|
|||
Frequently Asked QuestionsNote: These responses are general in nature, so please contact us for further clarification with respect to your specific circumstances. Group BenefitsQuestion: When does the group benefits coverage end?Answer: The earlier of: 1. termination of employment 2. age 65 for life insurance and long term disability age 70 for health and dental Question: Can the group benefits continue during a severance period? Answer: No. Question: Are there conversion benefits when the group coverage ends? Answer: Life insurance can be converted to an individual plan within 30 days of termination if the member contacts a Cooperator’s representative. Health and dental can be converted to an individual plan within 60 days (different options are available). If converted within the timelines there is no medical required. Question: Is there group benefits coverage when a clergy or lay worker returns to work after retirement? Answer: Any employee that meets eligibility (see requirements) must enroll in the group benefits plan. Question: How are premiums calculated when an employee enrolls or terminates from group benefits mid month? Answer: No premiums are required for the first month if the start date is the 2nd or later. A full month’s payment is required in the final month regardless of termination date (i.e. the 3% of salary for life and LTD should not be prorated based on a partial month salary). Pension PlanQuestion: How are pension contributions calculated when an employee enrolls or terminates from the pension plan mid month?Answer: Pension contributions are always paid on the ‘salary basis’, which includes cash salary and housing and vacation pay, but not severance. Question: Does a pension plan member have to make pension contributions on short interim assignments? Answer: If the employee is under age 65 and a pension plan member (met eligibility earlier in career and has a pension account) then there is no minimum earnings on which contributions must be remitted. All interim work, vacation relief, or service for multiple ELCIC congregations is subject to pension contributions for plan members. Question: What happens to a member’s pension account at age 65? Answer: If the member is still actively employed, then contributions may continue at the member’s option and the employer must match. Otherwise the member may transfer their pension account balance to an authorized financial institution at any time, but before age 71. Question: At what time can a pension plan member transfer their account balance out of the ELCIC pension plan? Answer: If a clergy terminates employment under age 65 and has no intension of returning to work with an ELCIC employer and their roster status is ‘Retired’ or ‘Terminated’, their pension account can be transferred to an authorized financial institution. If a clergy is age 65 or over, they can chose to stop contributing and transfer out their account balance at any time, but before age 71. Question: If a member who is under age 65 has a roster status of ‘Retired’ and has transferred their pension account to an authorized financial institution and then returns to work with an ELCIC employer, are pension contributions still required? Answer: In this situation the employee is treated like a new employee and is subject to entry eligibility rules. So, if they are earning 25% of YPME, then they must open a new pension account and begin contributing again. Retired Benefit Account – Unfunded LiabilityQuestion: If an employee is not contributing to the pension plan, because they are over age 65 or on the Roster of another faith (i.e. Anglican), does the congregation have any obligations for the unfunded liability?Answer: Yes; whether or not the employee is enrolled, the employer must make retiree liability payments on all compensation for pastoral services. |
|||
