MINNEAPOLIS (ELCA) -- Trustees of the Evangelical Lutheran Church in America Board of Pensions voted to increase the maximum lifetime medical benefit limit to $2 million at their quarterly meeting here Feb. 6-7.
The proposed $2 million lifetime limit, an increase of $1 million from the current limit, would be retroactive to Jan. 1, pending ELCA Church Council approval in April. Lifetime limits are common practices that help benefit plans remain financially sound, said John G. Kapanke, president of the ELCA Board of Pensions. Federal, state and other funding sources generally become available should a person's medical expenses exceed the lifetime limit.
A $2 million lifetime limit is comparable with limits of other major church plans, he said. About 70 percent of employer health plans in the United States have at least a $2 million lifetime limit or no limit at all.
In addition to the lifetime limit, the trustees discussed investment performance, customer satisfaction and Year 2000 compliance.
"U.S. capital markets performed very well in 1998, as reflected in the returns of our ELCA pension funds," Kapanke said.=20
While ELCA stock funds returned more than 18 percent last year (net of expenses) and were double the long-term expected rate of return for stocks, Kapanke said ELCA funds fell short of the board's own investment goals. Balanced and bond funds followed suit with returns of more than 12 percent and 7 percent, respectively, net of expenses.
"Unfortunately, our long-term investment strategy that emphasizes fund diversification was not suited for what occurred in 1998, when only a small portion of stocks were responsible for the strong market performance," Kapanke said. "As always, we will continue to evaluate our long-term approach to providing the best investment risk and return opportunities for plan members."
Kapanke said he expects the board's long-term investment strategy will reward ELCA plan members with superior earnings for retirement.=20
In other board reports:
-- Efforts on becoming Year 2000 compliant are under way, with a mid-year completion date set for critical operating systems. =20
-- The board continues to focus on improving customer satisfaction.=20=
In a random survey in 1998, the number of people who rated the board's
overall quality of service as "excellent" was up compared with previous
surveys. Thirty-nine percent of active plan members said the service
was excellent, compared to 27 percent previously; 65 percent of retirees
also said the service was excellent, compared to 46 percent previously.=20
Rating the service as "good to excellent," last year were 88 percent of
active members and 96 percent of the retirees.
-- The board introduced the Rev. Ronald Glusenkamp as new vice president of Customer Outreach beginning March 1. Glusenkamp is currently senior pastor at Gethsemane Lutheran Church in St. Louis.
With $4.8 billion under management, the nonprofit Board of Pensions provides pension and other benefits for 48,000 pastors and lay employees of the Evangelical Lutheran Church in America. Based in Chicago, the ELCA has 5.2 million members and is the fifth largest Protestant church in the United States and Caribbean.
[*Terry Mencel is communication manager for the ELCA Board of Pensions]
For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://www.elca.org/co/news/current.html
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About the Evangelical Lutheran Church in America:
The ELCA is one of the largest Christian denominations in the United States, with 2.8 million members in more than 8,500 worshiping communities across the 50 states and in the Caribbean region. Known as the church of "God's work. Our hands.," the ELCA emphasizes the saving grace of God through faith in Jesus Christ, unity among Christians and service in the world. The ELCA's roots are in the writings of the German church reformer Martin Luther.
For information contact:
Candice Hill Buchbinder
Public Relations Manager
Candice.HillBuchbinder@ELCA.org
