Comparative Plan Highlights: Lay Pensions
Comparative Plan Highlights
Episcopal Church Lay Employees’ Defined Contribution
Defined Contribution Plan (Lay DC)
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The employer contributes an amount equal to at least 5% of the employee’s annual compensation, whether or not the employee makes any contribution.
For additional information, please visit the Lay Pensions Resource Center at www.cpg.org/laypensions or email us at [email protected]
Employee contributions will be matched with employer contributions up to a pre-determined maximum — generally 4%. However, the employee may contribute even more toward his or her retirement resources.
and Episcopal Church Lay Employees’ Defined Benefit Retirement Plans
Defined Benefit Plan (Lay DB) In times of financial market uncertainty, many people are glad to have a defined benefit plan. Lay DB participants can count on getting a specific benefit. The Plan assets are managed by highly qualified professionals at the Church Pension Fund, who also manage the clergy plan. All contributions to the Defined Benefit Plan are made by the employer — there are no employee contributions.
The employee’s pre-tax contribution to the Defined Contribution Plan will put more money to work for retirement while reducing his or her current taxable income.
An employee may contribute to other kinds of retirement plans such as a 401(k), 403(b), or an IRA up to the prescribed limit.
The resources available at retirement are determined by the size of the employee’s account, and all growth in the account accrues to the employee.
CPG’s Defined Benefit Plan includes a lump sum death benefit of up to $50,000 should the plan participant die prior to age 72 (while an active employee). The plan also includes a pre-retirement survivor benefit to eligible spouses.
The participant is given a number of investment options from which to choose and can transfer funds from one investment option to another within the Plan.
If the employee becomes disabled and can no longer work, retirement benefits become immediately available.
Certain transfer limitations apply to the Church Pension Fund Stable Value Option.
Please refer to the Reference for Administrators: Lay Defined Benefit Plan and Guide to Benefits: Lay Defined Benefit Plan, located at www.cpg.org for plan details.
Please refer to the Employer and Employee Guides, located at www.cpg.org for plan details.
This document is provided for informational purposes only and should not be viewed as investment, tax or other advice. In the event of a conflict between this document and the official plan documents, the official plan documents will govern. The Church Pension Fund and its affiliates retain the right to amend, terminate or modify the terms of any benefit plans described in this document at any time, without notice and for any reason.
445 Fifth Avenue New York, NY 10016 (866) 802-6333 www.cpg.org
12/10
Eligibility
Normal Retirement Date Early Retirement Date Employee Contributions Employer Base Contribution Employer Matching Contribution Pension Formula
Investment Options Optional Retirement Dates Forms of Benefit Payment
Vesting
“This plan offers my employees a range of savings options.”
Loans Death Benefit
Disability Benefit
Compensation Fees
Defined Contribution Plan (Lay DC)
Defined Benefit Plan (Lay DB)
Employees are eligible to participate in the plan on the first of the month following their date of hire. Employees are eligible to receive employer contributions on the 1st of the month after satisfying any employer-determined service or age requirement.
Eligible employees may participate on the 1st of the month after satisfying an employer determined service requirement, not to exceed 12 months and 1,000 hours.
Eligibility
65 years old.
65 years old.
Normal Retirement Date
Withdrawals are available after age 55 without 10% tax penalty if employment terminates.
55 years old. The benefits may be actuarially reduced.
Early Retirement Date
Employee contributions of up to 100% of salary may be permitted, provided the total amount contributed in a given year does not exceed Internal Revenue Code limits.
None required or permitted.
Employee Contributions
Participating employers contribute an amount equal to 5% of the employee’s compensation. Higher contribution levels are allowed by the plan within the limits of the tax code.
Employer pays all contributions to provide employee benefit. The contribution is actuarially determined each year and is currently 9% of compensation.
Employer Base Contribution
Employer matching contributions are expected up to 4% of compensation. These are in addition to the employer base contribution.
Not applicable.
Employer Matching Contribution
Not applicable. The benefit is based solely on the account balance at the applicable distribution date.
1.5% of Highest Average Compensation (“HAC”) for each year of credited service. HAC equals the average during the highest seven out of eight consecutive plan years. If the participant has less than 7 years of service, the benefit will be calculated using the average compensation the participant has earned.
