Benefits for a surviving spouse or second adult beneficiary
Unlike most pension plans, the clergy plan has long provided eligible spouses with an automatic survivor benefit of 50% of the clergy pension benefit.
Options for unmarried clergy
Death before retirement
Increasing a surviving spouse's benefit
At the time of retirement, clergy may choose to increase a surviving spouse's benefit to 60%, 75%, 85%, or 100% of their own pension benefit by reducing the benefit they receive while living, usually by a small amount. This is a one-time opportunity offered at the time of retirement only and, once chosen, is irrevocable.
The amount the benefit is reduced depends on:
- the size of the pension
- the spousal option chosen
- the ages of the clergy and spouse
(The older a spouse is at the time the clergy person retires, the less the cleric's benefit is reduced.)
For those retiring on disability, this enhancement is not available until they reach age 65. However, if clergy die before retirement and have at least 30 years of credited service or are 60 or older with at least five years of credited service, the 100% spousal option is assumed.
The enhanced spousal benefit option is not available to clergy retiring on a minimum pension.
Zero Option and actuarial adjustment
The Zero Option provides even greater flexibility for those who are married when they retire, while also providing equitable benefits for those who are not married on retirement. For those who choose to provide no benefit to a surviving spouse, their own benefit is increased by an actuarial amount.
This option may have advantages for clergy who have enough life insurance or other assets to provide for a surviving spouse, if the spouse has his or her own retirement benefits, or if they believe the spouse is more likely to die first for medical reasons.
Single clergy and second adult beneficiary
For clergy not married when they retire, pension benefits are automatically calculated with the Zero Option upward adjustment. (Because no 50% spouse's benefit is automatically payable, the actuarial value of the spouse's 50% benefit is used to enhance the benefit.)
Clergy may choose either to receive the larger benefit or establish a survivor benefit for a second adult beneficiary. The survivor benefit can be as little as 25%, or as much as 100% of the adjusted benefit. The amount of adjustment depends on the amount of survivor benefit chosen.
back to top