One-Time Special Supplement for Retirees
No cost-of-living adjustment
November 23, 2009
Dear Friends,
As you are well aware, 2009 was an unusual year in terms of the state of the financial markets and the impact on the economy. Fortunately, despite that difficult economic environment, the Fund remains sound and your pension benefit remains secure.
It is in this context that we want to explain the recent decision of the Church Pension Fund (CPF) Board not to give a cost-of-living-related increase for 2010, and to reassure you that this decision is not a reflection of diminished pension security.
Although not mandated by Plan rules, the CPF Board has approved cost-of-living-related increases to participants in the Clergy Pension Plan for the past 30 years and to beneficiaries of the Episcopal Church Lay Employees’ Retirement Pension Plan (the lay defined benefit plan) for the past 10 years. Those benefit increases were keyed to the annual cost of living allowance (COLA) increase provided by Social Security.
As you know, Social Security is not providing a COLA increase for 2010. Therefore, after much prayerful consideration, and consistent with our past practice, the CPF Board has decided not to provide a cost-of-living-related increase for 2010. We believe this decision represents prudent stewardship of our long-range resources and is in the interest of all beneficiaries.
However, the CPF Board and staff recognize that many retirees are experiencing increased financial pressure caused by the virtually unprecedented economic events of last year.
Therefore, the Board has approved a One-time Special Supplement for retired clergy and surviving spouses participating in the Clergy Pension Plan which is equal to the participant’s 2009 Christmas Benefit check, and a One-time Special Supplement for retired lay employees participating in the lay defined benefit plan that is equal to $25 times Years of Credited Service up to a maximum of $1,000 for retired participants, and $20 times Years of Credited Service up to a maximum of $800 for surviving spouses. These benefit payments will be made in March 2010.
Faithfully,
T. Dennis Sullivan The Rt. Rev. Peter James Lee
President & CEO Chair
The Church Pension Group The Church Pension Fund Board of Trustees