Retirement
The Evangelical Covenant Church provides participating ministers, global personnel, and ministry staff with future retirement benefits. These benefits are provided through the administration of two separate retirement plans. The Covenant Pension Plan is a defined benefit plan for ordained Covenant ministers. Since January 1, 2020, the Covenant Pension Plan has been closed to new participants but remains fully funded and continues to service active participants and retirees. The Covenant 403(b)(9) is a defined contribution plan open to all Covenant ministers and ministry staff at Covenant churches and eligible affiliated ministries.
Eligibility and Requirements
All Covenant ministers holding any Covenant credentials except for bi-vocational licenses, and serving in a Covenant church, conference, or denominational office who earn at least $15,000 per year are required to receive contributions by their employer equal to 12.5% of their annual compensation.
Covenant ministers holding a bi-vocational license, those serving at a Covenant ministry other than a church, conference or denominational office, those serving in non-Covenant ministries (with approval), or those making less than $15,000 per year may receive contributions.
Contributions can only be made to the Covenant Pension Plan for pastors who were already enrolled in the plan prior to January 1, 2020, who are under the age of 65, and who have not taken action to buy out or freeze their benefit.
All Covenant ministers who are required to receive 12.5% employer contributions but are not eligible to receive them in the Covenant Pension Plan, such as those not enrolled prior to January 1, 2020, those over the age of 65, or those who have accepted a buyout offer or have elected and been approved to freeze their pension benefit must participate in the Covenant 403(b)(9).
Any W-2 employee of any Covenant church, conference or denominational office and eligible Covenant affiliate ministries may participate in the Covenant 403(b)(9).
If you have questions about your eligibility or where to direct your contributions, contact us.
Enrollment and Updates
The Covenant Pension Plan has been closed to new participants since January 1, 2020. Updates to existing participants should be made using the Covenant Minister Update Form. Covenant Pension Plan participants who wish to freeze their pension benefit and convert to the Covenant 403(b)(9), may do so by submitting a Request to Freeze Covenant Pension Benefit and Convert to 403(b)9 by June 30th for contributions to begin on January 1 of the following year.
Guidestone Financial Services
The Covenant 403(b)(9) Plan is administered by our trusted partners, GuideStone Financial Services. Local Covenant churches and organizations may enroll by contacting GuideStone. Ministries can begin this process by filling out and signing the plan documents through the link below. Once you sign the forms, GuideStone will be immediately notified and will begin setting up the 403(b)(9) retirement plan. After the plan has been set up, your retirement plan administrator will be contacted for training on how to enroll employees and remit contributions.
Salary Updates
An accurate salary is necessary to calculate pension benefits. Employers should submit an annual salary report at the beginning of every year. Do not report amounts paid for Covenant Pension and other benefits paid on behalf of the minister, such as insurance. When the participant serves two churches, each church reports their share of compensation individually. Include pre-determined stipends, such as auto allowance. Do not include reimbursements made for specific purchases, such as mileage reimbursements.
Employment Updates
Credentialed ministers who are experiencing a change in call should submit a Covenant Minister Update Form to the office of the Ordered Ministry.
Conversion to 403(b)(9)
Covenant Pension Plan participants may wish to freeze their Pension benefit and begin sending their retirement contributions to a Covenant 403(b)(9) plan. Participants may do so by submitting a Request to Freeze Covenant Pension Benefit and Convert to 403(b)9. There are two windows during which Participants may submit such requests: the regular open period (effective the next January 1 after a waiting period of at least 6 months after receipt of request), or upon receiving a new call (must be signed and returned within 30 days of start date).
Upon approval, a participant’s Pension Plan benefits are permanently frozen with no option to receive additional contributions after the effective date of change. Therefore, participants wishing to freeze their Pension benefits and convert to the Covenant 403(b)(9) are strongly encouraged to consult with a financial advisor.
Participants of the Covenant Subsidized Benefits program are required to freeze pension benefits and convert to the Covenant 403(b)(9) Plan.
