SUMMARY PLAN DESCRIPTION

Transcription

1 ELCA Survivor Benefits Plan Effective Jan. 1, 2013 SUMMARY PLAN DESCRIPTION (3/2013)

2 Contents About This Plan... 1 Survivor Benefits... 2 Lump-Sum Survivor Benefit... 2 Lump-Sum Survivor Benefit At a Glance... 2 Monthly Survivor Benefit... 4 Surviving Spouse Benefit... 4 Surviving Child Benefit... 5 Your Beneficiary Designation... 6 Employer Contributions... 7 Duration of Coverage... 7 Eligible Employers... 9 Enrollment Administrative and Miscellaneous Provisions Glossary Contact Information NOTE: This 2013 summary plan description replaces and supersedes all previous materials. About Our Plans The ELCA Pension and Other Benefits Program provides health, flexible spending, retirement, disability, and survivor benefits presented as one comprehensive program to members. Benefit plans are governed and administered individually through separate plan documents. Portico Benefit Services maintains the following plans: ELCA Retirement Plan, ELCA Disability Benefits Plan, ELCA Survivor Benefits Plan, ELCA Health Benefits Plan (which includes the ELCA post-retirement medical benefits obligation), and ELCA Flexible Benefits Plan. We also maintain three group retirement plans for ELCA-affiliated social ministry organizations the ELCA Master Institutional Retirement Plan, the ELCA Retirement Plan for The Evangelical Lutheran Good Samaritan Society, and the ELCA 457(b) Deferred Compensation Plan. The assets of each plan are held in various trusts and therefore do not allow one plan to fund a shortfall of another plan. Portico Benefit Services plans are not subject to the Employee Retirement Income Security Act (ERISA). The health, disability, and survivor plans are self-insured and are not protected through any type of insurance program. Our ability to pay claims is dependent on continued contributions and market performance. We reserve the right to change any of the terms of the plans at any time through the amendment or termination process described in each plan s summary plan description.

3 About This Plan In the ELCA, we are called to live well. We believe that when we strive to live well, we re more able to enhance the lives of others. As a ministry of the Evangelical Lutheran Church in America (ELCA), Portico Benefit Services mission is to provide retirement, health, and related benefits and services to enhance the well-being of those who serve through the ELCA and other faithbased organizations. That s why we design and manage benefit plans to help you steward your gifts of mind, body, and spirit. Portico administers the ELCA Pension and Other Benefits Program, which includes the ELCA Survivor Benefits Plan. This summary plan description describes the ELCA Survivor Benefits Plan, effective Jan. 1, Use it as a reference when you have questions about these benefits. Plan Document Your rights under the plan are governed by the plan document (the full, legal description of the plan). If this summary is found to be inconsistent with the plan document, the plan document will be considered the controlling document. A copy of the plan document is available from the Portico Service Center. Portico reserves the right to change any term of the plan through the amendment or termination process described later in this booklet. ELCA Pension and Other Benefits Program When an eligible employer sponsors you in the ELCA benefit program, you are eligible to participate in the following ELCA plans: Health Benefits Plan Flexible Benefits Plan Retirement Plan Disability Benefits Plan Survivor Benefits Plan Page 1

4 Survivor Benefits The ELCA Survivor Benefits Plan may provide two types of financial assistance to your beneficiary(ies) when you die: Lump-sum survivor benefit Your beneficiary receives a one-time, lump-sum payment. Monthly survivor benefit If you are married or have an Affidavit of Partnership on file and die while you are sponsored or receiving disability benefits, your surviving spouse or eligible same-gender partner may receive monthly survivor payments. Your surviving children under age 21 may also be eligible for monthly survivor payments. Eligibility You are eligible for coverage under the ELCA Survivor Benefits Plan if you are sponsored by an eligible employer in the ELCA Pension and Other Benefits program or receiving ELCA disability benefits. Lump-Sum Survivor Benefit The ELCA Survivor Benefits Plan provides financial assistance to you beneficiary when you die. To help meet immediate needs, your beneficiary receives a one-time lump-sum survivor benefit of $6,000 to $50,000. If you die before age 70, your beneficiary receives a benefit based on your annual (or preretirement) defined compensation and age at death. If you die at age 70 or later, your beneficiary receives a benefit of $6,000. See the following chart for specifics. Lump-Sum Survivor Benefit At a Glance Death Before Age 70 Death at Age 70 or Later The lump-sum survivor benefit is equal to the applicable multiple, times your annual (or pre-retirement) defined compensation, but not less than $6,000 or more than $50,000. Lump-sum survivor benefit as a multiple of your annual Your age at death defined compensation 45 or under Lump-sum survivor benefit is $6, Page 2

