As the Church Pension Group reminds us of the requirements for lay employee pension provision that became effective January 1, 2013 for Episcopal Church organizations in the U.S.:
In 2009, the 76th General Convention of the Episcopal Church passed Resolution A138 and its associated Canon, establishing the Church-wide Lay Employee Pension System (LPS) and naming the Church Pension Fund (CPF) as administrator.
Under this resolution, Episcopal employers subject to the authority of the Church are required to provide a pension to all lay employees scheduled to work a minimum of 1,000 hours annually. Implementation is to be completed by January 1, 2013.
In 2012, the 77th General Convention passed Resolution C042
-Affirming the requirements of Resolution A138
-Extending the period for schools only to achieve the full employer contribution and match rates for defined contribution plans until January 1, 2018 according to a specific year-by-year phase-in schedule. Resolution C042 defines schools as serving children of any age, thereby including pre-school, nursery and day care centers.
All lay employees scheduled to work a minimum of 1,000 annually for any domestic diocese, parish, mission or other ecclesiastical organization or body subject to the authority of the Church are required to be enrolled in a pension plan that is either administered or authorized by CPF. Implementation is to be completed by January 1, 2013.
Like any employer mandate there are at least three responses: (1) comply, (2) ignore the mandate, or (3) adjust your workforce so that the mandate does not apply. Some employers will not be affected either because they were already in compliance or had no lay employees working in excess of 1,000 hours annually.
We’re wondering what you know about implementation of A138. Was your parish unaffected by A138? Is your parish providing lay pensions as a result of A138? Are you out of compliance? Did your parish come into compliance by reducing the number of full time lay positions? Were there church budgeting consequences of A138? Have pledges increased as a result of A138 or is A138 being paid for with cuts elsewhere in your budget?