Benefits Benefits

Option 1 - Traditional 401(k) -  Income Deduction Today, Taxed Later

The AFLC offers a 401(k) Retirement Savings Plan through Empower Retirement for all eligible employees. See AFLC Summary Plan Descriptions (SPD) for details concerning participant eligibility. Contributions to a 401(k) plan are made with “pre-tax” dollars, grow tax-deferred during the accumulation phase and are taxed as ordinary income upon distribution in retirement. Because the AFLC Retirement Savings Plan is “denominationally sponsored” some portion of distributions received by Pastors in retirement will qualify for “housing allowance” and not be subject to ordinary income taxation. Pastors in a Retirement Savings Plan sponsored by a single church do not receive this same tax-favored treatment. Please contact your Certified Public Accountant or other tax professional for details regarding “housing allowance” for pastors.

Option 2 - Roth 401(k)  - Taxed Today, Tax-free Withdrawals Later

The AFLC offers a ROTH 401(k) Retirement Savings Plan through Empower Retirement for all eligible employees. See AFLC Summary Plan Descriptions (SPD) for details concerning participant eligibility. Contributions to a ROTH 401(k) plan are made “after-tax” dollars and are limited to elective employee contributions. Employer matching contributions cannot be invested in a ROTH 401(k) account! Contributions into a ROTH 401(k) grow tax-deferred during the accumulation phase and carry no income tax liability if distributions begin after age 59 1/2. Please contact your Certified Public Accountant or other tax professional for details regarding whether such an account is appropriate for your individual situation.

Enrollment - Employee Actions
​Please contact the AFLC Business Office for enrollment documents  763-545-5631.

Enrollment - Employer Actions
The following forms need to be completed by the church treasurer and returned to the business office before any contributions can be processed.

• 401(k) Participation Agreement
• 2021 Census Form or 2022 Census Form
• EFT Authorization Form

If at any time during the year changes need to be made please use the following form:

• Mid-Year Change/Additional Contribution Form

​Term Life and AD&D Insurance
​What happens to those left behind after death? Loss of income, medical costs, and burial expenses can cause additional burden besides the loss of a loved one. Term Life Insurance and Accidental Death and Dismemberment coverage up to $50,000 is offered to all employees working a minimum of 32 hours per week. At age 65, this coverage is reduced to $32,500 and at age 70 coverage is reduced to $25,000. The plan is guaranteed without requirement for medical underwriting.

​Long Term Disability Income Insurance
​What if your paycheck stopped coming? It's estimated that one in three people will experience a disabling event sometime in their life. Are you prepared for such an event? This benefit is a available to all eligible employees who work at least 32 hours per week. In the event of a disabling event the participant will receive 60% of their “before-tax” earnings to a maximum annual salary of $78,000 after a 90 day elimination period. The employer needs to “gross up” the participant’s salary to include the disability premiums so that premiums are paid with “after tax” dollars.

Both of these plans require 100% participation. All congregations that choose to participate must enroll all eligible employees.

Please contact the AFLC Business Office for enrollment documents 763-545-5631.

Help In Service Fund (HIS Fund)
The purpose of the HIS Fund is to assist AFLC pastors and their families with financial needs resulting from various unforeseen circumstances. Any money distributed is done so as a gift. Repayment is not expected. However, if a recipient finds himself in a position and has a desire to give to the HIS fund at a later time, they are encouraged to give to the AFLC and designate the gift to the HIS fund.

HIS Fund Policy ​as of November, 2016

The Association of Free Lutheran Congregations (AFLC), in the exercise of its religious and charitable purposes, has established a benevolence fund, the Help In Service Fund (HIS Fund), to assist AFLC pastors in financial need. The AFLC welcomes contributions to the fund. Donors are free to suggest beneficiaries of the fund or of their contributions to the fund. However, such suggestions shall be deemed advisory rather than mandatory in nature. The administration of the fund, including disbursements, is subject to the exclusive control and discretion of the Benefits Board. The Benefits Board may consider suggested designations, but in no event is it bound in any way to honor them, since they are accepted only on the condition that they are merely nonbinding suggestions or recommendations. As a result, donors will not be entitled to a return of their designated contributions on the ground that the AFLC failed to honor their designations.

Donors wishing to make contributions to the HIS Fund subject to these conditions may be able to deduct their contributions if they itemize their deductions on their federal income tax return. The AFLC cannot guarantee this result and recommends that donors who want assurance that their contributions are deductible seek the advice of a tax attorney or CPA. Checks should be made payable to the AFLC, with a notation that the funds are to be placed in the HIS Fund. - The AFLC Benefits Board

HIS Fund Application
To apply for a distribution from the HIS Fund for yourself, or on behalf of someone else, please complete the application form and return it to the AFLC Presidents office either by mail or email, [email protected]

HIS APPLICATION

• 2023 Census Form
• 2022 Census Form
• EFT Authorization Form
• Mid-Year Change Additional Contribution Form
• 401(k) Participation Agreement Form
• Life/LTD Participation Agreement Form
• LTD Salary Update Form