A recent headline about the struggles of several (non-Wespath) church-affiliated pension programs has raised some questions from our participants seeking reassurance about the security of Wespath’s retirement plans. While the news cycle shifts quickly, this article offers a timely opportunity to explain the many measures and protections in place to ensure the long-term security and sustainability of Wespath’s retirement plans—and to reassure you that your accounts with, and benefits from, Wespath are managed prudently.
For over 115 years, the retirement plans Wespath manages have endured depressions, recessions, market upheavals, wars and pandemics. Through it all, we have maintained a steady hand, taking short-term market ups and downs in stride, which has allowed us to continually strengthen and live into our mission to “care for those who serve.”
Whether you are with The United Methodist Church, African Methodist Episcopal Church, Puerto Rico Methodist Church, or any other organization we serve or have served through our values-aligned mission focus, your retirement plan assets with Wespath are protected and secure.
Transparency is paramount to Wespath.
We manage our retirement plans and investment program professionally and transparently. Our funds are priced daily, and customers can access account balances and other information 24/7/365 through a secured web portal. Participants can reach our customer service representatives by phone with any questions during normal business hours. Our institutional investment clients also have 24/7/365 access to fund performance through another secured portal designed for their needs.
The pension plans administered by Wespath are fully funded.
Based on the most recent estimates, the UMC’s clergy pension plans [Clergy Retirement Security Program (CRSP)—which includes CRSP-DB (defined benefit), Ministerial Pension Plan (MPP) annuities, and Pre-82 Plan] are fully (100%) funded (measuring these obligations using conservative assumptions similar to those used for secular pension plans). Our Board of Directors (more information below) holds Wespath accountable for prudent actuarial practices related to these plans.
We are required by law to act in your best interests.
Wespath is a fiduciary. This means we are charged by state law and church law to act in the best interests of our participants and investors. We have always treated our fiduciary obligation to participants as not only a legal duty but also as a sacred trust. We live into our commitment to your financial peace of mind with transparency and independent oversight as core tenets of Wespath’s stewardship responsibility.
We have independent Board oversight.
Wespath’s Board of Directors (Board) holds me and Wespath’s senior management accountable to the highest professional expectations and to our mission of caring for those who serve. Our Board sets policies for our ethical standards, accounting practices, investment programs, financial activities and risk management. The Board’s members are mission-driven volunteers who are independent of Wespath’s management—elected in large part by regional UMC conferences. Certain Board members have extensive specialized backgrounds in investments, pensions, accounting, auditing and information technology. They know their stuff—and they hold us accountable to gold standards of excellence.
Third-party industry-leading experts provide additional oversight.
Wespath retains the services of leading third-party experts for additional assurance and transparency. An independent external auditor reviews our annual financial statements. Independent service providers conduct risk-informed internal audits of our key controls and verify our compliance with recognized investment industry standards for reporting investment performance. Annually, we conduct a comprehensive System and Organization Controls (SOC-1) audit, which is independently verified and available on our website. A SOC-1 report is an audit that assesses an organization’s internal controls.
We have a team of long-tenured, highly experienced investment professionals.
We place a high priority on providing professional investment management. Our investment philosophy reflects a long-term perspective to support our customers not only today—but also many decades in the future. We believe in global diversification to reduce risks. To mitigate risk and optimize performance, we diversify across an array of investments (e.g., domestic and international public stocks, government and corporate bonds, commodities, and private investments), and across roughly 50 world-class and boutique specialist investment managers.
These practices and more underscore our commitment to your peace of mind.
Wespath is humbled and honored that over 100,000 participants and more than 150 institutional investors have entrusted us to manage and protect their assets. We pledge to honor this sacred trust for many years into the future.
As my English wife’s culture would characterize it: our participants and investors can keep calm and carry on in ministry knowing that Wespath has you covered. Thank you.
This content was originally published by Wespath; republished with permission by ResourceUMC on March 7, 2025.