ELCA Board Excludes Late-Term Abortion Coverage

     MINNEAPOLIS (ELCA) --  Late-term abortions will not be covered under the Evangelical Lutheran Church in America's medical plan, according to a proposed plan amendment the ELCA Board of Pensions trustees sent to the ELCA Church Council for adoption.
     The trustees took the action at meeting their Feb. 8-9 in Minneapolis in response to a request by the ELCA council that the medical plan -- which covers pastors, their families and other church employees -- be amended in accord with the church's 1991 "Social Statement on Abortion."
     If the council concurs, the pension board will not pay for late-term abortions unless the life of the mother is threatened or the fetus has "lethal abnormalities indicating death is imminent."  Current medical practice defines late-term abortions as a termination of pregnancy after 20 weeks.
     Though the issue of abortion coverage by the church's medical plan for its employees has been controversial, it is not known whether any abortions have been paid for under current policy. Currently the medical plan does cover a range of procedures that includes abortion and miscarriage.  Since the Board has not questioned either patient or doctor about the details of the services beyond the information provided on the bill, there has been no way to determine whether or not elective abortions have been covered.
     The proposal would have the Board ask at which point in the pregnancy the induced abortion was performed, whether the mother's life was at risk or whether the fetus had lethal abnormalities.
     The church's social statement supports human life and states that abortion "ought to be an option only of last resort, such as when the life a mother is threatened."  The 1991 social statement does not mention the church's medical plan nor indicate how such a plan could be in harmony with it.
     The ELCA Church Council also asked that the Board investigate a "relief of conscience" fund for the premiums paid by plan members who do not want their contributions used to pay for medical abortions.  A report detailing implications of such a fund to the medical plan and the ELCA is being prepared for the next pension trustees meeting.

Good market transition
     In his management report John G. Kapanke, president of the ELCA Board of Pensions, said that at the beginning of 1997 $2.4 billion in bonds funds and balanced funds (a mixture of stocks and bonds) were converted to market value reporting.  This means plan members can transfer their money freely between all seven of the Board's investment choices.  Previously only the stock funds were reported at market value.
     When given that choice, members moved nearly $1 billion in assets into the balanced funds, where asset allocation between stocks, bonds and other investments is managed by the Board.  The amount invested in bond funds dropped by $811 million.  At present the ELCA Board of Pensions manages $3.4 billion in pension assets for pastors and other church employees who are active, inactive or retired.
     Kapanke said he was encouraged both by the smooth transition to market value and the selection made by plan members to invest their accounts in asset classes that have historically provided greater returns.  "The Board's trustees supported the changes to the pension plan, which result in greater simplicity, flexibility and value for plan members," he said.
     After the changeover, bond fund holdings by active plan members dropped from 25.3 percent to 7 percent and by retired members from 39.5 percent to 3.4 percent.  Balanced funds assets increased from 41.2 percent to 59.8 percent for active members and from 43.2 percent to 93.6 percent for retired members.

For information contact:
Ann Hafften, Director (773) 380-2958 or NEWS@ELCA.ORG
http://www.elca.org/co/news/current.html