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Defined Contribution Plan

Defined Contribution Plan

The Episcopal Church Lay Employees' Defined Contribution Retirement Plan (DC) consists of two different plans - a 401(a) plan and a 403(b) plan.Both are administered by Fidelity Investments.

New Recordkeeping Fee Structure for DC Plans

Restructured fee arrangement for The Church Pension Fund DC retirement plan(s) effective January 1, 2019.  For more information, view the full notice here.
(You will need to sign into Fidelity NetBenefits to view the notice)

How Does the Plan Work?

  • Your employer must adopt the plan by:
  • Your employer typically contributes a base contribution equal to at least 5% of your compensation.2
  • You may contribute 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%.2
  • Your pre-tax contribution reduces your current income for federal income tax purposes.
  • You are not required to contribute. However, you will lose out on the employer match if you choose not to contribute.2
  • You elect the amount you wish to defer to the plan.
  • You choose the investment options for your account.

Impact on Retirement Benefits

  • Your pre-tax contribution to the Defined Contribution Plan allows you to save more money for retirement.
  • When you retire, your pension benefit is based on the value of your account.
  • All growth in the account accrues to you.

Investing

  • You have several Investment Options.
  • Account growth is based on investment performance and may vary.

2019 Contribution Limits

  • If you are under 50 years old, you may contribute up to $19,000 before taxes ($18,500 in 2018)
  • If you are 50 and older, you may contribute $25,000 before taxes ($24,500 in 2018)
  • The combined total that you and your employer contribute may not exceed 100% of your compensation or $56,000 if you are under 50 years old ($62,000 if you are 50 and older), whichever is less ($55,000 and $61,000, respectively, in 2018)
1 Your employer may have adopted only one or both plans.
Ask your employer what percentage its base contribution is, and its match, if any.

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