Metropolitan Council approves proposed Pension Plan restructuring
The Pension Board of the Orthodox Church in America has announced that, during their fall session on September 23, 2009, members of the Metropolitan Council approved and authorized the unanimous recommendation of Pension Board members to restructure benefits earned after December 31, 2009. No accrued benefits are being reduced.
Those currently receiving benefits and those eligible who will be 65 or older effective January 1, 2010 will continue under the plan as it exists today. Those not eligible for retirement before January 1, 2010 will have their benefit determined under the new plan.
Each participant will receive a statement of their accrued benefit and an explanation of how the change will affect the determination of their retirement benefits. These letters are expected to reach plan participants by October 2, 2009.
In reporting to the Metropolitan Council, representatives of the Pension Board stated that the restructuring addresses an outstanding inequity in the Pension Plan that has been studied by the current and previous Pension Board. The existing plan was adopted when clergy, particularly, began service at a much younger age and had their benefit funded over many years. In the present situation, clergy begin plan participation at a much older age, earning the same benefit, but contributing for a shorter period. Pension Board representatives said that this situation created a “windfall” for those joining the plan at a later age and generated a financial strain on the Pension Plan.
With the restructuring approved, the Pension Plan will be much more fair for all participants while remaining financially sound to secure the retirement of its participants.