The clergy pension plan differs from the 401(k) and other defined contribution plans in important ways:
- Benefits are assured, even if financial markets decline. Retirement benefits are determined at the time of retirement and whenever cost of living adjustments are made.
- Funds are pooled. Contributions from church employers, based on a percentage of clergy compensation, are invested in a general fund of pooled contributions from employers of all paid clergy in the Episcopal Church. The plan does not create separate funds for individual clergy.
- Benefits are comprehensive. By pooling investments, the Church Pension Fund is able to provide a comprehensive plan for financial security throughout active ministry, in addition to retirement benefits.
- Benefits are portable within the church. Clergy carry pension and other benefits with them wherever they work in the church. They continue to build pension credit based on years of service, as long as the required assessments are paid.