Progress!

Webster’s dictionary defines the noun form of the word progress as “a forward or onward movement (as to an objective or to a goal); or gradual betterment.” As a verb it’s defined, “to move forward; proceed; to develop to a higher, better, or more advanced stage.”(1)

When we began the process of studying, developing, and implementing our new ministers matching program for the Nazarene 403(b) Retirement Savings Plan (Plan), we recognized there would be risks and challenges. As Frederick B. Wilcox noted, “progress always involves risks. You can’t steal second base and keep your foot on first.”(2) We wondered things like… would ministers and churches respond well? What if the amount we budgeted for the match was not enough? I remember telling our NBUSA Board I would be thrilled to face that last particular challenge!

After much study, professional guidance, prayer, and the approval of Church leadership and our NBUSA Board, we embarked on this new strategy, fully committed to the concept that being able to move to second base required we take our foot off of first. We terminated the old APS program and made the new ministers match effective January 1, 2024.

I am pleased to provide an update on the progress of the new retirement benefit program through the first three quarters of 2024 for our local church ministers. Keep in mind as you view these results, we still have another quarter to go to complete the first calendar year of this new strategy.

This table (figure 1) shows the steady increase in the number of local church ministers who received a match because they and their churches are taking up the challenge to make local effort contributions to the ministers’ Plan account. Since 2023, we’ve added 567 ministers to the matching program, representing a 47% increase.

While growth in the number of ministers receiving a match is strong, the amount of the average retirement contribution provided by NBUSA grew even stronger, by 143%, from $600 per minister for all of 2023, to a new high of $1,459 year-to-date in 2024—and we have sufficient budget resources allocated to meet this current trend. (See figure 2.)

Overall, the amount of retirement contributions for the average local church minister who receives an NBUSA match is growing to levels not realized before. This chart shows the steady increase in the level of average total contributions added to a minister’s Plan account reached $5,600 for the first three quarters of 2024. What impresses me most in these results is that 74% of these funds came from the minister and/or their church! (See figure 3.)

Apart from appropriate credentials and ministry role on a U.S. district, the first major requirement for a minister to receive a match contribution is the level of support from their church for the NBUSA Fund. Based on that, NBUSA matches a percentage of the “local effort,” which is the amount of Plan contributions to the local minister’s account by the minister and/or the church. Starting this past June, local effort now includes the level of student loan payments (principal and interest) made by the minister.(3)

With all this good news, the fact remains that 76% of our Nazarene local church ministers—who are otherwise eligible—did not receive a match for the following reasons:

• 36% made no level of local effort, despite their church’s support of our NBUSA Fund;

• 3% made local effort, but their church’s level of NBUSA Fund support fell short of the required minimum of 50%;

• 5% made no local effort and their church fell short of our NBUSA Fund minimum; and

• 32% made no local effort nor did they support our NBUSA Fund.

Of the above groups, our efforts in the near-term are to connect with the 36% who simply need to start making some level of local effort for us to match. We know that to retire well does not happen by accident. A new year is about to begin, which makes it the perfect time to purposefully evaluate your retirement plan and make any necessary adjustments to retire well when you are ready.

Kevin P. Gilmore serves as executive director of Nazarene Benefits USA for the Church of the Nazarene.

1 https://www.merriam-webster.com/dictionary/progress

2 https://goalscalling.com/progress-quotes/

3 See program details for how to qualify your student loans.