Special Features The OCA Pension Plan is For Real Summer/Fall 2014
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If we don’t find Life here, we will not find It there. If we don’t love Life here, we will not love It there. And iIf we don’t live Life here, we will not live It there.
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Dependable! Important! Reliable! These words are mentioned repeatedly in conversations with OCA retired clergy. The topic is the Orthodox Church in America Pension Plan. The Plan currently provides monthly benefits to more than 100 retired clergy and full time church workers. Fr. Paul Shafran remembers when the Plan started almost 40 years ago, and he is thankful that the Plan was available to him and his fellow clergy at that time. He encourages young clergy to look ahead and assure for themselves and their families the kind of financial security that comes from a plan that provides reliable monthly income. Father Sergius Kuharsky feels that dependable income is extremely valuable later in life and expressed great satisfaction with Plan benefits. Father Thomas Hopko said that having followed the participation requirements, he is now very pleased with his benefits in retirement. The personal and parish contributions that started as a new member and continued through the years are now providing him with important financial security. Father Thomas, Father Paul, and Father Sergius encourage plan participation for new priests in the OCA based on their positive experiences. The OCA Pension Plan is a defined benefit plan for OCA clergy and lay workers. Participants and parishes share in contributing 14% of compensation to the Plan on a monthly basis. At age 65 with at least five years of service, participants are eligible to receive a monthly benefit upon retirement. A participant who joins the Plan now will receive 2% of his monthly compensation per year for every year he contributes. For example, if he is paid $4,000 per month for 15 years, at age 65 he would be eligible for a lifetime benefit of approximately $1,200 per month ($4,000 x 15 x 2%). Of course, actual benefits are affected by many variables such as salary increases, periodic adjustments, or years of service. This example serves to illustrate the value of planning ahead.
In addition to regular monthly retirement benefits, close to 50 beneficiaries receive regular monthly payments as a result of careful advance planning by clergy and lay workers to assure financial income for their widows or dependents. Plan members who are unable to serve due to a disabling condition may be eligible for monthly disability income. The advantage of the OCA defined benefit plan is that planning and decision-making is shared with the seven-member OCA Pension Board, elected at the All American Councils. The Board takes the fiduciary responsibility very seriously and meets regularly with nationally recognized legal counsel, actuarial professionals and investment managers. An independent CPA firm conducts the annual audit. Professional administrative staff manage the daily business affairs and are available to provide information and answer questions. Since its inception, the Pension Board has worked diligently to maintain the security and health of the Plan for the benefit of all members. Benefits have been increased when the Plan had surpluses. Benefit calculations have been changed in response to economic and demographic shifts. The investment program was modified to reduce the risk of large losses. Most recently, the contribution rate was increased to hasten full-funding of projected benefits and to better enable the Plan to provide benefit improvements. The OCA Pension Plan has been referred to as one of the best benefits offered to our clergy and full time church workers. Together with respected professionals and a dedicated staff, the Pension Board works to provide a secure future for participants in their retirement years. To find out how you can join the OCA Pension Plan, please contact Maureen Ahearn in the Pension Office at maureen@oca.org or 516-922-0550 x142.