Pension Formula
The investment options include a variety of choices ranging from a money market mutual fund to growth-focused stock funds and a stable value investment option. Also included are the Fidelity Freedom Funds®, which are the default investment options under the Plan. The participant bears all of the investment risk.
The plan assets are invested by the same highly qualified individuals that are responsible for the investment of the clergy pension plan assets. Participants do not hold individual accounts; therefore, the participants are not exposed to investment risk.
Investment Options
Retirement may be at any age after 55. The plan also permits in-service withdrawls upon attainment of age 59½ and hardship withdrawals with the consent of the participating employer and the Plan Administrator. However, if you terminate employment, you must commence your benefit after you attain age 70½.
A participant may retire as early as age 55. Retirement may be deferred until after age 65. Participants continue to accrue benefits as long as contributions continue to be made. However, if you terminate employment, you must commence your benefit after you attain age 70½.
Optional Retirement Dates
Your savings may continue to grow tax-deferred until you decide to commence distributions from the plan. You can also roll over your savings into an eligible plan, begin receiving income for a lifetime or for a specified period of time, or withdraw all or a portion of the funds from your account.
Straight-life annuity – pays a fixed amount per month for the remaining life of the individual. For married participants, a 50% joint and survivor annuity is the default option, unless both parties elect differently. This 50% joint and survivor annuity pays a fixed amount per month for the remaining life of the participant with a continuing benefit of half that amount to the surviving spouse for his/her remaining life. Other benefit options are available.
Forms of Benefit Payment
Employee contributions are always 100% vested. The participating employer chooses a vesting schedule for employer contributions from the following: • Immediate Vesting – Employer contributions are 100% vested from the outset of the employee’s participation. • 3-Year Cliff – Employer contributions are not vested during the first three years of service and become 100% vested on the employee’s third anniversary of employment. All forfeited amounts are allocated to all participants in the same vesting schedule and are not returned to the employer.
5-Year Cliff – Benefits are fully vested after five years or at age 55, whichever comes first. A participant in the Lay DB Plan will maintain his/her vesting service for 30 years. Participants who have earned less than 5 years, and have moved to another participating employer, will not lose vesting service with the prior employer.
Vesting
The Plan allows employee loans subject to Internal Revenue Service limitations. Participant may borrow the lesser of 50% of the vested balance of his or her account or $50,000.
Not applicable.
Loans
Vested balance payable to named beneficiary or if no named beneficiary, the decedent’s surviving spouse, if any, or if none, the decedent’s estate.
The Plan includes a pre-retirement survivor benefit payable to eligible spouses. Please note that this pre-retirement survivor benefit is limited to participants who die on or after attaining age 55 and who have eligible surviving spouses. That is, if you die before age 55 or if you do not have an eligible spouse, there is no pre-retirement survivor benefit paid from the Plan. Participants in the Plan are eligible for a lump sum death benefit of up to $50,000 should they die prior to age 72 (while an active participant).
Death Benefit
Vested balance payable to the participant with the 10% tax penalty waived.
A participant, who is determined disabled by the plan administrator, will receive a monthly benefit payable until recovery or until the participant’s normal retirement date. The amount will be equal to the accrued benefit as of the date of disability based on the highest average compensation and the larger of ten years or actual credited years of service as of such disability date.
Disability Benefit
Compensation includes all compensation reported in Box 5 of the employee’s W2 plus any pretax contributions to a health and welfare plan. All overtime, bonuses, commissions and severance pay will be included in assessable compensation.
Compensation includes all compensation reported in Box 5 of the employee’s W2 plus any pretax contributions to a health and welfare plan. All overtime, bonuses, commissions and severance pay will be included in assessable compensation.
Compensation
Administrative fees are currently fixed at 0.075% per quarter and are charged at the beginning of each quarter based upon the market value of the account at the end of the prior quarter. There are also fees charged if the participant takes a loan. There are no administrative fees associated with the Stable Value Option. As with all mutual fund investments, there are underlying fees and expenses. You can review the prospectus for information about fund fees and expenses.
Not applicable.
Fees
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. An independent audit of the plan’s financial condition is disclosed in the Church Pension Group Annual Report, located at www.cpg.org. The Church Pension Fund, as sponsor of this plan, continues to monitor the funding status closely, as like many defined benefit plans, currently it is not fully funded.
“It’s good to know my employee’s retirement savings are secure.”
Episcopal Church Lay Employees’ Defined Contribution
Defined Contribution Plan (Lay DC)
Contact Us
The employer contributes an amount equal to at least 5% of the employee’s annual compensation, whether or not the employee makes any contribution.
For additional information, please visit the Lay Pensions Resource Center at www.cpg.org/laypensions or email us at [email protected]
Employee contributions will be matched with employer contributions up to a pre-determined maximum — generally 4%. However, the employee may contribute even more toward his or her retirement resources.
and Episcopal Church Lay Employees’ Defined Benefit Retirement Plans
Defined Benefit Plan (Lay DB) In times of financial market uncertainty, many people are glad to have a defined benefit plan. Lay DB participants can count on getting a specific benefit. The Plan assets are managed by highly qualified professionals at the Church Pension Fund, who also manage the clergy plan. All contributions to the Defined Benefit Plan are made by the employer — there are no employee contributions.
The employee’s pre-tax contribution to the Defined Contribution Plan will put more money to work for retirement while reducing his or her current taxable income.
An employee may contribute to other kinds of retirement plans such as a 401(k), 403(b), or an IRA up to the prescribed limit.
The resources available at retirement are determined by the size of the employee’s account, and all growth in the account accrues to the employee.
CPG’s Defined Benefit Plan includes a lump sum death benefit of up to $50,000 should the plan participant die prior to age 72 (while an active employee). The plan also includes a pre-retirement survivor benefit to eligible spouses.
The participant is given a number of investment options from which to choose and can transfer funds from one investment option to another within the Plan.
If the employee becomes disabled and can no longer work, retirement benefits become immediately available.
Certain transfer limitations apply to the Church Pension Fund Stable Value Option.
Please refer to the Reference for Administrators: Lay Defined Benefit Plan and Guide to Benefits: Lay Defined Benefit Plan, located at www.cpg.org for plan details.
Please refer to the Employer and Employee Guides, located at www.cpg.org for plan details.
This document is provided for informational purposes only and should not be viewed as investment, tax or other advice. In the event of a conflict between this document and the official plan documents, the official plan documents will govern. The Church Pension Fund and its affiliates retain the right to amend, terminate or modify the terms of any benefit plans described in this document at any time, without notice and for any reason.
445 Fifth Avenue New York, NY 10016 (866) 802-6333 www.cpg.org
12/10
Eligibility
Normal Retirement Date Early Retirement Date Employee Contributions Employer Base Contribution Employer Matching Contribution Pension Formula
Investment Options Optional Retirement Dates Forms of Benefit Payment
Vesting
“This plan offers my employees a range of savings options.”
Loans Death Benefit
Disability Benefit
Compensation Fees
Defined Contribution Plan (Lay DC)
Defined Benefit Plan (Lay DB)
Employees are eligible to participate in the plan on the first of the month following their date of hire. Employees are eligible to receive employer contributions on the 1st of the month after satisfying any employer-determined service or age requirement.
Eligible employees may participate on the 1st of the month after satisfying an employer determined service requirement, not to exceed 12 months and 1,000 hours.
Eligibility
65 years old.
65 years old.
Normal Retirement Date
Withdrawals are available after age 55 without 10% tax penalty if employment terminates.
55 years old. The benefits may be actuarially reduced.
Early Retirement Date
Employee contributions of up to 100% of salary may be permitted, provided the total amount contributed in a given year does not exceed Internal Revenue Code limits.
None required or permitted.
Employee Contributions
Participating employers contribute an amount equal to 5% of the employee’s compensation. Higher contribution levels are allowed by the plan within the limits of the tax code.
Employer pays all contributions to provide employee benefit. The contribution is actuarially determined each year and is currently 9% of compensation.
Employer Base Contribution
Employer matching contributions are expected up to 4% of compensation. These are in addition to the employer base contribution.
Not applicable.
Employer Matching Contribution
Not applicable. The benefit is based solely on the account balance at the applicable distribution date.
1.5% of Highest Average Compensation (“HAC”) for each year of credited service. HAC equals the average during the highest seven out of eight consecutive plan years. If the participant has less than 7 years of service, the benefit will be calculated using the average compensation the participant has earned.
