Archives: Resources
Saint Peter’s University Hospital Retirement Plan: Responses to statements made in the February 24, 2012 letter and accompanying Q&A
This document is a direct response to the letter and Q&A sent out by Saint Peter’s University Hospital CEO Ronald Rac. Learn more by reading our fact sheet, Saint Peter’s University Hospital Retirement Plan: The law and the facts. 1. Statement: In his February 24 letter Ronald Rak states that Saint Peter’s University Hospital “will seek a […]
Saint Peter’s University Hospital Retirement Plan: The law and the facts
In a letter dated February 24, 2012 to all Saint Peter’s University Hospital Retirement Plan participants, Ronald C. Rak, the hospital’s President and CEO states that a “a review undertaken by our outside pension consultants and attorneys has made clear that Saint Peter’s pension plan has never been – and is not currently – an ERISA […]
Lost Pension Plan Registries in the U.K. and Australia
In the United States, many retirees face great difficulties in locating their former employers in order to apply for a pension to which they are entitled. At the same time, pension plans have trouble locating prospective pensioners with whom they have lost contact. The problem of lost pensions and lost pensioners was also prevalent in […]
Restrictions on Shutdown Benefits
Shutdown benefits are special benefits that some plans provide for workers at a plant or facility that closes. These benefits are especially important to workers who have not yet reached retirement age, but are not in a position to change careers or relocate for work. Shutdown benefits bridge the gap between the time when a […]
Restrictions on Benefit Improvements
The rules prohibit plans from adopting changes that would increase the cost of the plan if it is less than 80 percent funded or if such changes would cause the plan to become less than 80 percent funded. The following changes are prohibited: Increases in benefits Establishing new benefits such as special early retirement benefits […]
Restrictions on Payment of Lump Sums and Accelerated Benefits
A plan is not allowed to pay lump sums if the plan is less than 60 percent funded. A plan subject to this restriction can only pay a monthly benefit equal to a lifetime monthly annuity. If the plan is more than 60 percent funded but less than 80 percent funded, a plan with a […]
Restrictions on Earning Future Pension Benefits
If a plan is less than 60 percent funded in any year, employees will not earn any pension benefits for that year even though they continue working in jobs covered by the plan. At retirement, the employees will receive the benefits they earned up to the point when the benefit accruals stopped. Employers can reinstate […]
Unfair Pension Takebacks: What Can Be Done to Protect Retirees
Read our issue paper on recoupment.
Workers covered by church plans tell their stories
Below are stories from people who have suffered because of their penion plan’s status as a “church pension plan”. Linda Ponce | Lake Hiawatha, NJ I was an employee of the Hospital Center at Orange in New JerseyJ for 27 years, until the hospital was closed 7 years ago. Through the years we were always told that […]
What is a church pension plan?
A church pension plan is a retirement plan that is established and maintained by a church for its employees. The term “church” applies to all religious denominations, and the term “employees” includes both clergy and lay employees. Church plans that are established and maintained by a church can also cover the employees of hospitals, schools, […]
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 […]
