SC: Pensions come into question as Episcopal churches split
CHARLESTON, SC
June 3, 2013
The retirement savings of more than 80 non-clergy employees of the Diocese of South Carolina and its parishes are being held hostage by their former pension plan at the Episcopal Church (TEC).
The lay employees have been trying to arrange for the rollover of their retirement savings since February, when they first contacted the Church Pension Group, which provides retirement, health and other benefits to employees of The Episcopal Church, its parishes, dioceses and other institutions. The employees became eligible to rollover their funds into another qualified plan when their employer, the Diocese or the parishes that voted to disassociate from the denomination, officially ceased to be employed by any organization or parish affiliated with TEC.
In mid-March, the Diocese's pension administrator Nancy Armstrong began correspondence with TEC's Church Pension Group administrator to notify it that several Diocese employees would soon begin the rollover process. After numerous emails back and forth, Frederick Beaver, a senior vice president with the Church Pension Group, informed Armstrong that protecting TEC's pension plans is "paramount" and said he would contact her when he has "definitive legal responses." Here
SC Episcopal diocese alleges retirement savings held hostage
...Church Pension Group issued a statement Tuesday saying it is trying to ensure that clergy and employees in parishes that have left The Episcopal Church have access to their funds, in accordance with federal laws.
"In doing so, we are following protocols required by the Internal Revenue Code to avoid any adverse consequences for the participants in the plans," the statement said. "We expect to complete this process shortly. In the meantime, all funds remain invested in the options selected by these employees, and all accounts are fully viewable on (a) website."
Lewis said he has consulted lawyers for the diocese and is unaware of any legal issues precluding employees from rolling over their plans. He believes that preventing employees from doing so could be illegal. Communication between the diocese and Church Pension Group has dropped off, Lewis said.
"We're in the dark, and it feels like rather incommunicado at this point, which is why we're making this situation publicly known, since there seems to be no other way," Lewis said...
Episcopal Church Holding Retirement Accounts 'Hostage
posted by Pat Dague @ 2:47 PM
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