In 2009, the 76th General Convention of the Episcopal Church passed Resolution A138 and its associated Canon, establishing the Church-wide Lay Employee Pension System (LPS) and naming The Church Pension Fund (CPF) as administrator.
Under this resolution, Episcopal employers subject to the authority of the Church are required to provide a pension to all lay employees scheduled to work a minimum of 1,000 hours annually. Implementation was to be completed by January 1, 2013.
In 2012, the 77th General Convention passed Resolution C042 which affirmed the requirements of Resolution A138, extended the period for schools only to achieve the full employer contribution and match rates for defined contribution plans until January 1, 2018 according to a specific year-by-year phase-in schedule. Resolution C042 defines schools as serving children of any age, thereby including pre-school, nursery and day care centers. What Does This Mean for You? All lay employees scheduled to work a minimum of 1,000 annually for any domestic diocese, parish, mission or other ecclesiastical organization or body subject to the authority of the Church are required to be enrolled in a pension plan that is either administered or authorized by CPF. Implementation was to be completed by January 1, 2013.
Employers may also provide pensions for lay employees scheduled to work fewer than 1,000 hours per year, but are not required to do so.
CPF offers employers the following pension plan options. Check with your employer to determine which plan is available.
•The Episcopal Church Lay Employees' Defined Contribution Retirement Plan (the Lay DC Plan), a 401(a) and 403(b) plan, whose records are kept by Fidelity Investments
•The Episcopal Church Lay Employees' Defined Benefit Retirement Plan (the Lay DB Plan)
•The Episcopal Church Retirement Savings Plan (RSVP), a 403(b) plan, providing individuals with a vehicle to save for retirement in a tax-effective way. RSVP is offered by some employers in addition to a defined benefit plan Church Life Insurance Corporation offers IRAs and annuities to assist you in saving for retirement. Call today for a phone consultation with licensed specialists to discuss the savings options available.
Lay Pension Plans Comparison compares the differences between the Lay Defined Benefit Plan and the Lay Defined Contribution Plan.