my-profile-icon
pb-header

The General Church Pension Plan

basic-pension-sdb

The General Church Pension Plan

From the Summary Document of the Single Defined Benefit Plan

This section applies only to those who were participants in the General Church Pension Plan as of December 31, 1995, or prior. There are no new participants after December 31, 1995.

Section A: Those in this Plan

This portion of the Church of the Nazarene Single Defined Benefit Plan and this portion of the Summary cover only the employees at the International Headquarters, Nazarene Theological Seminary, and Nazarene Compassionate Ministries, Inc.

The General Church Pension Plan started on January 1, 1961.

The information here is only a summary of parts of the plan in simple English. The plan is governed in every respect by (and you can get more details from) the Plan Document. If you have any questions, contact your employer's personnel office or Pensions and Benefits USA.

Section B: How the Plan Works

B-1 Who pays for the plan?

Your employer makes tax-deferred contributions to the plan. After you retire, the monthly payments you receive in excess of your contributions will be taxed as ordinary income.

B-2 Do you contribute also?

Yes. As an active member you also will contribute through regular payroll deductions. Your contributions are held in your name. Your contribution is used to provide part of your retirement benefit. It is also available as a benefit if you die or terminate employment. Section E of this Summary will explain about contributions in more detail.

B-3 What happens to the plan funds?

The plan funds are for the exclusive benefit of members and their beneficiaries. These funds will be invested by the Investment Committee of the General Board and will accumulate to provide benefits under the plan.

Section C: Membership in the Plan

C-1 When did you become an active member?

You became eligible if you met the following requirements as of December 31, 1995:

  • you were an eligible full-time employee (30 hours per week minimum); and
  • you had reached age 21.

Note: There are no new participants after December 31, 1995.

You became an active member on the January 1 on or after which you met these requirements if you had signed an agreement authorizing payroll deductions. That was your "entry date."

You were an eligible employee unless you were employed as a missionary, an attorney, an engineer, or an independent professional retained by the Plan Sponsor.

Due to tax law changes, the plan was "restated" as of January 1, 1987. If you entered the plan before January 1, 1987, and were an active member on December 31, 1986, you were automatically an active member on January 1, 1987. Your entry date under the prior plan did not change.

C-2 If you did not sign the agreement by your entry date, can you sign up later?

You had 30 days after your initial entry date to sign the agreement. You could have become an active member on any January 1 after your initial entry date if you were still an eligible employee. This then, was your entry date. You cannot enter this plan after December 31, 1995.

C-3 When do you become an inactive member?

You will become an inactive member on any of the following:

  • the date you are discharged or quit (also see C-4);
  • the date you stop contributing to the plan; or
  • the date you are no longer eligible (see C-1).

C-4 When do you stop being a member?

You stop being a member on any of the following:

  • the date of your death;
  • the date you are discharged or quit if your vesting percentage is zero (see H-2); or
  • the date you get a single sum payment in place of all other benefits.

C-5 Can you become an active member again?

No. There is no provision for reentry after December 31, 1995.

Section D: When You May Retire

D-1 When is your normal retirement date?

Your "normal retirement date" is the first day of the month on or after the date you reach age 65.

For Example: Your Birth Date Your Normal
Retirement Date
April 1, 1936 April 1, 2001
April 20, 1936 May 1, 2001

This is the date your benefits are paid if you have stopped working and benefits have not been paid on an earlier date.

D-2 May you retire before your normal retirement date?

Yes. You may choose to have your benefits paid on your early retirement date.

Your "early retirement date" may be the first day of any month on or after the later of:

  • the date you stop working; and
  • the date you reach age 60.

D-3 May you retire after your normal retirement date?

If you continue working, your benefits will be paid on your late retirement date. Your "late retirement date" will be the first day of the month on or after the date you stop working.

Section E: How Much Is Contributed By You

E-1 What amounts are you required to contribute?

Your required contribution for each pay period is 3% of your pay. Pay means your fixed rate of pay as of each January 1.

You do not contribute after you become eligible for benefits from any pension contribution continuance insurance provided by your employer.

You must make required contributions during the time in which you are an active member. The amounts you contribute are separately identified in the event you terminate participation or employment. These funds are always yours although availability is restricted due to plan provisions. (See B-2, I-4, and I-5.)

E-2 Is interest paid on your account?

Yes. Your contributions are credited with a minimum of 5% interest.

E-3 Does anything else affect your contributions?