Pension Formula
The investment options include a variety of choices ranging from a money market mutual fund to growth-focused stock funds and a stable value investment option. Also included are the Fidelity Freedom Funds®, which are the default investment options under the Plan. The participant bears all of the investment risk.
The plan assets are invested by the same highly qualified individuals that are responsible for the investment of the clergy pension plan assets. Participants do not hold individual accounts; therefore, the participants are not exposed to investment risk.
Investment Options
Retirement may be at any age after 55. The plan also permits in-service withdrawls upon attainment of age 59½ and hardship withdrawals with the consent of the participating employer and the Plan Administrator. However, if you terminate employment, you must commence your benefit after you attain age 70½.
A participant may retire as early as age 55. Retirement may be deferred until after age 65. Participants continue to accrue benefits as long as contributions continue to be made. However, if you terminate employment, you must commence your benefit after you attain age 70½.
Optional Retirement Dates
Your savings may continue to grow tax-deferred until you decide to commence distributions from the plan. You can also roll over your savings into an eligible plan, begin receiving income for a lifetime or for a specified period of time, or withdraw all or a portion of the funds from your account.
Straight-life annuity – pays a fixed amount per month for the remaining life of the individual. For married participants, a 50% joint and survivor annuity is the default option, unless both parties elect differently. This 50% joint and survivor annuity pays a fixed amount per month for the remaining life of the participant with a continuing benefit of half that amount to the surviving spouse for his/her remaining life. Other benefit options are available.
Forms of Benefit Payment
Employee contributions are always 100% vested. The participating employer chooses a vesting schedule for employer contributions from the following: • Immediate Vesting – Employer contributions are 100% vested from the outset of the employee’s participation. • 3-Year Cliff – Employer contributions are not vested during the first three years of service and become 100% vested on the employee’s third anniversary of employment. All forfeited amounts are allocated to all participants in the same vesting schedule and are not returned to the employer.
5-Year Cliff – Benefits are fully vested after five years or at age 55, whichever comes first. A participant in the Lay DB Plan will maintain his/her vesting service for 30 years. Participants who have earned less than 5 years, and have moved to another participating employer, will not lose vesting service with the prior employer.
Vesting
The Plan allows employee loans subject to Internal Revenue Service limitations. Participant may borrow the lesser of 50% of the vested balance of his or her account or $50,000.
Not applicable.
Loans
Vested balance payable to named beneficiary or if no named beneficiary, the decedent’s surviving spouse, if any, or if none, the decedent’s estate.
The Plan includes a pre-retirement survivor benefit payable to eligible spouses. Please note that this pre-retirement survivor benefit is limited to participants who die on or after attaining age 55 and who have eligible surviving spouses. That is, if you die before age 55 or if you do not have an eligible spouse, there is no pre-retirement survivor benefit paid from the Plan. Participants in the Plan are eligible for a lump sum death benefit of up to $50,000 should they die prior to age 72 (while an active participant).
Death Benefit
Vested balance payable to the participant with the 10% tax penalty waived.
A participant, who is determined disabled by the plan administrator, will receive a monthly benefit payable until recovery or until the participant’s normal retirement date. The amount will be equal to the accrued benefit as of the date of disability based on the highest average compensation and the larger of ten years or actual credited years of service as of such disability date.
Disability Benefit
Compensation includes all compensation reported in Box 5 of the employee’s W2 plus any pretax contributions to a health and welfare plan. All overtime, bonuses, commissions and severance pay will be included in assessable compensation.
Compensation includes all compensation reported in Box 5 of the employee’s W2 plus any pretax contributions to a health and welfare plan. All overtime, bonuses, commissions and severance pay will be included in assessable compensation.
Compensation
Administrative fees are currently fixed at 0.075% per quarter and are charged at the beginning of each quarter based upon the market value of the account at the end of the prior quarter. There are also fees charged if the participant takes a loan. There are no administrative fees associated with the Stable Value Option. As with all mutual fund investments, there are underlying fees and expenses. You can review the prospectus for information about fund fees and expenses.
Not applicable.
Fees
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. An independent audit of the plan’s financial condition is disclosed in the Church Pension Group Annual Report, located at www.cpg.org. The Church Pension Fund, as sponsor of this plan, continues to monitor the funding status closely, as like many defined benefit plans, currently it is not fully funded.
“It’s good to know my employee’s retirement savings are secure.”
