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How Do the Changes Impact Me?

Retirement


Will my monthly retirement benefit change?

These revisions will not change your monthly pension check and may increase certain other benefits that you may be entitled to receive in the future under the Clergy Pension Plan.

Your Credited Service (CS) and Highest Average Compensation (HAC) were established at your retirement and are not impacted by the revisions. In addition, the survivor benefit option that you chose at retirement cannot be modified.

I am thinking of getting married in retirement.

Your new spouse will not be a beneficiary of your pension.

If you wish to provide your new spouse with a survivor benefit following your death, you must make a Marriage After Retirement election on or before December 31, 2017.

Effective January 1, 2018, the Clergy Pension Plan will no longer offer retired clergy the option to reduce their own pension benefit in order to provide a survivor benefit for a spouse they marry after retirement.

  • Please contact CPG at (866) 802-6333 if you have any questions or would like to schedule a discussion with one of our licensed life and retirement specialists.

Are there changes to other benefits that may impact me or my survivors?

Several of the changes to the Clergy Pension Plan may impact the benefits for which you or your survivors are eligible. These changes will not reduce the overall value of the benefits.

  • Christmas benefit – Effective January 1, 2018, the years of CS used when calculating the Christmas benefit will no longer be capped at 40 years. Retired clergy with over 40 years of CS will receive an increased benefit beginning in December 2018.

    In addition, the Christmas benefit for your survivor beneficiaries will increase from $20 to $25 per year of CS. Survivor beneficiaries who are currently receiving benefits (other than beneficiaries receiving a child benefit) will receive a Christmas benefit based on the new formula beginning in December 2018.

  • Early retirement medical bridge benefit – Clergy who retired with 30 or more years of CS and who are under the age of 65 will receive a medical bridge benefit of $17.50 per year of CS until they turn 65. Retired clergy whose bridge benefit was reduced at age 62 will receive an increased bridge benefit on a go-forward basis beginning in January 2018 until age 65.
  • Life insurance benefit – If you are eligible for retiree life insurance coverage, your benefit will be calculated at six times your HAC, up to a maximum of $50,000.
  • Child benefit – If you die on or after January 1, 2018, your eligible children will receive a monthly child benefit under the new provisions. Child benefits that have commenced or will commence prior to that date will be provided in accordance with the current provisions.

 

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