- What happens to my pension if I'm between jobs?
- What's a defined benefit plan?
- Can I choose another beneficiary if I elected the Joint &Survivor option and my spouse dies first?
- Can I elect another beneficiary if I elected the 10- or 15-Year Certain & Continuous option and my designated beneficiary has died?
- Am I still eligible for the lump sum death benefit after I retire?
- Are the cost-of-living increases guaranteed like those we receive from Social Security?
- If I receive a very small monthly benefit from the plan, can I cash it out and receive a lump sum payment?
What happens to my pension if I'm between jobs?
While you are working, you build pension credit based on your years of service, as long as the required assessments are paid. If you are between jobs and not receiving compensation for church or church-related work, or if you are inhibited or suspended, you may continue to earn full credited service for up to a year by paying personal assessments. These are calculated based on either your last full-time compensation or your highest average compensation, whichever is lower.
What's a defined benefit plan?
The Church Pension Fund is different from a 401(k) and other "defined contribution" plans. In your "defined benefit" plan:
- Your benefits are assured, even if financial markets decline. Retirement benefits are determined when you retire and increase whenever cost of living adjustments are made.
- Contributions are pooled. The assessments your employer pays are invested in a general fund of pooled contributions from employers of all paid clergy working in the Episcopal Church or one of its agencies.
- Benefits are comprehensive. By pooling investments, the fund can provide life insurance, disability benefits and other financial security throughout your active ministry. As long as assessments are paid on your behalf, you will benefit from coverage from the time assessments begin all the way through retirement.
- Benefits are portable within the church. Wherever you work within the Episcopal Church, you carry your pension and other benefits with you.
- Clergy participate automatically. You are automatically enrolled if you are an ordained deacon, priest, or bishop, canonically resident in the Episcopal Church and not participating in a Companion Pension Plan. If the required assessments are paid for your service as an ordained cleric, you will earn a benefit under the plan.
- Deacons can participate. You are eligible to participate in the clergy pension plan as soon as you are ordained to the diaconate.
Can I choose another beneficiary if I elected the Joint &Survivor option and my spouse dies first?
No. This one-time election is made at the time you retire. Once made, your election is irrevocable.
Can I elect another beneficiary if I elected the 10- or 15-Year Certain &Continuous option and my designated beneficiary has died?
Yes, as long as the 10- or 15-year "certain" period has not expired. For example, If you elected the 10-year Certain and Continuous Option on July 1, 2004 and your beneficiary dies on April 14, 2007, you can choose another beneficiary because the "certain" period will not expire until July 1, 2014.
Am I still eligible for the lump sum death benefit after I retire?
No. The lump sum death benefit is only available to eligible plan participants who have not retired and are under age 72.
Are the cost-of-living increases guaranteed like those we receive from Social Security?
No. The Board of Trustees grants cost-of-living increases at its discretion.
If I receive a very small monthly benefit from the plan, can I cash it out and receive a lump sum payment?
No. The clergy pension plan provides you with monthly benefits for life and, if applicable, for the life of your spouse or named beneficiary.
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