The Ministry Employees Retirement Plan or MERP, was developed as a turnkey 403(b) solution for today's evangelical Christian churches. With the new 403(b) regulations requiring much more employer involvement and administration than in the past, we recognized the need for a simple solution.
MERP is a 501(c)(3) Nonprofit Corporation. The purpose of MERP is to provide an “association” that evangelical Christian churches can join for the benefit of participating in an IRS compliant 403(b)(9) plan. By joining together, ministries can greatly reduce the administration costs of developing and maintaining a compliant 403(b)(9) church plan.
A 403(b)(9) “church plan” has many advantages for eligible ministries such as:
1. Ordained individuals are able to designate a portion of their retirement funds distribution from the plan as housing allowance, therefore not subjecting that portion of distribution to income tax. This is a great benefit available only in 403(b)(9) plans.
2. Exempting those who qualify to participate from ERISA regulation, and the filing of form 5500.
3. Churches who qualify to join MERP are not subject to the universal availability requirement under the new regulations.
For those churches that choose to join MERP the following tools will be provided:
• A written plan document that addresses the following:
Eligibility, contributions, applicable limitations, contracts available,
time and form of distributions
• Operational procedures for the written plan document
• Investment screening provided by Ibbotson Associates, a recognized leader in asset allocation and investment research
• Annual recordkeeping services
• A wide selection of mutual funds including some which are screened for Christian values
• Investment education provided by industry experts
• Online communication, administration, and education tools
• ROTH 403(b)(9) option
The responsibility of those churches that choose to join MERP is simple:
• Follow operational procedures for the written plan document.
• Submit employee deferrals to the plan custodian.
For more information please call Barbara Coetzee, Registered Sales Assistant at:
