You are currently subscribed to the PCUSANEWS listserv of the Presbyterian Church (U.S.A.).
======================================= This story is located at: http://www.pcusa.org/pcnews/2007/07137.htm
07137 March 9, 2007
Board of Pensions grants 3.7 percent 'experience apportionment'
All of 2006 financial indicators are positive
by Jerry Van Marter
PHILADELPHIA - Buoyed by across-the-board positive financial results for 2006, the Presbyterian Church (U.S.A.)'s Board of Pensions voted unanimously March 3 to grant a 3.7 percent "experience apportionment" to the church's Pension Plan members.
The apportionment means a 3.7 percent increase in pensions for retired church workers in the plan, and a 3.7 percent increase in the pension credits of active church workers in the plan. The apportionments - and a 4 percent increase in the disability benefit - go into effect July 1 of this year.
The disability benefit increase will be applied using a new method approved by the board last fall. Historically, increases were calculated on the member's gross disability benefit. Under the new rubric, the net benefit paid after reductions for Social Security or other disability benefits will provide the bases for calculating the increase.
"This is 10 pages of good news," Vice President for Finance and Accounting Mike Fallon told the BOP as he presented the 2006 financial report. "And it even extends to the medical plans," he added, referring to health care cost rises that have forced the BOP to raise dues 3 percent in the last 4 years.
Overall, the board's assets increased almost $760 million last year - to $7.75 billion - helped by an investment return of 14 percent. The pension fund increased by 10 percent to $6.75 billion; the death and disability plan increased by 12 percent to $574 million; and the assistance plan increased by 9 percent to $97 million.
Reserve levels in the BOP's Medical and Medicare Supplement plans also increased - the Medical Plan from $47.3 million to $65.8 million and the Medicare Supplement Plan from $8.5 to $10.8 million, both well above the board's target reserve levels.
"We should be good through 2008," medical actuary John Cookson told the board's Healthcare Committee. Because health care cost increases "have moderated," Cookson added, "we have lowered the long-term trend assumption (the projected annual increase in health care costs) from 11 percent to 9.7 percent.
"We're seeing the positive impact of strong actions taken by the board earlier in the 1990s," said Margaret "Maggie" Mellen, the BOP's senior vice-president for benefits. Mellen is retiring in June after 13 years with the board.
Cookson said that the only caveat is that "health care costs continue to rise at a rate higher than the average salary increases for plan members on which dues are based."
The board also:
Raised the maximum income level for eligibility for housing supplements for low-income retired plan members from 60 percent of the Average Total Retirement Income (approximately $29,520) to 70 percent of the ATRI, or approximately $34,400.
Added medical coverage for disabled dependents between the ages of 21 and 25 who are full-time students.
Increased eligible monthly housing costs for individuals in retirement communities from $1,300 to $1,500 for independent living and from $3,200 to $3,400 for assisted living.
Reelected officers for 2007-2008 - the Rev. Jeff Aiken of Allentown, PA, chair; Donald R. Fleischer of Wallingford, PA, 1st vice-chair; and Andrew Browne of Aurora, CO, 2nd vice-chair.
Heard a report on the BOP's new "Stewardship of Self" campaign, which is aimed at increasing the effectiveness of the board's programs by making plan members more aware of their responsibility to take better care of themselves and of the resources that are available to help them do so.
=======================================
You are currently subscribed to the PCUSANEWS listserv of the Presbyterian Church (U.S.A.).
To unsubscribe, send a blank message to
mailto:PCUSANEWS-unsubscribe-request@halak.pcusa.org.
To update your email address, send your old email address and your new one to mailto:PCUSANEWS-owner@halak.pcusa.org.
For questions or comments, send an email to mailto:PCUSANEWS-owner@halak.pcusa.org.
To learn more, visit http://www.pcusa.org/pcnews/
Presbyterian Church (U.S.A.) 100 Witherspoon Street Louisville, KY 40202 (888) 728-7228