The law limits the contributions and benefits under all plans of an employer. Before the Tax Reform Act of 1986, most employee contributions were not subject to this limit. Now, almost all employee contributions are a part of this limit. Because the limits are so high, few people should be affected unless:

  • they are covered by more than one plan of an employer; or
  • the employer contributions or benefits are high and they are making employee contributions.

The actuarially assumed employer contributions to this plan may affect your maximum exclusion allowance under the Church of the Nazarene 403(b) Retirement Savings Plan. Consult your employer's personnel office or Pensions and Benefits USA for additional information.

Section F: How Much Benefit You Can Earn

As you work, you earn your retirement benefit. This "earned benefit" will grow with your service and pay.

F-1 How is your earned benefit calculated?

If you are beginning retirement benefit payments on or after January 1, 2000, the formula below is used to figure your earned monthly benefit under the normal form of retirement benefit which is "life with a certain period of 10 years."

(1) 2.00% of your "average monthly pay"
multiplied by
(2) your "credited years of service" under the plan

Your "average monthly pay" is the average of your fixed rates of monthly pay on the five January 1's which give the highest average.

Your "credited years of service" is the sum of your periods of service as an active member which starts when you become an active member of the plan and ends on the date you are discharged or quit.

However, the following service will not be counted:

  • service before January 1, 1961; or
  • service when you were not an active member (see Section C).

Your earned benefit will not be less than:

  • your earned benefit under the provisions of the prior plan on December 31, 1986; or
  • your expected benefit at normal retirement date under the prior plan on December 31, 1986, multiplied by your "earned benefit percentage."

Your "earned benefit percentage" is the percentage of your benefit that you have earned based on your credited years of service. This percentage will not exceed 100% and is the sum of your credited years of service divided by your expected credited years of service at age 65.

For example, assume:
(1) you retire on your normal retirement date at age 65; and
(2) you have 30 credited years of service; and
(3) your average monthly pay for the 5 highest years is $1,000.

Your earned monthly benefit at normal retirement date under "life with a certain period of 10 years" would be:

2.00% of your average monthly pay $ 20.00
multiplied by years of credited service ____30
earned monthly benefit at normal retirement date $600.00

Remember that this benefit is subject to the 403(b) offset described in the Introduction of this Summary.

F-2 Is this the amount you will get if you retire on your normal retirement date?

This is the full benefit you would get under the "normal form" of income if you work up to your normal retirement date. The normal form is "life with a certain period of 10 years." This form pays you a monthly payment as long as you live. Monthly payments will be made for at least 10 years. If you die before monthly payments have been made for 10 years, your beneficiary gets the payments that are left.

The actual amount of your monthly payments will depend on the form of retirement benefit you choose (see Section G for optional forms).

F-3 Will you get less if you retire before your normal retirement date?

Your earned benefit will be less because your service and pay are not the same as at your normal retirement date. Your earned benefit will be actuarially reduced to reflect that payments begin at a younger age and are paid for a longer time. The percentage is based on the number of years you retire early and is shown in the table below:

Number of Years You Retire Early Approximate Percentage
1 93
2 86
3 80
4 73
5 66

The percentage will be adjusted for fractional parts of a year.

For example, assume:
(1) you retire 3 years early; and
(2) you now have 27 years of credited service; and
(3) your average monthly pay for the 5 highest years is $950.

Approximate monthly benefit 3 years early under "life with a certain period of 10 years" would be:

2.00% of your average monthly pay $ 19.00
multiplied by years of credited service ____27
earned monthly benefit at normal retirement date $513.00
multiplied by 80%
monthly benefit from the plan $410.40

Remember that this benefit is subject to the 403(b) offset described in the Introduction of this Summary.

F-4 Will you get more if you retire late?

Yes. The benefit you had earned on your normal retirement date will be increased by a percentage. This is because payments begin at an older age and are paid based on a shorter life expectancy. The percentage is based on the number of years you retire late and is shown in the table below:

Number of Years You Retire Late Percentage
1 6
2 12
3 19
4 26
5 34
6 42
7 50
8 58
9 67
10 76

The percentage will be adjusted for fractional parts of a year. You may ask your employer's personnel office for factors for years not shown in the table. However, your income on your late retirement date will not be less than your earned benefit on the date you retire. Your earned benefit will be determined using your pay and service as of the date you retire.

For example, assume:
(1) you retire 5 years after normal retirement date; and
(2) your average monthly pay for the 5 highest years is $1,200; and
(3) you now have 35 years of credited service; and
(4) your earned benefit at normal retirement date is $600.00.

