Programs & Services - 403(b)

The RPB is responsible for all of the legal, administrative and investment management for the Plan. Participants pay a fee of 25 basis points (0.25%), which covers a portion of the overall administrative expenses related to RPB operations. These charges are often lower than those of commercial plans. Investment returns are provided to participants net of all actual expenses.There are no management or administrative fees to congregations for participating in the RPB programs. Congregations only have to make the contributions for its RPB participants.

The IRS places limits on the contributions that can be made to a 403(b) plan. These limits are determined by the type of contribution that is being made. There are two types of contributions that can be made to the RPB:

• Employer Contributions are made by an employer to the RPB. Employer contributions represent contributions made to the Plan that are in addition to a participant’s regular salary (and parsonage, if applicable).
• Elective Salary Deferral is a contribution made to the Reform Pension Plan as a pre-tax deduction from a participant’s pay. Elective salary deferrals are facilitated by entering into a Salary Reduction Agreement with the employer. Salary Reduction Agreements should remain on file with the employer and should not be sent to the RPB office. Participants may change their elective salary deferral amount at any time, but the participant and employer must enter into a new Salary Reduction Agreement in each instance. If the participant should leave employment with the congregation before the end of a plan year and a portion of the contribution was prepaid, the congregation may request a refund of the unearned contribution amount.

It is important to note that both employer contributions and elective salary deferrals have to be paid by the employer to the RPB because all contributions to the Plan must be made with pre-tax dollars.

There are compelling reasons to participate in the RPB pension plan, even for professionals that enter the Reform Movement later in their career. Participant contributions are made on a pre-tax basis, reducing current taxation. Income tax on contributions and earnings is deferred until the participant takes a direct retirement distribution.

Employer contributions and elective salary deferrals have different maximum contribution limits:

Employer Contributions – For the 2012 RPB plan year, which runs from July 1, 2011 through June 30, 2012, the maximum contribution that an employer can contribute to the RPB 403(b) plan is $49,000 or 100 percent of the participant’s includable salary if the includable salary as reported to the IRS is less than $49,000. (Includable salary is the participant’s salary excluding parsonage.) If an employer’s contribution exceeds the maximum contribution limit, the overage will be applied to the participant’s RPB Rabbi Trust Account.

• Elective Salary Deferrals – The maximum amount allowable by a participant as an elective salary deferral in the 2012 RPB plan year is $16,500 or 100 percent of the participant’s includable salary if the includable salary as reported to the IRS is less than $16,500.
• Over 50 Catch-Up Provision – Beginning with the RPB plan year that participants turn 50, the elective salary deferral portion of a contribution can be increased. Participants who are 50 or older during the 2012 plan year may increase their elective salary deferral by $5,500 to a maximum of $22,000. In any case, the participant’s elective salary deferral cannot exceed their includable salary.
• Combined Limits – The combined contribution limit to the 2012 plan year is $49,000 unless the over 50 catch-up provision is utilized. If the over 50 catch-up provision is utilized, the combined maximum contribution limit is increased up to $54,500 (the $49,000 limit and a dollar for dollar increase for the over 50 catch-up amount). In any case, a contribution for a participant cannot exceed their includable salary.

There are no minimum pension contribution requirements.

Participants must choose the investment allocation of their funds upon joining the Plan and can choose from among the Plan’s three funds: Equity Fund, Bond Fund and Stable Value Fund.

Elections must be made within the parameters outlined in the table below:

RPB Asset Allocation Parameters

Participant’s Age as of (last) July 1	Allocation Parameters
	Equities	Bonds/Stable Value
Under age 60	80% maximum 20% minimum	80% maximum 20% minimum
Age 60 to age 69	80% maximum 0% minimum	100 % maximum 20% minimum
Age 70 and older	60 % maximum 0% minimum	100% maximum 40% minimum

Participants can change the asset allocation of their RPB funds on a quarterly basis by making an election on RPB InfoExpress during an investment choice election period. All informational materials related to the investment choice election period are posted in this section of our website prior to the beginning of each election period. The materials include instructions for making elections on RPB InfoExpress as well as descriptions of our fund managers and investment performance results. We encourage you to read all of the informational materials related to investment choice before making your asset allocation election decision. Please see the most current informational materials by clicking on the links below:

• Participant Investment Choice Documents – Spring 2012
  • Announcement Memo
  • Asset Allocation Election Instructions
  • Fund Descriptions
  • Performance and Allocation Charts as of April 2012
  • Fund Attributes Chart
  • Automatic Rebalancing Policy

Since asset allocation decisions are a key factor in overall investment performance, the RPB strongly advises participants to consult with a financial advisor before making a decision. Additional help is available, free of charge, through Ceridian LifeWorks.