5 Example: Lump Sum Survivor Benefit Let s say a member dies at age 56 with annual defined compensation for the prior 12 months of $36,000. Based on this chart, the member s beneficiary would receive a lump-sum survivor benefit of $45,000 ($36,000 x 1.25 = $45,000). Benefits Based on Your Monthly Defined Compensation Your monthly defined compensation (see Glossary) is one-twelfth of the amount on which your employer paid contributions to the ELCA Pension and Other Benefits Program during the 12 full months immediately preceding your death. The following guidelines also apply: If retired Use the 12 full months immediately preceding your most recent termination of employment. If on leave from call Use the 12 full months immediately preceding your most recent termination of employment. If your compensation decreased due to an illness preceding your most recent termination of employment, your monthly defined compensation is equal to one-twelfth of the amount on which your employer paid contributions. If disabled Use the 12 full months immediately preceding your most recent termination of employment. If your compensation decreased due to the illness preceding your total disability, use the 12 full months immediately preceding your decrease in compensation. If you purchased continuing disability coverage while between assignments as an interim pastor or interim rostered layperson, use the defined compensation you used to calculate your disability benefits coverage. If you were not employed for 12 months prior to your death, your monthly defined compensation is equal to the defined compensation for the period you worked divided by the numbers of months worked. Benefits Based on Prior Plan Provisions If you were covered by a predecessor plan on Dec. 31, 1987, your lump-sum survivor benefit will not be less than the benefit provided by that plan and your defined compensation as of Dec. 31, 1987, or your date of retirement, if earlier. Furthermore, if you retired prior to 1998, your lump-sum survivor benefit at age 70 or later will not be less than your monthly defined compensation at retirement. Accelerated Death Benefit The plan includes an accelerated death benefit feature to ease your financial burden when you are terminally ill. If you are expected to live less than 12 months, you may receive some or all of the lump-sum survivor benefit prior to your death. The accelerated death benefit will be paid in a lump sum to you and not to your designated beneficiary. The benefit amount will be based on your age when Portico Benefit Services receives evidence of eligibility, not the actual date of death. Any remaining amount will be paid to your beneficiary when you die. Page 3

6 To request an accelerated payment, complete the Application for Accelerated Lump-Sum Survivor Benefit form and furnish Portico with a doctor s statement or other acceptable evidence certifying you are terminally ill and expected to live less than 12 months. This form is available from our Service Center. Delayed Payment of Benefits If any lump-sum survivor benefit is not paid to your beneficiary within 30 days following the date of your death, interest will be added to the benefit, commencing on the 31 st day, at a rate determined by Portico. Monthly Survivor Benefit The ELCA Survivor Benefits Plan, in combination with the ELCA Retirement Plan and Social Security, helps meet the financial needs of your surviving spouse or eligible same-gender partner and children by replacing a portion of your pre-death earnings. Surviving Spouse Benefit If you are sponsored or are receiving ELCA disability benefits when you die, your surviving spouse or eligible same-gender partner may receive a monthly survivor benefit from the plan beginning the month following your death. The survivor benefit is a percentage of your average monthly defined compensation (see chart on page 5). The percentage depends on the age you enrolled in the ELCA (or predecessor) plan, your age at death, and whether your spouse is considered eligible for Social Security benefits because of your death. The benefit will be reduced for each year you did not participate in this plan. Each January 1, the amount of the benefit increases by 3% and shall continue until your spouse s death. Social Security Eligibility The amount of your spouse s monthly survivor benefit depends on whether he or she is considered eligible to receive Social Security benefits because of your death. In general, your spouse may be entitled to Social Security benefits if he or she is: Caring for your child, who is under age 16 or disabled Age 60 or over and not married Age 50 or over and disabled For purposes of determining Social Security eligibility, it is assumed you were covered by the Social Security system during your entire working career, even if you worked for an organization not covered by Social Security, or obtained an exemption on the basis of religious or Page 4

