ELCA Board of Pensions Trustees announce annuity adjustment for 2012

[<NEWS@ELCA.ORG>]

Title: ELCA Board of Pensions Trustees announce annuity adjustment for 2012
ELCA NEWS SERVICE

>November 11, 2011  

ELCA Board of Pensions Trustees announce annuity adjustment for 2012
11-135-MG

MINNEAPOLIS (ELCA) -- Trustees of the Board of Pensions of the
Evangelical Lutheran Church in America (ELCA) announced adjustments in
2012 ELCA Participating Annuity payments and the interest crediting rate
for bridge accounts.

The Board of Pensions is a separately incorporated ministry of the
ELCA. The trustees made the decision here at their Nov. 4-6 meeting.

The trustees reduced payments for 2012 by 3.8 percent for ELCA
Participating Annuity members and set the interest crediting rate for
2012 at 2.1 percent for bridge accounts.

Before making their final decision, trustees discussed the size of
the 2012 adjustments. The Rev. Jeffrey Thiemann said he appreciated the
thoughtful discussion leading up to the trustees' decision, saying, "We
hold in tension the needs and desires of our annuitants for annuity
payments now with the expectation that payments will be made for life. We
have a great group of trustees and advisers that discharge this
responsibility with great care."

Thiemann assumed leadership as Board of Pensions president and CEO
on October 1. The 3.8 percent reduction reflects a new guideline adopted
earlier this year. The guideline takes into consideration the funded
ratio of the ELCA Participating Annuity Investment Fund. The funded ratio
compares the Fund's net assets to its future benefit obligations.

Under the new guideline, a funded ratio below 1.000 calls for a
reduction in annuity payments. As of September 30, 2011, the Fund's
assets were estimated to cover 88.5 cents of every dollar in future
benefit obligations.

"The 2012 adjustment directly reflects the year-over-year market
performance of the Fund," said Brad Joern, Board of Pensions' Director of
Products and Services. "To moderate the magnitude of annual adjustments,
we follow a process that adjusted 2012 annuity payments by one-third of
the difference between the 0.885 funded ratio and 1.000."

Joern explained how the new adjustment guideline is different from
the three-year recovery period the Board of Pensions had announced in
2009. Adjustments are now intended to be more responsive to market
performance. He said the 2012 adjustment is smaller than the three years
of 9 percent reductions that had been previously announced, but
reductions are now likely to occur over a longer period of time.

The ELCA Participating Annuity is a type of immediate variable
annuity that provides an income stream for life and income growth
potential over the long term.

In other action, the Board of Pensions welcomed seven new trustees
to the 15-member board. Of the new trustees, four began their terms at
the Nov. 4-6 meeting: William Falk, Arlington Heights, Ill.; Gregory
Heidrich, Wheaton, Ill.; the Rev. Dr. Marty Stevens, Gettysburg, Pa.; and
Dianne Witte, New Haven, Conn. Also in attendance were three new trustees
who are scheduled to begin their terms immediately following election in
November by the ELCA Church Council: Janette Drew, Alamo, Calif.; Raye
Nae Nylander, Baltic, S.D.; and the Rev. Paul W. Stumme-Diers, Bainbridge
Island, Wash.

Also joining the board of trustees were two new churchwide advisers:
the Rev. Linda Norman, ELCA treasurer; and the Rev. Dr. Duane Pederson,
bishop of the Northwest Synod of Wisconsin.

The trustees acted on other matters and heard about other topics
related to their work. Trustees approved a $49.4 M operating budget for
2012, up from about $46.7 forecasted for 2011.

The ELCA Board of Pensions provides health, retirement, disability
and survivor benefits and related services for 50,000 active and retired
ELCA pastors, rostered laypersons, lay employees and their families.
Information about the ELCA Board of Pensions is at
http://www.ELCAbop.org on the web.

>---

About the Evangelical Lutheran Church in America:
The ELCA is one of the largest Christian denominations in the United
States, with 4.2 million members in 10,000 congregations across the 50
states and in the Caribbean region. Known as the church of "God's work.
Our hands," the ELCA emphasizes the saving grace of God through faith in
Jesus Christ, unity among Christians and service in the world. The ELCA's
roots are in the writings of the German church reformer, Martin Luther.

>For information contact:
>Marianne Griebler
>773-380-2968 or Marianne.Griebler@ELCA.org
>http://www.ELCA.org/news
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