wfn.org | UMNS# 04553-GCFA plans Nashville move, launches insurance

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GCFA plans Nashville move, launches insurance company 

Nov. 23, 2004	 News media contact:   Linda  Bloom * (646) 3693759*  New
York {04553}

NOTE: Related resources are available at http://umns.umc.org.

By Joretta Purdue*

EVANSTON, Ill. (UMNS) - The United Methodist Church's financial
administration agency expects to start moving staff into a new headquarters
building in Nashville, Tenn., later in 2005.

Voting members of the General Council on Finance and Administration saw
pictures of the building where its Evanston and Nashville staff will be
combined during their Nov. 18-20 annual meeting in Evanston. The Nashville
property purchase, which is contingent on various structural and
environmental inspections, will provide a new headquarters for the agency. 

Internal modifications of the space will be made in the first seven months of
2005, allowing the present Nashville staff to move into the building in
August. Services currently provided in Evanston will gradually be moved
during the following 12 months to minimize disruption. Sale of both
properties currently occupied by the agency is anticipated.

In five years, GCFA expects to realize a net savings from the move, according
to Sandra Lackore, head of the agency and treasurer of the United Methodist
Church.

Saving money is also part of the motivation for founding the captive
insurance company that GCFA launched for the church, at this meeting, by
providing initial funding and becoming the first member. Such a company is
owned by the insured entities that share a certain amount of risk. Beyond
that point, reinsurance is provided by a larger reinsurer.

"We're currently paying millions of dollars ... to a for-profit organization"
for insurance, said Craig Parrish, chairman of the committee that formed
United Methodist Property and Casualty Trust.

As owners, GCFA and annual conferences will take on some risk and have more
leverage with the reinsurance company to achieve price stability and broader
coverage, Parrish explained. PACT will be marketed to annual conferences
initially, and their local churches will be part of that. PACT is not able to
serve individual congregations at this time, he added. The general agencies
of the denomination are eligible to join.

Parrish stressed the importance of PACT's theological foundation, which he
believes supports the company's ability to "offer protection and justice."
And he emphasized the risk management opportunities to prevent such things as
sexual misconduct or theft and to work for justice for victims rather than
solely seeking to minimize costs.

"We insure mission and ministry," he declared. 

Coverages will include property, general liability (casualty), automobile
liability, sexual misconduct, pastoral professional liability, employee
benefits liability, bonding, worker's compensation, directors and officers'
liability, and employment practices liability. Health insurance is not
included.

"Millions of dollars in equity can be put back into ministry," Parrish said,
"depending on our actual experience of loss." He pointed to the success of
several other denominations and religious organizations, varying from the
Assemblies of God, which only has one year of experience, to the Seventh Day
Adventists, which has 68 years. "No religious captive has ever failed," he
added.

Within the denomination, a similar plan in the Florida Annual (regional)
Conference has been successful even with multiple events during the 2004
hurricane season, Parrish said. After Hurricane Andrew in 1992, many insurers
withdrew from the Florida market.

Following approval of the formation of the captive insurance company, GCFA
executives will seek to incorporate the company in Washington. 

Claire Irene Howard, who has been general counsel for GCFA, has been
designated chief executive officer of PACT. She also was named GCFA deputy
general secretary for strategic initiatives, effective Jan. 1. James R.
Allen, who joined the GCFA legal team in 2003, has been named general counsel
to succeed Howard. 

Reflecting another transition in the denomination's structure, the GCFA,
acting as trustee for the whole church, accepted the responsibility for
control of all properties formerly owned by the General Council on
Ministries, which was discontinued by the 2004 General Conference, the
denomination's top legislative body. GCFA members authorized the GCFA
executive committee to act as needed for the agency and trustees regarding
GCOM property to implement the transition team's plans for action.

GCFA provided support - financial and staff - for several studies, including
Connectional Ministry Funding Patterns II, the GCFA Data Services Study and
the Study of the Episcopacy. 

In other action, GCFA members:
7	Approved the 2005 spending plans of the denomination's general
agencies.
7	Agreed to the 2005 Episcopal Fund spending plan of just more than
$17.1 million.
7	Reviewed and approved financial plans for several national or
international conferences.
7	Elected to coordinate retiree pharmacy benefits with Medicare Part D.
7	Established guidelines for the submission of requests for grants from
World Service and General Administration contingency funds.
7	Approved certification or recertification for more than 100
professional United Methodist Church secretaries and two church business
administrators.

GCFA members joined in celebrating the 16 years of service of Elizabeth
Okayama, who works in administering the Episcopal Fund in support of the
bishops, and the six years of service of the Rev. Robert W. Fishel, a GCFA
executive in the area of finance and administration. Okayama retires in March
and Fishel in June. 
 
The council's next meeting will be Nov. 17-20, 2005, at Lake Junaluska, N.C.

*Purdue is a former United Methodist News Service news director.

News media contact: Linda Bloom, New York, (646) 369-3759 or
newsdesk@umcom.org.

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United Methodist News Service