Benefits Plan at a Glance pensions.org pensions.org/benefitsconnect

Transcription

1 Benefits Plan at a Glance 2018 pensions.org pensions.org/benefitsconnect

2 About the Benefits Plan of the Presbyterian Church (U.S.A.) The Benefits Plan enables PC(USA) congregations and other employers to offer coverage based on resources and employee needs. The plan supports the Church s covenant with installed pastors while also helping employers to extend more benefits to more people. Other than for installed pastors, employers are not required to offer any specific benefits. The plan includes medical, dental, death, and disability benefits coverage; a defined benefit pension; and a defined contribution retirement savings plan. This booklet is a brief description of all benefits coverage available through the plan. Each employer chooses the benefits available to its employees. Not all the coverage described in this booklet is available to every employee. Who We Are The Board of Pensions traces its roots to the Fund for Pious Uses, established by Presbyterians in 1717 to care for pastors widows and children. As one of six national agencies of the General Assembly, which governs the PC(USA), the Board upholds the centuries-deep covenant of the Church to care for those who serve it. It administers the Benefits Plan for churches, mid councils, agencies, and affiliated employers. The plan covers approximately 61,000 people, including employees, family members, and retirees in the 50 states, Puerto Rico, and the District of Columbia. It is brothers and sisters caring for sisters and brothers. The plan provides the opportunity for every employee to enjoy some form of benefits through the Church. How We Are Different We are a unique national, nonprofit organization that offers scale, expertise, and value unavailable in the commercial market today. The Benefits Plan is designed with the concept of community nature in mind supporting the community as a whole and promoting well-being through coverage for healthcare and retirement benefits. Our culture and tradition of superior service support each employer and employee. Benefits Plan members also have access to Board programs and resources that are not part of the plan. The Assistance Program helps qualified retirees and their surviving spouses with income and housing needs and current church workers with financial and vocational needs. Pastors who are serving congregations are eligible for Presbyterian CREDO gatherings, which focus on spiritual, health, financial, and vocational well-being. And Board University offers seminars, e-learning, and other resources to guide and support members, church treasurers and administrators, and mid councils. Questions If you have questions about the benefits available to you or the costs, contact your employer. If you are enrolling through Benefits Connect and have technical questions about the enrollment process, call the Board at (800-PRESPLAN). If you have questions about the Benefits Plan or the features of any benefit, call the Board at (800-PRESPLAN), or if logged on to Benefits Connect, use the resources available on each page (refer to Resources or Additional Information, as well as those on pensions.org. On pensions.org, refer to Available Resources for Benefits Overviews, booklets, and other publications. c

3 Language Access ATTENTION: If you speak English, language assistance services, free of charge, are available to you. Call (800-PRESPLAN). ATENCIÓN: si habla español, tiene a su disposición servicios gratuitos de asistencia lingüística. Llame al (800-PRESPLAN). 주의 : 한국어를사용하시는경우, 언어지원서비스를무료로이용하실수있습니다 (800-PRESPLAN) 번으로전화해주십시오. Benefits Plan at a Glance Eligibility...1 Medical Plan...3 PPO...3 EPO...3 Prescription Drug Benefits...6 Vision Benefits...7 Dental Plan...10 Pension Plan...11 Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP)...12 Disability Benefits...13 Supplemental Disability Benefits...14 Death Benefits...15 Supplemental Death Benefits...16 This is not a full description of benefits and the terms and conditions of the Benefits Plan. If there is any inconsistency between the information presented here and the provisions of the Benefits Plan of the Presbyterian Church (U.S.A.), the plan terms will govern. Visit pensions.org or call the Board of Pensions at (800-PRESPLAN) for a copy of the official plan document. i

