There are four main types of contributions that can be made to a participant’s Shepherd Plan account, as described below.
Synod Allocations
Synod Allocations are the denominational retirement benefits that are paid for by WELS sponsoring organizations and provided to eligible (1) called workers; and (2) lay workers who are employed at least half-time by the WELS Center for Mission and Ministry, Wisconsin Lutheran Seminary, Martin Luther College, Luther Preparatory School, or Michigan Lutheran Seminary, and were hired before 2015. An eligible called or lay worker receives a Synod Allocation in his or her Shepherd Plan account each quarter based on that worker’s call or employment status on the first day of that quarter, according to the amounts shown below:
- Full Time: $500
- Three Quarter Time: $375
- Half Time: $250
Synod Age-Based Allocations
Synod Age-Based Allocations are the denominational retirement benefits that are paid for by WELS sponsoring organizations and provided to eligible WELS called and lay workers who:
- Had attained at least age 44 on January 1, 2022; and
- Either:
- Continuously served an eligible call or lay worker employment on at least a half-time basis since January 1, 2022; or
- Served an eligible call on at least a half-time basis on January 1, 2022, ceased serving an eligible call after January 1, 2022, and subsequently recommenced serving an eligible call on at least a half-time basis within two years of the date the worker ceased serving an eligible call after January 1, 2022.
The amounts of Synod Age-Based Allocations are provided in the table below.
- Worker’s Age on 1/1/2022
- 44
- 45
- 46
- 47
- 48
- 49
- 50
- 51
- 52
- 53
- 54
- 55
- 56
- 57
- 58
- 59
- 60
- 61
- 62
- 63
- 64
- 65 or over
- Quarterly Additional Contribution
- $25.00
- $37.50
- $62.50
- $87.50
- $112.50
- $137.50
- $162.50
- $187.50
- $212.50
- $243.75
- $275.00
- $300.00
- $325.00
- $350.00
- $375.00
- $400.00
- $437.50
- $468.75
- $500.00
- $531.25
- $562.50
- $600.00
Employer Contributions
Employer Contributions are contributions that a participant’s sponsoring organization may make to the participant’s Shepherd Plan account in addition to any amount paid by the sponsoring organization for Synod Allocations and Synod Age-Based Allocations. Employer contributions are voluntary as sponsoring organizations are not required to make employer contributions. Participants should consult with the Shepherd Plan administrator at their local sponsoring organization to determine if employer contributions will be made to their Shepherd Plan accounts.
Employee Contributions
Employee contributions are the amounts that a participant can save from his or her pay and invest in the Shepherd Plan for use in retirement. Employee contributions can be made either pre-tax or after-tax.
Synod Allocations, Synod Age-Based Allocations, and Employee Contributions vest immediately when the contributions are deposited into the participant’s Shepherd Plan account. Participants should consult with the Shepherd Plan administrator at their local sponsoring organization to determine if a vesting schedule applies to Employer Contributions.
The WELS Shepherd Plan offers a variety of investment options for participants to allow for broad diversification with low fees. These investment options have been evaluated and selected based on numerous fiduciary screening criteria.
Participants can make investment elections, designate beneficiaries, and change employee contributions on the Shepherd Plan website. Please refer to this instructional video for information on how to select beneficiaries and investment options. The Shepherd Plan advisors with the Hahn Financial Group have also prepared a video walkthrough to demonstrate how participants can manage their Shepherd Plan accounts.
The Shepherd Plan account balance for a participant who does not make an investment election will be invested in the Plan’s default investment option, which is the target retirement date fund that most closely aligns with that participant’s projected retirement date based on age.
Worker contributions by Ministers of the Gospel can be made pre-tax for Federal tax and Social Security tax purposes.
Ministers of the Gospel may receive pre-tax employer contributions or make after-tax contributions to a Housing Equity Account that allows distribution for a down payment on the worker’s primary residence prior to age 59-1/2.