Overview

If your monthly Total Assessable Compensation is below 1/12 of the current Hypothetical Minimum Compensation ($18,000 / 12 = $1,500) and you would like to earn Credited Service toward the post-retirement health subsidy, you may open a make-up account to pay Assessments on the difference between $1,500 and your monthly Total Assessable Compensation. You may personally pay a make-up Assessment (including interest, if applicable) for any or all months in which your Total Assessable Compensation is less than $1,500.

The following is an example of how this works based on the current Hypothetical Minimum Compensation of $18,000:

• The Rev. John Smith’s Total Assessable Compensation for January through December is shown in the chart below.
• If all Assessments are fully paid on time, Father Smith will earn 12 months of Credited Service toward his pension and only nine months of Credited Service toward the post-retirement health subsidy because the Assessments paid in January, February, and March are based on monthly Total Assessable Compensation that is below $1,500. However, if he personally pays Assessments to a make-up account for those three months, he will receive Credited Service toward the post-retirement health subsidy.

* Note that Father Smith’s annual Total Assessable Compensation is actually above the Hypothetical Minimum Compensation of $18,000 per year. However, whether his Credited Service counts toward the post-retirement health subsidy is based on whether his monthly Total Assessable Compensation is equal to or above 1/12 of the Hypothetical Minimum Compensation.

** If Father Smith would like the Credited Service that he earns for January, February, and March to count toward the post-retirement health subsidy, then he can personally pay a make-up Assessment for any of those months. In this example, the monthly make-up Assessment he would have to pay would be 18% of $500 ($1,500 - $1,000), or $90 per month.

Important note: To earn monthly Credited Service toward your pension and the post-retirement health subsidy, both you and your employer must fully pay your share of the Assessments due for that month. If you pay Assessments to a make-up account for a particular month, but your employer does not pay, you will not earn Credited Service for that month for your pension or the post-retirement health subsidy until your employer pays in full.