What You Need to Know about the 2024 MMBB Annuity Payout

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 2024 will be $73.09. Read on for details about the distinctive features of the MMBB Annuity and how the 2024 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, 2023--$67.69
• The six-month average value of a unit of the Annuity Fund as of September 30, 2023--$69.52
• The downside guarantee of 90 percent of the current payout value --$67.16

The Board elected to use the entire Annuity Reserve of $52.6M and infuse a total of $25M from the Special Benefits Fund ($23.2M) and Death Benefit Plan ($1.8M) for a total of $77.6M to support the final 2024 payout value of $73.09. That is $1.54 (or 2.1 percent) less than the 2023 payout.

Without the Board’s action, the 2024 payout value would have been $69.52, representing a decrease of $5.11 (or 6.8 percent). The Board felt this decrease in annuity payout value was too great and would create a burden for members. Thus, the reserve fund was used in its entirety, and the Death Benefit Plan and Special Benefits Funds were used to infuse the annuity. The Death Benefit Plan and Special Benefits Funds remain fully funded.

The following factors determined the value of 2024's annuity unit:

• Investment Performance - Calculated on a 12-month basis from September 30, 2022, to September 30, 2023, the investment performance of the Annuity Fund was 7.1 percent.
• Value of the Underlying Assets - The underlying Annuity Unit Value as of September 30, 2022, was $66.70. The calculation begins from the actual underlying value of the Annuity Fund as of September 30, 2022. 
• 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 - 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.
• 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. The inflation adjustment is not applicable this year. It is only a factor in years when there is a surplus and does not come into the calculation for the 2024 payout value.
• 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. For the 2024 annuity payout, the Board opted to use the entire Annuity Reserve.

The Annuity Fund is fully funded as of September 30, 2023, and remains invested in a diversified portfolio designed to address both up and down markets as well as a long-term time horizon. MMBB understands that the current economic climate and the decrease in the value of an annuity unit this year may put stress on your finances. We are here to help.

First, MMBB has emergency funds available to assist 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 help you manage your financial resources, so you can continue meeting your goals in retirement.

Whether for emergency assistance or financial planning or to speak with someone to understand the annuity payout even more, we urge you to get in touch with one of MMBB’s Senior Benefits Specialists at 800.986.6222 or [email protected].

We are here to assist you with just about any element of your financial well-being.

See more details about the Annuity Payout in the 2024 MMBB Annuity Payout Webinar.