wfn.org | ELCA Board of Pensions Told to 'Stay the Course'

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Title: ELCA Board of Pensions Told to 'Stay the Course'
ELCA NEWS SERVICE

>November 13, 2008  

ELCA Board of Pensions Told to 'Stay the Course'
08-189-SS*

MINNEAPOLIS (ELCA) -- The Evangelical Lutheran Church in
America (ELCA) Board of Pensions trustees at their meeting here
Oct. 30-Nov. 2 discussed both the current economic situation and
health care issues.

Regarding pension investments, John G. Kapanke, president,
ELCA Board of Pensions, told the trustees, "It's very important
to keep our bearing ... to stay the course."  He said the Board
always has taken a diversified, disciplined approach.  Kapanke
cited the past 20 years as an example, when on at least seven
occasions the markets suffered significant losses.  "Our
disciplined approach always worked," he said.  "I'm confident it
will work again."

In a letter to plan members in early October and in
newsletters, Kapanke urged people to be cautious of fear.  He
said in one newsletter, "Fear in the markets not only challenges
long-term investment strategies, it can also cause anxiety for
individuals -- leading to investment allocations that might
diminish long-term results."

Trustees approved a $73.9 million budget for 2009, including
several measures to hold down costs: no merit increases for
leadership, reduced synod assembly and bishop visits for 2009 and
deferred hiring.

"We commend you for tightening up," said Bruce D. George,
trustee, Southborough, Mass.

Trustees approved a 2009 interest crediting rate of 5.5
percent for the ELCA Annuity Fund and the Annuity Bridge Fund and
a permanent increase of 0.4 percent for ELCA annuities.  The 5.5
percent figure is down from the 2008 crediting rate of 8.2
percent.  Trustees also approved a dividend of 4 percent of the
annual annuity for dividend-eligible annuities for 2009 based on
the crediting rate.

In health plan discussions, trustees heard about plans to
further extend the wellness model to which the Board of Pensions
has moved.  In 2009 plan members will again be offered a chance
to take a health risk assessment and earn dollars to offset
medical costs.  Again congregations, synods and institutions can
earn a 2 percent discount for 75 percent participation in the
assessment.

ELCA Secretary David D. Swartling said, "It's at the
congregational level that this will be felt."  When
congregational leaders participate and save money, congregations
benefit, he said.

In other business, trustees approved Mission ONE
recommendations committing the Board of Pensions to work
collaboratively and cooperatively with the ELCA Foundation and
the ELCA Mission Investment Fund.  The three financial service
units of the ELCA have developed joint operating guidelines, and
progress will be reviewed by staff and boards of the three units
in six months with a thorough review in 2010.
-- -- --

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