Fund Growing to Help Retired Lutheran Church Workers

CHICAGO (ELCA) -- Many pastors and lay employees of the church work for rewards beyond financial consideration. Some find they cannot afford retirement. The Evangelical Lutheran Church in America (ELCA) is trying to change that by strengthening the monthly incomes of retirees or their surviving spouses.
The 1993 ELCA Churchwide Assembly created the Special Needs Retirement Fund to supplement some retirement incomes. At the end of January the fund had a balance of $378,000, said the Rev. Michael Cooper- White, director of the ELCA's Department for Synodical Relations.
The fund has been growing slowly through contributions sent to the ELCA Office of the Treasurer from individuals, congregations and other organizations. It has only recently reached a level that supports payments from the ELCA Board of Pensions to low-income retirees or their surviving spouses.
Fifty-three low-income retired plan members or their survivors shared $95,000 from the fund in 1997 to help pay for living expenses such as food and housing. Monthly payments ranged from $21 to $600, depending on a recipient's need.
"A sincere thank you for the check," one recipient wrote back. "My house is 52 years old, and I have to replace a few windows! So this money came at a perfect time."
"I had found it quite difficult to make ends meet," wrote another. "Now I am so greatly relieved! I have thanked my Father in heaven for this change in my circumstances, and now I want to pass my thanks on to you."
"The testimonies of our worthy retirees speak eloquent words of appreciation to all of us who contribute to the fund," said Cooper-White. "Each subsidy check we send provides needed financial support and bears a message of gratitude: Well done, good and faithful servant of God.'"
Money for the fund is not included in the ELCA's budget. "With no regular budgetary allocations, the fund's ability to continue providing pension subsidy to our low-income retired servants depends upon continuing contributions from individuals and congregations," said Cooper-White.
"Our stewardship of the Special Needs Retirement Fund goes beyond administering payments to devoted servants of this church," said John G. Kapanke, president of the ELCA Board of Pensions, Minneapolis. "The fund serves such a great need that the board has pledged all undesignated gifts and bequests that it receives each year to supporting the fund."
The fund benefits the families of pastors and lay employees of ELCA synods, seminaries and churchwide units who participated in the church's pension plan at least 20 years. To be eligible recipients must have a total income from all sources of less than $1,000 a month ($1,250 if married) and assets of less than $15,000 (exclusive of home equity of up to $60,000). Recipients must reapply each year. Applications are currently being accepted for payments beginning in June.
The size of a retired worker's pension check depends on the amount of money in the worker's pension account at retirement. Contributions to that account are usually a percentage of the worker's salary. So, generally, a church worker who received a small salary will also receive a smaller pension than those with larger incomes.
In preparation for the 1993 assembly's consideration, the Division for Ministry conducted a survey of almost 1,900 full-time ELCA clergy. The study found four factors contribute significantly to the level of a pastor's compensation:
-- the number of years spent in the ordained ministry;
-- parish growth and giving;
-- the size of the parish; and
-- the average local household income.

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