How does the new pension plan for clergy work?
Beginning January 1, 2007, the Clergy Retirement Security Program (CRSP) provides retiring clergy with two distinct benefits: 1) A monthly payment, payable for life, which is calculated by multiplying the following factors and then dividing by 12: • 1.25%, • the annual Denominational Average Compensation (DAC) when you retire, and • your years of credited service after January 1, 2007. This is the defined benefit component of the new plan. The monthly retirement benefit increases automatically by 2% each year after you begin to draw your benefits. Example: You retire at the 2015 annual conference, effective July 1, 2015. You have 8½ years of credited service under CRSP. You will receive an annual benefit of 1.25% of the 2015 DAC times your 8.5 years of credited service. If the 2015 DAC is $60,000, the calculation is as follows: 1.25% X $60,000 X 8.5 = $6,375. The monthly benefit is $6,375 ÷ 12 = $531.25 2) A lump-sum distribution from an account balance held in your name. Beginning Jan
