ELCA NEWS SERVICE March 17, 2005 ELCA Board Of Pensions Takes On New Challenges 05-045-SS* CHICAGO (ELCA) -- Trustees of the Evangelical Lutheran Church in America (ELCA) Board of Pensions spent much of their Feb. 25-27 meeting here discussing challenges in long- and short- term strategic planning for the retirement and health-care plans of ELCA clergy, lay ministers and employees. Some of the challenges cited came from outside forces such as the industry dynamics in both the retirement and health care fields. Other challenges arose from issues within the denomination such as decreasing financial support from congregations and synods, social issues facing the church and the decline in ELCA membership and number of congregations. In addition a large number of ELCA clergy will reach retirement age in the next 10 to 15 years, and new ordinands are older than they used to be -- an average age of 40 years, John G. Kapanke, president, ELCA Board of Pensions, told the trustees. Kapanke pointed to rapid changes in the retirement industry: "The economics favoring larger providers suggests continued industry consolidation, and there's an increased emphasis on new products and enhanced service." In the health-care industry: "Double-digit trend rates pressure employers to shift costs [to employees] and/or reduce benefits," Kapanke said, adding that there's also an increased emphasis on new approaches such as "consumer-driven plans." In his report to the trustees, Michael Troutman, who oversees strategic planning at the Board of Pensions, said adding retirement plan members from other denominations and faith-based institutions can strengthen the ELCA plan. Trustees discussed exploring an array of options and the implications of new markets and partnerships. "Is there a criterion of sustainable advantage we can add?" asked board chair Bradley Engel, Chicago, stressing the sustainability of any move versus making a move "just because we can get in fast." Regarding the ELCA health-care plan, the choices are to "grow the business, exit the business or strengthen the existing business," said David G. Adams, vice president of products and services for the pension unit. In describing plans for growth, he said expanded collaboration with other denominations is a possibility, just as it is for the retirement plan. "I'm impressed with how fast the health-care market is changing these days," said Jon Christiansen, Arden Hills, Minn. "We have a well-thought-out strategy. We talk, we listen, we talk some more ... but we will have lost members to our plan with that process. Maybe we need to be more anticipatory as to where the market is going." Later Christiansen said he'd like the board to look into health savings accounts and report back to the trustees. Trustees will approve the 2006-2008 strategic plan at their August meeting. They will take final action on the health-care plan design at that meeting, too. In other business, the board continued to promote healthy behaviors in the initiative it sponsors with the ELCA Division for Ministry. "Our health and wellness efforts in 2005 will focus on increasing physical activity and decreasing caloric intake," Kapanke said. "Intuitively it makes sense to incent [plan members] for wellness, but it's risky ... if we can't quantify what wellness will save" in terms of dollars for the plan, said Jane C. von Seggern, Atlanta. The trustees approved, pending ELCA Church Council approval, amendments to the retirement, medical/dental, survivor and disability plans that expand the definition of an eligible employer to include ecumenical partner congregations and former ELCA congregations that leave the denomination on or after Jan. 1, 2005. The council is the ELCA's board of directors and serves as the legislative authority of the church between biennial churchwide assemblies. It will meet here April 8-11. -- -- -- The home page of the ELCA Board of Pensions is at http://www.elcabop.org/ on the Web. *Sonia C. Solomonson is managing editor of 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