7 conscientious opposition to accepting Social Security benefits. For additional information on Social Security benefits, access the Social Security website at ssa.gov or call your local Social Security office. Surviving Spouse Eligible for Social Security Benefits (Based on Your Earning Record) Your Age at Enrollment in ELCA (or Predecessor) Plan* Your Age at Death Surviving Spouse Benefit As a Percentage of Monthly Defined Compensation Surviving Spouse Not Eligible for Social Security Benefits (Based on Your Earning Record) Your Age at Enrollment in ELCA (or Predecessor) Plan* Your Age at Death % 25 40% % % % % % % % % % % % % % % % % * The percentages are reduced by 1% for each year that you did not participate after first becoming eligible to enroll. Example: Surviving Spouse Benefit Let s say a married member enters the plan at age 30 and dies at age 35, with defined compensation for the prior 12 months of $36,000 (monthly defined compensation of $3,000). Based on the chart, if the spouse is considered eligible for Social Security benefits, he or she would receive a surviving spouse benefit of $450 per month ($3,000 x 15% = $450), plus the surviving spouse benefit under Social Security. If he or she is not considered eligible for Social Security benefits, he or she would receive a surviving spouse benefit of $1,050 per month ($3,000 x 35% = $1,050). Surviving Child Benefit If you are sponsored or are receiving ELCA disability benefits when you die, your surviving eligible children (see Glossary) are eligible for a monthly benefit under the plan. Monthly payments will be made to each child beginning the month following your death and will continue until the child reaches age 21. Each eligible child receives a monthly payment equal to 5% of your average monthly defined compensation. The benefit increases by 3% each January 1. Page 5

8 Your Beneficiary Designation Even if you have a will, it is important to keep your beneficiary information for your lump-sum survivor benefit up to date because your beneficiary designation overrules a personal will. It will also help expedite proper payment of benefits to your beneficiary when you die. Your beneficiary for the lump-sum survivor benefit may be anyone you choose: An individual A trust A foundation A charitable organization Your estate Your beneficiary designation is effective when Portico receives a completed Beneficiary Designation form. You may change your beneficiary designation at any time. The beneficiary designation form can be downloaded from PorticoBenefits.org. Primary and Secondary Beneficiaries Primary beneficiaries receive the designated benefit upon your death. If a primary beneficiary dies before you, that beneficiary s share will be divided proportionately among your surviving primary beneficiaries. Your secondary beneficiary receives payment only if all primary beneficiaries die before you. If a secondary beneficiary dies before you, that beneficiary s share will be divided proportionately among your surviving secondary beneficiaries, if applicable. No Beneficiary Designation If all your primary and secondary beneficiaries die before you or if you do not designate a beneficiary, benefits will be paid in equal shares to your beneficiaries in the first of the following categories in which there are survivors: Your surviving spouse or eligible same-gender partner Your surviving children (natural or legally adopted); if any child dies before you, their descendants (your grandchildren, great-grandchildren, etc.) will receive the share their parent would have received if living, by right of representation Your surviving parents Your surviving siblings Your estate In the Event of Divorce A divorce automatically revokes any designation of a spouse as your beneficiary. You may designate your former spouse as your beneficiary, but you must designate him or her as your beneficiary on a new form dated after the date of the divorce decree, naming your former spouse as your beneficiary. If a new form is not filed with the record keeper, the designation of your former spouse as beneficiary is void and your non-spousal beneficiaries become primary. Page 6

