2022 Annuity Payout Marks a 10.6% Increase Over 2021

The MMBB annuity is designed to meet the unique needs of those who have dedicated their lives to God’s service. The MMBB Board of Managers, in consultation with independent actuaries and staff, determined that the annuity payout value for 2022 will be $78.56, which is a 10.6 percent increase over the 2021 annuity payout. Let’s take a look at the unique features of the MMBB Annuity and how the 2022 payout was calculated.

The annuity is designed to be a lifetime annuity. MMBB will pay
you benefits for as long as you live. Also, if you are married and have chosen a joint annuity, your spouse will receive benefits for as long as he or she lives.

The annuity is variable. Your benefit depends upon the investment performance of the markets as well as other factors.

The MMBB annuity has a guarantee, which means you receive downside protection. Your annuity will not drop more than 5 percent in the first year of market underperformance, or more than 10 percent in the second or any subsequent year of underperformance.

The Annuity Payout Value is determined on September 30, each year using the higher of:

The unique or current value of a unit of the Annuity Fund as of September 30, 2021-$82.25
The six-month average value of a unit of the Annuity Fund as of September 30, 2021-$81.85
The downside guarantee of 95 percent of the current payout value-$67.48

The MMBB Board announced that after adjustments for the reserve fund and inflation, the 2022 annuity payout value is $78.56,
an increase of 10.6% over the 2021 payout value.

The following factors determined the value of 2022's annuity unit:

Investment Performance - Calculated on a 12-month basis from September 30, 2020, to September 30, 2021, the investment performance of the Annuity Fund was 20.18 percent.
Value of the Underlying Assets - The underlying Annuity Unit Value as of September 30, 2020 was $70.98. The calculation begins from the actual underlying value of the Annuity Fund as of September 30, 2020.
4 Percent Advance Earnings Assumption - MMBB assumes the investments in the Annuity Fund will earn 4 percent a year during each of your retirement years. MMBB advances you 4 percent more units than you actually purchase when you first create your annuity. As a result, investment results must exceed 4 percent before any increase is passed on to you.
Actuarial Adjustments - In order to secure the Annuity Fund, we must calculate payout obligations based on the expected lifetimes of our annuitants. If the actuarial assumptions change regarding life expectancy, we may have to make adjustments. For the 12 months ending September 30, 2021, the mortality adjustment brought the payout value from $82.08 to $82.25.
Adjustment for Inflation - MMBB uses the Consumer Price Index for All Urban Consumers, a general index developed by the U.S. Bureau of Labor and Statistics that tracks the increase and decrease in prices (or a bundle of goods and services) for all urban consumers. This index also tracks increases or decreases for hourly wage earners and clerical workers for approximately 87 percent of the U.S. population. Inflation for the one-year period ending September 30, 2021, was 5.4 percent.
Adjustment for MMBB Reserve - In 2015, MMBB's Board of Managers voted to create an Annuity Reserve to address unexpected inflation, increased or unexpected volatility in the markets, potential adjustments based on mortality experience and to support the annuity guarantees. MMBB defines “excess” as an amount over and above the advanced earning assumption of 4 percent plus the applicable inflation rate, which is 5.4 percent as of September 30, 2021. Therefore, the 2021 value of $71.03 will be adjusted to $74.87 to account for this inflation rate. That leaves an excess amount of $7.38, which is calculated by subtracting $74.87 from $82.25. Half of that excess amount is $3.69. MMBB will add that amount to the inflation-adjusted payout value of $74.87, resulting in a final payout value of $78.56, and will allocate the other 50 percent to the annuity reserve fund.

The Annuity Fund is fully funded as of September 30, 2021 and remains invested in a diversified portfolio designed to address both up and down markets as well as a long-term time horizon. Though the annuity payout increased 10.6 percent, MMBB understands that these unprecedented times may put stress on your finances. We are here to help.

First, MMBB has emergency funds available to provide assistance if you find yourself making choices about purchasing food, prescription drugs or medical services or necessary home repairs.

Second, we invite you to contact our financial planning specialists. They will work with you to manage your financial resources, so you can continue meeting your goals in retirement.

Whether for emergency assistance or financial planning, we urge you to get in touch with one of MMBB’s Senior Benefits Specialists at 800.986.6222 or [email protected].