- The Defined Benefit Plan is funded by employer assessments only.
- Your church organization contributes 9%1 of each participating employee's eligible compensation.
- Assessments for each employee must begin on the first day of the month after he or she becomes eligible for the plan.
For the purposes of the Lay DB Plan, compensation is defined as:
- Base salary
- Special service fees
- Allowance the employee receives to cover the cost of the employee's utility bills, such as fuel, gas and electricity, or
- The amount the employer pays for utilities on the employee's behalf
- Housing, calculated based on the formulas noted below.
- If housing is provided rent-free, the assessable value of housing is calculated at 30% of the sum of the employee's base salary and utilities.
- If both housing and meals are provided cost-free, the assessable value of housing is calculated at 40% of the sum of the employee's base salary and utilities.
- All or a portion of severance or pay continuation
What will it cost?
Access this worksheet to calculate plan costs for your church organization.
Click here for instructions on how to use the worksheet.
1CPF reserves the right to increase the 9% assessment rate at any time.
2 As described in Section 125 of the IRS Code.
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.