What
is The Church's Plan? |
| |
The
Church’s Plan is a new and comprehensive package of
benefits being offered effective January 1, 2006. This package
is designed specifically to meet the needs of LCMS workers.
It has a number of benefit plans as described below: |
|
Concordia
Health Plan (CHP) |
- Medical
benefits, including preventive care
- Prescription
drug benefits
- Dental
benefits, including preventive care
- Mental
health/substance abuse benefits
- Member
Assistance Program
- Hearing
discount program
|
| |
| Concordia
Disability and Survivor Plan (CDSP) |
- Disability
benefits
- Pre-retirement
lump sum death benefits
-
Death of worker and death of enrolled dependent
|
| |
| Concordia
Retirement Plan (CRP) |
- Primary
Retirement Benefit
- Supplemental
Retirement Account
-
Retiree Medical Supplement—NEW!
-
Provides additional income to retirees to help pay for
medical expenses
-
Workers earn RMS service credits if:
-
He/she is enrolled through an employer who is in
The Church’s Plan, and
-
Participates in the Concordia Health Plan (or an
“eligible opt-out”)
-
Workers receive past service credits for prior years
of CRP participation if employer joins The Church’s
Plan by 1/1/07
-
At retirement, worker receives an RMS credit benefit
if he/she has at least 15 years of RMS service credits
and is age 60 (or older) OR meets the Rule of 85 in
the CRP
|
| |
| Concordia
Retirement Savings Plan (CRSP)—NEW! |
- 403(b)
Tax Deferred Savings Plan
-
Allows workers to save for retirement—with PRE-TAX
contributions!
- Workers
receive a matching contribution when they contribute to
CRSP
- A
Basic Match of 50% of the first 2% of compensation contributed
by worker is provided. The Basic Match is funded by
the employer’s contribution to the Concordia retirement
program. (E.g., worker contributes 2% of salary, a Basic
Match of 1% of salary is added quarterly to worker’s
account)
- Employer
can also provide an additional 2% or 4% optional match
- Various
investment options available
- Can
convert to monthly benefit payable from CRP at retirement
- Administered
by MetLife
|
| Note:
Rms and CRSP are available only in The Church's Plan |
| |
| One of
the requirements of being in The Church’s Plan is that
minimum participation requirements of the Concordia Health Plan
must be met by January 1, 2007. |
| |
| CHP
Minimum Participation Requirements |
| To protect
the long-term financial stability of the CHP for all LCMS employers
and to ensure a financially stable health plan, there must be
a balance of healthy and less healthy, younger and older workers.
Workers who “drop out” (except for “eligible
opt-outs,” as defined below) of the CHP tend to be younger
and/or healthier than average. If those workers “drop
out,” the remaining group is, on average, less healthy
and thus more costly. By requiring that employers enroll all
— or nearly all — of their workers, we help ensure
a broad risk pool, which leads to financial stability. |
| |
| Minimum
participation requirements are: |
- Employers
who have adopted the CHP cannot offer another health plan
alongside the Concordia Health Plan (i.e., no “dual
choice”).
- If
an employer has 1-5 workers eligible to enroll, all workers
must be enrolled in the CHP (except for “eligible
opt-outs,” as defined below).
- If
an employer has 6 or more workers eligible to enroll, at
least 75% of them must be enrolled in the CHP (except for
“eligible opt-outs,” as defined below).
- “Eligible
Opt-outs” are workers who are not enrolled in the
Concordia Health Plan because they already have health coverage
under:
-
A spouse’s health plan
-
A parent’s health plan
-
A former employer’s group medical plan
-
A Medicare supplement plan
-
A state medical assistance program for low-income persons
-
The military
|
| |
| A worker
is also considered an “eligible opt-out” if he/she
does not meet the minimum hours worked requirement (20, 25,
or 30 hours per week, as selected by their employer) to be eligible
for the Concordia Health Plan. |
