How does RSVP supplement my pension plan?
If you participate in the clergy pension plan or the lay employees' defined benefit plan, you do not contribute to your own retirement account. Your retirement benefit is determined by formula when you retire, based on your compensation and years of credited service. The Retirement Savings Plan offers a way for you to add to your retirement income by contributing to your own RSVP account.
How can I participate in RSVP?
You may participate if you are an employee of the Episcopal Church and your church employer has adopted the plan. (See the Retirement Savings Plan Employer Adoption Agreement.) Complete the Employee Application for Membership form and mail it to the address indicated on the form.
I wish to contribute a substantial amount of my compensation. Is this allowed?
You may contribute up to 100% of base salary, less required withholdings, if any, provided the total amount contributed in a given year does not exceed Internal Revenue Code limits for contributions to a 403(b) plan.
What does it mean that my contributions are on a before-tax basis?
Your contributions reduce your gross income for federal and most state and local taxes. Federal taxes apply when benefits are paid to you, generally at retirement.
When am I taxed on the employer contributions?
Taxes on any employer contributions and earnings are deferred until benefit payments begin, generally at retirement.
What is vesting?
Being vested means owning your employer's contributions to your account, along with the earnings on those contributions. (You automatically own whatever you contribute, plus earnings.) In some plans, vesting occurs after a period of time. In RSVP, you are fully vested in any employer contributions as soon as contributions begin.
Can I contribute on an after-tax basis?
Yes.
Can I borrow money from my account?
Yes, subject to Internal Revenue Service limitations. You may borrow 50% of the vested balance of your mutual fund account to a maximum of $50,000. However, loans are not permitted from the Church Pension Fund Stable Value Option or the tax sheltered annuity. No more than two loans may be outstanding at any one time. The minimum principal amount of any loan is $500. The maximum loan repayment period is five years, unless the purpose of the loan is to acquire a principal residence, in which case a repayment period of up to 15 years is permitted. Loans are repaid by Automatic Clearing House (ACH) debit against your bank account.
What are the investment options?
They include a variety of funds ranging from a money market mutual fund to growth-focused stock funds and a stable value option. Details
What is the Church Pension Fund Stable Value Option?
This annuity funds the stable value investment option of the RSVP and seeks predictable, tax-deferred growth at an interest rate based on financial conditions.
Can I allocate my contributions among the Freedom Funds and the plan's other investment options?
Yes, if you wish. The Freedom Funds are designed to serve as stand-alone options, since each fund invests in a combination of well-established Fidelity mutual funds and is professionally managed to provide a consistent retirement investment strategy over time. However, you are free to allocate your contributions among all the investment options, including the Freedom Funds.
I would like to transfer my account balances between funds. May I do so and, if so, how often?
With the exception of the Church Life IncomeBuilder Annuity, you can transfer your full account balance, or any portion of it, between investment options daily, at no cost. Transfers from the IncomeBuilder Annuity may be made only once a year, as of January 1 of each year. Transfers of more than 20% of your IncomeBuilder account are subject to a 5% fee.
What is the difference between a withdrawing funds and transferring them?
Withdrawing funds is taking money out of the RSVP. Transferring funds is moving funds from one investment option to another within the RSVP.
You can withdraw funds from the IncomeBuilder Annuity without a surrender charge or withdrawal fee if you retire, lose or quit your job, or experience disability or hardship. Your plan beneficiary can withdraw funds without charges or fees if you die.
If you decide to withdraw funds from the annuity for other reasons, you can do so, but you will be charge a 5% fee for any withdrawals above 20% of your account balance.
Can I change the amount I contribute that is deducted from my pay? If so, how often?
Yes, you can change your payroll deductions at any time.
Can I stop my payroll deductions?
Yes, you may request a suspension of your contributions at any time.
Can I rollover my retirement savings from another plan into my RSVP account?
Yes. Generally the plan will accept rollover funds from any qualified tax-deferred plan.
Can I withdraw funds while I am still working?
Yes, after you reach age 59 1/2, or if you suffer a financial hardship, and if you are still working for your participating employer. Certain IRS regulations apply.
Do I have to close out my retirement account if I quit or lose my job?
In that case, you can withdraw contributions and any associated earnings. If your account balance is greater than $5,000, you can leave your account in the plan until retirement or, at the latest, age 70 1/2. After your job ends, if your account balance is equal to or less than $1,000, it will automatically be distributed to you. However, if your account balance is greater than $1,000 but not more than $5,000, you will be notified that your entire account balance will be transferred to an Individual Retirement Account (rollover IRA), unless you request either a cash distribution or a rollover distribution of your choice.
Besides a lump-sum payment, are there other payment options available?
Yes. You may also choose installments or annuities.
What happens to the money in my account when I die?
The balance is payed to the designated beneficiary indicated on your completed enrollment form or to your estate.
Will I have access to my money if I am disabled and unable to work?
Yes. You will be paid your balance, and the IRS penalty for early withdrawal may be waived.