ELCA NEWS SERVICE November 21, 2003 ELCA Board of Pensions Sets Budget, Looks at Changes 03-215-SS* MINNEAPOLIS (ELCA) -- Trustees of the Evangelical Lutheran Church in America (ELCA) Board of Pensions approved a 2004 budget of $62.5 million, a 4.4 percent increase over the 2003 budget. Of that budget, staff has held the board's operating expenses flat at $43.3 million. The total expense budget includes $17.4 million for direct investment expenses and $1.8 million for software amortization; those items account for the overall budget increase. As trustees reviewed the corporate plan and budget, Jon B. Christianson, Arden Hills, Minn., said, "We have doubled the budget since 1998 to change our business so that we could serve our members better. Are they feeling that is happening?" John G. Kapanke, president, ELCA Board of Pensions, responded, "Had we not changed [from claims processing to health care advocacy], we wouldn't be in business today. And what we delivered in the mid 1990s wouldn't be tolerated by our members today." Bradley Joern, Board health actuary, presented an update on the board's health and wellness initiative through 2005. Plan members will be encouraged to take a health-risk assessment and follow that with a wellness covenant of personal goal setting. To continue keeping the health plan affordable, he said the board would move toward an 80/20 sharing of costs between sponsoring congregations and other ELCA employers and plan members. That means deductibles and co-payments will eventually increase. Currently the plan is closer to an 84/16 split. Christianson said some other plans are already moving to an 80/20 or even a 75/25 cost sharing plan. Joern said the board is considering a model whereby plan members with higher salaries would help pay costs for those with far lower incomes. "Because I'm at the higher end of that chart, I believe I have an obligation to help out those at the lower end of the pay scale," said the Rev. Robert D. Berg, advisory bishop from the ELCA Northwest Synod of Wisconsin, Rice Lake. He also acknowledged that the sharing might make the plan "a harder sell" because some large congregations already have to be convinced to stay in the plan. Trustee Mary S. Ranum, Circle Pines, Minn., said the board has experienced resistance before from large congregations about helping to pay costs for those at lower income levels. "But some congregations with multiple staff will have some at the high end and some at the low end of compensation," said Christianson, adding, "We have an incredible plan." He said the modification would be great but that people will need to be educated about it. Joern told trustees they'd need to approve a proposed design conceptually at their February meeting and approve specifics in August 2004. "We should say to our congregations that we're headed in the direction of building healthy leaders, so that ultimately we'll save money on the disease end when we spend on the prevention end," said Nancy J. Haberstich, Lincoln, Neb. In other business trustees: + Accepted the resignation of trustee-elect, the Rev. Marcia B. Strahl, Chadwick, Ill., and learned that the names of two nominees will be determined early in 2004, at which time the names will be forwarded to the ELCA Church Council for an election. + Heard an update on a disease management program, which will implement programs around some chronic diseases such as diabetes and heart disease. This program will mean an increase in the 2005-2006 budget, said Mary C. Johnson, vice president for finance and administration, though she expects that would be offset from the savings the program would generate in claims. + Learned that plan members, their families and other lay and ordained leaders can take the health risk assessment at the Mayo Clinic Website -- http://www.elcaforwellness.org -- from Jan. 6 through Feb. 25. -- -- -- The ELCA Board of Pensions has its home page at http://www.elcabop.org on the Web. * Sonia C. Solomonson is managing editor for The Lutheran, the magazine of the ELCA. For information contact: John Brooks, Director (773) 380-2958 or [log in to unmask] http://www.elca.org/news