Employees have four options for receiving benefit payments:
- Single Life Annuity
- Joint Retirement Benefit
- Certain and Continuous Option
- Lump Sum Payment
Married employees who want to elect an optional form of benefit, must obtain their eligible spouse's consent.
Joint Retirement Benefit Option
- Employees may reduce their own benefit to provide a surviving spouse or another adult beneficiary with a survivor's benefit of:
- 66 2/3%
- Spouses automatically receive 50% if the employee does not choose another option.
- This option must be chosen at the time of retirement and cannot be changed.
Certain and Continuous Option
- Employees may select to receive a benefit for:
- 5 years
- 10 years
- 15 years
- The benefit continues for life if they live beyond the chosen period.
- If the participant dies during the chosen period, the beneficiary receives the remaining benefit.
- If both the participant and the beneficiary die during the payment period, the remaining benefit is paid to a secondary beneficiary or the participant's estate.
Lump Sum Payment
Employees must receive a lump sum payment if the monthly benefit is less than $50, and the present value of the total benefit is $1,000 or less.
They can receive a lump sum payment at retirement if:
- The monthly benefit is between $50 and $100
- The monthly benefit is less than $50 and the present value of the total benefit is more than $1,000
Married employees must have spousal consent to make this election.
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.