Then request to have an enrollment packet mailed to you. The Optional Pension Plan is a great way to build additional savings for retirement, tax deferred. The plan has a low administrative fee, provides rollover options, and has demonstrated a competitive investment performance. There are two types of contributions to the Optional Pension Plan, one initiated by the employer and one by the member. Though member investment decisions affect both equally, there are advantages and disadvantages to each kind of contribution.
Tax laws limit the amount that can be contributed annually.
Because the limit can change, it is a good idea to request a calculation for the tax-sheltered amount for a given year. The Request for maximum tax-sheltered contribution amount form is available to download . For ELCA pastors, the tax-free housing allowance privilege can apply to additional income from the Optional Pension Plan for either employer or member contributions. If the congregation or organization chooses to make contributions in addition to the member's salary, they are considered employer non-elective contributions . The member does not have the choice of receiving an increased salary in lieu of these contributions.