ELCA NEWS SERVICE
November 20, 2007
ELCA Board of Pensions Trustees Discuss Health-Care Changes
07-195-SS*
MINNEAPOLIS (ELCA) -- Trustees of the Evangelical Lutheran
Church in America (ELCA) Board of Pensions discussed preparations
for a new strategic plan for 2009-2011 at their meeting here
Nov. 2-4. 2008 is the final year of the Board's current
strategic plan.
The trustees also approved a 2008 corporate plan and
operating budget of $45.8 million, a 4.9 percent increase over
the forecasted year-end expenses of 2007. They set an interest
crediting rate at 8.2 percent for the ELCA Annuity Fund and ELCA
Annuity Bridge Fund, up from last year's 7.2 percent.
John G. Kapanke, president, ELCA Board of Pensions, told
trustees that the ELCA health benefits plan has begun its switch
to a wellness plan -- away from the typical U.S. plan that pays
members when they're ill rather than paying to keep them well --
beginning with a health risk assessment through the Mayo Clinic.
ELCA health plan members are encouraged to take the online
assessment anytime from October 2007 through September 2008 and
earn dollars for a new personal wellness account to help offset
some of their 2008 expenses.
To prepare for upcoming strategic planning sessions, Kapanke
laid out a number of strengths, weaknesses, opportunities and
threats to which trustees responded. One of the strengths, for
example, was the ability to balance being a unit of a
denomination with managing a major business in financial services
and health care. One weakness he cited was that, even with a
large menu of products and services, the pension unit isn't as
well positioned to offer new products to possible new markets.
That weakness leads to an opportunity: reaching new and growing
customer bases. And one threat Kapanke mentioned was that other
financial service companies aggressively compete for plan
members' business.
"I see some of the weaknesses as things we can't influence
-- being part of a broader organization, the ELCA, for example,
and affected by decisions made by the broader structure -- but I
see things we can affect too. Let's focus on the things we can
zero in on," said Louise P. Evenson, Alamo, Calif.
Newly elected board chair Emried D. Cole, Baltimore,
referred to the health plan's new directions: "Wellness is listed
as a strength, but I also see it as a core competency of the
Board of Pensions," he said.
"Up until now we couldn't say that," Kapanke replied, "but
our new wellness program makes this true."
"This organization is guided by the light of Christ, and
that makes us unique. That's a strength," said the Rev. James
A. Justman, bishop, East-Central Synod of Wisconsin, Appleton.
Operating as the church doesn't mean ignoring business
health, though. It's not a balance, said Jon Lee, Dallas, "but
we're living in a creative tension with that: both saint and
sinner."
In a reference to an aging plan membership, Warren R.
Luckner, Lincoln, Neb., said, "The demographics of ELCA clergy
motivate us to look to new markets. ELCA membership numbers are
going down, too, so that's an issue for our markets."
"They've been going down for decades, and we don't know when
that will bottom out," Kapanke responded.
"We just have to embrace reality," said James D. Swinford,
Indianapolis. "We can't wring our hands. We have to manage the
reality."
Kapanke spoke in his president's report about the ever-
changing worlds of health care and pensions. "It seems like we
are always in a state of transition as we carry out our promise
to be faithful to the well-being of those who serve," he said.
"The key businesses that we are in -- retirement and health care
-- and the fact that we are a unit of this church, the ELCA,
almost assures the premise that the Board is and will remain in a
state of perpetual change if we are to be successful in
fulfilling our mission. It is because of our mission to enhance
lives that we derive our vision to help people lead healthy lives
and achieve financial security."
The trustees will consider the new strategic plan at their
meeting Oct. 31-Nov. 2, 2008.
-- -- --
Information about 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
ELCA News Blog: http://www.elca.org/news/blog