Your benefit 5 years late under "life with a certain period of 10 years" would be the greater of (a) or (b) below:

(a) earned benefit at normal retirement date $600.00
multiplied by above percentage (5 years late) ___34%
$204.00
$600.00 plus $204.00 $804.00
(b) 2.00% of your average monthly pay $24.00
multiplied by years of credited service _____35
$840.00

Since the amount in (b) is greater, your monthly benefit from the plan would be $840.00

Remember that this benefit is subject to the 403(b) offset described in the Introduction of this Summary.

F-5 What if you retired on or prior to January 1, 1994?

The amount of retirement benefit paid after December 31, 1995, for all retirees as of January 1, 1994, shall be determined by a factor based on a modified Consumer Price Index (CPI) change since the year of each retiree's retirement which will be used to multiply the original benefit amount payable at the Retirement Date for the participant or subsequently to a beneficiary. The original benefit multiplier will be the lesser of the actual CPI percentage change for the calendar year as reported by the United States Department of Labor or 3%. The following table will be used to determine the multiplier based on this formula:

Year of Retirement Annual CPI Change Adjusted CPI Multiplier/Factor
1968 6.22% 3.00% 2.04
1969 5.18% 3.00% 1.98
1970 3.38% 3.00% 1.92
1971 3.50% 3.00% 1.87
1972 8.89% 3.00% 1.81
1973 12.10% 3.00% 1.76
1974 7.25% 3.00% 1.71
1975 4.38% 3.00% 1.66
1976 7.26% 3.00% 1.61
1977 8.84% 3.00% 1.56
1978 13.16% 3.00% 1.52
1979 12.43% 3.00% 1.47
1980 9.03% 3.00% 1.43
1981 4.03% 3.00% 1.39
1982 4.20% 3.00% 1.35
1983 3.62% 3.00% 1.31
1984 3.76% 3.00% 1.27
1985 1.53% 1.53% 1.23
1986 3.97% 3.00% 1.22
1987 4.13% 3.00% 1.18
1988 5.22% 3.00% 1.15
1989 6.48% 3.00% 1.11
1990 1.89% 1.89% 1.08
1991 1.44% 1.44% 1.06
1992 1.46% 1.46% 1.05
1993 3.00% 3.00% 1.03

No benefit payable after this multiplier is applied will be less than the monthly Accrued Benefit payable prior to the application of the factor.

F-6 What if you retired on or prior to July 1, 1997?

The amount of retirement benefit paid after June 30, 1997, for all grandfathered General Church Pension Plan retirees as of July 1, 1997, will be increased by the same percentage increase effective July 1, 1997, for grandfathered "Basic" Pension Plan retirees (2.78%), up to the maximum benefit available under the new grandfathered "Basic" Pension Plan benefit base formula.

F-7 What if you retired on or prior to July 1, 1998?

The amount of retirement benefit paid after June 30, 1998, for all grandfathered General Church Pension Plan retirees as of July 1, 1998, will be increased by the same percentage increase effective July 1, 1998, for grandfathered "Basic" Pension Plan retirees (2.70%), up to the maximum benefit available under the new grandfathered "Basic" Pension Plan benefit base formula.

F-8 What if you retired on or prior to July 1, 1999?

The amount of retirement benefit paid after June 30, 1999, for all grandfathered General Church Pension Plan retirees as of July 1, 1999, will be increased by the same percentage increase effective July 1, 1999, for grandfathered "Basic" Pension Plan retirees (5.26%), up to the maximum benefit available under the new grandfathered "Basic" Pension Plan benefit base formula.

F-9 What if you retired on or prior to December 31, 1999, or were an inactive participant on December 31, 1999, having frozen accrued benefits?

The amount of retirement benefit paid after December 31, 1999, for all grandfathered General Church Pension Plan retirees as of December 31, 1999, will be increased by 15%. For all inactive participants on December 31, 1999, having frozen accrued benefits, those benefits will be increased by 15% of the amount determined by the benefit formula in place at the time the benefit was frozen.

F-10 What if you retired on or prior to July 1, 2000?

The amount of retirement benefit paid after June 30, 2000, for all grandfathered General Church Pension Plan retirees as of July 1, 2000, will be increased by the same percentage increase effective July 1, 2000, for grandfathered "Basic" Pension Plan retirees (5.00%), up to the maximum benefit available under the new grandfathered "Basic" Pension Plan benefit base formula.

F-11 What if you retired on or prior to July 1, 2001?

