wfn.org | ELCA Pension Board Increases Medical Benefit Limit to $2 Million

[NEWS <NEWS@ELCA.ORG>]

ELCA NEWS SERVICE

February 17, 1999

ELCA Pension Board increases medical benefit limit to $2 million
99-06-34-TM*

     MINNEAPOLIS (ELCA) -- Trustees of the Evangelical Lutheran Church
in America Board of Pensions voted to increase the maximum lifetime
medical benefit limit to $2 million at their quarterly meeting here Feb.
6-7.
     The proposed $2 million lifetime limit, an increase of $1 million
from the current limit, would be retroactive to Jan. 1, pending ELCA
Church Council approval in April.  Lifetime limits are common practices
that help benefit plans remain financially sound, said John G. Kapanke,
president of the ELCA Board of Pensions. Federal, state and other
funding sources generally become available should a person's medical
expenses exceed the lifetime limit.
     A $2 million lifetime limit is comparable with limits of other
major church plans, he said.
About 70 percent of employer health plans in the United States have at
least a $2 million lifetime limit or no limit at all.
     In addition to the lifetime limit, the trustees discussed
investment performance, customer satisfaction and Year 2000 compliance.
     "U.S. capital markets performed very well in 1998, as reflected in
the returns of our ELCA pension funds," Kapanke said. 
     While ELCA stock funds returned more than 18 percent last year (net
of expenses) and were double the long-term expected rate of return for
stocks, Kapanke said ELCA funds fell short of the board's own investment
goals. Balanced and bond funds followed suit with returns of more than
12 percent and 7 percent, respectively, net of expenses.
     "Unfortunately, our long-term investment strategy that emphasizes
fund diversification was not suited for what occurred in 1998, when only
a small portion of stocks were responsible for the strong market
performance," Kapanke said. "As always, we will continue to evaluate our
long-term approach to providing the best investment risk and return
opportunities for plan members."
     Kapanke said he expects the board's long-term investment strategy
will reward ELCA plan members with superior earnings for retirement. 
     In other board reports:
     -- Efforts on becoming Year 2000 compliant are under way, with a
mid-year completion date set for critical operating systems.  
     -- The board continues to focus on improving customer satisfaction. 
In a random survey in 1998, the number of people who rated the board's
overall quality of service as "excellent" was up compared with previous
surveys.  Thirty-nine percent of active plan members said the service
was excellent, compared to 27 percent previously; 65 percent of retirees
also said the service was excellent, compared to 46 percent previously. 
Rating the service as "good to excellent," last year were 88 percent of
active members and 96 percent of the retirees.
     -- The board introduced the Rev. Ronald Glusenkamp as new vice
president of Customer Outreach beginning March 1.  Glusenkamp is
currently senior pastor at Gethsemane Lutheran Church in St. Louis.
     With $4.8 billion under management, the nonprofit Board of Pensions
provides pension and other benefits for 48,000 pastors and lay employees
of the Evangelical Lutheran Church in America. Based in Chicago, the
ELCA has 5.2 million members and is the fifth largest Protestant
church in the United States and Caribbean.

[*Terry Mencel is communication manager for the ELCA Board of Pensions]

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