# LCMS Convention Proceedings_St. Louis Missouri_1947_S621
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

FINANCIAL MATTERS °

. as.they are competent, but upon eventual retirement (not before
the age of 65) each will receive a pension from the fund based
on service rendered between the ages of 35 and 55.

2. Age of Retirement
The normal retirement age is 65, but present employees may
be permitted to work beyond that age, both to lighten the financial
- Joad of the plan and to prevent enforced retirement on those not
psychologically prepared for it.

3. Amount of Pension Payment
A. For Service After Effective Date of Pension Plan
A retiring employee will receive an annual pension of 14%
of his average salary for each year of such service between
the ages of 35 and 55. For example, an employee with a full
‘30 years of service will receive a yearly pension of 45% of his
average salary.

B. For Service Before Effective Date of Pension Plan

A retiring employee will receive a yearly pension of 1% of
his average salary (over the five years just preceding the adop-
tion of the plan) for each year of such service between the ages
of 35 and 55.

Our actuaries tell us that a sound pension plan should have
two ultimate objectives:

1. To have on hand when each employee retires a sufficient
sum to provide for his pension without further contributions from
his employer.

2. To permit of making the employer’s contributions a fairly
level percentage of annual payroll.

The first of these objectives cannot be immediately obtained
because of the substantial backlog of pension benefits which will
be due to services already rendered prior to adoption of this plan.
The actuaries suggest that if Synod were to make a $50,000 initial
payment and Concordia Publishing House were to make a $100,000
initial payment and there could be added a small portion of the
6% annual contributions, that these will be sufficient eventually
to catch up with the backlog of liabilities for past services and
that then Objective No.1 will have been attained.

Objective No.2 is expected to be ‘immediately attained by an
annual contribution of 6% of the gross salaries to be paid into the
fund by the employer. The actuaries estimated that the total sum
of $150,000 paid into the fund, plus the 6% payments based on
annual salaries, will take care of the fund’s requirements. If for
some reason it is not expedient to make the initial payment of
$150,000, then the actuaries estimate that the regular annual pay-