Defined Benefit Plan Formula
All active participants of the plan will be under the following formula:
Benefit Formula Notes
Transition 1.85% X Consecutive High 5 Year Average Pay X Service Average Pay and Service
Date calculated before the Transaction Date
Transition 1.50% X Career Annual Average Pay X Service Average Pay and Service
Date calculated after the Transaction Date
Total Benefit Before Transition Date +
Benefit After Transition Date
Transition Date: January 1, 2018 for grandfathered employees and January 1, 2015 for others.
Normal Retirement and Earliest Retirement Ages updated for the Grandfathered Group.
The normal retirement age is currently 67 for non-grandfathered participants and will be moved from 65 to 67 after January 1, 2021
for prior grandfathered participants.
The earliest retirement age will be changed from 60 to 62 for prior grandfathered after January 1, 2021.
Contributions will be assessed at 13.5% of compensation (previously 10.5%) as of January 1, 2018.
Each church is emailed an invoice each month and the funds are withdrawn via ACH from the church’s bank account.
As the plan moves forward, the Benefits Committee will continue to look for improvements that will support you in your retirement years.
If you have questions or concerns, please feel free to give Willadean Duncan a call at 800-342-5531 or email email@example.com.