Archives: Resources
Why does it matter if a pension plan is a church plan?
Church pension plans can choose to be covered by the federal private pension law, the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. However, most choose not to be. Without the protections provided by federal laws, these plans: Have no funding requirements. Unlike other private pension plans, church plans are […]
Why are church plans not covered by federal laws?
The Employee Retirement Income Security Act of 1974 (ERISA) provided federal protections for all private-sector pension plans with one exception, plans established and maintained by churches for their own employees. According to a Senate report, the exception was included because lawmakers were concerned that the review of a church’s books and records by the federal pension […]
What can you do to help protect employees in church pension plans?
Employees and retirees in “church plans” are organizing to protest that they are unfairly, and in some cases illegally, being denied the pension protections that other private sector employees have. They are using different strategies. Some are relying on publicity and social media while others have filed lawsuits. Still others are urging government agencies to […]
The legislative history of church pension plans
Below is a brief summary of the law, legislative history, and rulings related to church plans. The 1974 private pension reform law, ERISA, provided a permanent exemption from the law for pension, health and other benefit plans established and maintained by a church for its employees. This permanent exemption did not apply to plans for […]
What are the types of church pension plans?
Many pension plans claim to have “church plan” status. Some are the types of plans Congress intended to exempt from the law. Others are not. This fact sheet describes the types of pension plans that claim to be church plans. The Pension Rights Center takes the position that there are only two types of church […]
State Retirement Plans and Divorce Information
Alabama Retirement Systems of Alabama Allows court orders No Offers model court order? n/a If so, what kind of order? n/a Publications Alaska Alaska Division of Retirement and Benefits Allows court orders Yes Offers model court order? Yes If so, what kind of order? QDRO Divorce Information Arizona Arizona State Retirement System Allows […]
Electronic Disclosure by Employee Benefit Plans (June 6, 2011)
The U.S. Department of Labor issued a Request for Information regarding electronic disclosure by employee benefit plans. Read the Center’s comments.
Definition of the Term ‘‘Fiduciary’’ (February 3, 2011)
The Department of Labor has proposed a regulation expanding the definition of the term “fiduciary”. These regulations define when someone giving investment advice to participants in a 401(k) (or to the people running the plan) must act only in the interests of the participants in the plan, and not in their own self-interest. Read the […]
Bill would automatically enroll employees in workplace IRAs
On August 5, 2010 Senator Jeff Bingaman (D-NM) introduced the Automatic IRA Act of 2010 (S. 3760). This bill would require most employers that do not sponsor a retirement plan to automatically enroll their employees in an IRA. Employees would be given choices about whether to participate in the IRA, what type of IRA (Roth […]
Bill Would Require Plans to Disclose 401(k) Purchasing Power
On December 3, 2009 Senator Jeff Bingaman (D-NM), Senator Johnny Isakson (R-GA) and Senator Herb Kohl (D-WI) introduced the Lifetime Income Disclosure Act (S. 2832) into the Senate. This bill would require 401(k) and other individual account plans (such as 403(b) and 457 plans) to give participants estimates of how much the money in their accounts […]
Funding Relief for Traditional Pension Plans
On October 27, 2009 Representative Earl Pomeroy (D-ND) and Representative Pat Tiberi (R-OH) introduced the Preserve Benefits and Jobs Act of 2009 (H.R. 3936) [PDF]. This bill would give companies longer periods of time to make up for funding losses sustained during the economic downturn. Specifically, employers sponsoring single-employer pension plans could spread out their […]
Bill Requires 401(k) Fee Disclosures
On April 21, 2009, Representative George Miller (D-CA-7) introduced the 401(k) Fair Disclosure for Retirement Security Act of 2009 (H.R. 1984) [PDF]. This bill would require 401(k) plans that allow employees to choose their investments to provide employees annual statements that would include itemized information about the fees charged to their accounts as well as […]
