1. What are the benefits for a skilled nursing facility?
2. Why don’t the retirees age 65 and over have dental coverage?
3. Am I covered by CHP if I need Medicare in Canada or overseas?
4. Are my monthly benefits taxable?
5. Why isn’t the taxable amount of my pension check reported on the 1099-R form at year’s end?
6. What happens when I die?
7. Why doesn’t my check arrive on the first day of the month?
8. Can I work part-time?
9. Why are there limits on how much work a person can earn after retirement?
10. Why don’t all retired pastors receive the same retirement payments based on their years of service and time of retirement, and not on their income during their years of service?
11. How will I know when I get a special bonus check by direct deposit?
12. Do you include pension benefits from the CRP or PPPT whether or not you may owe taxes to Social Security?

What are the benefits for a skilled nursing facility?

The Concordia Health Plan (CHP) pays 80% of such charges not paid by Medicare for post-hospital skilled nursing or extended care facility room and board and all other inpatient services and supplies furnished by any of such facilities. The CHP pays up to a maximum of one hundred (100) days of such charges in a ‘benefit period,’ as that term is defined by Medicare.

Why don’t the retirees age 65 and over have dental coverage?

Because of concerns raised by retirees about their medical benefits, it was decided in 1991 to redesign the Medicare supplemental benefits provided by the Concordia Health Plan (CHP). Retirees over age 65 were sent a survey so they could give input about what kind of medical and dental benefits were important to them. There was a clear consensus from the survey responses that retirees wanted greater coverage for medical expenses not covered by Medicare. Regarding continuation of dental benefits, a question was asked - “Would you be willing to pay an additional $20-$25 per month to have dental coverage be part of your CHP supplemental coverage?” Two-thirds of those responding said they would not. If contributions to fund (i.e., pay for) the benefits aren’t available, then the benefits can’t be provided. This was the basis for the dental benefits being eliminated from the CHP supplemental coverage for Medicare Members.

Am I covered by CHP if I need Medicare in Canada or overseas?

Yes, you are covered worldwide, with benefits of 80% of eligible medical expenses.

Are my monthly benefits taxable?

All benefits are reportable, and the Concordia Retirement Plan and the Pension Plan for Pastors and Teachers send out 1099-R’s each January so that you can declare the income.

Ordinarily the benefits are also taxable. However, for retired ministers of the Gospel, the LCMS has obtained special rulings from the IRS allowing the retired ministers to exclude eligible housing expenses from what is otherwise taxable. Information on how to take this exclusion is sent out to all ministers of the Gospel at the time of their retirement. If you would like a copy of this information, please call 1-888-927-7526 and ask for ext. 6892 or Retirement Benefits.

Why isn’t the taxable amount of my pension check reported on the 1099-R form at
year’s end?

If you are a layworker, it is. However, for ministers of the Gospel who are allowed to take the exclusion described above, our office cannot determine the amount you will personally be able to exclude. We give you the information so that you can calculate what is taxable or you can have someone calculate it for you. Similarly, we report to you the amount that may be excluded because of being eligible as a housing allowance. The actual amount excluded is the amount used to buy, rent, furnish, or maintain your primary residence.

What happens when I die?

Both a lump-sum death benefit and ongoing monthly survivor benefits are payable after you die.

The Concordia Retirement Plan will provide a $10,000 lump sum death benefit if you had at least ten (10) years in the CRP when you retired. If you had less than ten years, then the death benefit will be appropriately pro-rated.

The Concordia Retirement Plan will provide the “eligible surviving dependent spouse” (the person married to the retiree at the time of retirement and married to the retiree at the time of death) a continuing survivor benefit that is 70% of the CRP benefit being paid to the retiree.

The Pension Plan for Pastors and Teachers will provide the “eligible surviving dependent spouse” a continuing survivor benefit that is 60% of the PPPT benefit being paid to the retiree.

Why doesn’t my check arrive on the first day of the month?

