Pension benefits for all clergy and eligible lay employees are administered by Church Pension Group. For information about pension plans for clergy and lay employees, visit www.cpg.org.
CLERGY PENSION
Participation in the Church Pension Fund is mandatory for all Episcopal clergy that are regularly employed for 5+ consecutive months and compensated. You will be treated as regularly employed if you meet one of the following requirements:
You have a letter of agreement (or other contract of employment) with your employer
You are duly called to your position by your bishop, vestry, or rector
Your position has a formal title (for example, rector or priest-in-charge) indicating an ongoing substantial relationship with your employer
Your employer issues you a Form W-2 (or equivalent)
You are scheduled to work at least 20 hours per week
If You Are Expected to Work Less Than Five Consecutive Months. If you would otherwise meet the criteria for mandatory participation except that you are expected to be employed for less than five consecutive months, you and your employer may choose to participate in the Clergy Pension Plan if you have a letter of agreement (or other contract of employment) that provides for the payment of Pension Assessments on your behalf by your employer.
For more information about Clergy Pension, see A Guide to Clergy Benefits (effective January 1, 2018) OR visit cpg.org.
Forms to report life events are available at www.cpg.org. Life events that need to be reported include:
Employment Change Form - 2018 New Assignment and Compensation Changes (after January 1, 2018)
Personal Information Change Form (to update personal information for clergy and lay employees)
LAY PENSION
Benefits for Lay Employees who are scheduled to work a minimum of 1,000 hours annually in the Diocese of Iowa shall include Church Pension Fund payments. This shall include lay employees that receive compensation for working for congregations, the diocese, or other ecclesiastical organizations or bodies subject to the authority of the Church.
The church employer must select a plan for their lay employees:
Defined Benefit plan - provides a retirement benefit based on a predefined formula that takes into account your years of service with a participating employer and compensation history. Benefits are funded by employer contributions. The employer contribution is 9% of the lay employee's compensation. Defined Benefit Retirement Plan Employer Adoption Agreement
Defined Contribution plan - Contributions are invested in a 401(a) plan and a 403(b) plan; both administered by Fidelity Investments. The employer shall contribute not less than 5% of the employee’s compensation and match up to an additional 4% of the employee’s compensation. Defined Contribution Retirement Plan Adoption Agreement
For more information about the Lay Pension plans, visit www.cpg.org.