The amount of retirement benefit paid after June 30, 2001, for all grandfathered General Church Pension Plan retirees as of July 1, 2001, will be increased by the same percentage increase effective July 1, 2001, for grandfathered "Basic" Pension Plan retirees (2.38%), up to the maximum benefit available under the new grandfathered "Basic" Pension Plan benefit base formula.

Section G: How Your Retirements Benefits Are Paid

Your retirement benefit described in Section F will be paid to you at retirement. This is the amount paid under the normal form. The normal form is "life with a certain period of 10 years." This form pays you a monthly payment as long as you live. Monthly payments will be made for at least 10 years. If you die before monthly payments have been made for 10 years, your beneficiary gets the payments that are left. The actual amount of your monthly payments will depend on the amount of your earned benefit, your age, the age of your survivor, and the optional form chosen.

G-1 How are retirement benefits paid?

If you do not make a choice (or you cancel your choice), retirement benefits will be paid as provided below:

  • If you are not married on the day benefits begin, retirement benefits described in Section F will be paid to you under the normal form.
  • If you are married on the date benefits begin, retirement benefits will be adjusted to provide a minimum survivor benefit and paid to you monthly for as long as you live. After your death, a minimum 50% of your monthly retirement benefit will be paid to your spouse for as long as your spouse lives.

However, if the present value of your earned retirement benefit is not more than $5,000, the value of your retirement benefit will be paid to you in a single sum in place of any other retirement benefits.

G-2 What are the optional forms of retirement benefit?

Examples of the optional forms of retirement benefits include but are not limited to the following:

  • A monthly income to you for as long as you live. If you die before the end of 10 years, payments will be made to your beneficiary to the end of that period.
  • A monthly income to you for as long as you live. If you die before total payments made equal your employee account on your retirement date, payments will be paid to your beneficiary until the total does equal that amount.
  • A monthly income to you for as long as you live. After your death, 60%, 66%, 75%, or 100% of your monthly income will be paid to a survivor you named for as long as the survivor lives. If you and your named survivor die before the end of 10 years, payments will be made to your beneficiary to the end of that period.

The actuarial value of each form is the same. However, the monthly benefit payable under each form is different because of the different death benefits payable. In general, a monthly income for as long as you live with no death benefits will give you the largest monthly income. A monthly income to you with 100% of your income paid to a survivor will give you the smallest monthly income of those options described above.

For example, assume:

  1. you retire at age 65; and
  2. your earned benefit under "life with a certain period of 10 years" is $100; and
  3. your survivor is age 62.
Form of Income Your Approximate
Monthly Benefit
Life Only $109
"Life with a certain period of 10 years" (basic form) $100
66 2/3% survivor $90
($59.94 to survivor)
50% survivor $95
($47.50 to survivor)

Remember that this benefit is subject to the 403(b) offset described in the Introduction of this Summary.

NOTE: These amounts are approximate. The amounts will vary with your age and the age of your survivor. When you're ready to choose, your employer's personnel office can get exact amounts for you.

G-3 When may you choose an optional form of retirement benefit?

You may make your choice at any time before benefits begin, but no changes can be made after benefits begin. You may choose any optional form of retirement benefit. You may change or cancel your choice at any time before benefits begin. You should consult with your employer's personnel office about any optional form you wish to choose.

Section H: What Death Benefits Are Paid

This plan is intended to provide an income for your retirement years. However, death benefits are also available.

H-1 Are any benefits payable if you die before you retire?

Your beneficiary will receive a single sum death benefit equal to your termination benefit as described in I-4. If you stop working before you reach your normal retirement date, this benefit is still payable. Only if your termination of employment is for cause or if you take a single sum termination benefit will your beneficiary not be entitled to a death benefit.

In any case, the single sum death benefit will not be less than $500 nor less than the amount your employee account could provide.

You may choose your beneficiary. Your beneficiary may, for his/her own benefit, choose another form of payment. Your beneficiary may make this choice at any time after your death and before benefits begin.

H-2 What benefits are paid if you die after you retire?

Death benefits are paid according to the death benefit, if any, payable under the form of retirement benefit you chose when you retired.

Section I: What You Get if You Become an Inactive Member

I-1 Will you still get benefits from the plan if you're an inactive member?

Yes. You will always get the amount of benefit your employee account would provide. In addition, if your vesting percentage is greater than 0%, you will get a percentage of the amount, if any, by which your earned benefit exceeds the amount provided by your employee account. This percentage is your vesting percentage. This amount is your vested benefit. This benefit cannot be taken from you. Only if your vesting percentage is 0%, will you fail to get any additional benefits. However, if you die before retirement, the only benefits payable will be those described in Section H.

