Wespath Breathes “New Life” into the Department of Retirement Services
By TCR Staff
After the 2021 December General Board meeting revealed the African Methodist Episcopal (AME) Church Retirement Program was no longer viable, the Department of Retirement Services was, by direction of the General Board, asked to restructure its operations through the General Board’s Commission on Retirement Services. Bishop John F. White, Commission Chair, and Bishop Marvin C. Zanders II, Commission Co-Chair, expertly supported Dr. James F. Miller, Executive Director, Department of Retirement Services, in organizing the Commission into working committees to restore the Department’s integrity and strengthen the quality of its operations and services.
The General Board Commission on Retirement Services has worked tirelessly, meeting every week in 2022 except on holidays and during Connectional meetings. The Commission’s structure includes the following committees: Audit, Operations, Insurance, Legislative, Budget, Stewardship, and Investment. The Investment Committee, consisting of Rev. Troy Thomas (13), Committee Chair, Rev. Jarrett Washington (7), Rev. David Cousin (1), and Dr. Roderick Moore (10), was charged with overseeing the selection process for an investment fund management company and regularly reported to the Commission. Additionally, the Rev. Dr. Daryl Franklin of Oakwood Wealth, Lisle, Illinois, provided training to assist the Committee in exercising its duties.
There was a complete, in-depth vetting process with formal Requests for Proposals issued to several of the top retirement investment companies in the United States. Ultimately, the Commission recommended Wespath Benefits and Investments as the new retirement fund manager and recordkeeper. This recommendation was approved by the Council of Bishops and the General Board after open meetings featuring detailed presentations from the Commission on the selection process and Wespath representatives. Reflecting on the process, Commission Chair Bishop White commented, “We believe that [this process] has yielded a result which will provide long-term benefits for our clergy and families.”
Wespath has served clergy and laypersons for over 100 years and currently manages over $26 billion for over 100,000 plan participants. “The Department of Retirement Services looks forward to a fruitful and beneficial partnership with Wespath, which will allow us to offer a high-quality retirement program to those who serve God through the AME Church,” stated Dr. James F. Miller, Executive Director of Retirement Services. Wespath’s benefits include improved quality in client services; internet access to participant accounts and for transactions; enhanced communication and education regarding retirement investments and security; a proven, disciplined, long-term approach to investing; multiple self-service investment options; and a transparent fee structure. In addition, all participants who make at least the minimum semiannually directed contribution of $312.50 will pay less in fees than they were previously charged.
After the denominational approval process, the Investment Committee led the “onboarding” of the Department of Retirement Services with Wespath. There were continual meetings between the Investment Committee, the Department of Retirement Services Commission, the Department’s counsel, Attorney Lisa Carrasco, and AME Church General Counsel Douglass Selby. The process was completed on November 1, 2022, with the historic launching of the AMEC “New Life Personal Investment Plan,” managed by Wespath. Open virtual information sessions coordinated by Wespath and the Commission on Retirement Services were held over three days in early November to introduce the program to eligible participants. At launch, the New Life Plan is a forward-looking plan for new contributions and those contributions held in escrow by the Department of Retirement Services since July 2021.
Since the launch, the members of the Investment Committee have conducted training and updates in over half of Episcopal Districts 1-13. Currently, 3,314 eligible pastors are enrolled in the New Life Plan with 25 percent of those eligible having activated their online accounts. “We have received excellent feedback from people participating in the New Life Plan and how it is performing for them. We hope that all eligible persons will enroll as soon as possible to take advantage of this significant opportunity that will help secure their future,” commented Commission Co-Chair Bishop Zanders.
Beyond addressing retirement needs, the Department of Retirement Services will relaunch in 2023 its stewardship program with initiatives to assist clergy with student loan debt, church financial management, and personal financial literacy. With the “New Life Plan” and the stewardship initiatives, the Department of Retirement Services is working diligently to restore confidence in the AME Church’s ability “to create a better tomorrow for all those in God’s service today.”
Bishop Marvin C. Zanders II, Dr. James F. Miller, the Rev. Troy Thomas, and the Rev. Jarrett B. Washington were interviewed for this article
