Frequently Asked Questions
Topics:
Who participates in the Pension Plan?
Covenant ordained, commissioned and licensed ministers serving fulltime in the denomination, in one of its conferences or in Covenant churches, are required to participate in the Plan. Anyone who holds an interim license (any kind) is exempt until a first-time license is granted, but may participate. Anyone who has a License for Theological Students or Lay Minister's license is not required to participant in the Plan.
What is considered fulltime?
Fulltime is over thirty (30) hours a week. Mandatory participation in the Plan is required for those serving fulltime. In practice, if you are ordained and work/are paid between 20 and 30 hours per week, you are not required to participate in the Plan, however, you may participate. Currently a person must earn a minimum of $9,000 to be eligible to participate in the Pension Plan.
How do I enroll in the Covenant Pension Plan?
Pension information and forms are sent to an individual (not the church) along with his/her first-time or interim license certificate. It is the responsibility of the license holder to complete the information form and have the church treasurer complete and sign the salary report form. Paperwork should be returned to the Department of the Ordered Ministry. The church will receive a quarterly bill.
Who do I contact when I begin working at a new church or Covenant approved employer?
Nancy Fisher, administrative assistant to the department of the ordered ministry. 773.583.3211 or ministry@covchurch.org. Forms can also be downloaded from the Department of the Ordered Ministry.
Can a non-licensed pastor/staff minister participate in the Covenant Pension Plan?
Yes. They may be a "voluntary participant" (see below) if the church is willing to pay 12.5% of the total compensation into the plan and he/she is an associate member (see Section 11.2.a.ii of the Rules for the Ordered Ministry for a definition of associate membership) of the Covenant Ministerium in good standing.
What is a “voluntary participant?”
According to the Covenant Pension Plan Rules Article I, Section 1.1.z.vi.(1), a voluntary participant is:
(a) A minister who has standing with the Covenant Ministerium, and who is employed full-time by a Covenant or regional conference institution, or other approved employers; [or]
(b) A minister who is not a mandatory participant, who is an associate member of the Covenant Ministerium employed full-time who makes an election to participate with the consent of an employer included in the plan.
How do I become a voluntary participant?
The church you are serving must write a letter on church letterhead to the Director of Pensions, stating their intent to pay premiums on your behalf, signed by a church officer and a salary report form must also be completed. You will receive a letter of confirmation from the Director of Pensions, who will pass your information on to the Finance office to begin pension billing.
Who do I contact when I have questions about billing?
Randall Jordan, pension and benefits financial manager at 773.907.3358 or randall.jordan@covchurch.org.
Who do I contact when I would like to have monthly benefit projections made?
Tricia De Kok, pension coordinator at 773.907.3368 or tricia.dekok@covchurch.org.
How much are pension premiums?
Churches who have a fulltime minister will make contributions to the fund in an amount equal to 12.5 percent of the minister’s salary, housing, and FICA combined.
Why didn't I get an annual salary report this year?
If you are no longer serving in a Covenant church or Covenant approved employer, no pension payments are being made into your fund. This means that the last report you received when you were still serving would be the most current account information for you.
How is my monthly pension benefit calculated?
The monthly retirement benefit payable for life to which a vested participant is entitled when the participant retires from an Employer on or after the participant's sixty-fifth birthday is 1/12 of 1 1/2 percent of the participant's total considered compensation. Considered compensation includes annual base salary and other income from the Employer, including housing and utility allowances, if any. Contact Tricia De Kok, pension coordinator, if you would like some projections made. 773.907.3368 or tricia.dekok@covchurch.org.
Can I roll my pension over into another account?
According to the Covenant Pension Plan Article VII, Section 7.1 “No employee or pensioner shall have the right or power to assign, alienate, transfer, sell, hypothecate, mortgage, pledge, commute or in any way anticipate the payment or pension benefit; no pension benefit shall be in any way subject to any legal process of any kind or liable in any way for the payment of any employee's or pensioner's debts…” (see full Pension Plan for further details)
Who do I contact when I want to retire?
Tricia De Kok, pension coordinator. 773.907.3368 or tricia.dekok@covchurch.org. Please allow at least 3 months previous to retirement to process all forms required.
How much does my spouse get if I were to die before her/him?
The pension payable to the surviving spouse shall be a monthly amount equal to 65% of the monthly amount of pension which the participant was receiving, but not less than the current minimum amount for participant service of 25 years or more.
Can I elect for my spouse to receive more than the 65%?
Yes. A participant may elect to receive a reduced pension payable monthly during the participant's lifetime, with payments to continue after death in the same amount (100%) or a percentage (75%) thereof, to a spouse as designated by the participant. Such selection must be made by written notice to the Board of Pensions and Benefits not less than two years prior to normal or early retirement date. If the election is not made within that time limit, such selection may, nevertheless, be made at any time prior to the participant’s normal or early retirement date, provided the participant furnishes the Board of Pensions and Benefits with satisfactory evidence of good health. Please contact Tricia De Kok, pension coordinator, for forms, projections, or other questions. 773.907.3368 or tricia.dekok@covchurch.org