wfn.org | [PCUSANEWS] Board of Pensions streamlines operations,

[PCUSA NEWS <PCUSA.NEWS@ECUNET.ORG>]

Note #8975 from PCUSA NEWS to PRESBYNEWS:

05559 Oct. 20, 2005

Board of Pensions streamlines operations

Reorganization intended to improve services, save money; also will
eliminate 22 jobs

by Jerry L. Van Marter

LOUISVILLE - The Board of Pensions (BOP) of the Presbyterian Church
(U.S.A.) has implemented a plan to consolidate member services,
centralize oversight of third-party providers, and provide for "succession
management" in key leadership positions.

     "Stewardship - of people and financial resources - is so important,"
     BOP President and CEO Rob Maggs told the Presbyterian News Service
     (PNS) on Oct. 19. "It is critical to have strong management -
     the right people doing the right jobs."

     In his Oct. 13 weekly letter to board members and other church
     leaders, Maggs acknowledged that financial pressures were a factor
     in the reorganization. "We must keep our ...annualized increases
     in budgets at about 3 percent or less," he said, adding that the
     board's operating costs will show a year-to-year decline in 2006.

     The changes also reduced the BOP staff of 200 by about 10 percent
     by eliminating 10 vacant positions and laying off 12 employees.

     "We're not immune to the financial and budget pressures affecting
     everyone," Maggs said.

     "When all is said and done, many of us will have greater
     responsibility," he wrote in his recent letter. "Several people
     will be promoted to bigger jobs."

     Maggs said the reorganization resulted in nine promotions of existing
     staff members.

     In the new structure, member services for retirement and medical
     plans will be consolidated under Senior Vice President Margaret
     Mellen, who previously was responsible for only the medical plan.

     A key element is oversight of third-party providers, another
     responsibility given to Mellen. "We really needed to centralize
     administration of our third-party providers," Maggs said. "That work
     represents hundreds of millions of dollars. It's (the providers')
     job, but it's our money, and we really have to be on top of it."

     The BOP's service providers include Highmark (medical claims
     administration), Intracorp (case management), Express Scripts
     (prescription medications), CIGNA Behavioral Health (mental health
     and substance abuse) and Fidelity (retirement savings).

     All board operations will be consolidated under Vice President Kelly
     Riley Brown, while member education and health promotion have been
     moved to the Communications Team and Director Karen Babik.

     Funds development has been assigned to the Rev. Peter Sime, vice
     president for assistance and retirement housing, two focuses of
     the BOP's current fund-raising efforts.

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