Participants’ asset allocations remain in effect unless they elect to change them. Please be aware, however, that pension accounts may be subject to automatic rebalancing if your asset allocation is five percentage points or more above or below your elected allocation. Please refer to our “Automatic Rebalancing Policy” for further information.

Please contact the RPB office if you have questions about Participant Investment Choice elections.

Pension Account Beneficiary Designation Form

Participants must designate the beneficiary(ies)of their pension accounts upon joining the Plan by filling out the RPB Pension Account Beneficiary Designation form and returning the original form to the RPB office. The form will be countersigned by the RPB Plan Administrator, and a copy of the fully executed form will be returned to the participant. Click here to access the Pension Account Beneficiary Form.

Life Insurance Beneficiary Form and Addendum

Participants must designate the beneficiary(ies) of their life insurance benefit upon joining the Plan by filling out the RPB Life Insurance Beneficiary Form and the corresponding Addendum and returning the original forms to the RPB office..The forms will be countersigned by the RPB Plan Administrator, and a copy of the fully executed forms will be returned to the participant.

Regardless of the participant’s current eligibility status for life insurance coverage, the life insurance form remains on file in the event that the participant increases his or her pension contribution to a minimum of 10 percent. Click here to access the Life Insurance Beneficiary Form and addendum

The Reform Pension Plan’s funds are invested in a highly diversified portfolio, which includes an Equity Fund, Bond Fund and Stable Value Fund. The RPB’s Investment Committee, along with an independent investment consulting firm, performs an ongoing evaluation of the structure of the RPB portfolio and monitors the performance of all RPB investment managers. To learn more about the RPB’s investment portfolio, please click the links below:

• Fund Descriptions
• Performance and Allocation Charts as of April 2012
• Fund Attributes Chart
• RPB Investment Policy Statement

The RPB is deeply committed to environmental, social and governance investing. We are actively involved in socially responsible investment (SRI) through the use of shareholder initiatives, which has shown to be one of the best methods for influencing corporate behavior and actually effecting those desirable changes. The RPB does this in partnership with the Interfaith Center for Corporate Responsibility (ICCR) and Institutional Shareholder Services (ISS). As a fund managing approximately one billion dollars, we have a powerful voice, and we are guided by URJ, CCAR, and RAC resolutions.The RPB provides specific instructions to our investment managers regarding allowable or restricted investments. For instance, we instruct managers not to hold companies that invest in tobacco products or are involved with the Sudan. We actively vote all of our proxies, and all votes are made with an SRI profile, customized for the RPB to include voting against any resolution that supports anti-Israel activities.

The RPB accepts rollover funds from other qualified 403(b) plans, 401(k) plans, IRAs and other tax-deferred plans. To verify that the funds are considered qualified retirement funds, participants must complete an RPB Rollover Transfer Form. Rollovers can be made via wire transfers or by checks. Rollovers will be shown separately from other RPB assets on account statements and will be subject to the same RPB rules and investment allocation choices as other RPB funds. It is important to note that money that is rolled over from sources other than URJ-affiliated congregations is not eligible for parsonage exclusion in retirement. The RPB also can’t accept rollovers from Roth IRAs.

• Rollover Form – Pension Plans
• Rollover Announcement Letter – IRAs
• IRA Rollover Form – Direct Payment from Institution
• IRA Rollover Form – Payment by Personal Check
• Asset Allocation Election Form – Rollover

Information on Retirement Distribution Options

The RPB Pension Plan offers several options for receiving distributions at retirement. Participants may establish a monthly distribution from their account under the Flexible Payment Option, roll over all or part of their account balance to another qualified retirement account, take a direct distribution of all or part of their account balance or purchase an annuity. Please see further information on our retirement distributions in the following descriptions and chart:

