Pension Plan

The Pension Plan is a unique defined benefit plan that provides a guaranteed monthly income throughout retirement.

You can help to provide financial security to your employees by offering the Pension Plan, a defined benefit plan. Participants in the plan receive a monthly income throughout retirement, and eligible survivors may receive income after the participant's death.

How our Pension Plan works

The Pension Plan 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, are periodic, permanent increases to the pension benefits of all participants. The Board has granted an apportionment each year for the past seven consecutive years, representing a cumulative increase of almost 24 percent.

Vesting

If you continue to offer the 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 Pension Plan works.

Eligibility to participate

You may choose to offer the Pension Plan to employees scheduled to work at least 20 hours per week. Read more details about eligibility for the Pension Plan. 

Costs

The Pension Plan is paid 100 percent by the employer. Dues for the plan are 11 percent of effective salary. Employees do not contribute to the Pension Plan.

Interested in offering the Pension Plan? Here's what to do next.

For current employers

If you currently offer benefits through the Benefits Plan of the Presbyterian Church (U.S.A.), you may elect this benefit when you update your Employer Agreement on Benefits Connect for the following year. Employer Agreements are usually available for updating beginning in July through October. 

For new employers

If you do not currently offer benefits through the Benefits Plan and would like to learn more about its features and how the Board of Pensions serves employers, call our Employer Services team at 800-773-7752 (800-PRESPLAN) to discuss how we can best meet your and your employees' needs.