9 In the Event of Dissolution of Partnership The filing of an Affidavit of Dissolution of Partnership with Portico automatically revokes any designation of a same-gender partner as your beneficiary. You may designate your former partner as your beneficiary, but you must designate him or her as your beneficiary on a new form dated after the date you filed the Affidavit of Dissolution of Partnership. If a new form is not filed, the designation of your former partner as beneficiary is void and secondary beneficiaries become primary. Employer Contributions Your Employer Pays If your employer sponsors you in the ELCA Pension and Other Benefits Program, your employer is responsible for the payment of all contributions associated with your participation in the ELCA Survivor Benefits Plan. Contributions are based on a percentage of your defined compensation. Changes in Defined Compensation Your sponsoring employer must notify us when your defined compensation (see Glossary) changes. If we receive a change of your defined compensation more than 60 days after the effective date, the amount billed will be adjusted only for the prior 60 days. Survivor benefits are calculated using the defined compensation on which the employer paid contributions over the 12 months preceding a member s death. Late Payment Your coverage under the ELCA Survivor Benefits Plan will end if your employer has not paid your ELCA benefits program contribution in full within 60 days after the due date. If your employer cannot or will not pay the contribution, you may pay the contribution for up to 90 days and keep coverage in effect, if you continue to meet the ELCA benefits program s eligibility criteria. If your employer does not resume payment after you have contributed for 90 days, your survivor benefits coverage will end. If your coverage ends because of non-payment, it can be reinstated; however, you will be subject to an 18-month pre-existing condition exclusion period under the ELCA Survivor Benefits Plan. Duration of Coverage End of Sponsored Status Your status as a sponsored member ends when: Your employment with a sponsoring employer ends You no longer meet the ELCA Pension and Other Benefits Program s eligibility criteria Your employer no longer meets the ELCA benefits program s eligibility criteria Your employer discontinues your sponsorship in the ELCA benefits program Page 7

10 Sponsoring employers (except ministries of the ELCA churchwide organization, synods, and seminaries) may discontinue sponsoring you in the ELCA benefits program by sending a written notice to Portico Benefit Services. NOTE: If your employer does not send Portico written notice and does not pay the required amount, your sponsored status will end the date the required contribution is due, if full payment is not received within the time frame specified in the Portico past-due account management policy. (See Late Payment on page 7.) Continuation of Coverage When you are disabled If you become disabled and are entitled to benefits under the ELCA Disability Benefits Plan, coverage will continue under the ELCA Survivor Benefits Plan if the contributions to the ELCA benefits program are paid by your employer for the first two months of your disability. If your employer fails to pay these contributions, you may pay the contributions to prevent loss of coverage. If contributions were paid during the initial two months of disability, you will continue to be covered under the ELCA Survivor Benefits Plan as long as you receive benefits under the ELCA Disability Benefits Plan. NOTE: The ELCA Disability Benefits Trust will not continue your survivor benefits coverage if you purchased continuing disability coverage and become disabled while: On leave from call after completing an interim or term call from a synod council or Under a term call from a synod council and between assignments Refer to the Summary Plan Description for the ELCA Disability Benefits Plan for more details. This information is available on our website or by calling our Service Center. When you are on leave from call If you are an ELCA pastor or rostered layperson on leave from call, you may elect to continue the lump-sum survivor benefit coverage under the ELCA Survivor Benefits Plan for a certain period by paying a contribution of $6 per month. To continue lump-sum survivor benefit coverage, you must also either continue or officially waive coverage under the ELCA Health Benefits Plan. Contact Portico Benefit Services for the appropriate form. You are not eligible for the monthly survivor benefit. When you are retired You are not eligible for monthly survivor benefit coverage after retirement but you are eligible for the lump-sum survivor benefit coverage at no additional cost to you when you retire if you meet all the following requirements: Your paid church service ends while you are a sponsored member You have at least 10 total years of service with an eligible employer or predecessor church You reach age 60 or have completed 30 years of church service If you are receiving ELCA disability benefits and meet the above requirements upon reaching your full retirement age as defined by the Social Security Administration, you will continue to be covered for the lump-sum survivor benefit as a retired member. Page 8

