wfn.org | [PCUSANEWS] Board of Pensions raises medical dues one-half

[Deeanna Alford <dalford@CTR.PCUSA.ORG>]

04334
July 23, 2004

Board of Pensions raises medical dues one-half percent

2005 increase brings total dues to 31 percent

by Karen Babik,
Board of Pensions communications director
and Jerry L. Van Marter

PHILADELPHIA * The Presbyterian Church (USA) Board of Pensions (BOP) has
voted to increase Medical Plan dues from 18.5 percent to 19 percent, bringing
total dues for plan members * medical and pension coverage * to 31 percent of
effective salary. 

	The increase, which takes effect Jan. 1, 2005, "should enable the
board to maintain reserves within it's target range and avoid the need for
major adjustments in 2006," said BOP medical actuary John Cookson of Milliman
USA. He said that, while medical cost growth seems to be moderating, it is
still in the 10-12 percent range, while church salaries, which drive the rate
at which dues naturally increase, are only projected to rise 3 percent.

	The board made no changes in plan members' co-pays or deductibles.
Noting that those requirements are "already significant, particularly in
families faced with the expenses associated with chronic illness," senior
vice-president for healthcare Margaret Mellen, said, "As difficult as a dues
increase is for many of our smaller churches to fund, and even for some
larger congregations facing budget shortfalls, we don't believe it
appropriate to recommend further transfer of cost to (plan) members at this
time."

	Other dues are rising as well. Medical dues for seminary students 
will increase from 10.5 to 10.8 percent for member coverage, from 16.2 to
16.6 percent for member with spouse or children coverage, and from 18.5 to 19
percent for member with family coverage.

	The BOP also approved a 15 percent increase in the dues for the
Affiliated Benefits Program. Dues for that program vary by coverage.

	When the board meets this fall, it will review the key principles on
which the design of the PC(USA)'s medical plan * which was created 17 years
ago, shortly after Presbyterian reunion * is based and what alternative
strategies might be available to maintain maximum benefits at a manageable
cost. 

	The board increased the Assistance Program Income Supplement annual
target levels for a single person from $22,400 to $23,760 and for a married
couple from $26,940 to $28,560, also effective next January. The target level
is the maximum income a retired recipient should have after an income
supplement * supported by gifts, endowment income and half of the annual
Christmas Joy Offering * has been added to the recipients other sources of
income.

	Board members were told that the affiliated agreement between
Westminister Gardens in Duarte, CA, and Southern California Presbyterian
Homes has been finalized, thus relieving the BOP of management oversight of
the facility. 

	The BOP Investment Committee announced a return of 3 percent for the
six months ending June 30.

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