4 Eligibility Installed pastors, teaching elders, and other employees of employers affiliated with the Presbyterian Church (U.S.A.) are generally eligible for the Benefits Plan. Employers may establish benefits eligibility based on their own employment policy provided the policy complies with the requirements of the Benefits Plan. The Benefits Plan requires a regularly scheduled workweek of at least 20 hours to participate in the Benefits Plan, except in the following situations: participation by teaching elders who are in an installed pastoral relationship (pastors, associate pastors, and co-pastors) participation by teaching elders in the Medical Plan participation in the Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP) and/or dental coverage if offered by the employer Any teaching elder who is not in an installed pastoral relationship and any other employees are eligible for menu options. Under menu options, employers may offer any combination of the following: Pension Plan RSP Medical Plan [preferred provider organization (PPO) and/or exclusive provider organization (EPO)] Dental Plan Death and Disability Plan supplemental death supplemental disability Employers determine the benefits available to their employees, based on the provisions of the plans and the guidelines provided by the Board of Pensions. Pastor s Participation The Benefits Plan upholds the church covenant with its pastors by providing them with non-contributory participation, through Pastor s Participation, in the Pension Plan; the Death and Disability Plan; and family medical coverage in the PPO. Under Pastor s Participation, employees also have the opportunity to participate in the RSP, elect dental coverage, and apply for supplemental death and/or supplemental disability (if eligible) coverage. Installed pastors must be enrolled in Pastor s Participation; the Board urges employers to enroll all teaching elders working a minimum of 20 hours a week in Pastor s Participation. Who are eligible family members? spouse children under age 26, regardless of financial dependency, student status, marital status, or residency dependent, totally disabled children who were covered under the plan before they reached age 26 1

5 Benefits Plan Snapshot: Eligibility and Costs This chart shows the benefits available under menu options and required in Pastor s Participation. The cost of coverage is also described below. Percentage-based costs must be 100 percent paid by employers; employers may ask employees to contribute to the cost of optional benefits. Employees should discuss contribution requirements with their employer before enrolling. The benefits outlined in the gold box under Pastor s Participation are required for all installed pastors and for teaching elders who work at least 20 hours per week whom employers choose to enroll in Pastor s Participation; employers must pay 100 percent for these benefits. Once employees know the benefits available from their employer, they can find additional information in this chart as well as in the sections of this booklet that address the specific benefit(s). Benefit Menu Options* Pastor s Participation: Installed Pastors* Retirement Medical Death and Disability Optional Pension (11% of effective salary) Retirement Savings Plan (voluntary contributions) Preferred provider organization (PPO) and/or Exclusive provider organization (EPO) (For both options, there are employer-specific coverage-level rates. Employers must pay at least 50% of Member-only coverage for the lower-cost option offered; if PPO and EPO are offered, employers pay at least 50% of Member-only EPO coverage. Employers may, but are not required to, contribute to the cost of coverage for family members.) Death and Disability (1% of effective salary if provided with pension; 2.5% of effective salary as stand-alone) Dental Supplemental death Supplemental disability Pension (11% of effective salary) Retirement Savings Plan (voluntary contributions) Preferred provider organization (PPO) (25% of effective salary) Death and Disability (1% of effective salary) Dental Supplemental death Supplemental disability * May also include teaching elders, based on employer decision 2

6 Medical Plan Employers may offer a preferred provider organization (PPO) and/or an exclusive provider organization (EPO) administered by Highmark Blue Cross Blue Shield (BCBS), one of the largest BCBS organizations in the United States. Both options provide the following: preventive, routine, and catastrophic medical care a prescription drug benefit (administered by OptumRx) behavioral health and substance use disorder coverage a vision benefit (administered by VSP) Network doctors, hospitals, and other medical providers can be located on highmarkbcbs.com, or by calling Highmark Member Services at PPO The PPO provides access to the national BCBS network of physicians, hospitals, and other healthcare providers. Members can seek care from any eligible licensed provider; however, the member s out-of-pocket costs are typically lower when using network providers. Members pay a flat copay for each doctor s office visit, and when using the plan s telemedicine benefit or seeking care at an urgent care center. For other types of care, such as inpatient hospital stays, surgery, diagnostic tests, and emergency room visits, members must first satisfy an annual deductible before the plan pays a portion of covered expenses. The deductible amount is based on the member s effective salary (subject to the medical participation minimum and maximum; see Guide to Your Healthcare Benefits 2017 on pensions.org). Member Couples Benefits Plan members who are married to each other and are both enrolled in the PPO may qualify as a member couple. Both members must be enrolled in the PPO, one must cover eligible family members, and the other must have at least Member-only coverage to be considered a member couple. This provision does not apply to those enrolled in the EPO option. EPO The EPO provides access to the same national BCBS network of physicians, hospitals, and other healthcare providers as the PPO. However, unlike the PPO, members must use network providers; the EPO does not cover care received from out-of-network providers. Members pay a flat copay for most outpatient services. For in- and outpatient hospital services and emergency room visits, the member must satisfy an annual deductible before the plan begins to pay benefits. The deductible is a flat amount per individual or family, based on the coverage level elected. For more information, see Benefits Overview: Member Couples on pensions.org. 3

