Defined Benefit Pension Plan

You can help provide financial security to employees by offering the Defined Benefit Pension Plan. Employees enrolled and vested in the plan receive a monthly income throughout retirement, and eligible survivors may receive income after the participant's death.

“To have a pension through the Board of Pensions is a trustworthy source of support ... I am thankful for the Board of Pensions leadership and their forethought, financial and management skills, wisdom, and compassion.”

— Defined Benefit Pension Plan participant

How the Defined Benefit Pension Plan works

The Defined Benefit Pension Plan is a qualified 401(a) defined benefit church plan. It is funded through employer dues and investment earnings in the Balanced Investment Portfolio, which the Board of Pensions maintains. The Board's long-term investment approach is intended to ensure that the portfolio is well positioned for long-term success.

Pension credits and apportionments

An employee's pension benefit grows through :

• annual pension credits for each year of eligible plan participation
• experience apportionments granted by our Board of Directors when financially possible

Vesting

Members enrolled in the Defined Benefit Pension Plan are vested in the plan when they:

• complete three years of eligible service (including seminary and eligible military service)
• reach age 65

Pension benefit amount

The amount of a plan member's pension benefit depends on the total pension credits accrued, age at retirement, and the payment option they choose. Read more details about how the Defined Benefit Pension Plan works.

Eligibility

You may offer the Defined Benefit Pension Plan to any employee regularly scheduled to work at least 20 hours per week. The plan is included in the Covenant Package, the Congregational Pastors Package, and Transitional Pastor's Participation.

Cost

The Defined Benefit Pension Plan is 100% employer-paid. Dues for the plan are 8.5% of effective salary.

Questions about the Defined Benefit Pension Plan?

Employers who currently offer benefits through the Board of Pensions can call 800-PRESPLAN (800-773-7752) (TTY: 711) to speak with an Employer Services representative. They can answer questions about benefits and offer support on administering benefits through Benefits Connect.

PC(USA) employers and congregations are encouraged to reach out to their Church Consultant to help determine which dues package is right for their situation, understand available benefits for staff and how to structure them, and guide faithful benefits decision‑making.