Calculating Benefits

You can calculate an employee's annual pension benefit using the formula below.

Pension Benefit Formula

The annual pension benefit is based on years of Credited Service (CS) and Highest Average Compensation (HAC).

The formula for calculating the annual pension benefit is:
CS x HAC x 1.5% =  Annual Pension Benefit

For example, if an employee retires with 30 years of Credited Service and a Highest Average Compensation of $25,000, the annual pension benefit is calculated as follows:

CS x HAC x 1.5 % = Annual Pension Benefit
30 x $25,000 x 1.5% = $11,250

Personal Information Summary

  • Each September, every plan participant receives a Personal Information Summary.
  • The Personal Information Summary shows the projected annual pension benefit at the participant's normal retirement age.

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.

Pensions Disclaimer

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