11 When you are between employers If you separate from service with an eligible employer and are employed by another eligible employer within 31 days, you will continue to be covered under the ELCA Survivor Benefits Plan during this period of unemployment (not to exceed 31 days). This coverage is provided at no additional cost to you. Eligible Employers Eligible ELCA Employers Congregations, separately incorporated ministries of the ELCA churchwide organization, and other organizations affiliated with the ELCA may sponsor their eligible employees in the ELCA Pension and Other Benefits program. ELCA synods, seminaries, and other ministries of the ELCA churchwide organization (except for the ELCA publishing house, Augsburg Fortress) must sponsor all of their eligible employees. However, they are not required to sponsor temporary employees or non-elca pastors. ELCA congregations may sponsor any or all of their pastors, rostered laypersons, and other employees who are eligible employees. ELCA institutions not subject to the coverage requirements of the Tax Reform Act of 1986 may sponsor any or all of their eligible employees. Institutions that wish to provide only a retirement benefit may participate in the ELCA Master Institutional Retirement Plan, but then must sponsor all eligible employees (excluding those sponsored in the ELCA benefits program). These ELCA institutions generally include elementary and secondary schools, day care centers, camps, and conference centers. ELCA institutions subject to the coverage requirements of the Tax Reform Act of 1986 may sponsor any or all of their eligible ELCA pastors. They may also sponsor rostered laypersons and other employees but then must enroll all those eligible. Institutions that elect to provide only a retirement benefit may participate in the ELCA Master Institutional Retirement Plan, but then must sponsor all eligible employees (excluding those sponsored in the ELCA benefits program). These institutions generally include ELCA-affiliated social ministry organizations, colleges and universities, nursing homes, and hospitals. Other Eligible Employers Certain other employers may sponsor pastors and rostered laypersons in the ELCA benefits program. Other tax-exempt organizations (referred to as 501(c)(3) organizations) - Former ELCA congregations (other than a congregation described below) that sponsored at least one eligible employee on or after Jan. 1, 2005, may sponsor any or all eligible employees. - A congregation or qualified church-controlled organization of a non-elca church body that has common religious bonds with the ELCA and has been approved by Portico Benefit Services to be the church body s sole benefits provider. - Ecumenical partner congregations may sponsor any or all ELCA pastors or rostered laypersons serving under call to a non-elca ministry. Page 9

12 - Other tax-exempt organizations may sponsor any or all ELCA pastors serving under call to a non-elca ministry. They may also sponsor ELCA rostered laypersons serving under call but then must sponsor all those eligible. These organizations include social ministry organizations, ecumenical agencies, non-ecumenical congregations, and pastoral care organizations. Taxable organizations (referred to as non-501(c)(3) organizations) may sponsor any or all ELCA pastors serving under call to a non-elca ministry. These organizations include government agencies and for-profit organizations. Enrollment You may enroll in the ELCA Pension and Other Benefits Program, which includes the ELCA Survivor Benefits Plan, if you are an eligible employee and you are: Employed by an eligible employer and your employer sponsors you in the ELCA benefits program or An ELCA pastor serving under call in a non-elca ministry and you sponsor yourself in the ELCA benefits program. Employees Eligible to Enroll Pastor or rostered layperson You are eligible to enroll in the ELCA benefits program if you are serving under call, employed by an eligible employer, and scheduled to work at least 15 hours per week for six or more months per year. Lay employee You are eligible to enroll in the ELCA benefits program if you are employed by an eligible employer, scheduled to work at least 20 hours per week for six or more months per year, and have completed any probationary period (not to exceed 90 days) specified by your employer. Self-sponsoring ELCA pastor If you are called to a non-elca ministry and your employer chooses not to sponsor you in the ELCA benefits program, you may sponsor yourself. If you are called to a ministry in which you are considered self-employed in accordance with Internal Revenue Code 414(e)(5)(A)(i), you may also sponsor yourself. Timely Enrollment Timely enrollment means you have returned your completed Application for Membership form within 60 days of meeting the ELCA benefits program s eligibility criteria. If you enroll in a timely manner, you will receive: Benefits under this plan as stated in this booklet if your death is more than six months after the effective date of your membership in the ELCA benefits program No benefits under this plan if you die within the first six months and your death is caused by a pre-existing condition that was diagnosed or treated in the six-month period prior to the date of membership in the ELCA benefits program Page 10