7 Key Provisions: PPO & EPO In-Network Benefit PPO EPO Minimum Maximum In-network deductible $660/member*; $1,320/family* $1,305/member*; $2,610/family* $2,000/member; $4,000/family In-network Call to Health deductible $440/member*; $880/family* $870/member*; $1,740/family* $1,500/member; $3,000/family After-deductible coverage (copayment) Member pays 20% Member pays 20% Medical copayment maximum $2,200/family* $4,340/family* $7,350/member; $14,700/family Combined maximum** (medical and prescription drug) $5,860/member*; $6,520/family* $7,150/member*; $9,950/family* $7,350 member; $14,700 family Preventive care Covered 100% Covered 100% Telemedicine $10 copay $10 copay Primary care/behavioral health office visit $25 copay $40 copay Specialist office visit $45 copay $60 copay Urgent care center visit $45 copay $60 copay Basic diagnostic services After deductible, member pays 20% $65 copay (imaging, X-rays, lab/pathology, etc.) Advanced imaging (MRI, CAT, PET scan, etc.) After deductible, member pays 20% $200 copay Physical, speech & occupational therapy After deductible, member pays 20% $40 copay Spinal manipulations After deductible, member pays 20% $40 copay Hearing aid (device and fitting) After deductible, member pays 20% (plan maximum $2,500 every 3 years) Not covered Annual vision exam $25 at VSP provider $25 at VSP provider Hospital inpatient & outpatient After deductible, member pays 20% After deductible, member pays 20% Emergency room services After deductible, member pays 20% After deductible, member pays 20% Infertility counseling, testing, treatment After deductible, member pays 20% (plan maximum 3 procedures) Not covered Out-of-Network Benefit Minimum Maximum Out-of-network deductible $1,100/member*; $2,200/family* $2,170/member*; $4,340/family* After-deductible coverage Member pays 40% Out-of-pocket maximum $6,600* $13,020* (member & family combined) No coverage * See Guide to Your Healthcare Benefits on pensions.org for deductibles and copayment maximums at all effective salary levels. ** PPO includes in-network deductible, copayment maximum, and prescription maximum; EPO includes in-network deductible, office visit copays, copayments, and prescription drug copays. 4

8 Waiving Medical Coverage Menu options: Employees in menu options may waive medical coverage for themselves and any family members. Employees considering waiving medical coverage should carefully consider the following: Some employers limit spousal medical coverage to spouses whose own employers do not offer medical coverage. In that case, employees offered coverage by their employer through the Medical Plan may not be eligible for coverage under a spouse s employer plan. In addition, some employers impose an additional charge for spouses enrolled in their plan who have coverage available elsewhere. Before waiving Medical Plan coverage, employees should confirm the eligibility and costs of their spouse s plan. Employees who waive Medical Plan coverage may be assessed shared responsibility payments under the Affordable Care Act if they do not obtain coverage elsewhere. Potential coverage sources include a spouse s or parent s employer; government programs such as Medicare, Medicaid, and TRICARE; and health insurance exchanges. Medical Plan Reminders Your medical ID card, from Highmark, contains important contact information. You ll receive a new card later this year. Keep it with you! For details about medical coverage, refer to Guide to Your Healthcare Benefits, available on pensions.org. Employees offered coverage through the Medical Plan who waive that coverage cannot qualify for a subsidy for coverage obtained through a health insurance exchange. Keep in mind, employees who waive medical coverage for themselves and/or family members will not be able to elect Medical Plan coverage until the next annual enrollment (unless they have a qualifying life event). Pastor s Participation: Employees may not waive medical coverage for themselves, but may waive medical coverage for a spouse and/or family members. If family coverage is waived, the employer is still responsible for paying the full, 25 percent dues amount; family member participation does not affect dues. 5

