MINNEAPOLIS (ELCA) -- Trustees of the Evangelical Lutheran Church in America (ELCA) Board of Pensions approved a $54.2 million budget for 2002 -- an increase of 11.5 percent over 2001. Their Nov. 2-4 meeting here included a discussion of pension equity.
The trustees expressed support for the 2003 and 2004 budget projections, knowing changes will occur once the board finalizes its three-year strategic plan for 2003 and beyond. Trustees will review the new strategic plan in March 2002, considering a final draft in August.
The board is in the midst of a multi-year changeover from handling health-care claims and pension transactions to serving as an advocate and resource for members' health-care and pension needs. In 2001 the board moved its remaining health-care claims processing to outside vendors.
The board adopted the corporate plan for such a move in 1999 in order to remain competitive in both the health-care and retirement benefits fields. At that time the board explained the move in its corporate report: "Processing health claims and performing other transactions require time at the expense of assisting plan members through numerous life events such as births, illnesses, disabilities, retirements and deaths."
That transformation from what the corporate plan calls a "transaction-oriented" organization to a "relationship-based" organization is responsible for the 2002 budget hike.
While trustee Nancy J. Haberstich, Lincoln, Neb., expressed reservations about the 11.5 percent budget increase because of the changing economic environment, she said she agreed the board is moving in a good direction.
Barbara A. Swartling, trustee from Bainbridge Island, Wash., said, "We always knew this plan wouldn't be less expensive. We didn't move in this direction because it was cheaper but because it's what we needed to do to better serve the church and be competitive in the marketplace."
John G. Kapanke, president of the ELCA Board of Pensions, explained that the most expensive part of the board's transformation is in the overlap period between the old and new systems -- the overlap "bubble," he called it. He added that 2003 would be the first operational year of new systems, so that year's budget also would reflect an increase.
Several information items were reported to the board trustees, including the pension equity study requested by the 2001 Churchwide Assembly in August. Based on resolutions brought by three synods, assembly voting members asked the Board of Pensions to "prepare methods to bring into equity pensions of professional leaders and to report its findings to the church council."
The ELCA's 10,816 congregations are organized into 65 synods. The churchwide assembly is the chief legislative authority of the church. Assemblies are held every other year; the church council is the ELCA's board of directors and serves as the legislative authority of the church between its churchwide assemblies.
The issue of pension equity has been raised at nearly every ELCA assembly, Kapanke said. "We've held up the Special Needs Retirement Fund now in place, but that hasn't fully satisfied everyone's concerns. We hope to have a report to the Church Council by November 2002."
The Rev. Lowell G. Almen, ELCA secretary, told trustees, "Underneath the assembly resolution was a concern for serious disparities of salaries and pensions, particularly for those people who willingly provide services in settings of low salaries who then are affected in retirement. This action had some steam behind it -- and, depending on answers that are given, this issue will come back."
Trustees heard good news about the Special Needs Retirement Fund (SNRF) too. As of Oct. 31, 2001, 433 people had agreed to do a monthly deduction from their pension checks to assist those with low pensions, a response that will amount to $159,552 for a year.
The board sent letters to all pensioners offering the possibility of a monthly deduction to help the SNRF, said the Rev. Ronald T. Glusenkamp, board vice president for customer outreach; and early in 2002 all active members of the pension plan will receive a letter. The board's outreach to increase awareness and build the special fund is a collaborative effort with the ELCA Foundation, he added.
*Sonia C. Solomonson is managing editor of The Lutheran, 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
