D045 HB Report #6

House of Bishops Committee 17 on Church Pension Fund presents its Report #6 on HD Message #167 on Resolution D045 (Pension Equity for Lay Employees). The committee recommends:

Adopt with Amendment (Message)

Resolved, the House of Bishops concurring, That the 79th General Convention recognizes that the pension plans for lay employees provided for by the 76th General Convention in Resolution 2009-A138 do not provide equity in retirement benefits when compared to the pension plan for clergy provided by the Church Pension Fund pursuant to Canon I.8.1; and be it further

Resolved, That this the 79th General Convention affirms that in the interests of justice the pension plans for clergy and lay employees should be as equitable as possible; and be it further

Resolved, That to move towards equity between the pension plans for lay employees and clergy the following changes shall be made to the principles for providing pensions to lay employees as set forth in Resolution 2009-A138 such that principle 1 of that Resolution will now read:

1. The lay employee pension system shall provide benefits that shall include defined benefit plan(s) and defined contribution plan(s). Every eligible lay employee shall be offered a choice between participation in either a defined benefit plan or a defined contribution plan.

Principle 2 of Resolution 2009-A138 will now read:

2. If a defined benefit plan is selected by the employee, the employer assessment and/or contribution shall be not less than nine (9) percent of the employee’s compensation through 2019. The employer assessment and/or contribution shall increase by one (1) percent of the employee’s compensation in 2020 and for each year thereafter until the employer assessment and/or contribution reaches eighteen (18) percent. If a defined contribution plan is selected by the employee, the employer shall contribute not less than five (5) percent of the employee’s compensation through 2019. The employer’s contribution shall increase by one (1) percent of the employee’s compensation in 2020 and for each year thereafter until the employer assessment reaches eighteen (18) percent. The employer shall match at least four (4) percent of the employee’s contribution in 2019 and the employer’s match of the employee’s contribution shall increase by one (1) percent per year until the total contribution of the employer, both by contribution and match, totals eighteen (18) percent.

Resolved, that this General Convention urge parishes, dioceses, and other institutions that participate in the Church Pension Fund to take specific steps to reach parity in the pension contributions for lay and ordained church workers while taking into consideration contributions toward other potential sources for retirement income (e.g. Social Security or other retirement plans); and be it further

Resolved, that the Church Pension Fund be asked to study the steps necessary to provide equity in the pension plans for lay and ordained church workers, when equity is defined as equal projected financial benefits for lay and ordained church workers given equivalent compensation, and compare the resulting possible plans with the pension benefits offered in comparable, non-church organizations and report the results of that study to Executive Council by July 1, 2020, for communication to the wider church, including but not limited to the 80th General Convention.


Original text

Resolved, the House of _______ concurring, That the 79th General Convention recognizes that the pension plans for lay employees provided for by the 76th General Convention in Resolution 2009-A138 do not provide equity in retirement benefits when compared to the pension plan for clergy provided by the Church Pension Fund pursuant to Canon I.8.1; and be it further

Resolved, That this General Convention affirms that in the interests of justice the pension plans for clergy and lay employees should be as equitable as possible; and be it further

Resolved, That to move towards equity between the pension plans for lay employees and clergy the following changes shall be made to the principles for providing pensions to lay employees as set forth in Resolution 2009-A138 such that principle 1 of that Resolution will now read:

1. The lay employee pension system shall provide benefits that shall include defined benefit plan(s) and defined contribution plan(s). Every eligible lay employee shall be offered a choice between participation in either a defined benefit plan or a defined contribution plan.

Principle 2 of Resolution 2009-A138 will now read:

2. If a defined benefit plan is selected by the employee, the employer assessment and/or contribution shall be not less than nine (9) percent of the employee’s compensation through 2019. The employer assessment and/or contribution shall increase by one (1) percent of the employee’s compensation in 2020 and for each year thereafter until the employer assessment and/or contribution reaches eighteen (18) percent. If a defined contribution plan is selected by the employee, the employer shall contribute not less than five (5) percent of the employee’s compensation through 2019. The employer’s contribution shall increase by one (1) percent of the employee’s compensation in 2020 and for each year thereafter until the employer assessment reaches eighteen (18) percent. The employer shall match at least four (4) percent of the employee’s contribution in 2019 and the employer’s match of the employee’s contribution shall increase by one (1) percent per year until the total contribution of the employer, both by contribution and match, totals eighteen (18) percent.