Title: ELCA Pension Board Plan Balances Clergy, Congregation Needs
ELCA NEWS SERVICE

November 13, 2002

ELCA PENSION BOARD PLAN BALANCES CLERGY, CONGREGATION NEEDS
02-262-SS*

     CHICAGO (ELCA) -- Affordability, personalized service, advocacy
for members, the promotion of health and wellness, and development of
financial products and services were key components of the 2003-2005
strategic plan approved by the Evangelical Lutheran Church in America
(ELCA) Board of Pensions trustees at their Nov. 1-3 meeting here.
     John G. Kapanke, president, ELCA Board of Pensions, Minneapolis,
noted the challenge in creating such a plan.  The board must strike a
balance between what's good for congregations, what's good for clergy
and other plan members, what's good for the church as a whole, what's
fiscally sound and what's possible in today's health-care and pension
climates, he said.
     Notes following one initiative of the strategic plan said:
"Congregations and other sponsoring organizations would appreciate
more choice in the level of benefits they provide, along with the
ability to require members to contribute to the cost of benefits."
     Variance in benefits between congregations will affect the call
process, said the Rev. Robert D. Berg, bishop of the ELCA's Northwest
Synod of Wisconsin, Rice Lake, Wis., affirming the board's commitment to
a unified philosophy of benefits.  An advisor to the trustees, Berg
explained that a health-care package could become a bargaining tool in
the call process, with pastors turning down calls because of the
particular benefit package offered by a congregation.
     The board's plan states that, for that specific initiative, the
pension unit will consult with ELCA leaders to answer such questions as:
 + Are current benefits too generous, just right, or not generous
enough?
 + Should employers continue to pay the entire cost of benefits?
 + Should policies differ for clergy, rostered laity and non-rostered
laity?
 + To what extent should there be local discretion on compensation and
benefits?
     Rostered individuals are those on the ELCA's lists of official lay
and ordained ministries.
     "We are still committed to a bundled plan," Kapanke said. "We'll
keep the employer-paid plan but will shift to higher co-pays and
deductibles for members."  With the bundled plan, those in the
retirement plan are also in the health-care, disability and survivor
benefit plans.
     Trustee Jon R. Lee, Dallas, questioned part of the strategic plan
that calls on the pension unit to "develop retirement and other
financial products and services to better meet the needs of members,
congregations and other sponsoring organizations."  He said, "If we
provide investment counseling, I don't want us to set expectations too
high for members and then disappoint them."
     Kapanke replied, "I know what you're saying, but this is probably
the 'number one' service that's been asked of us."
     The board of trustees approved a 2003 budget of $60.5 million and
expressed support for the preliminary budget analyses for 2004 and 2005.
     Subject to ELCA Church Council action, the trustees approved a
strategy of changes that could bring about full funding of the ELCA
retiree medical obligation.  The ELCA subsidizes the monthly cost of
medical coverage for retirees with predecessor church service, an
obligation assumed when the ELCA began in 1988.
     Retiree medical liability has risen by 25 percent in the last two
years, said David G. Adams, vice president of research and design, ELCA
Board of Pensions, and current and future funding levels are
insufficient if changes aren't made.
     "Two groups of people aren't paying their way in this plan:
rostered people who aren't part of the ELCA plan and congregations that
aren't paying mission support for one reason or another.  Is there any
way that an assessment can be made to a congregation that doesn't
participate in the plan or that doesn't provide mission support?" asked
Kenneth G. Bash, trustee chair, Phoenix.
     Some church bodies have a membership fee system of some type, said
ELCA Secretary Lowell G. Almen, adding that it would represent a
significant departure from the church's history.
     "Participation in the ELCA plan isn't mandatory," Adams said, "but
we enjoy about 95 percent participation."

* Sonia C. Solomonson is managing editor for The Lutheran, the magazine
of the ELCA.

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