wfn.org | [PCUSANEWS] Committee approves Westminster Gardens transfer

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Note #7735 from PCUSA NEWS to PRESBYNEWS:

Committee approves Westminster Gardens transfer
GA03045

Committee approves Westminster Gardens transfer

by John Filiatreau

DENVER, May 26 - The General Assembly Committee on Pensions, Foundation and
Publishing voted Monday to recommend that the Assembly approve an agreement
by which the Board of Pensions (BOP) would transfer the management of
Westminster Gardens, a BOP-managed and -operated retirement home in Duarte,
CA, to Southern California Presbyterian Homes (SCPH).

	Westminster Gardens was established in 1949 by the Board of Foreign
Missions of the Presbyterian Church in the U.S.A. to provide care for retired
"missionaries, clergymen (sic), other religious workers and their families."
Supervision of the facility was transferred to the BOP in 1975. SCPH has been
providing some management services since 2001.

	A task force established by the Westminster Gardens board of trustees
created a strategic plan that recommended, among other things, broadening the
admission criteria and adopting new rates and entrance fees. The home is in
the process of making those changes.

	The approval of the transfer to SCPH superseded Overture 03-10, from
San Gabriel Presbytery, which would have asked the Assembly to direct the BOP
to spend about $2 million to upgrade Westminster Gardens. The presbytery said
"the upkeep of residences and the infrastructure of Westminster Gardens has
been woefully neglected, and the Board of Pensions has resisted making
possible the necessary changes."

	Who will pay what share of the cost of the necessary renovations is
in negotiation, but BOP officials assured the committee that they will see
that the property is brought up to standard.

	Officials of BOP appeared before the committee to report that,
despite a severe downturn in the U.S. economy, the board is on solid
financial ground.

	Judith D. Freyer, the board's senior vice president for investments,
said BOP's balanced portfolio of investments is down 9.8 percent for the
year, and 17.1 percent for the past three years, but the board has maintained
appropriate reserves while making investments in keeping with the values of
the Presbyterian Church (USA). She noted that BOP investments have
outperformed the S&P 500 and Nasdaq indexes, and over the past 10 years have
met the return of 8 percent predicted in a 1986 study.

	She said the board now has a target of having 35 percent of its
investments in bonds.

	Most of the concerns expressed by committee members had to do with
the board's medical insurance plan, which in 2002 had income of $118.8
million and claims and expenses of $123.3 million. Margaret M. Mellen, the
BOP's vice president for healthcare design, said the plan, which has nearly
19,000 members, has reserve funds of $28.8 million.

	She noted, however, that healthcare cost increases are outpacing
payroll growth by as much as 15 percent.

	Because of the skyrocketing cost of medical treatment and especially
of prescription drugs, the board has recommended dues increases for 2004. It
plans to raise the overall dues percentage (of salary) to 18.5 percent, an
increase of 1 percent; to raise the minimum participation basis to 65 percent
of salary; and to charge dues for part-time workers at a rate equivalent to
full-time salaries.

	The board will increase physician office visit co-pays from $15 to
$25, and increase co-pays for specialist visits from $25 to $35. The co-pays
haven't been increased since 1999.

	The committee also approved amendments to the Benefits Plan to
accommodate the change to every-other-year Assemblies. The amendments
eliminate a requirement that the GA give advance approval of amendments to
the Plan, giving BOP discretion to amend the Benefits Plan and Death and
Disability Plan and grant experience apportionments more frequently than
biennially if necessary. Any changes that would result in benefit reductions
or dues increases would still require prior approval by the Assembly.

	The committee commended the Presbyterian Foundation and endorsed its
work, and approved the election of Richard J. Seiwell, an investment advisor,
from West Chester, PA to the foundation's Board of Directors.

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