wfn.org | ELCA Board of Pensions Sets Budget, Looks at Changes

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ELCA NEWS SERVICE

November 21, 2003

ELCA Board of Pensions Sets Budget, Looks at Changes
03-215-SS*

     MINNEAPOLIS (ELCA) -- Trustees of the Evangelical Lutheran
Church in America (ELCA) Board of Pensions approved a 2004 budget
of $62.5 million, a 4.4 percent increase over the 2003 budget.
Of that budget, staff has held the board's operating expenses
flat at $43.3 million.	The total expense budget includes $17.4
million for direct investment expenses and $1.8 million for
software amortization; those items account for the overall budget
increase.
     As trustees reviewed the corporate plan and budget, Jon B.
Christianson, Arden Hills, Minn., said, "We have doubled the
budget since 1998 to change our business so that we could serve
our members better.  Are they feeling that is happening?"
     John G. Kapanke, president, ELCA Board of Pensions,
responded, "Had we not changed [from claims processing to health
care advocacy], we wouldn't be in business today.  And what we
delivered in the mid 1990s wouldn't be tolerated by our members
today."
     Bradley Joern, Board health actuary, presented an update on
the board's health and wellness initiative through 2005.  Plan
members will be encouraged to take a health-risk assessment and
follow that with a wellness covenant of personal goal setting.
     To continue keeping the health plan affordable, he said the
board would move toward an 80/20 sharing of costs between
sponsoring congregations and other ELCA employers and plan
members. That means deductibles and co-payments will eventually
increase.  Currently the plan is closer to an 84/16 split.
     Christianson said some other plans are already moving to an
80/20 or even a 75/25 cost sharing plan.
     Joern said the board is considering a model whereby plan
members with higher salaries would help pay costs for those with
far lower incomes.
     "Because I'm at the higher end of that chart, I believe I
have an obligation to help out those at the lower end of the pay
scale," said the Rev. Robert D. Berg, advisory bishop from the
ELCA Northwest Synod of Wisconsin, Rice Lake.  He also
acknowledged that the sharing might make the plan "a harder sell"
because some large congregations already have to be convinced to
stay in the plan.
     Trustee Mary S. Ranum, Circle Pines, Minn., said the board
has experienced resistance before from large congregations about
helping to pay costs for those at lower income levels.
     "But some congregations with multiple staff will have some
at the high end and some at the low end of compensation," said
Christianson, adding, "We have an incredible plan."  He said the
modification would be great but that people will need to be
educated about it.
     Joern told trustees they'd need to approve a proposed design
conceptually at their February meeting and approve specifics in
August 2004.
     "We should say to our congregations that we're headed in the
direction of building healthy leaders, so that ultimately we'll
save money on the disease end when we spend on the prevention
end," said Nancy J. Haberstich, Lincoln, Neb.
     In other business trustees:
     + Accepted the resignation of trustee-elect, the Rev. Marcia
B. Strahl, Chadwick, Ill., and learned that the names of two
nominees will be determined early in 2004, at which time the
names will be forwarded to the ELCA Church Council for an
election.
     + Heard an update on a disease management program, which
will implement programs around some chronic diseases such as
diabetes and heart disease.  This program will mean an increase
in the 2005-2006 budget, said Mary C. Johnson, vice president for
finance and administration, though she expects that would be
offset from the savings the program would generate in claims.
     + Learned that plan members, their families and other lay
and ordained leaders can take the health risk assessment at the
Mayo Clinic Website -- http://www.elcaforwellness.org -- from
Jan. 6 through Feb. 25.
-- -- --
The ELCA Board of Pensions has its home page at
http://www.elcabop.org on the Web.

* Sonia C. Solomonson is managing editor for The Lutheran, the
magazine of the ELCA.

For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news