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ELCA Board Of Pensions Takes On New Challenges


From <NEWS@ELCA.ORG>
Date Thu, 17 Mar 2005 11:10:34 -0600

ELCA NEWS SERVICE

March 17, 2005

ELCA Board Of Pensions Takes On New Challenges
05-045-SS*

CHICAGO (ELCA) -- Trustees of the Evangelical Lutheran
Church in America (ELCA) Board of Pensions spent much of their
Feb. 25-27 meeting here discussing challenges in long- and short-
term strategic planning for the retirement and health-care plans
of ELCA clergy, lay ministers and employees.
Some of the challenges cited came from outside forces such
as the industry dynamics in both the retirement and health care
fields. Other challenges arose from issues within the
denomination such as decreasing financial support from
congregations and synods, social issues facing the church and the
decline in ELCA membership and number of congregations.
In addition a large number of ELCA clergy will reach
retirement age in the next 10 to 15 years, and new ordinands are
older than they used to be -- an average age of 40 years, John G.
Kapanke, president, ELCA Board of Pensions, told the trustees.
Kapanke pointed to rapid changes in the retirement industry:
"The economics favoring larger providers suggests continued
industry consolidation, and there's an increased emphasis on new
products and enhanced service." In the health-care industry:
"Double-digit trend rates pressure employers to shift costs [to
employees] and/or reduce benefits," Kapanke said, adding that
there's also an increased emphasis on new approaches such as
"consumer-driven plans."
In his report to the trustees, Michael Troutman, who
oversees strategic planning at the Board of Pensions, said adding
retirement plan members from other denominations and faith-based
institutions can strengthen the ELCA plan.
Trustees discussed exploring an array of options and the
implications of new markets and partnerships. "Is there a
criterion of sustainable advantage we can add?" asked board chair
Bradley Engel, Chicago, stressing the sustainability of any move
versus making a move "just because we can get in fast."
Regarding the ELCA health-care plan, the choices are to
"grow the business, exit the business or strengthen the existing
business," said David G. Adams, vice president of products and
services for the pension unit. In describing plans for growth,
he said expanded collaboration with other denominations is a
possibility, just as it is for the retirement plan.
"I'm impressed with how fast the health-care market is
changing these days," said Jon Christiansen, Arden Hills, Minn.
"We have a well-thought-out strategy. We talk, we listen, we talk
some more ... but we will have lost members to our plan with that
process. Maybe we need to be more anticipatory as to where the
market is going."
Later Christiansen said he'd like the board to look into
health savings accounts and report back to the trustees.
Trustees will approve the 2006-2008 strategic plan at their
August meeting. They will take final action on the health-care
plan design at that meeting, too.
In other business, the board continued to promote healthy
behaviors in the initiative it sponsors with the ELCA Division
for Ministry. "Our health and wellness efforts in 2005 will
focus on increasing physical activity and decreasing caloric
intake," Kapanke said.
"Intuitively it makes sense to incent [plan members] for
wellness, but it's risky ... if we can't quantify what wellness
will save" in terms of dollars for the plan, said Jane C. von
Seggern, Atlanta.
The trustees approved, pending ELCA Church Council approval,
amendments to the retirement, medical/dental, survivor and
disability plans that expand the definition of an eligible
employer to include ecumenical partner congregations and former
ELCA congregations that leave the denomination on or after Jan.
1, 2005.
The council is the ELCA's board of directors and serves as
the legislative authority of the church between biennial
churchwide assemblies. It will meet here April 8-11.
-- -- --
The home page of the ELCA Board of Pensions is at
http://www.elcabop.org/ on the Web.

*Sonia C. Solomonson is managing editor of The Lutheran, the
magazine of the ELCA.

For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news


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