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Contributions

Employer’s Base Contribution

  • Your employer typically contributes an amount equal to at least 5% of your annual compensation. Employers are allowed to contribute more than 5%, but total contributions cannot exceed IRS limits.

Your Contribution and Your Employer’s Match

  • Your employer matches your contribution – typically up to 4% of your compensation.
  • Some employers may match more than 4%.
  • The employer match is essentially free money for your retirement account, so you should contribute at least enough to receive the full match.

Increasing your contribution rate by as little as 1% may increase your retirement security. Remember: Your employer matches your contribution dollar for dollar, up to at least 4% of your compensation.

Your Eligible Compensation

For Your Employer's Contribution to the Lay DC Plan

For your employer's contribution to the Lay DC Plan, your compensation is defined as the sum of:

  • Base salary
  • Overtime
  • Bonuses
  • Special service fees
  • Utilities
    • Allowance you receive to cover the cost of your utility bills, such as fuel, gas and electricity, or
    • The amount your employer pays for utilities on your behalf
  • Housing, calculated based on the formulas noted below.
    • If housing is provided rent-free, the value of housing is calculated at 30% of the sum of your base salary and utilities.
    • If both housing and meals are provided cost-free, the value of housing is calculated at 40% of the sum of your base salary and utilities.
  • All or a portion of severance or pay continuation

For Your Contribution to the Lay DC Plan

For your contribution to the Lay DC Plan, your compensation is defined as the sum of:

  • Base salary
  • Overtime
  • Bonuses
  • Special service fees
  • Utilities
    • Allowance you receive to cover the cost of your utility bills, such as fuel, gas and electricity, or
    • The amount your employer pays for utilities on your behalf

2017 Contribution Limits

  • If you are under 50 years old, you may contribute up to $18,000 before taxes.
  • If you are 50 and older, you may contribute $24,000 before taxes.
  • The combined total that you and your employer contribute may not exceed 100% of your compensation or $54,000 if you are under 50 years old ($60,000 if you are 50 and older), whichever is less.

 

Pensions Disclaimer

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Revisions to Lay DB and Lay DC Plans

The Church Pension Fund has announced revisions to the Lay DB Plan, Lay DC Plan, and the RSVP.
 Learn more

If you are planning on retiring in 2017 or 2018, contact CPG to schedule a discussion at 
(866) 802-6333
Monday – Friday
8:30AM – 8:00PM ET
(excluding holidays)