Church Plan Classification Requested

This year the Christian School Pension Plan recorded a year-end surplus. This is nothing new. In fact, this is the 55th consecutive year-end surplus.  The Trustees continue to use the same healthy long-term approach to guide the plan as it provides retirement planning and income solutions to schools and participants.

However, recent changes in federal law, specifically the Pension Protection Act of 2006 (PPA), represent a new challenge to the Christian School Pension Plan. In response, the Trustees have submitted a request to the Internal Revenue Service that the Christian School Pension Plan be classified as a “church plan” and exempt from certain PPA regulations.

This new classification of the Christian School Pension Plan as a church plan will not change the principles that have carefully guided the Plan for 68 years. In fact, as is explained in more detail on the CSI website (link to explanation is below), church plan status provides the Trustees with the ability to continue serving schools and participants for years to come. CSI believes the Christian School Pension Plan continues to deliver the best value in retirement benefit options for both schools and their staff.

Included with this update you will find a notice from the IRS that is being sent to all participants as part of the church plan status ruling process. It is important for you to review this notice. As is explained in the notice, you have the right to comment on the IRS ruling request CSI has filed if you do so within a 60 day period.

For more about the church plan status and the regulatory changes that have occurred visit our website at http://www.csionline.org/benefits/churchplan.

Full Issue: No. 198 - September 2011

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