wfn.org | Board of Pensions Approves Minor Changes in Pension, Medical Plans

[PCUSA NEWS <pcusa.news@ecunet.org>]

29-October-1999 
99370 
 
    Minor Changes in Pension, Medical Plans 
    Approved by Board of Pensions 
 
    Meeting described as "relatively quiet" 
 
    by David C. Rich 
    Director of Communications, Board of Pensions 
 
PHILADELPHIA-In a relatively quiet Oct. 23 meeting here, the Board of 
Pensions of the Presbyterian Church (U.S.A.) discussed refinements to the 
pension plan and increased the subscription rates for some of the board's 
healthcare programs. 
 
                Retirement ages adjusted in pension plan 
 
    The directors accepted the concept of setting the normal retirement age 
at age 65 for pension plan members born before 1951, age 66 for members 
born between 1951 and 1959, age 67 for members born after 1959. 
 
    The normal retirement for all plan members has been age 65, but the new 
concept brings the plan provisions more into line with Social Security 
requirements. 
 
    The directors asked the Board staff to develop pension plan changes 
needed to implement the concept for presentation at the March board meeting 
and possible recommendation to the 212th General Assembly (2000). 
 
    In a related move, the directors also affirmed the concept of adjusting 
pension credits for members working past the Social Security normal 
retirement age and asked staff to develop those plan changes for the March 
meeting as well. 
 
    All changes would be effective Jan. 1, 2001. 
 
                     Drug costs drive some rates up 
 
    The board increased the monthly per person subscription rates for the 
Medical Continuation Program from $275 to $296 for those enrolled after 
1986 and from $160 to $172 for those enrolled before 1987, effective 
January 1, 2000. 
 
    They increased the monthly subscription rate for Medicare Supplement 
from $100 to $110 per person effective January 1, 2000.  Prescription drugs 
costs account for 60% of the supplement's cost and continue to push the 
rate upwards. 
 
    They also approved a 9% increase in annual premium rates for the 
Optional Dental Program. 
 
             Volatile market produces modest investment results 
 
    The board's Investment Committee reported that the investment return on 
the Board of Pensions investment portfolio was 4.7% through the third 
quarter, 
 
    Commenting on the year-to-date results, Judith D. Freyer, the board's 
senior vice president, treasurer, and chief investment officer, said, "This 
has been a challenging year for our investment managers." 
 
    After several years of double digit investment returns for the board, 
Freyer said the U.S. stock market has been extremely volatile in 1999, 
primarily due to rising interest rates and fear that the soaring economy 
and a tight labor market could lead to a return of higher inflation. 
 
    "While we hope our balanced portfolio of U.S. stocks, international 
stocks and fixed income securities will provide us with a positive return 
for the year," she continued, "we won't know the final performance results 
until the markets close on the last day of the millennium." 
 
                Revamped Retirement Savings Plan on the way 
 
    The board also heard from a special task force - headed by Freyer - 
that is reviewing the board's 403(b) Retirement Savings Plan. 
 
    On the agenda are a search for a new firm to keep the plan's records, a 
review of the available investment options and the streamlining of 
procedures whereby plan participants can change their investment options 
within the plan. 
 
    Freyer said the task force will announce the results of its review and 
its recommendations in January. 
 
    The board also designated 100% of pension, disability and Retirement 
Savings Plan benefits paid in 2000 to eligible ordained and commissioned 
plan members as a housing allowance. 
 
             Veteran officers promoted, two new officers named 
 
    Longtime members of the Board leadership team elected to new positions 
were: 
 
    * Francis E. Maloney as Executive Vice President and Chief Operating 
Officer.  Maloney joined the Board in 1974 as the manager of accounting. 
He became vice president and controller in 1984 and senior vice president 
in 1994. 
 
    * Judith D. Freyer as Senior Vice President, Treasurer, and Chief 
Investment Officer.  Freyer came to the Board in 1988 as assistant 
treasurer and became the vice president, investments and treasurer in 1990. 
 
    * Margaret M. Mellen as Senior Vice President.  Mellen joined the Board 
in 1994 as vice president, healthcare. 
 
    * Dominick Palladino as Chief Information Officer.  He joined the Board 
in 1994 as director of information services. 
 
    The Board elected two new vice presidents: 
 
    * Anna Hoover Roberts, formerly an actuary and consultant with Aon 
Consulting, Inc., was elected Vice President with primary responsibility 
for the Pension Plan and the Retirement Savings Plan. 
 
    * Hy Rudin, formerly with the law firm of Morgan, Lewis & Bockius, was 
elected Vice President with primary responsibility for the board's human 
resources management. 

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