• Flexible Payment Option: The Flexible Payment Option is currently the most popular distribution option with benefits including: continued exposure to the financial markets, which could provide growth potential to a pension account, investing managed by the RPB and an account balance transfer to beneficiaries in case of death. Along with the benefits, there is a certain amount of risk with this option including: participants outliving the money in their pension accounts depending on the level of actual earnings and level of distributions, and exposure to the financial markets could result in lower balances when the markets have negative results.
• Lump Sum:The partial rollovers or direct distribution options can be taken no more than once every three years. Please read our Special Tax Noticeif you are considering a lump sum distribution.
  • Rollovers: A lump sum rollover to another financial institution carries both a potential benefit and a potential risk, since account and investment management is decided by the participant within the parameters of the entity receiving the rollover. It is important for clergy to note that if they roll money out of the Reform Pension Plan, they risk a likely loss of their parsonage exclusion exemption benefit.
  • Direct: A direct distribution carries both a potential benefit and a potential risk, since the option gives full responsibility for investment and management of the funds to the participant. The entire distribution is subject to taxation. It is important for clergy to note that if they roll money out of the Reform Pension Plan, they risk a likely loss of their parsonage exclusion exemption benefit.
• Annuity: You can purchase an annuity with MetLife through the RPB. The MetLife Guaranteed Income Program offers a range of annuities that guarantee income payments for life* including payments to a spouse/partner if this option is selected; however, the value of the payments are affected over time by inflation. Clergy should note that annuity income is eligible for parsonage exclusion.

* This guarantee is based on the claims-paying ability and financial strength of Metlife.

Please contact Ingrid Aponte, Participant Account Manager, at the RPB office to request additional information and retirement forms for the above distribution options. We will send the information and forms to you via email or postal mail. You can also schedule an in-person meeting with Ingrid to discuss your individual retirement situation by contacting her or her administrative assistant, Andrew Buchhalter.

Type of Distribution	Benefits	Risks
Flexible Payment Option	Exposure to market could provide growth potential to pension account Account balance, if any, at death is transferred to beneficiary(ies) RPB does the investing Distributions are eligible for parsonage exclusion for clergy	Participants can outlive the money in their pension account depending on the level of earnings and distributions Exposure to market could result in lower balances when financial markets have negative results
Annuities Purchased through the RPB	Distributions guaranteed for life including distributions to spouse (if elected) Distributions are eligible for parsonage exclusion	Value of distributions is affected over time by inflation Generally, no money is left for beneficiaries after the participant and spouse (if applicable) die
Lump Sum Rollovers to another Tax-Deferred Program or Personal IRA	Account and investment management is decided by the participant within the parameters of the entity receiving the rollover	Account and investment management is decided by the participant within the parameters of the entity receiving the rollover Possible loss of parsonage for clergy
Lump Sum Distributions	Full responsibility for account investment and management is with participant	Full responsibility for account investment and management is with participant Possible loss of parsonage for clergy Entire distribution is subject to taxation

Special Tax Notice

Lump Sum: The partial rollovers or direct distribution options can be taken no more than once every three years. Please read our Special Tax Notice if you are considering a lump sum distribution.

In the case of divorce, the RPB requires a Qualified Domestic Relations Order (QDRO) to divide the participant’s RPB account between the participant and his/her spouse. Before a QDRO is processed through the courts, it should be forwarded to the RPB office for review to ensure that it satisfies the RPB’s legal requirements. The RPB provides a model QDRO as a resource.Once a QDRO is filed and approved by the courts, the RPB will transfer the appropriate amount from the original participant’s account to an account set up for the ex-spouse. The ex-spouse cannot contribute additional funds to the account, but can roll the money out of the account or leave it invested with the RPB.

RPB facilitates parsonage declarations in retirement for clergy. Distributions from the Reform Pension Plan are considered as taxable income. When retirees draw on their pension accounts in retirement, they are receiving distributions of pre-tax contributions and associated earnings. Clergy can use their parsonage exemption to offset some or all of the taxable income on their distributions depending on their housing expenses. Retired clergy should check with a financial advisor to ensure compliance with the IRS parsonage rules.The RPB sends parsonage exemption forms to retired clergy each fall in advance of the upcoming year. The participant must confirm or lower the amount of parsonage that they declared for the past year and project the amount of parsonage that they wish to set for the upcoming year. The RPB transmits the collected information to the applicable financial institution, who then issues a Form 1099-R to the participant to reclassify the income from taxable to non-taxable.It is important to note that retired clergy are eligible to use a parsonage exemption and do not have to be associated with a congregation in retirement or need to have a title such as Rabbi Emeritus to utilize their parsonage exemption.For additional information on parsonage, including information from the “Minister’s Guide for Income Tax,” please contact the Financial Department of the Central Conference of the American Rabbis (CCAR)

The IRS requires participants who have attained the age of 70 ½ and are retired (have stopped working for an eligible Reform Movement employer) to take a required minimum distribution (RMD) from their qualified retirement plan(s) each year. The RPB advises retired participants of their RMD obligation at the appropriate time. The amount of the distribution is based on factors such as the value of the retirement account as of December 31^stfrom the previous calendar year and the age of the participant. The age of the participant’s spouse is also a factor if there is an age difference greater than 10 years.Please contact the RPB office if you have questions concerning your RMD.