How the RSP works

​The Retirement Savings Plan allows you to save a portion of your salary, on a tax-advantaged basis, up to the annual limit set by the IRS.

The RSP is an optional, voluntary plan, funded by employee and/or employer contributions. You may contribute a portion of your taxable salary, excluding housing allowance, subject to the annual IRS dollar limit ($19,500 for 2020). Contributions may be pretax, or Roth (after-tax). 

  • Pretax contributions: Federal taxes on contributions and earnings are deferred until you receive distributions. That means savings could grow faster than if they were in a taxable account. 
  • Roth (after-tax) contributions: Contributions are taxed as ordinary income. Earnings accrue on a tax-free basis. All withdrawals of Roth contributions are tax-free. Withdrawals of qualified Roth earnings, as defined by the IRS, are also tax-free.

Your employer may, but is not required to, contribute to your RSP account. Effective salary does not include employer matching contributions to the RSP.

The total of your and your employer’s contributions cannot exceed $57,000 or 100 percent of cash salary, whichever is lower.

Catch-up contributions

Eligible participants may contribute additional funds, called catch-up contributions, above the maximum allowable amounts to their RSP accounts so they can save a greater amount on a tax-advantaged basis as they build savings for retirement.

Participants age 50 years or older may contribute up to an additional maximum amount ($6,500 for 2020), designated by the IRS and subject to annual change, if they have contributed the maximum allowable amount to the RSP and other defined contribution plans.

In addition, eligible long-service RSP participants who have at least 15 years of service with PC(USA) churches and affiliated employers may contribute an additional amount ($3,000 for 2020), subject to a lifetime maximum of $15,000.

Refer to IRS publication 571 for details.

Rollover contributions

You may consolidate eligible assets from other employer-sponsored retirement plans [403(b), 401(k), etc.] into your Retirement Savings Plan account. Call Fidelity at 800-343-0860 for additional information.


Fidelity deducts an administrative fee of $3.75 from your RSP account quarterly.


Vesting refers to a non-forfeitable right to a benefit. You are always fully vested in your own RSP contributions and related investment earnings. Unless otherwise specified in your organization’s Employer Agreement with the Board of Pensions, you are immediately fully vested in any employer contributions and/or matching contributions, and related investment earnings in your RSP account.