13 Late Enrollment Late enrollment means your completed application for the ELCA benefits program is not received by our Service Center within 60 days of eligibility, or the membership date is not within this period. If you enroll in the ELCA benefits program more than 60 days after the date you meet the eligibility criteria for the ELCA benefits program, you will not be entitled to receive any benefits under the ELCA Survivor Benefits Plan if: You die within 18 months after becoming a sponsored member and Your death is caused by a pre-existing condition that was diagnosed or treated in the sixmonth period prior to the date of membership in the ELCA benefits program Eligible employees who enroll during the annual open enrollment period (with coverage effective January 1 of the following year) will be subject to a six-month pre-existing exclusion period rather than an 18-month exclusion period. Exceptions to the Pre-Existing Condition Period The following individuals will not be subject to the six-month or 18-month pre-existing condition exclusion period when enrolling (or re-enrolling) in the ELCA benefits program: Eligible ELCA pastors or rostered laypersons on leave from call, who continue coverage under the ELCA Health Benefits Plan and the ELCA Survivor Benefits Plan throughout their leave Eligible employees who transfer from the survivor benefits plan of a non-elca church that has a reciprocity agreement with the ELCA will receive month-for-month credit toward the pre-existing condition exclusion period for the length of participation in the other church plan, provided the employee enrolls in the ELCA Survivor Benefits Plan within 90 days following separation from service with the other church Eligible called interim pastors who serve under a term call from a synod council who continuously participate in the ELCA Disability Benefits Plan while between assignments or on leave from call after completing an interim call Suicide Exclusion Rule No benefits will be paid under the ELCA Survivor Benefits Plan if your death is due to suicide within the period of time that you were subject to the pre-existing condition exclusion period under the ELCA Survivor Benefits Plan. Portico, in its sole discretion, will make the determination as to whether your death is suicide. Administrative and Miscellaneous Provisions Appeals Procedure Initial steps If you apply for a benefit under the plan and the benefit you receive is not the benefit you expected, or the benefit is denied and you believe you are entitled to a benefit under the plan, write to the Portico Service Center. Page 11

14 Appeal to Portico Benefit Services If your concern is not resolved by following the steps above, you may file a written appeal with the president of Portico within 180 days of your receipt of any adverse determination. Include the facts of your case, any new or additional information not considered in the initial decision, and the outcome you desire. The president will review your claim with the advice and counsel of the internal appeals committee, which shall consist of at least three staff members who were not involved with the initial decision. The president will respond in writing within 30 days of receipt of your appeal unless the president notifies you of the need for an additional 30 days. The president may approve an appeal only if one of the following is determined: An error was made in the initial benefit determination The appeal involves matters relating to plan interpretation In the case of changing circumstances, the president may recommend an expansion of benefit coverage requiring a plan amendment, which may or may not be retroactive. All plan amendments must be approved by the president, the Portico board of trustees, and/or the ELCA Church Council in accordance with the provisions described on page 14. Appeals committee An appeal may be filed with the appeals committee of the Portico board of trustees within 60 days of your receipt of the president s written response if you are dissatisfied with the decision of the president. The appeals committee will consist of five to seven members of the board of trustees, at least one of whom must be a participant in the ELCA benefits program. Additionally, the committee may include independent consultants with expertise in the area of the appeal, to serve with voice but not vote. The appeals committee will schedule a meeting within 30 days of receiving your appeal and signed authorization. The final decision of the appeals committee will be forwarded to you within 60 days of receipt of the appeal. All decisions of the appeals committee are final. Court system In the event you have exhausted the previously described appeals procedures and are dissatisfied with the final decision of the Portico appeals committee, you may initiate legal action in the Minnesota Fourth Judicial District Court, Hennepin County. Any removal of such action must be to the United States Court for the District of Minnesota. Limitation of Liability Benefits under the ELCA Survivor Benefits Plan will be paid solely from the ELCA Survivor Benefits Trust. Portico is not liable for payment of benefits. Portico is not liable for the failure of any employer to enroll its employee as a sponsored member in the plan or for the failure of any employer to make contributions to the plan on the employee s behalf. Page 12