9 Prescription Drug Benefits Prescription drug benefits are included with medical coverage. OptumRx, one of the leading prescription benefits managers in the country, administers prescription drug benefits for the Medical Plan. OptumRx offers a network of participating pharmacies (including a mail-order pharmacy), maintains a formulary of preferred prescription medications, and processes claims. The member s share of the cost of medically necessary drugs the copayment will vary with the medication taken; medical coverage elected (PPO or EPO); and pharmacy (retail or mail-order) used to fill the prescription. The following chart provides an overview of the plan s prescription drug benefits. For details about prescription drug coverage, refer to Guide to Your Healthcare Benefits, available on pensions.org. Key Provisions: Prescription Drugs Benefit PPO EPO Retail (30 days/90 days) Mail order (90 days) Retail (30 days/90 days) Mail order (90 days) Generic $10/$30 $25 $12/$36 $30 Formulary brand Non-formulary brand Prescription drug copayment maximum 30% of cost; 30 days: $20 min. to $100 max. 90 days: $60 min. to $300 max. 50% of cost; 30 days: $50 min. to $150 max. 90 days: $150 min. to $450 max. 30% of cost; $50 min. to $250 max. 50% of cost; $125 min. to $375 max. 35% of cost; 30 days: $35 min. to $150 max. 90 days: $105 min. to $450 max. Not covered $3,000 (member & family combined) Does not apply 35% of cost; $85 min. to $375 max. 6

10 Vision Benefits Vision benefits are included with medical coverage and feature an annual vision exam with a VSP-participating optometrist or ophthalmologist, subject to a copay with no deductible. Annual Exam Comprehensive eye exams can lead to early detection of serious eye conditions and early signs of other chronic health conditions. And, getting a vision exam counts toward the Call to Health point total (see Call to Health Well-Being Initiative). Type of Visit Key Provisions: Vision (PPO & EPO) VSP Provider Your Costs Out of Network Routine eye exam $25 copay Submit claim; reimbursement up to $45 after $25 copay Contact lens exam 15% discount on exam (fitting and evaluation) No coverage Other Services/Items The vision benefit includes discounts on vision-related items and services when purchased through a VSP optometrist or ophthalmologist: prescription eyeglasses additional pairs of glasses and sunglasses (when purchased within 12 months of annual exam by VSP doctor) eyeglass and sunglass lens options (such as progressive lenses and anti-reflective coatings) laser vision correction Members are encouraged to use VSP network providers to maximize their vision benefit. VSP providers can be located by visiting vsp.com/choice or calling VSP at

11 Employee Assistance Program Members enrolled in the Medical Plan, their eligible family members (regardless of residence), and anyone living in a member s household may use the Employee Assistance Program (EAP). The confidential resource is provided at no cost to those it serves. The EAP is designed to help with a range of personal concerns, from achieving better work-life balance to coping with critical emotional needs and traumatic events, and provides up to six face-to-face counseling sessions per issue; immediate assistance with critical emotional needs; information and referral for child care, senior care, legal consultation, financial consultation, and more; telephone consultations; and a live chat feature on the website for communicating with an advocate or a credentialed counselor, as needed. Call to Health Well-Being Initiative Call to Health promotes wholeness and well-being. The initiative is available to all members in the Medical Plan and their covered spouses. To answer the call, members and covered spouses complete required and optional challenges spanning the four dimensions of wholeness: spiritual, health, financial, and vocational. Members who complete Level 1 qualify for reduced medical deductibles in Members who complete Level 2 earn a $100 Amazon gift card. Covered spouses who earn 1,000 points also receive a $100 Amazon gift card. For details on Call to Health, see Answering the Call to Health on pensions.org. For additional details, see the Employee Assistance Program and Employee Assistance Program Enhanced Financial Services Benefits Overviews on pensions.org. 8

