wfn.org | Pension Board to Study Benefits

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"UNITED METHODIST DAILY NEWS" by SUSAN PEEK on Aug. 11, 1991 at 13:58 Eastern,
about FULL TEXT RELEASES FROM UNITED METHODIST NEWS SERVICE (3138 notes).

Note 3138 by UMNS on Aug. 26, 1996 at 16:12 Eastern (4224 characters).

SEARCH:   United Methodist, pensions, benefits, study, health
benefits, election, Blake
Produced by United Methodist News Service, official news agency of
the United Methodist Church, with offices in Nashville, Tenn., New
York, and Washington.

CONTACT:  Ralph E. Baker                          424(10-71){3138}
          Nashville, Tenn.  (615) 742-5470           Aug. 26, 1996

United Methodist pension board organizes, plans
for major benefits study during next four years

     DALLAS (UMNS) -- The United Methodist Board of Pension and
Health Benefits elected officers and began planning for a
comprehensive study of board administered church pension,
disability and health benefits at its organizational meeting here
Aug. 21-23.
     Bishop Bruce P. Blake, Oklahoma Area, was elected chairman of
the board, at the meeting convened by Bishop Sharon Rader of the
Wisconsin Area. Bishop William Morris, Alabama-West Florida Area,
was named vice president and Mary Miller of Indianapolis, Ind., a
retired banker, was elected recording secretary.
     The board has 32 members, four less than during the previous
1993-96 quadrennium.  Nineteen are continuing directors, 13 are
newly elected and 10 additional at-large-members will serve only
on board committees.
     Directors approved proceeding with "Benefits 2000," the
interim name for a comprehensive study of the church's pension and
other plan benefits in light of changing demographic composition
of the church and the emerging trends in the benefits world. 
Blake will appoint a task force before the board's November
meeting to work with this study.
     "Most of our plans were studied and developed in the 1970s. 
The General Board feels that a comprehensive study of the church's
benefits program will help to ensure that it meets the current and
future needs of the denomination," said Barbara Boigegrain, the
board's top staff executive.
     In her general secretary's report, Boigegrain said the agency
continues to prepare for implementation of the Personal Investment
Plan (P.I.P.) Jan. 1, 1998. 
     "All participant contributions will be separated into this
new plan and will be invested in customized, registered, mutual
funds," she said. "The preparation is significant due to the
required lead time for the level of communications and investment
education necessary to prepare the denomination for implementation
of this plan."
     Meanwhile, the board is appealing to Congress for relief for
securities registration. "The legislation now before Congress
would hold us to the same requirements as corporate and
governmental retirement plans," said Boigegrain.
     P.I.P. is a mutual fund-like investment program for personal
contributions by plan participants that was proposed by the board
and approved by the 1996 United Methodist General Conference.
     Board treasurer Gale Whitson-Schmidt reported board-managed
assets reached $7.5 billion by June 30.  The previous year the
board managed assets were $6.7 billion on June 30. In 1996,
disbursements have been higher than income from contributions,
Whitson-Schmidt reported, but "investment income still was very
high so that the board is not in any trouble; but at some time, it
will have to consider the demographics," she said.
     The agency's net assets in reserves increased from $732
million to $917 million during the first six months of 1996, she
reported.
     In other actions directors:
     * approved taking up to $826,180 from excess health benefits
reserves to "moderate" 1997 premium increases required for the
Medicare Supplement plan;
     * amended the bylaws to incorporate as a board of directors
rather than "an unincorporated association of members who organize
for a common purpose;"
     * set tentative meeting dates through the year 2000 and voted
to meet four times a year rather than three, but hold the meeting
to a day-and-a-half rather than three days.
     Early in the meeting, Boigegrain raised the issue of how to
balance "cost and consistency with compassion. I believe the
church holds us to a higher standard than an insurance company
regarding compassion," she said.
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