ELCA Pension Board Redesigns Survivor Benefits Plan

     MINNEAPOLIS (ELCA) -- Trustees of the Board of Pensions of the Evangelical Lutheran Church in America unanimously approved a redesigned Survivor Benefits Plan, including the possibility of a terminally ill plan member collecting the benefits before death.  The action was taken at the trustees quarterly meeting here May 29-30.
     The changes to the plan now go to the ELCA Church Council for final approval and would go into effect Jan. 1, 1998.  If approved the revised plan, which benefits survivors of a plan member based on the age and salary at the time of death or retirement, will:

     *         increase the lump sum benefits, which would raise the minimum
               benefit from $4,000 to $6,000 for all plan members, including
               existing retirees.  The maximum lump sum will remain at $50,000;

     *         make the lump sum available prior to death for terminally ill plan
               members "to ease the financial burden for families of plan members
               who incur significant medical expenses just prior to death;

     *         lower from 15 to 10 the number of years of service required for a
               plan member to become eligible for the post-retirement lump sum
               survivor benefit; and

     *         extend the child survivor benefit from age 18 to 21, but drop the
               current separate education benefit.

     Most of the cost of the increased benefits will come from a current surplus in the plan.  The remainder will come from a slight increase in the premiums, from the current 0.79 percent of salary to 0.83 percent.
     The board proposed amendments to its pension and other benefits programs taking into account new federal laws.  ELCA associates in ministry, deaconesses and diaconal ministers serving some non-ELCA organizations would be allowed to participate in the plans, as would self-employed clergy and clergy serving non-sponsoring employers (such as military chaplains). The changes would give spouses access to plan information.
     The board also recommended that there be no "relief of conscience"  fund as part of the ELCA Medical and Dental Plan because of the cost and complexity of setting up a fund for those opposed to the ELCA's policy on covering abortions.
     Pension board advisors, Wilshire Associates, reviewed investment performance.  Overall the board received high marks at meeting its goals.   Wilshire said the $4 billion fund of the Board of Pensions is turning in performance results that would place it in the top 17 percent of U.S. pension funds.

For information contact:
Ann Hafften, Director (773) 380-2958 or NEWS@ELCA.ORG
http://www.elca.org/co/news/current.html