FAQ for Annual Pension Supplements to Your Account

Giving to the Pensions and Benefits Fund is vital to assure the ongoing ability of the Church of the Nazarene to provide assistance to ministers. The following provides an overview of how giving to the P&B Fund affects the Annual Pension Supplement and other benefits.

2022 APS and P&B USA-Provided Benefits

Annual
Benefits Paid
from P&B Funds
Annual P&B
Allocation Paid
Annual P&B and
Educational
Allocation Paid
$1 – 49% 50 – 99% 100% 100%
Survivor Benefit
(see coverage amounts below)
Disability Insurance
$500/month
Base APS
$200
Bonus APS
10%1
403(b) APS Match
50%2

Survivor Benefit Coverage
The amount of complimentary coverage for active eligible ministers is based on age: 50 and under = $30K, 51 to 70 = $15K, and 71 to 75 = $7.5K. The Survivor Benefit for eligible retired (and active over age 75) ministers is based on years of service: 10 to 20 years = $1.5K, 21 to 30 years = $3K, and 30+ years = $6K.

110% of the amount paid by church to the P&B Fund.
250% (up to $250) match of combined contributions of employee and employer to 403(b) account.

Description of Benefits:


Q: What’s new?

A: The APS contribution amounts remain unchanged from the previous year. Adjustments have been made to the amounts of complimentary disability insurance and Survivor Benefit provided for eligible pastors whose churches contribute to the Pensions and Benefits Fund. Details are below.

Q: What is an Annual Pension Supplement (APS) contribution?

A: This is a basic retirement contribution to the Nazarene 403(b) Retirement Savings Plan accounts of eligible full-time Nazarene ministers whose churches pay at least 50% of their Pensions and Benefits Fund allocation based on Funding the Mission data. The current base APS contribution amount is $200.

Q: Who is eligible to receive the 2022 APS Contribution?

A: District superintendents and senior pastors who are district-licensed or ordained are eligible because of their assigned role. Other ordained elders, deacons, district-licensed ministers and district-credentialed lay persons who meet the full-time, full-livelihood criteria also receive an APS contribution. Ministry assignments that may be considered are District Assignment; District Interim Assigned; Pastoral Service; Evangelist, Tenured; Evangelist, Registered; Evangelist, Commissioned; Song Evangelist, Registered; Song Evangelist, Commissioned; Minister of Music; and Christian Education Minister. Co-pastors are both eligible. See details in the "Eligibility Criteria" section below.

Q: What is a bonus APS contribution?

A: If a church pays 100% or more of its P&B Fund allocation, those who receive an APS base contribution also receive an APS bonus contribution equal to 10% of the P&B Fund amount paid by their church. Note that the bonus amount for churches with more than one eligible minister is shared equally by eligible participants.

Q: What is the 403(b) match?

A: If a church pays 100% or more of its P&B Fund and Education Fund allocation, those who receive an APS base contribution also receive an APS bonus contribution equal to 10% of the P&B Fund amount paid by their church and a 50% match of their personal (by salary reduction or addition) Nazarene 403(b) Retirement Savings Plan account contributions (up to a maximum of $250 annually).

Q: Does P&B provide a Survivor Benefit for pastors?

A: Yes. The Survivor Benefit is available to all eligible full-time U.S. active and retired ministers. For active ministers the amount of coverage is based on age: 50 and under = $30K, 51 to 70 = $15K, and 71 to 75 = $7.5K. For retired ministers (and active over age 75), the Survivor Benefit is based on years of service: 10 to 20 years = $1.5K, 21 to 30 years = $3K, and 31+ years = $6K. Note, to receive this benefit, active ministers must serve in a church that pays toward its annual P&B Fund allocation. Supplemental group term life insurance is also available. Visit this link or contact pensions@nazarene.org for details.

Q: Does P&B provide complimentary long-term disability insurance for pastors?

A: Yes. Basic long-term disability insurance coverage is provided for all eligible full-time Nazarene ministers receiving their first year of full-time active service credit after January 1, 1996, whose churches contribute to the P&B Fund. The maximum monthly amount of the benefit is $500. Additional disability insurance may be purchased by the minister or the local church. See P&B-Provided Benefits for details.

Q: Are benefits available for those not serving a local church, or who serve under district assignment?

A: Full-time evangelists, full-time district-assigned ministers, and district superintendents receive $1,000 base APS contributions. Survivor Benefit and long-term disability insurance coverage for these individuals are the same as for ministers whose churches contribute to the P&B Fund.

