Policies from the 1999 Book of Discipline

B/452. Budget and Finance Committee.

1. The Board of Administration shall elect a Budget and Finance Committee of five members. At least four members of the Budget and Finance Committee shall be members of the Board of Administration. All members, including the chair, shall be elected by the Board with nominations from the nominating committee. The World Ministries Center overseer and the general church treasurer shall be ex officio members of the committee.

2. Terms of service shall be for the interim of general conference. If members must be replaced before their terms are completed, replacements shall be for the balance of the unexpired term. Members may succeed themselves.

3. In selecting persons to serve on the Budget and Finance Committee, representation by geographic area and from conferences of different sizes shall be considered. Persons selected to serve shall be qualified to administer the business. They shall also demonstrate a vital interest in the total mission of the church.

4. Role of the Budget and Finance Committee
In consultation with the Executive Director of Administration and Finance, the Budget and Finance Committee will:

• a. Recommend policy to assure good stewardship of church financial assets, assure appropriate levels of financial performance and debt levels, maintain appropriate financial flexibility, select investment managers, negotiate fees, and review performance, and assure proper accounting and reporting of all church financial records;
• b. Recommend to the Board of Administration compensation levels for the bishops and executive staff and set compensation schedules for all other general church personnel;
• c. Provide a careful review and recommend to the Board of Administration the operating budgets of Home Ministries, World Missions, and Light and Life Communications;
• d. Serve as the Audit Review Committee;
• e. Develop the funding model for Home Ministries' support;

5. The Board of Bishops will consult with the chair of the Budget and Finance Committee regarding the Board of Bishops' choice of the Executive Director of Administration and Finance.

B/461.7. Pension Plan.

1. The Board of Administration by authorization of the 1964 General Conference has established a defined contribution pension plan which became effective January 1, 1969, and covers ministers, general officers, and other persons as described in the pension plan. On January 1, 1981 a defined benefit pension plan was added.

2. The pension plan was created for the exclusive benefit of employees of the employer and their beneficiaries and shall be interpreted in a manner consistent with its being a qualified pension plan as defined in section 401(a) of the Internal Revenue Code of 1986, as the same may be amended from time to time.

3. The pension plans shall be administered by the Board of Administration serving as the Pension Board, in accordance with the rules and regulations of the plans. The details of this administrative responsibility shall be delegated to the Benefits Committee which is elected by the Board of Administration.

4. The Benefits Committee shall make recommendations concerning the administration of the plans, and shall regularly review the plans and their administration for needed clarification, procedural adjustments, or amendments. The Benefits Committee's work is subject to the approval of the Board of Administration.

5. Role of the Benefits Committee
Working with the administration of the World Ministries Center, the Benefits Committee will:

• a. administer and monitor the Free Methodist Church of North America Defined Benefit and Defined Contribution pension plans in a manner consistent with the definition of a qualified pension plan in section 401(a) of the IRC of 1986 as amended;
• b. administer an overall policy regarding enrollments, contributions, and retirement benefits that will ensure that all appropriate personnel receive a benefit;
• c. regularly review the Plans' provisions and provide clarification, adjustments, or amendments;
• d. receive and review annually the Plans' audit and valuation for any possible benefit improvements;
• e. periodically meet with the Plan actuary to review the Plans' financial profile related to current and future plan participants. Refer issues to legal counsel when appropriate;
• f. periodically meet with the Free Methodist Foundation to receive and review reports of the Plans' investment performance and fee structure;
• g. communicate with the Plans' participants on a regular basis regarding plan changes, accrued benefits, and in conjunction with the Free Methodist Foundation, provide retirement financial planning;
• h. provide any necessary reports and recommendations for the Plans to the Board of Administration which has ultimate responsibility for the Plans' administration.

In addition, as the need arises, work with the administration of the World Ministries Center on benefit issues that are outside of the retirement plans.

6. The pension plans may be amended by the General Conference or the Board of Administration. The text of such amendments shall be communicated to the participants of the plans in writing. No amendment shall abridge or annul the rights of members in respect to their accumulations as of the date of the adoption of such amendment.

7. Each United States church shall contribute to the support of the defined benefit pension plan in accordance with the rules and regulations of the plan. The contribution paid by the church shall be in addition to the pastor's earnings, not a deduction from them.

8. Any qualifying person serving a Free Methodist church in another country shall be granted a leave of absence and shall not forfeit any pension benefits which have accrued.

9. No participant in the pension plans shall have any right to assign, alienate, anticipate, or commute any payments from the plans; and, except as otherwise prescribed by law, no payment shall be subject to the debts, contracts, or engagements of any payee, nor to any judicial process to levy upon or attach the same for the payment thereof.

10. The trustees of the pension plans shall be the Board of Directors of the Free Methodist Church of North America, who shall be responsible for seeing that the plans are administered in accordance with the plan documents.