The Employer Adoption Agreement (Form 20) is an important legal agreement whereby the church/employer officially adopts the FCMM Retirement Plan. The Agreement serves as the cover page to the FCMM Retirement Plan Document (Form 30) and together these comprise the compliant Plan under which the church provides the retirement benefit.
Because of the length of time many churches have participated in FCMM, some have overlooked the necessity of executing this document and keeping it on file. Every employer must be able to demonstrate its legal basis for participation in the event of a payroll or tax audit. The Adoption Agreement serves this purpose. Failure to maintain and follow the terms of an agreement could lead to IRS penalties.
Within the Agreement, the employer identifies the classes of employees, states how employees become eligible to participate and specifies how employer contributions are determined. The Agreement requires a signature by a qualified church/employer official. The employer should keep a copy on file and send the original Agreement to the FCMM office.
The FCMM Employer Adoption Agreement was recently updated to make completion easier. If you have responsibility for benefits records and would like to confirm the status of an Adoption Agreement, email us at fcmm@fcmmbenefits.org.
