Overview

The FCMM Benefit Plan allows participating churches to choose between two different Benefit Plan options. Churches must choose one plan for all eligible employees, and all eligible employees must enroll in all benefits.

Option 1 – the Standard Plan includes Long Term Disability (LTD) and Life with Accidental Death and Dismemberment (Life/AD&D) Insurance. The Life/AD&D volume amounts available for a church to choose for employees are $10,000, $50,000, and one times (1x) the employee’s annual salary.

Option 2 – the Plus Plan includes Short Term Disability (STD), Long Term Disability (LTD), and Life with Accidental Death and Dismemberment (Life/AD&D) Insurance. The Life/AD&D volume amounts available for a church to choose for employees are $10,000, $50,000, and one times (1x) the employee’s annual salary. (Due to State of California short term disability regulations, the PLUS Plan is not available to churches located in California.)

See the Benefit Plan Coverage Overview (Form 138) for a summary of all benefits.

Features and Benefits

Group coverage benefits are made available through the church (EFCA church or other qualified “like-minded” organization in the United States), and all employees working 25 hours a week or more are eligible for the Benefit Plan (unless otherwise noted in the Employer Benefit Agreement). Coverage begins the first day of the month following the employee’s eligible hire date (unless otherwise noted in the Employer Benefit Agreement) and ends on the date they are no longer eligible to receive benefits. Severance pay is not considered active employment.

Short Term Disability Insurance (STD)

• The STD benefit pays 60% of weekly earnings to a maximum of $1,000/week. There is a 14 day elimination period before disability payments begin. The maximum benefit duration is 11 weeks of benefit payments.
• The definition of disability is the inability to perform the duties of your own occupation during the claim period.
• STD weekly benefit payments will be taxable if the church pays the premium. STD weekly benefit payments will not be taxable if the employee pays the premium with after-tax dollars, or the church pays the premium and that amount is added to employees’ taxable income.
• For premium calculation, the employee’s total annual salary (including amount designated as housing allowance) is used to determine the cost. This provision, not usually found in standard STD plans, has been specifically tailored to benefit churches and clergy participants.
• Full details are found in the STD insurance policy and can be requested from the Benefit Plan Client Services. (Due to State of California short term disability regulations, the PLUS Plan is not available to churches located in California.)

Long Term Disability Insurance (LTD)

• The LTD benefit pays 60% of monthly earnings to a maximum benefit of $8,500/month. There is a 90 day elimination period before disability benefit payments begin. The maximum benefit duration information can be found in the LTD Policy document.
• The definition of disability is the inability to perform the duties of your own occupation for the first 3 years of a disability.
• Additional benefits up to $1,000/month may be available up to 2 years if you are cognitively disabled or unable to perform 2 or more Activities of Daily Life (ADLs).
• Spousal disability rider, conversion, survivor benefit, and rehabilitation and return to work assistance programs available.
• LTD monthly benefit payments will be taxable if the church pays the premium. LTD monthly benefit payments will not be taxable if the employee pays the premium with after-tax dollars, or the church pays the premium and that amount is added to employees’ taxable income.
• For premium calculation, the employee’s total annual salary (including amount designated as housing allowance) is used to determine the cost. This provision, not usually found in standard LTD plans, has been specifically tailored to benefit churches and clergy participants.  
• Full details are found in the LTD insurance policy and can be requested from the Benefit Plan Client Services.

Life with Accidental Death and Dismemberment Insurance (Life/AD&D)

• Benefit coverage levels include $10,000, $50,000, and one times (1x) the employee’s annual salary (maximum salary of $120,000).
• There is guarantee issue coverage meaning you will not have to answer medical questions, as well as a waiver of premium, survivor support, and portability available.
• There is an Accelerated Benefit Provision included in this plan. In the event of terminal illness while insured by the plan, the insurance carrier will pay up to 50% of the Life/AD&D insurance benefit at one time.
• Full details are found in the Life/AD&D insurance policy and can be requested from the Benefit Plan Client Services.

See the Benefit Plan Coverage Overview (Form 138) for a summary of all benefits.

Administering the Plan