Defined Benefit Plan

The Christian Brothers Employee Retirement Plan (CBERP) provides employees with the opportunity to receive lifetime payments following retirement. Benefits are calculated using a formula that considers several factors. There are several benefits to the CBERP for both employers and their employees, including:

  • Economies of scale: The CBERP has covered more than 30,000 members since 1964, allowing organizations to benefit from the cost efficiencies of a large plan.
  • Efficient asset management: With over $1 billion in assets, the CBERP enjoys lower relative administrative and investment expenses than a single-employer plan. The plan’s scale also allows for alternative investment opportunities.
  • ERISA exemption: As a church plan, the CBERP is exempt from the stringent regulations of the Employee Retirement Income Security Act (ERISA), which provides additional design flexibility and reduces administrative burdens.
  • Flexible contribution levels: The CBERP offers many contribution levels, allowing employers to choose contributions that meet their budget. They can also adjust these levels over time.

Merging a Defined Benefit Plan with the CBERP

The cost and complexity of administering a single employer defined plan is daunting. Many Catholic employers have chosen to merge their current or frozen defined benefit plan with the CBERP, removing the burden from overworked teams and unlocking the potential for greater cost savings.

If you are considering merging your active or frozen defined benefit plan with the CBERP, our team will conduct a comprehensive analysis to help you determine if a merger is the right choice for your organization. If a merger is suitable, we will guide you through the transition and provide on-site support to communicate changes to your employees.

Past Service

The employer has the option of providing benefits for years of service prior to joining the Plan. This option can also be used for employers who want to merge an existing defined benefit plan into the CBERP.

Future Service

The employer can choose the percentage of salary that the employer will contribute to fund employee pensions, along with the corresponding benefit formula.

Additional Information

Plan Status – The Plan is a qualified church plan. The earnings of the Plan’s Trust are not taxable while held by the Trust.

Pension Board – The Pension Board is elected by the participating employers in the Plan. The Pension Board administers the Plan according to the Plan Document and acts as the fiduciary for the Plan.

Social Security Retirement Benefits – Social Security benefits are in addition to the benefits provided by the CBERP. The CBERP retirement benefit does not affect the cap that the Social Security rule allows a retireee to earn while collecting Social Security benefits.