Why is the UU Org Retirement Plan being restated for 2025 and what is the summary of changes?



    We’re updating our Plan document to comply with recent changes in the law, to make the Plan easier to administer, and to improve equity.
    The UU Organizations Retirement Plan (UUORP), sponsored by the UUA, is updating its Plan Document which was last restated in 2014. The newly restated Plan will be implemented January 1, 2025, pending approval by the UUA Board on August 12, 2024. This restatement is necessary to comply with recent federal laws. It will also make the Plan easier to administer by our 600+ participating employers and incorporates changes designed for greater equity.

    Our Plan, which is an IRS qualified 401a/k Church Plan, has approximately 4,500 participants with assets totaling over $500 million. The UUA maintains the Plan to enable all employees of congregations, regions, the national association, other Unitarian Universalist organizations and UU ordained Community Ministers to accumulate funds for their retirement. The Plan is overseen by the UUA Retirement Plan Committee, appointed by the UUA Board. UUA staff administering the Plan are Gloria Guldager, Director; Jackie Toone, Retirement Plan Employer Liaison; and Anna Gehres, Retirement Plan Specialist. Of course, the Rev. Richard Nugent is involved as Office of Church Staff Finances (OCSF) Director. In addition, the UUA HR staff are involved in the administration of the Plan on behalf of the national staff. 

    Plan Restatement Details

    The major provisions of the Plan restatement are: 
    • Compliance with New Laws: We added a Cares Act Appendix (Articles I-IV) and provisions relating to Secure Act 1.0 and 2.0. Changes include:
      • During covid, allowed for various withdrawal options and increased loan amounts with extended payback terms and reduced/no penalties. 
      • Increase in the required minimum distribution (RMD) age from age 72 to age 73 in 2023, and then to age 75 in 2033. 
      • Addition of in-service withdrawal options with no penalty including hardships, qualified birth or adoption, domestic abuse, and qualified disaster. (See Section 10)
    We’re standardizing the way employer contributions are calculated.
    • Section 2.13: The definition of Compensation used for calculating employer contributions has been updated. Currently, each participating employer is asked to choose from a list of exclusions to salary. For ease of employer administration, the definition will be standardized, with the following adjustments to W-2 income:
      • Include: amounts received as a housing or parsonage allowance and salary deferrals. (This is a clarification, not a change.)
      • Exclude: severance pay, payment in lieu of FICA, imputed insurance premiums, the gross-up amount for same-gender couples, additional benefits not paid in cash, and reimbursements for moving and travel expenses, and health insurance stipends. 
    Eligibility for immediate employer contributions is expanding to include all UUA credentialed and certified professionals.
    • Section 2.50: Completion of a Year of Eligibility Service (YOES) qualifies an employee for employer contributions. The definition of Year of Eligibility Service has been updated to include not only ministers who have attained preliminary fellowship but also credentialed religious educators and certified music leaders. Previously, ministers satisfied their YOES by completing an internship. This change provides ease and consistency of process, and greater equity across professional areas. (The YOES criteria for non-credentialed employees, based on hours and years of service, remains unchanged.)   
    • Section 4.1: Roth contribution options have been added, as well as In-Plan Roth Rollover Contributions and In-Plan Roth Transfer Contributions. (Effective 1/1/2026)
    • Section 4.6: Removes the auto-enrollment election from the Employer Participation Agreement for all employers except for those with 100 or more employees. This provision proved challenging for employers to administer correctly.
    You will be permitted to change your employer contribution percentage at the start of either the calendar year or your fiscal year.
    • Section 5.1 and 5.2: Allow for more flexibility in changing employer contribution amounts. Rather than only at the start of the Plan Year (calendar year), changes will now be allowed at the start of the employer’s Fiscal Year. NOTE: Employers that are deemed to have one or more Highly Compensated Employees (HCEs) will be classified as “Safe Harbor” and will only be able to make employer contribution election changes at the start of a Plan Year and will be subject to annual Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) testing. An HCE is defined as an employee that exceeds the annual compensation amount ($155,000 in 2024, not including housing allowance, if provided). 
    • Section 14: Clarifies and simplifies overall plan and individual employer terminations. 
    Tags
    restatement
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