Checks are mailed two business days before the end of each month, and most checks do arrive over the first three days of the month for which they are payable. We cannot mail checks earlier than that because we then miss many address changes.

There are times when the Postal Service takes longer than usual to carry the checks to you. This will happen if there is a holiday close by. It may also happen when our pension checks are in the mail at the same time Social Security checks are in the mail, and the Postal Service always gives the Social Security checks the highest priority even if other mail (like your check from us) has to wait.

If a check has not arrived by the 10th of any month, we are able to place a stop-payment on it and replace it the following Friday.

We strongly encourage members receiving a monthly benefit to use “Electronic Funds Transfer” (EFT) to have their benefits deposited directly into their banking accounts. Your benefit will be credited to your account on the first business day of the month. This eliminates having to depend on the mail and the possibility of lost checks. It also cuts down on our costs by reducing postage expenses and the number of checks and envelopes used. Just call Concordia Plan Services at 1-888-927-7526 to request the form to authorize EFT...it’s simple!

Can I work part-time?

The Concordia Retirement Plan and the Pension Plan for Pastors and Teachers permit a retiree under the age of 65 to be a “part-time” worker (less than 20 hours weekly) or a “temporary” worker (more than 20 hours weekly, but less than five months per calendar year) without any loss of benefits. When the work goes above those limits, then the retiree must be considered “active” again and the employer becomes responsible for contributions under the Concordia Plans.

Workers who are age 65 or older may elect to draw an “in-service” benefit from the Concordia Retirement Plan and Pension Plan For Pastors and Teachers while continuing to work on a full-time basis.

These restrictions on work only apply, however, if you are working for an employer of The Lutheran Church—Missouri Synod that participates in the Concordia Plan Services.

By the way, many employers use pastors and teachers on a part-time basis, making certain the hours are kept below the limitations so no benefits are lost. The employers frequently (as a bonus) agree to pick up the retiree’s cost for the Concordia Health Plan!

Why are there limits on how much work a person can earn after retirement?

The IRS sets the standard measurement for full and/or part-time work for all purposes. These limits also limit earnings which can cause Social Security benefits to be reduced by having too much earned income. Remember, though, that if you are over age 65, the Social Security Administration no longer has an earnings limit.

Why don’t all retired pastors receive the same retirement payments based on their years of service and time of retirement, and not on their income during their years of service?

The simple answer is that the Plan provisions which were adopted by the Board of Managers, the LCMS, and all participating employers include a benefit formula which uses a worker’s final average compensation as a part of the formula. This is standard in a “Defined Benefit Plan” like the CRP. The other option would mean that congregations that were “richer” might end up “subsidizing” other congregations’ pastors if a formula were set up that just billed each employer the same. The bottom line is that this is how the Plan was established, and the legal provisions which were qualified by the Internal Revenue Service.

How will I know when I get a special bonus check by direct deposit?

Each time a special check is issued, we notify people in several ways:

1. Each member who gets an actual check has a letter enclosed with the check explaining the fact that is an “extra check” from the Plan.

2. Each member who has benefits deposited by Electronic Funds Transfer (EFT) receives a letter that is sent to the home address explaining that an extra benefit payment was deposited in his/her account, and the date the deposit was to be effective. That letter is sent to whatever home address we have on file. As long as the member hasn’t moved and forgotten to give us an update, he/she should also get that letter!

3. There is always an article in the Benefit Plans Bulletin announcing the fact that we’ve issued an extra check, and to whom.

Do you include pension benefits from the CRP or PPPT whether or not you may owe taxes to Social Security?

It is important to remember that while your benefits are reportable and taxable (minus applicable exclusions) as far as your federal income taxes are concerned, they are not reportable or taxable as far as Social Security is concerned. You are not required to pay any Social Security or Self-Employment tax on any benefit from the Concordia Retirement Plan or Pension Plan for Pastor and Teachers.