Defined Benefit Pension Plan
The Defined Benefit Pension Plan, a qualified 401(a) defined benefit church plan, provides a monthly benefit as defined by the plan’s formula, for as long as you live. Your employer is responsible for enrollment and for paying the full dues amount (cost) for pension plan participation. You do not contribute to the cost, and you do not need to take any action. If you are a pastor in an installed position, you participate as of the first day of the call. Otherwise, you begin participating when you are enrolled.
Amount of your pension benefit
Your pension grows as you accumulate pension credits over time. It can also grow through experience apportionments, which are discretionary, permanent increases in credits or benefits granted periodically by the Board of Directors of the Board of Pensions when financially possible.
When your pension benefit begins
The Board pays your accumulated pension benefit in monthly installments over your (or your survivors’) lifetime. The amount you receive each month depends on when your pension begins and how your benefit is paid.
How benefits are paid and your options
You may choose to begin receiving pension benefits at normal retirement (at age 65) or before or after age 65. In addition to the normal payment option, there are several joint and survivor payment options that allow you to choose a reduced monthly benefit in order to increase the benefit payable to the surviving spouse if you or your spouse die while you are receiving pension benefits.
Survivor benefits
The benefits your survivors receive from the Defined Benefit Pension Plan when you die are based on a variety of factors, including whether you have started receiving your pension and your marital status.
Other factors affecting your pension benefit
There are other factors that may affect your pension benefit, including, but not limited to, taxable income if you are a minister, Social Security, military duty, and disability.