From the Department of Retirement Services
By Dr. Jerome V. Harris, Executive Director
As previously published in this newsletter, there continues to be a misunderstanding among participants as it relates to the eligibility for the full surrender of vested retirement benefits. This is caused by the misinterpretation of the two terms traditionally used in the Church: Supernumerary and Superannuation. The following definitions are presented here to assist participants in better understanding the difference in these terms:
SUPERNUMERARY
“In excess of the usual or prescribed number; more than the usual number”
In years past, when the AME Church was experiencing a shortage of active pastors, persons who had exceeded retirement age could receive a pastoral assignment as supernumeraries out of necessity. In the AME Church today, the opposite is the case, as we now have more ordained ministers than we have churches to which to assign them.
In most cases, persons who voluntarily choose to accept this status are not eligible for the full surrender (total payout) of vested retirement annuity benefits.
SUPERANNUATION
“An arrangement under which the participant was gainfully employed (active pastor) has come to an end (official retirement) and the member cannot or does not again become gainfully employed”
This term applies specifically to retirement plans and under regulation, is the sole determining factor when a participant or the surviving beneficiary is eligible for the full surrender of retirement benefits. Persons who superannuate prior to the required age of 75 must surrender their ordination credentials as they are no longer considered to be an active “agent” of the church.
Required Minimum Distribution
Under existing IRS Regulations and the governing covenants of the AMEC Ministerial Retirement Plan, all individuals age 75 and over must request and receive a RMD in the year they retire from active pastoral service and every ensuing year. The minimum distribution amount required is calculated based on their retirement account balance as of December 31st of the previous year. The penalty for not receiving the RMD as required is 50% of the amount not taken.