12 Dental Plan The Dental Plan is administered by Aetna. If offered by their employer, and depending on where they live, employees may elect one of the following: DMO (dental maintenance organization) Members choose a primary care dentist from Aetna s network to provide their care and refer them to dental specialists when needed. The plan does not pay benefits for services received from out-of-network dentists. PPO (preferred provider organization) Members can see any licensed dentist. When care is provided by a dentist who participates in Aetna s dental network (a network dentist), the plan pays a greater percentage of covered expenses. Passive PPO The plan pays the same level of benefits whether care is received from a network dentist or an out-of-network dentist; however, members can save money when using network dentists because network dentists have agreed to provide services at lower, negotiated fees. The chart on the next page provides an overview of plan benefits. See the Dental Benefits Summaries on the Booklets & Publications page of pensions.org for details, including frequency limitations and exclusions. Advantages of Using Network Dentists Negotiated fees are typically less than the dentist s usual fees. Network dentists will not balance bill for any amounts above the negotiated fee. There are no claim forms to file; the network dentist does all the paperwork. Network dentists can be located through Find a Doctor, Aetna s online provider directory, at aetna.com, or by calling Aetna Member Services at

13 Key Provisions: Dental Plan Plan Feature DMO PPO Passive PPO Network Out of Network Individual Deductible None $50 $100 $50 Family deductible None $100 $200 $100 Lifetime maximum None $2,000 $1,000 $2,000 Preventive and diagnostic services, such as routine checkups, cleanings, and bitewing X-rays Basic services, such as fillings and simple extractions Major services, such as bridges, crowns, and dentures Annual plan maximum (per individual) Plan pays 100% Plan pays 100% Plan pays 100% Plan pays 100% Plan pays 100% Plan pays 80% after deductible Plan pays 60% (no deductible) Plan pays 60% after deductible Plan pays 70% after deductible Plan pays 40% after deductible Plan pays 80% after deductible Plan pays 60% after deductible None $2,000 $1,000 $2,000 Orthodontia (children only)* Yes Yes Yes Yes Orthodontia benefit* Plan pays 50% (no deductible) Plan pays 50% after deductible Plan pays 50% after deductible Plan pays 50% after deductible * For children who have been covered continuously under the dental plan for one year (two years if a late enrollee) and are under age 20 when treatment begins. For additional information, see the Dental Benefits overview, dental booklets, and related information on dental coverage on pensions.org. 10

14 Pension Plan For employees who are enrolled in the Pension Plan, the employer pays the full dues amount (cost) for Pension Plan enrollment. Members may not contribute to the Pension Plan. Employees who participate in the Pension Plan do not need to take any action when they are first eligible or during annual enrollment. Following is a brief description of the plan. Detailed information on the Pension Plan is available on pensions.org and through Benefits Connect, where participants can also view pension benefit estimates at retirement. The Pension Plan is a defined benefit plan, which guarantees a monthly benefit through retirement. Eligible survivors may receive benefits upon the death of a working member or retired member. Teaching elders are automatically vested when enrolled in the Benefits Plan. Other employees are vested after they complete three years of eligible service or reach age 65. Eligible service for vesting purposes is employment for at least 20 hours a week with a PC(USA)-affiliated employer. An employee need not be enrolled in the Benefits Plan for years of eligible service to count toward vesting. However, employees must be enrolled in the Pension Plan to accrue annual pension credits, which determine the payment upon retirement. The Pension Plan may include discretionary experience apportionments increases in pension credits or, for retirees or their survivors, increases in the benefit they receive. The Board of Directors of the Board of Pensions decides each year whether to grant an apportionment, considering The Pension Plan provides a guaranteed monthly benefit for life, which, when combined with Social Security benefits and personal savings, helps those who have served the Church for many years to live with dignity during retirement. investment and actuarial experience; levels of reserves; and fundamental fairness to all plan participants. Members can retire at age 65 and begin receiving their full, unreduced, accrued pension benefit. Early retirement, at ages 55 through 64, results in a reduced benefit. As long as they are working and continue to be eligible, members continue to accrue pension credits until age 70. The pension benefit is one source of retirement income. Other sources typically include Social Security and personal savings, including contributions to such vehicles as the Retirement Savings Plan of the Presbyterian Church (U.S.A.). 11

