Vesting occurs when an active employee:
- Has been employed for five years, or
- Reaches age 55
…whichever comes first. The account must be in good standing and assessments paid in full.
Returning to Work After an Absence
- Employees who leave their jobs maintain their years of vesting service for 30 years, whether they are vested or not at the time they leave.
- If they return to work for an employer who participates in the Defined Benefit Plan, they receive credit for all prior service.
- Is not a termination of service
- An employee will continue to be a member of the plan if he or she is temporarily absent because of:
- Military service
- Authorized leave of absence
He or she continues as a member of the plan unless the employment is terminated.
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.