Christian Brothers Employee Retirement Plan (CBERP)
The CBERP is a defined benefit plan that provides a traditional form of retirement benefit and is also known as a pension plan. The Plan was started in 1964, originally for the lay employees of the Christian Brothers’ schools, but has been expanded to include any Catholic organization or diocese. The Plan is funded entirely by the participating employers. The benefit is based on a formula which is applied to an employee’s career covered compensation. There are three contribution levels with corresponding benefit formulas from which an employer can select. The retirement benefit is normally paid as a monthly benefit for the life of the retiree. The participant can choose from a number of benefit options at retirement.
Past Service
The employer has the option of providing benefits for years of service prior to joining the Plan.
Future Service
Employers can choose the percentage contribution of salary to fund the employees' pension.
Accrual Level |
Employer Funding Level |
1.32% of Gross Wages |
3.5% of Gross Wages |
1.89% of Gross Wages |
5.0% of Gross Wages |
2.64% of Gross Wages |
6.5% of Gross Wages |
Vesting
Four years, nine months gives right to a pension.
Disability Supplement
Future service will continue to accrue for periods of disability for an employee who becomes totally disabled after 7/1/87 and receives a disability award under the terms of the Social Security Act.
Death Benefits for Active Employees
If a married and vested active employee dies before retirement, the surviving spouse will receive a 50% pension for life. If a single and vested active employee dies before retirement, the designated beneficiary will receive a lump sum payment of up to $10,000.
Retirement Age
Age 55 -- early retirement at reduced benefits
Age 65 -- normal retirement
Golden Rule of 90
After 7/1/97, if age plus years of service is equal to or greater than 90 (e.g. Age 60 with 30 years service), then an employee is eligible for early retirement with an unreduced benefit.
Normal Form of Payment
Single Employee -- Life only (monthly benefit for life).
Married Employee -- Joint and 50% to survivor annuity.
Optional Form of Payment
Single employee -- 50% or 100% of reduced benefit to surviving joint pensioner. Election must be made prior to actual retirement date.
Married employee -- Life only (monthly benefit for life), or 50% or 100% of reduced benefit to surviving spouse. Election must be made prior to actual retirement date.
All Employees - 10 Year Certain & Life, a reduced benefit is guaranteed payable for 120 months. Election must be made prior to actual retirement date.
IRS Approved
401 (a) Plan - Plan is qualified, earnings of the Trust are tax exempt.
Pension Board
Seven members who administer the Plan according to the Plan Document.
Social Security
The Plan provides a guaranteed retirement income to employees for life. Generally, defined benefit plans provide a greater retirement income for retirees than other types of plans because benefits are based on age and service in addition to salary.
Social Security Benefits are in addition to benefits provided by CBERP. Social Security benefits are not affected by benefits provided by CBERP, and CBERP benefits are not affected by Social Security benefits.
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