- What's a defined benefit?
- 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?
- 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's a defined benefit?
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 in the Episcopal Church.
- 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, you benefit from your 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.
Can I choose another beneficiary if I elected the Joint & Survivor option and my spouse dies first?
No. The benefit under this option is calculated using your birth date and your spouse's. It cannot be recalculated using another beneficiary's date of birth.
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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.
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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.
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If I receive a very small monthly benefit from the plan, can I cash it out and receive a lump sum payment?
That depends on the amount of your monthly benefit:
- If the amount of your retirement benefit is less than $50 per month, a lump sum payment of your benefit will be made to you. If the present value of your retirement benefit is greater than $5,000, you must consent to the lump sum payment.
- If your retirement benefit is greater than $50 but less than $100 per month, you may elect a lump sum payment of your benefit.
If you are married, you will need to get your spouse's consent to elect a lump sum payment.
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