I-2 How is your vesting percentage determined?

Your vesting percentage is determined by your years of vesting service and is determined as of the date you stop working.

Your vesting percentage is determined from the following schedule:

Years of Vesting Service Percentage
Less than 3 0
3 20
4 40
5 60
6 80
7 or more 100

In any event, your vesting percentage will be 100% on the date you reach age 60 if you are still working on such date.

If you were covered under the plan on December 31, 1986, your vesting percentage will not be less than it was on that date.

I-3 How is vesting service determined?

"Vesting service" is the sum of the following:

  • your service before January 1, 1961; and
  • your "periods of continuous service" after January 1, 1961.

A "period of continuous service" starts on your date of hire. It ends on the date you are discharged or quit.

If you worked for one or more local Nazarene churches, Nazarene districts, or Nazarene church agencies before coming to work for a participating employer, that service will count as vesting service if there was no more than a 12-month break in service between service with the local churches, districts, or agencies.

I-4 If you remain an inactive member, when may you get your benefit?

Payment of your vested benefit will begin on your normal retirement date (see D-1). Your vesting percentage will be determined as of the date you stop working for a participating employer. If you meet the requirements in D-2, you may have payment of your vested benefit start on your early retirement date. However, payments will be reduced by the percentage from the table in F-3. If you are inactive because you are no longer an eligible employee, but are still working for the Plan Sponsor, your vested benefit will begin on your late retirement date (D-3). Payments will be increased by the percentage from the table in F-4. If you became an inactive member after your normal retirement date, your earned benefit as of your normal retirement date will be increased by the percentage, but payments will not be less than your earned benefit as of the date you became an active member. At the time you wish payments to begin, notify your employer's personnel office of your current address.

This is the amount payable under the normal form. The actual amount of your monthly payments will depend on the amount of your vested benefit, your age, the age of your survivor, and the optional form chosen. See Section G which describes how retirement benefits are paid.

I-5 Is your vested benefit paid only at retirement?

If you stop working for a participating employer and the value of your vested benefit is not more than $5,000, the value of your vested benefit will be paid to you in a single sum in place of any other benefit from your vested benefit.

If you stop working for a participating employer, you may choose to get your employee account in a single sum. If you make this choice, it will be the only benefit you will get from the plan.

Section J: Other Facts You Need to Know

J-1 Can your benefits be paid to someone else?

Benefits under the plan cannot be transferred, assigned, or pledged, except in the case of a qualified domestic relations order (QDRO).

J-2 Do your payments from this plan affect your Social Security benefits?

No. Your benefits from this plan are in addition to your benefits from Social Security. You should make your application for Social Security (and Medicare) benefits 3 months before you wish Social Security payments to begin.

J-3 How do you make a claim for benefits under the plan?

Apply for benefits to your employer. You will need to complete all necessary forms and supply needed information, such as the address where you will get your checks. Your employer's personnel office will assist in providing and completing these forms.

Your claim will be reviewed and a decision made within 90 days. In some cases the decision may be delayed for an additional 90 days. If so, you will be notified in writing.

If you make a claim and all or part of it is refused, you will be notified in writing. You will be told (1) why your claim was refused; (2) the specific provisions of the plan governing the decision; (3) what additional information is needed, if any; and (4) what steps you should take to have your claim reviewed.

J-4 What can you do if your claim is refused?

You have 90 days after you receive written notice your claim is refused to make a written appeal to your Plan Administrator. You or your representative may also review plan documents and submit issues and comments in writing. A decision will be made on your appeal within 90 days. In some cases the decision may be delayed for an additional 90 days. If so, you will be notified in writing. The Plan Administrator has the right to construe the provisions of the plan.

J-5 Can the plan be changed or discontinued?

The plan can be changed at any time. You will be notified of any changes that affect your benefits. The plan is designed to safeguard your interests. It is hoped that the plan will be continued indefinitely, but the plan may be changed or terminated.

J-6 What happens if the plan is terminated?

If the plan should terminate, the full amount in your employee account will be used to provide a retirement benefit for you. The plan assets over and above employee accounts will be used up on a priority basis to provide retirement income for all vested plan participants. Specific terms are contained in the plan document that is available from your employer's personnel office or Pensions and Benefits USA.

Created on Monday, 25 June 2007
canadian viagra for sale facebooklikeslrv.com