Benefit Payment Options
Under the Defined Benefit Plan, you have three options for receiving benefit payments:
- Joint Retirement Benefit
- Certain and Continuous
- Single Life Annuity
If you are married when you retire and have not chosen another form of payment, your eligible spouse receives half your benefit. If you are married and elect an optional form of payment, you must have your eligible spouse's consent.
If you are unmarried when you retire and have not chosen another payment option, you will receive a Single Life Annuity, which is an unreduced monthly benefit for life.
Joint Retirement Benefit
- When you retire, you can increase the benefits for your eligible spouse or another adult.
- Choosing this option reduces your benefit.
- Benefit options include:
- 66 2/3%
- You can waive this option in favor of a Certain and Continuous.
Certain and Continuous
- You may choose to receive payments for a minimum of 5, 10 or 15 years.
- If you live longer than the period of time you choose, your benefit will continue for as long as you live.
- If you die during the period of time you chose, your beneficiary receives the remaining benefit.
- If both you and your beneficiary die during the payment period, the remaining benefit is paid to a second beneficiary or your estate.
Lump Sum Payment
You must receive a lump sum payment if:
- Your monthly benefit is less than $50, and
- The present value of your total benefit is $1,000 or less.
You can elect to receive a lump sum payment if your monthly benefit is:
- Between $50 and $100, or
- Less than $50, and the present value of your total benefit is more than $1,000
If you are married, your eligible spouse must consent to this election.
For details, please refer to A Guide To Benefits Under the Lay Defined Benefit Plan
The Lay Defined Benefit Plan is a qualified plan under Section 401(a) of the Internal Revenue Code, but as a church plan, it is not subject to ERISA. The plan's financial condition is disclosed in the Church Pension Group Annual Report.
The Church Pension Fund, as sponsor of this plan, continues to monitor the funding status closely. Like many defined benefit plans, the Lay Defined Benefit Plan currently is not fully funded. The Church Pension Fund retains the right to amend, terminate or modify the terms of the Lay Defined Benefit Plan, including the employer assessment rate, without notice and for any reason.