Resource Type: Fact Sheets and Issue Papers

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 […]

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 […]

Church Plans Can Leave Retirees Out in the Cold
Learn how one group of private retirement plans have little-to-no protections for the workers and retirees who are covered by these plans. What happened? In late 2009 Augsburg Fortress, the publishing house of the Evangelical Lutheran Church in America, announced in a letter to employees that it would terminate its traditional pension plan, affecting approximately 500 workers […]

Corporate Restructuring Can Cut Promised Pensions
Legally, companies can change their plans to end special early retirement pensions, but if they do, employees must still get the portion of the special benefit they have earned as of the date of the change – as long as they later meet its age and/or service requirements. But as employees of Dresser-Rand learned, if […]

Final 401(k) Fee Disclosure Regulations
On October 20, 2010, the Department of Labor issued final regulations that require private retirement savings plans, such as 401(k)s, to tell employees how much they are being charged in record-keeping, investment management and other fees. The regulations also include rules for disclosing information about the plan’s investment options. These rules apply only to plans where […]

State Retirement Plans and Divorce
Each state retirement system has its own rules relating to the division of state employees’ pensions in divorce proceedings. Below is basic information on each state retirement system’s rules. Why does this matter? A pension can be the most valuable asset of a marriage. When going through a divorce, both parties to the marriage should know whether the state government employee’s pension or […]