GENERAL INFORMATION

For Remitting Officers and Pension Plan Members

 

 

1.

The church is encouraged to pay full 14% pension dues, but must pay at least 11% on the average monthly compensation base leaving 3% for the member. The government permits (and encourages) the church to pay up to 25% equivalent of salary (Int. Rev. Code 403-b).

 

2.

To compute the monthly compensation base, find the total annual salary. This may be done by taking the weekly salary multiplying by 52. The annual salary is divided by 12 and to it must be added any and all parsonage allowances (and/or the fair rental value - at least 25% of salary - if a church-owned parsonage is provided.) This is the minimum Pension Plan monthly compensation base. Auto, books, travel, convention or assembly or other allowances may also be added to the base and will increase the benefits accordingly.

 

EXAMPLE "A": Salary $450.00 a week and parsonage:

                         $450 x 52 = $23,400 ÷ 12 = $1,950.00 plus (25% of $1,950.00) =

                         $2,437.50 monthly

                         14% full dues = $341.25, or 11% church dues = $268.13 & 3%

                         member dues = $73.12

 

EXAMPLE "B": Salary $25,000 annually, $13,500 annual parsonage

                         allowance, $2,500 annual expense allowance.

                         Total base: $25,000 + $13,500 + 2,500 = $41,000 ÷ 12 =

                         $3,416.67 monthly

                         14% full dues = $478.33 or 11% church dues = $375.83 & 3%

                         member dues = $102.50

 

3.

Where possible, all Pension Plan dues, Additional Benefits, Tax-deferred Payments and Health Care monthly premiums should be remitted through the church treasurer or remitting officer to the Pension Fund in one monthly mailing, even if separate checks are used.

 

4.

First payments of Health Care should equal two months' premiums (one being regarded as a deposit). By paying monthly thereafter, premiums are thus always current and lapse of coverage is avoided

 

5.

Members, as well as treasurers, are notified of any delinquencies.

 

6.

Detailed information on benefits of the Pension Plan and its auxiliary programs are available from:

 

PENSION FUND OF THE CHRISTIAN CHURCH

(Disciples of Christ)

130 East Washington Street

Indianapolis, Indiana 46204-3659

 

PH (317) 634.4504 FAX (317) 634.4071