Title: ELCA Board Excludes Late-Term Abortion Coverage
ELCA NEWS SERVICE

February 26, 1997

BOARD EXCLUDES LATE-TERM ABORTION COVERAGE
97-06-015-RK

     MINNEAPOLIS (ELCA) -- Late-term abortions will not be
covered under the Evangelical Lutheran Church in America's
medical plan, according to a proposed plan amendment the ELCA
Board of Pensions trustees sent to the ELCA Church Council for
adoption.
     The trustees took the action at meeting their Feb. 8-9 in
Minneapolis in response to a request by the ELCA council that the
medical plan -- which covers pastors, their families and other
church employees -- be amended in accord with the church's 1991
"Social Statement on Abortion."
     If the council concurs, the pension board will not pay for
late-term abortions unless the life of the mother is threatened
or the fetus has "lethal abnormalities indicating death is
imminent." Current medical practice defines late-term abortions
as a termination of pregnancy after 20 weeks.
     Though the issue of abortion coverage by the church's
medical plan for its employees has been controversial, it is not
known whether any abortions have been paid for under current
policy. Currently the medical plan does cover a range of
procedures that includes abortion and miscarriage. Since the
Board has not questioned either patient or doctor about the
details of the services beyond the information provided on the
bill, there has been no way to determine whether or not elective
abortions have been covered.
     The proposal would have the Board ask at which point in the
pregnancy the induced abortion was performed, whether the
mother's life was at risk or whether the fetus had lethal
abnormalities.
     The church's social statement supports human life and states
that abortion "ought to be an option only of last resort, such as
when the life a mother is threatened." The 1991 social statement
does not mention the church's medical plan nor indicate how such
a plan could be in harmony with it.
     The ELCA Church Council also asked that the Board
investigate a "relief of conscience" fund for the premiums paid
by plan members who do not want their contributions used to pay
for medical abortions. A report detailing implications of such a
fund to the medical plan and the ELCA is being prepared for the
next pension trustees meeting.

Good market transition
     In his management report John G. Kapanke, president of the
ELCA Board of Pensions, said that at the beginning of 1997 $2.4
billion in bonds funds and balanced funds (a mixture of stocks
and bonds) were converted to market value reporting. This means
plan members can transfer their money freely between all seven of
the Board's investment choices. Previously only the stock funds
were reported at market value.
     When given that choice, members moved nearly $1 billion in
assets into the balanced funds, where asset allocation between
stocks, bonds and other investments is managed by the Board. The
amount invested in bond funds dropped by $811 million. At
present the ELCA Board of Pensions manages $3.4 billion in
pension assets for pastors and other church employees who are
active, inactive or retired.
     Kapanke said he was encouraged both by the smooth transition
to market value and the selection made by plan members to invest
their accounts in asset classes that have historically provided
greater returns. "The Board's trustees supported the changes to
the pension plan, which result in greater simplicity, flexibility
and value for plan members," he said.
     After the changeover, bond fund holdings by active plan
members dropped from 25.3 percent to 7 percent and by retired
members from 39.5 percent to 3.4 percent. Balanced funds assets
increased from 41.2 percent to 59.8 percent for active members
and from 43.2 percent to 93.6 percent for retired members.

For information contact:
Ann Hafften, Director (773) 380-2958 or [log in to unmask]
http://www.elca.org/co/news/current.html