15 Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP) The RSP offers eligible employees a convenient, easy way to build savings for a more secure financial future. Those in Pastor s Participation are automatically eligible to contribute to the plan. Employers choose whether to make the plan available to other employees. Employees should check with their employer regarding how they may contribute to the plan. There is no action required during annual enrollment for the RSP; however, it s a good time to review savings and investments with retirement goals. The following chart highlights key features of the RSP. For details, refer to Retirement Savings Plan on pensions.org. Member Contributions Tax Advantages Employer Contributions Catch-Up Contributions Vesting Investment Choice and Flexibility Cost Loans and Withdrawals Retirement Planning Accessibility Eligible employees may contribute a portion of their taxable salary, up to the annual limit set by the IRS ($18,500 for 2018). Contributions can be made on a pretax basis, or a Roth (after-tax) basis. Employees are not taxed on any pretax contributions or earnings until they receive a distribution from the plan. Roth deferrals are made on an after-tax basis and will be distributed tax-free as long as certain requirements are met. The employer, at its discretion, may make contributions on behalf of employees to their accounts. Employer contributions can be made on a matching basis, or, in some cases, the employee may not be required to contribute to the plan to receive their employer s contribution. Those age 50 years or older may contribute up to an additional $6,000 for 2018 if they have contributed the maximum allowable amount to the RSP and other defined contribution plans. Long-service church employees may be eligible to contribute an additional church plan catch-up of $3,000 for 2018, subject to a lifetime maximum of $15,000. Employees are immediately 100 percent vested in any employer contributions, as well as their own contributions, to their accounts. Employees may choose from 12 investment options, spanning the investment risk spectrum, plus 13 target date funds, for investors who prefer an easy, single-fund investment option. Choices include socially responsible investment options, such as a fossil-free global environmental fund. Fidelity BrokerageLink allows members to select from thousands of mutual funds beyond the investment options offered through the RSP. Low administrative fees ($3.75 per quarter) and competitive fund expense ratios. Employees may apply for a loan or withdrawal from their RSP account in certain circumstances; there are rules that govern these transactions. Employees can access a wealth of resources, including tools for online modeling and education through Fidelity NetBenefits (fidelity.com/atwork) and telephone education and advice from Fidelity consultants. Employees can access their accounts 24/7 through Fidelity s secure NetBenefits login, and by mobile device, for investment changes, rebalancing, and account management. Fidelity telephone representatives are available to offer assistance, in multiple languages. 12

16 Disability Benefits If an employer provides disability coverage, the employer pays the full dues amount (cost of coverage). (Those in Pastor s Participation automatically have disability coverage). Disability coverage under the Benefits Plan helps support plan members who become disabled and are unable to work by providing a monthly payment generally equal to 60 percent of the member s effective salary. The maximum salary protected is $100,000, for a benefit of up to $5,000 a month before taxes. Benefits will be reduced by disability payments the member receives from other sources, such as Social Security and workers compensation. Members may be eligible to enroll in optional supplemental disability coverage (see Supplemental Disability Benefits) if their effective salary is at least $110,000. Receiving Benefits To qualify for disability benefits, the member must be certified as totally disabled by a physician and satisfy other plan requirements. When a member is approved for disability status, benefits payments begin after a 90-day waiting period or when the member s salary or severance payments end, whichever occurs later. Benefits can continue until the member is able to return to work or reaches age 65. An age-graded maximum benefit period applies if the member becomes disabled at age 62 or later. Restrictions and limitations apply to disability benefits; review Disability Benefits available on pensions.org, for details. In addition to monthly disability income, other benefits may be provided during an approved disability. 13

