, the plan can provide for him and his spouse for the remainder of their lives to the extent of the plan.

6.      Funds will be invested by the Foundation in safe low risk investments so that the funds will grow and will be there when the minister needs them.

7.      There is a fee of 1% of any contributions made to the plan and a 1% annual (taken quarely) investment fee charged by the Foundation on invested funds. The investment growth of assets in the minister’s plan will be added to the principal.


If you are interested in finding out more about this program, please contact the Joy to the World Foundation office toll-free at 844-670-2875  to see how a plan might be customized to meet the needs of your church and minister.

Joy To The World Foundation

jttw logoContact the JTTW office:
Joy To The World Foundation,
5550 Tech Center Dr. Suite 305
Colorado Springs, CO 80919
719-260-1173 or toll-free 844-670-2875
click here to contact us by email

The Joy To The World Foundations is a nonprofit tax-exempt public charity organized and operating under the laws of Colorado for the purpose of helping individuals accomplish their charitable objectives in religious, educational, scientific, benevolent, and health related activities. Though much of the money contributed to the Foundation each year is given to support existing charitable organizations, the Foundation is not directly controlled or affiliated with any specific organization.   Read More