The second reduction in the trust payout percentage is set to take effect with the October 2017 recurring payment cycle. The annual payment (spending rate) for UUA Administered Trusts will decrease from 4.75% to 4.50% for fiscal year 2018.
As stated in the posting dated February 29, 2016, the Board, acting on the recommendation from the Investment Committee, approved a reduction in the trust payout percentage from the fiscal year 2016 annual rate of 5% to 4.75% effective for fiscal year 2017 (July 1, 2016 – June 30, 2017) and then a second reduction to 4.5% for fiscal year 2018. The Investment Committee based their recommendation after considering recent UUCEF performance results and a forecast of market performance prepared by our outside consultants, NEPC. The Board also approved a decrease in the UUA endowment spending policy over the next two fiscal years.
If you have questions about this policy change please contact Tim Brennan, Treasurer and Chief Financial Officer, or Susan Helbert, Assistant to the Treasurer.