Title: ELCA Board of Pensions Trustees Discuss Health-Care Changes ELCA NEWS SERVICE
November 20, 2007
ELCA Board of Pensions Trustees Discuss Health-Care Changes 07-195-SS*
MINNEAPOLIS (ELCA) -- Trustees of the Evangelical Lutheran Church in America (ELCA) Board of Pensions discussed preparations for a new strategic plan for 2009-2011 at their meeting here Nov. 2-4. 2008 is the final year of the Board's current strategic plan.
The trustees also approved a 2008 corporate plan and operating budget of $45.8 million, a 4.9 percent increase over the forecasted year-end expenses of 2007. They set an interest crediting rate at 8.2 percent for the ELCA Annuity Fund and ELCA Annuity Bridge Fund, up from last year's 7.2 percent.
John G. Kapanke, president, ELCA Board of Pensions, told trustees that the ELCA health benefits plan has begun its switch to a wellness plan -- away from the typical U.S. plan that pays members when they're ill rather than paying to keep them well -- beginning with a health risk assessment through the Mayo Clinic. ELCA health plan members are encouraged to take the online assessment anytime from October 2007 through September 2008 and earn dollars for a new personal wellness account to help offset some of their 2008 expenses.
To prepare for upcoming strategic planning sessions, Kapanke laid out a number of strengths, weaknesses, opportunities and threats to which trustees responded. One of the strengths, for example, was the ability to balance being a unit of a denomination with managing a major business in financial services and health care. One weakness he cited was that, even with a large menu of products and services, the pension unit isn't as well positioned to offer new products to possible new markets. That weakness leads to an opportunity: reaching new and growing customer bases. And one threat Kapanke mentioned was that other financial service companies aggressively compete for plan members' business.
"I see some of the weaknesses as things we can't influence -- being part of a broader organization, the ELCA, for example, and affected by decisions made by the broader structure -- but I see things we can affect too. Let's focus on the things we can zero in on," said Louise P. Evenson, Alamo, Calif.
Newly elected board chair Emried D. Cole, Baltimore, referred to the health plan's new directions: "Wellness is listed as a strength, but I also see it as a core competency of the Board of Pensions," he said.
"Up until now we couldn't say that," Kapanke replied, "but our new wellness program makes this true."
"This organization is guided by the light of Christ, and that makes us unique. That's a strength," said the Rev. James A. Justman, bishop, East-Central Synod of Wisconsin, Appleton.
Operating as the church doesn't mean ignoring business health, though. It's not a balance, said Jon Lee, Dallas, "but we're living in a creative tension with that: both saint and sinner."
In a reference to an aging plan membership, Warren R. Luckner, Lincoln, Neb., said, "The demographics of ELCA clergy motivate us to look to new markets. ELCA membership numbers are going down, too, so that's an issue for our markets."
"They've been going down for decades, and we don't know when that will bottom out," Kapanke responded.
"We just have to embrace reality," said James D. Swinford, Indianapolis. "We can't wring our hands. We have to manage the reality."
Kapanke spoke in his president's report about the ever- changing worlds of health care and pensions. "It seems like we are always in a state of transition as we carry out our promise to be faithful to the well-being of those who serve," he said. "The key businesses that we are in -- retirement and health care -- and the fact that we are a unit of this church, the ELCA, almost assures the premise that the Board is and will remain in a state of perpetual change if we are to be successful in fulfilling our mission. It is because of our mission to enhance lives that we derive our vision to help people lead healthy lives and achieve financial security."
The trustees will consider the new strategic plan at their meeting Oct. 31-Nov. 2, 2008. -- -- --
Information about the ELCA Board of Pensions is at http://www.ELCAbop.org/ on the Web.
*Sonia C. Solomonson is managing editor of 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 ELCA News Blog: http://www.elca.org/news/blog