15 Obligations of a Sponsored Member As a sponsored member of the ELCA Survivor Benefits Plan, you agree to comply with all the Portico requirements regarding enrollment and administration of the plan. This includes, but is not limited to, providing your: Date of birth Disability status Family support obligations Marital status Social Security number If you do not comply with reasonable requirements or knowingly provide false, inaccurate, or misleading information to Portico, you must reimburse Portico for reasonable expenses and damages incurred as the result of such failure. This includes, but is not limited to, the amount incurred by staff in discovering, correcting, or adjusting for such a failure. Portico may charge your future benefit payments under the ELCA Survivor Benefits Plan, if any, for the additional expense. Obligations of a Participating Employer By sponsoring an eligible employee in the ELCA Survivor Benefits Plan, the participating employer agrees to: Be bound by the terms of the ELCA Survivor Benefits Plan, including future amendments and any rules or procedures adopted by Portico Provide the necessary information to Portico for the administration of the ELCA Survivor Benefits Plan Promptly notify Portico of any IRS audit or change in status that could cause the employer to cease to be controlled or associated with the ELCA An employer may discontinue participating in the ELCA benefits program by notifying Portico and complying with any procedures established by Portico for discontinuing participation. Portico may discontinue the participation of an employer if Portico, in its sole discretion, determines that the employer is no longer an eligible employer as defined by the ELCA benefits program or if the employer has failed to comply with the provisions of the program. Correction of Errors It is recognized that in the operation and administration of the ELCA Survivor Benefits Plan, certain mathematical and accounting errors may be made or mistakes may arise for various reasons, including factual errors in information supplied to Portico or the board of trustees. Portico has the power to make equitable adjustments to correct such errors as Portico, in its sole discretion, considers appropriate. Adjustments will be final and binding on all persons. Plan Information The health, disability, and survivor plans are self-insured and are not provided through an insurance company. All assets of each plan are held in various trusts and therefore do not allow one plan to fund a shortfall of another plan. Portico s ability to pay claims is dependent on Page 13

16 continued contributions, claims experience, and market performance. Portico reserves the right to amend, modify, or terminate any plan(s) or benefit policies or programs in whole or in part at any time. Plan documents are available by contacting Portico. Portico s policies, programs, and plans are not subject to the Employee Retirement Income Security Act (ERISA). While every effort has been made to ensure that the information contained in this document is correct, if there is any omission or misstatement, the applicable legal plan document(s), policy(s), or program(s) will control. The eligibility for any benefit will be governed by the terms of the applicable plan, program, or policy. Portico (and its designee or claims administrator, as applicable) shall have the power, including, without limitation, discretionary power to make all determinations that the plan requires for its administration, and to construe and interpret the plan(s) for purposes of determining eligibility and benefits. The ELCA Survivor Benefits Plan is a self-insured plan. All benefits to which a person becomes entitled hereunder shall be provided only out of the ELCA Survivor Benefits Trust and only to the extent that such trust is adequate therefore. Amendment to the Plan The ELCA Churchwide Assembly, the ELCA Church Council, or Portico may propose amendments to the plan. All proposed amendments must be submitted to Portico for recommendation before final action is taken by the ELCA Church Council. The president of Portico will approve amendments involving no change in policy and little or no change in cost or benefits. Amendments approved by the president will be reported to the board of trustees of Portico. The ELCA Church Council will approve amendments involving a significant change in policy or a significant change in cost or benefits. The ELCA Church Council may, in its sole discretion, submit any proposed amendment to the Churchwide Assembly for final action. The board of trustees of Portico will approve all other amendments. Amendments approved by the board of trustees will be reported to the ELCA Church Council. No amendment will reduce entitlement under the ELCA Survivor Benefits Plan on the effective date of the amendment if you die prior to that effective date. Termination of the Plan The ELCA Church Council may terminate the ELCA Survivor Benefits Plan by following the amendment procedure previously described in this document. If the plan is terminated, the existing funds may be distributed to you or your beneficiaries in such a manner as Portico, in its sole discretion, determines is fair and equitable. Funds may also be distributed to the ELCA if all members who died prior to the termination date have received the value of their benefit entitlement. If the funds are distributed, no future benefit payments will be made from the plan. Not a Party to Contracts You may have certain employment or contractual rights which may obligate your employer to make contributions to the ELCA Survivor Benefits Plan on your behalf. Your employer is solely Page 14

