MINNEAPOLIS (ELCA) -- Trustees for the Board of Pensions of the Evangelical Lutheran Church in America (ELCA) approved the 2002 contribution rates for the health care plan at their Aug. 1-3 meeting here. Rate increases will range from 6.7 percent to 16.4 percent with an average of 10.6 percent. Rates will vary among the six rate classes established last year by the board.
The increase is necessary because of projected increases in claims and health care inflation in the United States, said David G. Adams, vice president for research and design, ELCA Board of Pensions.
Trustees voted to extend to 2003 the transition period for implementing the new six-class rate structure, which is based on geographical differences in health care costs and on the levels of salaries paid. The extension would hold down the increase for synods in higher rate classes.
"The goal is to get each rate class to 100 percent of what the cost of coverage is," Adams said. "Over two years we expect each synod to be paying up to its expected cost of coverage."
Board of Pensions staff and trustees acknowledge the rising health care costs as a problem for congregations.
"There will be continued concern over the rising costs," said John G. Kapanke, president of the Board of Pensions, in his management report. The board will continue to explore partnership opportunities with other denominational health plans, he added.
Ecumenical partnership will begin with pharmaceutical purchases. Trustees approved an ecumenical pharmacy purchasing coalition that will mean an estimated savings of $3.2 million for the ELCA pension plan in 2002. The Board of Pensions is joining with 10 other church bodies to purchase prescription medications, a move that will change the pharmacy vendor and will increase the non-preferred retail co-pay from $25 to $27 and the non-preferred mail order co-pay from $50 to $54.
Trustees heard a report from an ad hoc committee -- appointed at their February meeting -- that responded to a study document by the ELCA task force on health and health care. The document is part of the ELCA Division for Church in Society's (DCS) preparation for a social statement to be brought for consideration to the 2003 Churchwide Assembly. The ad hoc committee reported its suggestions, trustees added theirs and adopted the report. The trustees voted that the response be signed by all trustees and sent to DCS as that unit prepares the social statement's first draft.
Dr. Gwen W. Halaas, Kenosha, Wis., was selected as project director for the ELCA health and wellness program for rostered clergy and lay leaders, board members were told. The Board of Pensions will provide substantial funding for the position. The project will be coordinated through the ELCA Division for Ministry, and Halaas has a one-year renewable contract. She resigned from the board of trustees to be considered for the position.
Halaas will work with the ELCA's 65 synods, social ministry organizations and other churchwide units to develop resources and programs aimed at maintaining the health and wellness of clergy and lay leaders.
In his management report, Kapanke spoke of helping clergy who retire with extremely low pensions.
"I want to challenge our church to build the Special Needs Retirement Fund to $9 or $10 million in the next few years," he said. "I know that's lofty, but we must care for our clergy."
The trustees approved a transfer of $250,000 to the special needs fund.
The board will work with the ELCA Foundation in raising awareness and donations to the fund. The Rev. Kenneth R. Olsen, who will be a new regional representative for the Board of Pensions, will lead the board's efforts. Olsen leaves office as bishop of the ELCA Metropolitan Chicago Synod when his six-year term ends Aug. 31.
In other action the trustees elected as chair Kenneth G. Bash, Scottsdale, Ariz., and as vice chair Bradley C. Engel, Burlington, Wis. -- -- --
A list of contribution rates is available at http://www.elcabop.org on the ELCA Board of Pensions Web site.
[*Sonia C. Solomonson is managing editor of The Lutheran, the magazine
of the ELCA.]
For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.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