Q: When are base and bonus APS contributions made to my account?

A: Since these contributions are based on the amount of P&B Fund paid, payments are not made until after the close of the fiscal year for which they are payable. This is typically at least 90 days after the end of a district’s fiscal year. APS contributions are subject to district office verification of eligibility.

Q: When are matching contributions made to my account?

A: Usually, these contributions are processed in the first quarter of the calendar year following the year in which your contributions were made. For example, any salary reduction or salary addition contributions made in 2022 would be matched in the first quarter of 2023.

Q: I am a grandfathered participant under the Basic Pension Plan (BPP). Are 403(b) matching contributions used as an offset against my BPP benefit as with base/bonus contributions?

A: No.

Q: My church contributes to a retirement plan other than the Nazarene 403(b). Can we instruct P&B to send 403(b) matching contributions to that plan?

A: No. To qualify for matching funds, contributions must be made to your Nazarene 403(b) Retirement Savings Plan account with Fidelity Investments.


Eligibility Criteria


Q: What date is used for eligibility determination?

A: The date for eligibility is the first January 1 following commencement of full-time active service, and each January 1 thereafter until the participant no longer meets the criteria.

Q: What service is considered full-time and full-livelihood?

A: Full-time service is defined as serving no fewer than 30 hours per week for no fewer than 30 weeks each calendar year in Nazarene churches or district offices on U.S. districts that pay U.S. P&B Fund allocations. Full-livelihood is defined as deriving no less than 50% of personal net income for the calendar year from the local church or district being served. Both definitions must be satisfied to receive an APS contribution.

Q: Must evangelists meet additional criteria?

A: For evangelists, full-time and full-livelihood service is considered to be no fewer than 30 Sundays or 26 revival events (as defined by the General Board, Church of the Nazarene) per calendar year, in Nazarene churches on U.S. districts that pay U.S. P&B Fund allocations. Service not in local Nazarene churches must be affiliated with the Church of the Nazarene. An evangelist must satisfy one or the other alternative criteria, which may not be used in combination to receive an APS contribution.

Q: Who is not eligible for a 2022 APS contribution?

  • In the event that a church fails to pay any of its U.S. P&B Fund, no APS contribution will be credited to the employees of that church. This criterion does not apply to evangelists and those serving in district assignments.
  • In the year that a participant begins to receive a benefit under the Basic Pension portion of the Nazarene Single Defined Benefit Plan, they are no longer eligible to receive an APS contribution.
  • If a participant is eligible for employer-matching contributions in a church institution pension plan, no APS contribution may be granted under this plan.

What other assignments may be eligible for an APS contribution?

A full-time supply minister who is district-licensed or ordained may receive an APS contribution when earning their full-livelihood from such ministry. Full-time service is defined as no less than 30 compensated Sundays each calendar year in Nazarene churches on districts participating in payment of the U.S. P&B Fund.


The Impact of P&B Fund Payment Levels:


Q: My church pays less than 100% of our P&B Fund allocation. How does this affect what I receive?

A: We understand that reaching 100% is not always possible, but every church can pay something. If a church pays at least $1, a Survivor Benefit and long-term disability coverage of $500 a month are provided. Depending on the percentage paid, an eligible full-time minister will have either these coverages alone or with retirement benefits.

Q: My church pays nothing to the P&B Fund. How does this affect what I receive?

A: Because of funding constraints, it is no longer possible to provide benefits to ministers whose churches contribute nothing to the P&B Fund.

Q: My church employs more than one full-time minister. How do you determine the amount of APS available for ministers of multi-staff churches?

A: P&B uses the chart below to determine the number of APS base grants provided per church. As you can see, the more money contributed into the P&B Fund, the greater the number of APS base grants available.

Annual Church P&B
Fund Contribution
(at least 50% of P&B
Fund Allocation)
Number of APS
Grants Available
per Church
Total Base APS
$ Available
per Church
$1 to $1,500 1 $200
$1,501 to $3,000 2 $400
$3,001 to $5,000 3 $600
$5,001 to $10,000 4 $800
$10,001 to $15,000 5 $1,000
$15,001 to $20,000 6 $1,200
$20,001 to $25,000 8 $1,600
$25,001 and up 15 $3,000

The Importance of P&B Fund Support

Giving (or not giving) to the Pensions and Benefits Fund can directly affect pastors financially. We encourage every Nazarene church in the United States to support their pastor and other ministers by contributing to the P&B Fund.

More Information ...

Nazarene APS Program FAQ

Supplemento Pensión PREGUNTAS FRECUENTES