17 responsible for compliance with these provisions. Portico is not a party to these contracts. Portico will not provide coverage under this plan if it has not received contributions. Fiduciary Standards Prudent investor rule Managers and trustees administering or investing assets are bound by the prudent investor rule. This common-law concept has evolved through the years and is set forth in the American Law Institute s Restatement of the Law of Trusts, Third, section 227, which states in part that: The trustee is under a duty to the beneficiaries to invest and manage the funds of the trust as a prudent investor would, in light of the purposes, terms, distribution requirements and other circumstances of the trust. (a) This standard requires the exercise of reasonable care, skill, and caution, and is to be applied to investments not in isolation but in the context of the trust portfolio and as a part of an overall investment strategy, which should incorporate risk and return objectives reasonably suitable to the trust. (b) In making and implementing investment decisions, the trustee has a duty to diversify the investments of the trust unless, under the circumstances, it is prudent not to do so. Many states, including Minnesota, have incorporated the prudent investor rule in their statutes. Portico, a nonprofit corporation incorporated in Minnesota, is governed by Minnesota Statute 501B.151 which sets the statutory requirements governing trust investments. Fiduciaries Fiduciaries (those responsible for the plan s assets) invest the plan contributions expressly with members interest in mind and in agreement with the following requirements: For the exclusive purpose of providing benefits to members, minus reasonable plan administration expenses With the care, skill, prudence, and diligence under the current conditions that a prudent person with like character, similar aims, and knowledge of fiduciary matters would use By diversifying the investments of the plan to minimize the risk of large losses, unless, under the circumstances, it is clearly prudent not to do so In accordance with the provisions of the ELCA Survivor Benefits Plan and the ELCA Survivor Benefits Trust Page 15

18 Glossary Defined Compensation Annual defined compensation includes your base salary before any pretax benefit contributions are deducted. If you are a pastor, your annual defined compensation also includes any Social Security tax allowance paid to you and one of the following: If housing is not provided, the amount of any cash housing allowance paid to you If housing is provided, an additional 30% of your base salary and any Social Security tax allowance, plus any household furnishings or utilities allowance paid to you Annual defined compensation does not include: The cost of utilities paid to a utility company by your congregation or organization Employer contributions (including housing equity) made to the ELCA Retirement Plan or another eligible retirement plan Non-taxable reimbursements or expense allowances (auto and mileage, continuing education, books, or professional expenses) Eligible Child To be considered eligible to receive a surviving child benefit payment under the ELCA Survivor Benefits Plan, your surviving children must be dependent on you for more than 50% of support and under age 21 at the time of your death. In addition, your child must be one of the following to be considered eligible under the ELCA Survivor Benefits Plan: Your natural child Your stepchild or child of your eligible same-gender partner living in your household Your legally adopted child A child placed in your household as a step toward legal adoption by you Pretax Benefit Contributions Pretax benefit contributions include member retirement contributions to the ELCA Retirement Plan or another eligible retirement plan. They also include pretax contributions to qualified reimbursement accounts for health care, dependent care, and transportation expenses. Page 16

19 Contact Information Portico Benefit Services Contact or the Portico Service Center for help with enrollment, eligibility, and coverage. Sign in to myportico at PorticoBenefits.org for the most up-to-date benefits information. Portico Service Center or / F mail@porticobenefits.org Hours 7:30 a.m. 5 p.m. (Central), Monday Friday Mailing address Portico Benefit Services 800 Marquette Ave., Ste Minneapolis, MN (3/2013) Page 17