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CLERGY HOUSING EQUITY PROGRAM |
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Diocese of Newark Clergy Housing Equity Fund was established to provide
eligible clergy members with an opportunity to accumulate equity on a
tax deferred basis for post-retirement housing. It is designed to supplement
your benefits from Social Security and the Church Pension Fund as well
as your personal savings and investments. The Housing Equity Fund was
established as of January 1, 1989. Its financial records are maintained
on a calendar year basis. The Diocesan Council has appointed the Housing Equity Committee as the Fund's administrative committee. The plan is intended to constitute a non-qualified deferred retirement plan maintained to enable eligible clergy to accumulate equity for post-retirement housing. To be eligible, you must be a clergy member of a church within the Diocese of Newark which has adopted this Fund. In addition, you must reside in a rectory, vicarage or other church-owned housing. Each contribution period, the Church will contribute a specified percentage of your compensation for the contribution period, provided you are in the employ of the Church and residing in Church-owned housing as of the last day of that contribution period. You will be notified by the Church of the exact percentage to be contributed on your behalf. While the Church retains the right to determine the exact level of contributions it will make on your behalf, the Diocesan Convention recommends the following contribution schedule: 5% of your compensation each contribution period for your first four contribution periods, increased by 1% for each subsequent calendar year, to a maximum contribution of 10% after five or more years of participation in the Fund. The Diocesan Convention also suggests that, if you transfer to another Church that is participating in the Fund, you receive a contribution based on your total years of participation in the Fund. The Church's contributions will normally be transferred to the Trustees as soon as practicable following each contribution period. The Trustees are fully responsible for the investment of the Fund assets and have total discretion in determining the appropriate investments under current market conditions and the Fund's investment objectives. The Church's contributions on your behalf and all investment earnings on the accumulating funds are not currently subject to federal or state income taxes. Upon termination of employment for reasons other than Retirement or death, a Member shall be entitled to the value of his/her Account as of the Valuation Date immediately following his/her eligibility to commence distribution of his/her benefits. Upon Retirement or death, a Member or Beneficiary shall be entitled to the value of the Member's Account determined as of the next following Valuation Date. Any questions regarding the Fund should be addressed to Mr. John Zinn, Chief Financial Officer, Episcopal Diocese of Newark, 31 Mulberry Street, Newark, New Jersey 07102; 973-430-9983; jzinn@dioceseofnewark.org |