17 Supplemental Disability Benefits If an employer offers supplemental disability coverage, and the employee is eligible based on income, the employee may elect this coverage when first eligible and when eligibility first changes. The employer may pay some or all of the cost of this coverage. Or, the employee may be responsible for the full cost of coverage, if elected. Supplemental disability coverage provides a monthly payment in addition to any other disability benefits available to the member under the Benefits Plan. Supplemental disability benefits can replace 60 percent of a member s effective salary in excess of $100,000, up to the maximum salary for pension participation purposes (currently $275,000). Supplemental coverage is available in increments of $10,000. When a member purchases this coverage, his or her salary is rounded down to the nearest $10,000 to determine the maximum coverage amount he/she may elect. Since disability coverage under the plan protects the first $100,000 of effective salary, the member must have an effective salary of at least $110,000 to purchase supplemental protection. Certain restrictions and limitations apply to supplemental disability benefits. Review Disability Benefits, available on pensions.org, for details. The monthly cost of coverage is based on the member s age as of January 1 each year. Visit pensions.org or Benefits Connect for current rates. 14

18 Death Benefits If provided by an employer, death benefits protect the member s eligible survivors against loss of income. Depending on the member s participation status at the time of death, these benefits may include the following: Salary continuation benefit pays the designated beneficiary(ies) an amount equal to the death benefit basis which is the greater of the member s effective salary or the median for the member s employment class. The amount is limited to the IRS maximum compensation limit for pension credit accruals ($275,000 in 2018), payable in 12 monthly installments. Lump-sum death benefit pays the member s eligible survivors or estate a lump sum in the amount of the death benefit basis, up to a maximum of $100,000, multiplied by a percentage determined by age; see the Lump-Sum Death Benefit Percentages chart on the right. Children s education benefit pays up to $10,000 a year for each dependent child under age 25 during the first four years of full-time study beyond high school that begins after a member s death; the maximum aggregate benefit for each child is $40,000. Lump-Sum Death Benefit Percentages (for members with eligible survivors) Age at Death Benefit % Age at Death Benefit % Under Living Needs Benefit The living needs benefit allows eligible members diagnosed with a terminal illness (a life expectancy of 24 months or less) to request prepayment of a portion of their death benefits. The member may request up to the present value of the salary continuation benefit as well as a portion of the lump-sum death benefit. Any amount paid as a living needs benefit during the member s lifetime is then deducted from the death benefits payable to his/her beneficiary(ies), eligible survivors, or estate at the member s death. For details, see Benefits Overview: The Living Needs Benefit on pensions.org. 15

19 Supplemental Death Benefits If an employer makes available supplemental death benefits, and the employee is eligible, the employee may elect this coverage. The employer may pay some or all of the cost of this coverage. Or, the employee may be responsible for the full cost of coverage, if elected. This coverage is not the same as the survivor s pension or the salary continuation benefit; the benefits it provides are in addition to other death benefits provided under the plan. For Members If offered by their employer, eligible members may elect one of eight coverage levels: $25,000* $150,000 $50,000* $200,000 $75,000 $250,000 $100,000 $300,000 * Evidence of insurability not required if enrolling when first eligible. For Eligible Family Members Members may also elect coverage for their eligible family members. Members are not required to purchase coverage for themselves in order to enroll their spouse and/or eligible children. Coverage options include: spouse increments of $25,000, up to $100,000 coverage dependent children $5,000 or $10,000 coverage Evidence of insurability is always required for a spouse, regardless of the coverage amount elected. Evidence of insurability requirements do not apply to coverage for children. Cost of Coverage The cost of the coverage is based on three things: tobacco-use status (including but not limited to cigarettes, e-cigarettes, cigars, and chewing tobacco), coverage level, and age. Visit pensions.org for current rates. 16

20 MED-230 3/ The Board of Pensions of the Presbyterian Church (U.S.A.)