# LCMS Convention Workbook_St. Louis Missouri_1981_S207 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) LIABILITLES AND FUND BALANCE Accounts payable Ss 41,396 Fund balance--Reserve for future plan benefits 24,625,858 ADMINISTRATION 205 S$ 17,4746 20,478,935 $20,496,409 See notes to financial statements. STATEMENTS OF REVENUES, EXPENSES, AND FUND BALANCE CONCORDIA SURVIVOR PLAN Year Ended December 31 1980 1979 Revenues: Contributions from members $ 3,567,157 S$ 3,199,835 Interest income 1,208,317 590,814 Dividend income 194,500 342,384 1,402,817 933,198 Earnings on funds on deposit with insurance company 516,798 442,048 Gain on sale of investments--net 340 ,042 Other 8,686 Expenses: Survivor benefits paid: Member's death prior to retirement 146,566 162,478 Member's death after retirement 4,501 4,827 Member's death while disabled 3,739 3,739 154,806 171,044 Insurance premiums 1,373,849 1,603,062 Loss on sale of investments--net 199,655 Administrative expenses 159,922 126,368 1,688,577 2,100,129 EXCESS OF REVENUES OVER EXPENSES 4,146,923 2,474,952 Fund balance at beginning of year 20,478,935 18,003,983 FUND BALANCE AT END OF YEAR $24,625,858 $20,478,935 See notes to financial statements. STATEMENTS OF CHANGES IN FINANCIAL POSITIO*® CONCORDIA SURVIVOR PLAN Year Ended December 31 1980 1979 Increase in cash resulted from: Excess of revenues over expenses S$ 4,146,923 Add (deduct) expenses (income) not requiring outlay of cash: $ 2,474,952 Depreciation 669 646 Loss on investments sold 199,655 Amortization of bond discount and premium (48 , 267) (12,757) TOTAL FROM OPERATIONS 4,099,325 2,662,496 Proceeds from investments sold or redeemed (less gain of $340,042 in 1980 included above) 63,257,284 20,879,022 Increase in accounts payable 23,922 13,447 Other 2,568 67,380,531 23,557,533 Decrease in cash resulted from: Cost of investments purchased 65,775,285 22,807,762 Cost of data processing software purchased 16,766 9,937 Increase in contributions receivable 105,921 75,368 Equipment purchases 466 Increase in accrued interest and dividends 103,947 6,911 Increase in funds on deposit with insurance company 1,961,793 892,776 Increase in prepaid expenses and other assets 321,807 67,385,985 23,792,754 DECREASE IN CASH § (5,454) S (235,221) See notes to financial statements. EXHIBIT Page le NOTES TO FINANCIAL STATEMENTS CONCORDIA SURVIVOR PLAN December 31, 1980 NOTE A--SIGNIFICANT ACCOUNTING POLICIES Investments are carried at amortized cost. Bond premiums and discounts are amortized on a straight-line basis over the period from date of purchase to date of maturity. All office space is rented from The Lutheran Church - Missouri Synod. Equipwent and data precessing software is recorded at cost. Depreciation is computed on the straight-line method over the estimated useful life of the equipment. Amortization of data processing software will begin when the software is fully developed and in use for its intended purpose. The cost of certain administrative expenses incurred for the benefit of each of the Concordia Plans (Retirement, Survivor, and Health) and the cost of shared equipment are allocated to each of the plans based upon management's estimate of the use of the service. NOTE B--DESCRIPTION OF THE PLAN The Concordia Survivor Plan has been established for the ministers of religion and lay workers of The Lutheran Church - Missouri Synod and its controlled organizations. The Plan has been made available to member congregations and other affiliated organizations. The Plan is administered by a Board of Managers which is appointed by the Board of Directors of The Lutheran Church - Missouri Synod. All contributions are paid by the employer organization. The purpose of the Plan is to provide benefits to survivors of the members of the Concordia Retirement Plan whose income is interrupted by death. Benefits include monthly payments of reduced salary amounts for deaths prior to retirement, monthly payments of reduced retirement benefits for death after retirement, and lump sum death benefits. A more comprehensive description of the Concordia Survivor Plan and its benefits is contained in the pamphlet A Brief Description - Concordia Survivor Plan. This pamphlet is available from the Board of Managers. The Plan is fully insured through Travelers Insurance Company for benefits arising from deaths occurring subsequent to July 1, 1969. Benefits arising from deaths prior to that date are self-insured. The Plan can be terminated by The Lutheran Church - Missouri Synod in convention. Following the effective date of termination, the Board of Managers shall utilize and apply the assets of the trust fund and any other assets then or thereafter available under the Plan in a reasonable and expedient manner. Utilization of the assets should provide or continue to provide all or any part of the benefits under the Plan. In no event shall any part of these assets be used except as permitted by the Plan. NOTFS TO FINANCIAL STATEMFNTS--CONT'D NOTE C--AMOUNT DUE FROM INSURANCE COMPANY The amount due from insurance company is an experience balance which, under the terms of the policy, is due from the insurance company and represents the insurance company's estimate, based on the latest information available, of the difference between premiums paid by the Plan plus interest earned and the sum of claims paid, claims provided for, and the insurance company's retention. The Plan has agreed to leave experience balances on deposit with the insurance company as a claim stabilization reserve. These funds earn interest and, subject to final adjustment, are available for withdrawal at the request of the Plan on the yearly anniversary date of the policy (January 1). NOTE D--ACTUARIAL VALUATIONS An actuarial valuation of the Plan was performed by Tillinghast, Nelson & Warren, Inc. as of December 31, 1980. The primary purposes of this valuation are to determine the progress of the funding to date and to determine the adequacy of the contribution structure for the costs that will be incurred during the following year. The actuary has reported that the liabilities of the Plan are soundly financed and all future benefit payments will be adequately provided for by past and future recommended contributions. As of December 31, 1980 the assets of the Plan on the basis of reported book values exceeded the total of all accrued liabilities.