News & Articles


Retirement Plan - Rate and Fees for 2024

Authored by: Jerry Rich
Date: November 9, 2023

Option C Lifetime Fund

The FCMM Board of Trustees has set the rate of earnings for the Lifetime Fund (Option C) of 2% for 2024. (Note: The rate is net of fees, so the effective rate would be 2.74%. See below for information on Plan fees.)

Option C is a collective investment fund that aims to provide to members long-term earnings that are steady and comparable to the market with less volatility. Previous rates have been: 2% in 2023; 4% in 2022; 8% in 2021; 4.5% in 2020; 3.5% in 2019; 4% in 2018; and 3% in 2017. 

Because of the long-term nature of the Option C Lifetime Fund, invested funds can be transferred to other Options only once in a 12-month period. The Lifetime Fund is structured to offer reliable value towards a monthly income benefit ("annuity") for which 100% of accrued value can be converted. If funds are instead transferred or withdrawn, a fair market value (reduction) may be applied when accrued value is greater than current market value. For more information on Option C and other Investment Options, see Form 31 Investment Option Descriptions

For information about performance and portfolio makeup for FCMM managed funds, see annual Form 40 Performance Reports in Forms & Documents. 

Fees for Retirement Plan Accounts 

As with any retirement investment account, FCMM incurs expenses to provide a compliant Retirement Plan that offers unique benefits for church staff and pastors. While many other retirement plans charge fees to the employer for providing a Plan Document and administration, there is no cost to the participating employer in FCMM's plan. 

The Retirement Plan operating cost is funded by a fee assessed to member accounts. In the case of mutual fund Options (Options F, G, and J), the fee is directly deducted after the close of each quarter based on the average daily market value during the quarter. For FCMM managed collective funds (Options C, D, E, and H), the allocated cost is applied before returns are posted; that means returns are net of such fees - already included. 

From time to time, the fees may be adjusted to reflect operating costs. For 2024, there will be no changes to member fees. For more information about fees, see Form 41 Retirement Plan Fees for 2024.

FCMM Retirement Plan fees are structured to allow churches to provide a retirement benefit at no plan administration cost to the employing church.