After You Retire

Discretionary Cost-of-Living Adjustments

Although not required by Plan rules, the CPF Board of Trustees has the discretion to grant a cost-of-living adjustment to retirement benefits when inflation justifies it and the financial condition of the Plan allows for it. To evaluate the financial strength of the Plan, CPF stress tests it periodically using sophisticated financial models to determine whether it can support the granting of a cost-of-living adjustment. To protect the long-term viability of the Plan and the continuity of retirement benefit payments to members and beneficiaries, a cost-of-living adjustment will not be granted unless the Plan is fully funded and these stress tests show that the financial strength of the Plan will not be compromised over the long term.

Returning to Work After Retirement

If you retire and then return to work with a participating employer, your retirement benefits may be suspended, and you may earn an additional benefit under the Plan.

If you are scheduled to work 1,000 hours or more per year with a participating employer, your retirement benefits will be suspended unless you have reached your IRS required beginning date. If you have reached your IRS required beginning date, you will continue to receive your retirement benefits, even though you have returned to work. In either case, you will earn an additional benefit under the Plan if your employer pays the required Assessments.

Upon your subsequent retirement (or “reretirement”), you will receive a retirement benefit that consists of the following:

  • The retirement benefit that you were previously receiving, adjusted for cost-of-living increases, if any, paid in the form of payment that you previously elected; and
  • The retirement benefit that is only based on the Credited Service and Earnings after your return to active service, payable in the form of payment that you elect on your subsequent retirement date.

These restrictions on working after retirement apply only if you return to work with a participating employer and are scheduled to work 1,000 hours or more per year at that participating employer. If you are scheduled to work less than 1,000 hours per year at a participating employer, if you return to work with an Episcopal employer that does not participate in the Plan, or if you work outside The Episcopal Church, your retirement benefits will not be impacted.

Medicare Secondary Payer

If you are age 65 or older and are eligible for active health coverage through your employer, then Medicare will not be the primary payer for your health claims. Instead, you should receive coverage under your employer’s health plan for active employees. This is true regardless of whether or not you have retired under the Plan or whether or not your retirement benefits under the Plan are suspended.

If you continue to work in The Episcopal Church after retirement (whether that work is for a participating employer or not) and are eligible for your employer’s active health coverage, you should receive coverage under your employer’s active health plan. This means that you will not be eligible for coverage under a Group Medicare Advantage plan (or other retiree health plan) offered by The Episcopal Church Medical Trust.

There is an exception from the Medicare Secondary Payer rules for active employees who are employed by small employers. Learn more about the Medicare Secondary Payer Small Employer Exception.

Medicare Secondary Payer is a term generally used when Medicare is not the primary payer of health claims for individuals who are eligible for active health coverage through their employer. The US government designed Medicare to provide health coverage for retired individuals, not actively employed individuals.

A Guide to the Lay Defined Benefit Plan (PDF)
Guide to Lay Defined Benefit Plan Disclaimer

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