Defined Contribution Plan
The Episcopal Church Lay Employees' Defined Contribution Retirement Plan (Lay DC Plan) consists of two different plans - a 401(a) plan and a 403(b) plan. Depending on when the Lay DC Plan was adopted, your employer may have adopted both plans or only the 403(b) plan. Both plans are administered by Fidelity Investments.
How Does the Plan Work?
- Your employer must adopt the plan by:
- Completing an Employer Adoption Agreement, and
- Returning it to The Church Pension Fund
- If your employer is subject to the authority of The Episcopal Church, it typically contributes a base contribution equal to at least 5% of your compensation.1
- You may contribute (on a pre-tax, Roth, or after-tax basis) up to the limits set by the IRS.
- Your employer may match your contribution. This matching contribution, when added to the employer base contribution, typically should be equal to at least 9%.1
- You are not required to contribute. However, you will lose out on any employer match if you choose not to contribute.1
Impact on Retirement Benefits
- Your contributions to the Lay DC Plan allows you to save more for retirement.
- When you retire, your pension benefit is based on the value of your account.
- All growth in the account accrues to you.
- You have several Investment Options.
- Account growth is based on investment performance and may vary.
IRS Contribution Limits
The IRS limits the amount an employee can contribute to their account, as well as the total amount an employer and employee together can contribute. Please see the RSVP & Lay DC Plan Employee Guide for contribution limits.
For more information, please see the RSVP & Lay DC Plan Employee Guide.
1 Ask your employer what percentage its base contribution is, and its match, if any.