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Considerations

Before submitting your Employer Agreement for next year, review it to consider who will be offered what benefits, when coverage will take effect, and how much you and employees will contribute to the cost of coverage.

Who, what, and when

Use criteria such as hours scheduled to work, length of service, or job types to determine who is eligible for coverage.

You may select what benefits to offer each benefit group (based on Benefits Plan provisions) except for installed pastors, who must be enrolled in Pastor's Participation.

Benefits may be effective when employees are first hired or after a waiting period (up to 90 days for medical coverage), as long as you comply with applicable laws.

Menu options is available for employees other than installed pastors.

  • medical coverage in the PPO, EPO, and/or HDHP and HSA, including prescription drug, vision, and the Employee Assistance Program (EAP)
  • dental coverage
  • defined benefit Pension Plan
  • Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP), a 403(b)(9) plan
  • Death and Disability Plan (and supplemental coverage, if eligible)
  • group term life coverage
  • vision eyewear coverage
  • flexible spending accounts (FSAs)

Pastor's Participation must be provided for installed pastors.

  • medical coverage in the PPO (full family)
  • dental coverage
  • defined benefit Pension Plan
  • RSP
  • Death and Disability Plan (and supplemental coverage, if eligible)
  • vision eyewear coverage

Ministers of the Word and Sacrament (other than installed pastors)

  • who work 20 hours or more weekly may be enrolled in either Pastor's Participation or menu options. However, the Board urges you to enroll this group in Pastor's Participation and to apply your selection to all ministers working 20 or more hours weekly.
  • who work less than 20 hours weekly may be enrolled in menu options and are eligible for medical, dental, and vision eyewear coverage, RSP participation, and flexible spending accounts (if offered by their employer).

How much

Menu options

If offered, dues for the Pension Plan and death and disability coverage are 100 percent employer-paid.

  • Dues for the Pension Plan are 11 percent of effective salary.
  • Dues for death and disability coverage are 1 percent of effective salary if offered with the Pension Plan, or 2.5 percent of effective salary if offered without Pension Plan enrollment.

Employers pay at least 50 percent of Member-only coverage in the lowest-cost medical option they offer, and may contribute toward the additional cost of covering eligible family members.

  • Medical coverage costs are based on claims experience adjusted for regional and demographic factors. The monthly cost of HDHP coverage is approximately 22 percent less than PPO coverage and approximately 7 percent less than EPO coverage.
  • Employers with transitional pricing support for Member + Spouse and Member + Family PPO medical coverage may notice a greater increase in coverage costs than previously because of the gradual decline of transitional pricing support through 2019. Beginning in 2020, PPO costs will better reflect actual marketplace costs.

Employers pay the full cost of group term life coverage, if offered; cost is 20 cents per $1,000 of coverage.

You are encouraged to offer retirement benefits. You may

  • offer Pension Plan participation and/or the RSP;
  • grandfather Pension Plan participation for employees currently in the plan while offering only the RSP to new employees; or
  • add a discretionary employer contribution or matching contribution* to the RSP as partial income replacement for employees no longer participating in the Pension Plan.

Pastor's Participation

Employers pay the entire cost for the following:

  • defined benefit Pension Plan participation: 11 percent of effective salary
  • death and disability benefits coverage: 1 percent of effective salary
  • medical coverage in the PPO (full family): 25 percent of effective salary (or the minimum dues rate, whichever is greater)

Employers may, but are not required to, contribute to the cost of dental, supplemental death, supplemental disability (if eligible), and/or vision eyewear coverage. Employers may contribute to the RSP on a member's behalf as a fixed and/or matching* contribution.

*An employer matching contribution to the RSP is not considered part of effective salary, so the employer cost for dues-based benefits (such as medical coverage in Pastor's Participation or Pension Plan participation) is not affected. (A fixed employer contribution to the RSP, as a percentage of pay or a dollar amount, is considered part of effective salary and included in the calculation of dues).