Receiving Pension Payments
Participants in the Covenant Pension Plan are eligible to receive monthly pension payments beginning at age 65 and continuing through the remainder of their life. The monthly benefit is calculated based on total contributions received. This benefit automatically includes a 65% surviving spouse benefit. The surviving spouse benefit can be increased to 75% or 100% if elected before age 63.
To receive benefits, participants must apply to begin pension payments (Forms A-E), available below.
Frequently Asked Questions
How much money will I receive from my pension?
The monthly retirement benefit payable for life to which a vested participant is entitled when the participant retires from an Employer on or after the participant’s sixty-fifth birthday is 1/12 of 1½ percent of the participant’s total considered compensation. Considered compensation includes annual base salary and other income from the Employer, including housing and utility allowances, if any.
Please contact Covenant Benefits to receive an estimate of your monthly benefit.
What is the Surviving spouse benefit?
When a participant of the Covenant Pension Plan dies, and the participant is survived by a spouse to whom they have been married for at least 5 years, the spouse receives 65% of the benefit plan the retired pastor was receiving.
Participants may elect an option where the spouse can receive 75% or 100% of the participant’s benefit. If the participant elects such an option, their monthly benefit will be reduced. This election can be made by submitting the Optional Surviving Spouse Benefit form, which must be submitted no less than 2 years before the participant’s Normal Retirement Date. If the participant elects such an option but the participant or spouse dies before the participant’s actual retirement, the election of the option is void, and the participant’s pension is paid as if such election had not been made.
What are the vesting requirements?
Participants in the Covenant Pension Plan are considered fully vested if they have at least 5 years of service. Active participants in the Covenant Pension Plan who have not yet accrued 5 years of service must do so before January 1, 2027. Please contact Covenant Benefits if you have questions about your vesting status.
There is no vesting requirement for the Covenant 403(b)(9) Plan.
Can I rollover my pension benefit to another plan?
No, according to the Pension Plan rules: “A participant’s benefits under the Plan are not subject to the claims of creditors and neither a participant nor beneficiary has any right to alienate, anticipate, pledge, encumber, or assign any of the benefits or payments or proceeds which he/she may expect to receive, contingently or otherwise, under the Plan.”
I’m Turning 65 what do I need to do?
If you are a participant in the Covenant Pension Plan, please submit your Application to Begin Pension Payments (Forms A-E), which is available on our Downloads and Forms page. Additionally, once you turn 65, if you continue working, your employer must enroll in the Covenant 403(b)(9) plan and make contributions on your behalf.
I am retiring early, can I receive my Pension Benefit before I turn 65?
Yes, a vested participant is eligible for an early retirement pension on or after attainment of age 62. The amount of the early retirement pension is calculated by reducing the participant’s normal retirement benefit by ½ percent for each month the participant’s retirement precedes the participant’s attainment of age 65.
My employer cannot afford to pay for my retirement, what should I do?
If you are serving in an under-resourced ministry, please investigate the Covenant Subsidized Benefits Program, which is intended to serve as a catalyst for pastoral financial well-being, specifically focused on pastors with low compensation levels who are serving in under-resourced Covenant settings.
Forms and Downloads
Covenant Pension Plan
- Form A: Application to Begin Pension Benefit Payments
- Form B: Service Record
- Form C: Bank Information Request
- Form C: Wire Transfer Form
- Form D: Surviving Spouse Benefit
- Form E: Statement of Health
- Request to Freeze Covenant Pension Benefit and Convert to 403(b)9
- Covenant Minister Update Form
- Employer: Annual Salary Report
- Employer: Electronic Funds Transfer
- Resolution on Housing Allowance
Contact Information
Covenant Benefits
benefits@covchurch.org
(800) 313-8955
- Enrollment
- Billing and invoices
- Annual salary reports
- Pension projections
Department of The Ordered Ministry
ministry@covchurch.org
(773) 583-3211
- General eligibility and enrollment questions
