Post-Retirement Health Benefits

Overview

Clergy Eligible for Medicare

You must be at least age 65 (unless disabled as determined by Social Security) to participate in Medicare. If you are enrolled in Medicare (Parts A and B) and retired, you and your eligible spouse or eligible surviving spouse (as defined below) may be eligible for financial assistance to purchase post-retirement health benefits from The Episcopal Church Medical Trust. This financial assistance is a separate benefit provided by CPF outside of the Clergy Pension Plan.

If You or Your Spouse Are Under Age 65 When You Retire
You will be eligible to participate in an unsubsidized pre-65 medical plan from The Episcopal Church Medical Trust.

Here Is How the Subsidy Works

  • You must have earned at least a minimum of 10 years of Credited Service based on monthly compensation equal to at least 1/12 of the Hypothetical Minimum Compensation (as of January 1, 2018, $1,500 per month). (Note that if you earned any Credited Service under the Clergy Pension Plan prior to January 1, 2018, all of it will count as Credited Service toward the subsidy regardless of your compensation at the time.)
  • If you are eligible for the post-retirement health subsidy, your spouse or surviving spouse is eligible for the post-retirement health subsidy as long as you were married when you retired under the Clergy Pension Plan, when you commenced receipt of a long-term disability benefit, or on the date of your death, whichever occurs first. In addition, you must have earned at least 12 months of Credited Service while married. Your spouse must also be enrolled in Medicare (Parts A and B).
    • A different rule applies if you retire, return to active ministry, and re-retire with a spouse to whom you were not married on your initial retirement date, or if you divorce your spouse before you retire under the Clergy Pension Plan. For information about this rule, please contact our Client Services group.
  • If you have earned at least 20 years of Credited Service (based on the compensation threshold referenced above), you will receive the full post-retirement health subsidy. If you have earned at least 10 but less than 20 years of Credited Service, the amount of your subsidy will be prorated based on your years of service.
  • You may only use your post-retirement health subsidy to purchase a Group Medicare Advantage plan and/or a dental plan offered through The Episcopal Church Medical Trust. If you choose to enroll in a plan that costs more than your subsidy, you must pay for any additional costs.

Here is more information about the plans available through The Episcopal Church Medical Trust:

  • There are various Group Medicare Advantage plan options, each with prescription drug coverage, and various dental plans from which to choose.
  • Even if you are not eligible for the post-retirement health subsidy, once you retire under the Clergy Pension Plan, you and your spouse (or surviving spouse) will have access to the various Group Medicare Advantage and/or dental plans available (by paying the full cost).
  • For more information about the plans, please visit Group Medicare Advantage.

Important note: CPF currently offers a post-retirement health subsidy to eligible clergy and spouses. However, CPF is required to maintain sufficient liquidity and assets to pay its pension and other benefit plan obligations. Given uncertain financial markets and their impact on assets, CPF has reserved the right, at its discretion, to modify or discontinue the postretirement health subsidy at any time.

Clergy in the Convocation of Episcopal Churches in Europe

In lieu of the subsidy described above for clergy eligible for Medicare, if you last earned Credited Service in the Convocation of Episcopal Churches in Europe prior to retirement, you may instead receive a subsidy from CPF in the form of the Major Medical Supplement. The Major Medical Supplement is an annual cash payment to eligible participants and their eligible spouses and is meant to assist them with healthcare expenses in retirement. This financial assistance is a separate benefit provided by CPF outside of the Clergy Pension Plan.

Payment is made annually in March, based on eligibility for the prior calendar year as described below. Note that if you (or your eligible spouse) do not meet the eligibility criteria for the entire calendar year, your payment will be prorated based on the number of months during which you did meet the criteria. Eligibility for this benefit will be reassessed on an annual basis.

Eligibility During Prior Calendar Year:

  • You must have been retired under the Clergy Pension Plan with a minimum of 10 years of Credited Service and attained at least age 65.
  • You must have last earned Credited Service in the Convocation of Episcopal Churches in Europe.
  • Your eligible spouse is also eligible for the Major Medical Supplement if they reached age 65.
  • You (and/or your eligible spouse, if applicable) must have resided outside the United States.
  • You (and/or your eligible spouse, if applicable) were not enrolled in a Group Medicare Advantage plan or Medicare Supplement plan sponsored by The Episcopal Church Medical Trust.
  • You cannot have earned any Credited Service under the International Clergy Pension Plan (other than Credited Service earned in the Diocese of Puerto Rico).

How the Benefit Is Calculated:

  • If you earned 20 or more years of Credited Service, you will receive the full Major Medical Supplement ($170 per month/per person—for both yourself and your eligible spouse).
  • If you earned 10 years to 19 years of Credited Service, you will receive a reduced Major Medical Supplement ($2 per person per month less for each year of Credited Service under 20).
  • If you earned less than 10 years of Credited Service, neither you nor your spouse are eligible for the Major Medical Supplement.
  • For these purposes, only Credited Service based on monthly compensation that is equal to or greater than 1/12 of the Hypothetical Minimum Compensation (currently, $18,000 per year) counts towards the Major Medical Supplement. (Note that if you earned any Credited Service under the Clergy Pension Plan prior to January 1, 2018, all of it will count as Credited Service toward the Major Medical Supplement regardless of your compensation at the time.)

Note: Although the amount of the Major Medical Supplement is determined on a monthly basis, you will receive only one payment for your total annual benefit and, if applicable, the total annual benefit for your eligible spouse.

Medicare Secondary Payer

Medicare Secondary Payer is a term generally used when Medicare is not the primary payer of health claims for individuals who are eligible for active health coverage through their employer. The U.S. government designed Medicare to provide health coverage for retired individuals, not actively employed individuals.

If you are age 65 or older and are eligible for active health coverage through your employer, then Medicare will not be the primary payer for your health claims. Instead, you should receive coverage under your employer’s health plan for active employees. This is true regardless of whether or not you have retired under the Clergy Pension Plan.

If you have already retired, however, you need to pay particular attention to the Medicare Secondary Payer rules because they affect your eligibility to receive the post-retirement health subsidy. If you continue to work in The Episcopal Church after retirement (whether that work falls under a Working While Pensioned exception or not) and are eligible for your employer’s active health coverage, you should receive coverage under your employer’s active health plan. This means that you will not be eligible for coverage under a Group Medicare Advantage plan offered by The Episcopal Church Medical Trust. If you were receiving the post-retirement health subsidy prior to your return to work, that subsidy will stop for as long as you continue to be eligible for active health coverage.

There is an exception from the Medicare Secondary Payer rules for active employees who are employed by small employers. Learn more about the Medicare Secondary Payer Small Employer Exception.

For details about Medicare, please visit the Medicare website at medicare.gov.

Refer to the Bulletin for Group Benefit Administrators: Understanding Health Plan Options for Employees Age 65+ for more details.

A Guide to Clergy Benefits - English (PDF)
A Guide to Clergy Benefits - Spanish (PDF)
Guide to Clergy Benefits Disclaimer

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