wfn.org | ELCA Pension Board Interest Crediting Rate

[Brenda Williams <BRENDAW@elca.org>]

Reply-To: ElcaNews <ELCANEWS@ELCASCO.ELCA.ORG>
ELCA NEWS SERVICE

January 8, 1998

ELCA PENSION BOARD RAISES INTEREST CREDITING FOR
RETIREES
98-01-03-RK

     MINNEAPOLIS (ELCA) -- Trustees of the
Evangelical Lutheran Church in
America's Board of Pensions unanimously
recommended that interest crediting
rates for retirees be increased in 1998.  This
means that both the bond fund
and balanced fund reserves that provide income for
retirees will be credited
at a higher rate of earnings than earlier
projected.  The reserves are the
source of funding for ELCA pensions.
     Final rates for 1997 were 6 percent for the
bond fund pension reserve
and 8.4 percent for the balanced fund pension
reserve and the transitional
pension fund.  For 1998 the trustees approved
rates of 6.5 percent for the
bond fund pension reserve and 9.4 percent for the
balanced fund reserve and
transitional pension fund.
     The ELCA Board of Pensions trustees took
action through their executive
committee Dec. 22 to stop the development of a new
pension administration
computer system.  Trustees halted work after staff
determined the board would
face additional delays and unacceptable costs to
complete the system, which
was already behind schedule and over budget.  The
board will continue
exploring ways to provide members with more
flexibility in the future.
     John G. Kapanke, president of the ELCA Board
of Pensions, announced two
staffing changes.  Lynne Gehling, senior
investment manager, will head up the
pension administration unit.  Chief financial
officer, David Adams, will
oversee software engineering operations and the
technical service area.  The
two will assume responsibilities held previously
by two vice presidents, Lyle
Anderson and Vernon Bolte, who recently left the
pension board.
     Trustees elected Emma Porter, a member of New
Hope Lutheran Church, New
York, to chair the Board of Pensions trustees for
a two-year term.  Porter is
an information systems consultant to Fortune 500
companies.  She holds a
bachelor's degree in mathematics and a master's
degree in business
administration from the University of North
Carolina.  She succeeds Ralph
Eckert of Dillon, Colo., whose term on the
21-member board of trustees ended
in 1997.

For information contact:
Ann Hafften, Director (773) 380-2958 or
NEWS@ELCA.ORG
http://www.elca.org/co/news/current.html