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20 Most Frequently Asked Questions About The Retirement
Plan
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1. |
What is the
Christian Brothers Employee Retirement Plan (CBERP)
and what type of groups can participate? |
2. |
Who is eligible to participate? |
3. |
How is my Retirement Benefit
calculated? |
4. |
What does vesting mean
and when do I become vested? |
5. |
When can I retire? |
6. |
What is the Golden Rule
of 90? |
7. |
What will happen if I become
permanently disabled? |
8. |
Can I provide for my spouse
after my death in retirement? |
9. |
Are my benefits affected
by my Social Security retirement benefit? |
10. |
Can I continue working
after I start receiving my retirement benefit? |
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11. |
What if I terminate employment
before I retire? |
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12. |
What if I terminate employment
and then get rehired at a later date? |
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13. |
What will my beneficiary
receive if I die in active service? |
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14. |
How is the Plan financed? |
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15. |
What happens to my employer's
contributions? |
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16. |
What happens to the assets
of the Plan? |
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17. |
How is the Plan Administered? |
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18. |
Will I be provided with
a statement showing the value of my benefit? |
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19. |
How do I apply for benefits? |
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20. |
Can I borrow against my
benefits? |
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The CBERP is a defined
benefit church plan. Only employers who are listed,
have applied for listing or are owned by an entity
listed in The Official Catholic Directory can participate. |
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A non-academic employee
who works at least 20 hours per week or an academic
employee who teaches at least half of a normal schedule
of classes. All eligible employees must participate
in the Plan. |
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The benefits are calculated
according to set formulas. If your employer provided
a benefit for your years of service before your employer
entered the Plan, the benefit is based on a formula
of past service compensation multiplied by years of
past service credit. The formula for all service after
your employer entered the Plan is based on future service
compensation. There are a number of examples in the
booklet. |
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Vesting means you have
the right to a benefit. If you had made any contributions
to the Plan, you are always 100% vested in those contributions.
In order to be vested for a retirement benefit, you
must work with a participating employer for 4 years
and 9 months. |
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If you are vested, normal
retirement is at age 65; however, you can retire with
a reduced benefit as early as age 55. |
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The Golden Rule of 90 is
a Plan subsidized early retirement benefit. If you
qualify, you will be able to retire before your normal
retirement date without a benefit reduction for early
retirement commencement. |
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If you meet the disability
requirements under Social Security, you will continue
to accrue future service benefits until age 65, as
long as you continue to meet these requirements, without
any contributions from your employer. |
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Yes, with a Joint & Survivor
Annuity option. |
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No, this Plan does not
integrate with Social Security; therefore, your benefit
is not reduced by Social Security. |
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Yes, provided that you
do not work 20 or more hours per week for a participating
employer. If you work 20 hours or more per week for
a participating employer, you will be an active participant,
and therefore your benefits would be suspended. Benefits
are not affected if you work for a non-participating
employer. |
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Your options vary depending
upon whether or not you are vested and the value of
your benefit. |
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If you were previously
vested and re-employed by a participating employer,
and did not receive a distribution, or you received
a benefit that you repaid with interest within one
year of rehire, all prior service credits will be restored.
If not, you will be considered a new employee. |
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It depends on your marital
status. If you are married, your spouse will receive
your contributions, if any, plus interest. Also, if
certain eligibility requirements are met, your spouse
will be eligible for a survivor benefit for his or
her life. If you are not married, your beneficiary
will receive your contributions(if any) with interest.
Also, if certain eligibility requirements are met,
your beneficiary may be eligible for a lump sum death
benefit. |
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By employer contributions
and by the investment return on the Plan’s assets. |
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Your employer's contributions
are used to fund the overall benefits of the Plan.
Unlike a defined contribution plan, employer contributions
are not added to the individual accounts of employees.
Benefits are calculated based on formulas instead of
the accumulation of a contribution account. |
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Funds are held in a Trust
for the sole benefit of the participants. Investments
are made by professional money managers. |
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The Plan is administered
by a seven member Pension Board. This Board is comprised
of participants and Religious who are affiliated with
participating employers. The Board hires professionals
to assist in recordkeeping, actuarial and investment
services. |
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Yes, all participants receive
an annual benefit statement showing the benefits accrued
under the Plan, vesting status, and projected benefits
at retirement. |
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The Retirement Plan needs
official Notice from your employer before any action
can be taken. |
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No. The Plan is designed
as a retirement plan, and therefore benefits may not
be assigned, sold, transferred, anticipated, garnished
or encumbered in any way. |
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