Defined Benefit Pension Plan
The Defined Benefit Pension Plan provides vested participants with a guaranteed monthly income throughout retirement.
You can help to provide financial security to your 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.
βTo have a pension in these times is becoming more and more rare. To have a pension through the PC(USA) 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.β
β 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 as well as through increases known as experience apportionments. Apportionments, granted by our Board of Directors when financially possible, are periodic, permanent increases to the pension benefits of all participants. As of 2025, the Board has granted an apportionment for 13 consecutive years, representing a cumulative increase of 53.4% since 2013.
Vesting
If you continue to offer the Defined Benefit Pension Plan to your employees, members are vested in the plan when they
- complete three years of eligible service (including seminary and eligible military service); or
- reach age 65.
Pension benefit amount
The amount of a participant's pension benefit depends on the total pension credits accrued, age at retirement, and the payment option the participant chooses. 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 paid 100% by the employer. Dues for the plan are 8.5% of effective salary. Employees do not contribute to the Defined Benefit Pension Plan.
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.
Interested in offering benefits for the first time?
PC(USA)-affiliated employers who do not currently offer benefits through the Board can contact our sales consultants. They can help build a benefits experience for organizations so their employees can thrive.