# LCMS Convention Proceedings_St. Louis Missouri_1950_S624
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

624 FINANCIAL MATTERS

colored for employer’s), receipts mailed, and finally the remittances
are posted to the various accounts. The Fund is growing each busi-
ness day at the rate of about $6,500.

Balance Sheet

This schedule reflects all Assets and Liabilities of the Fund as
of the close of the fiscal years shown. All investments are made
by Synod’s Board of Trustees. Heretofore only Government Bonds
have been bought, but the Board of Trustees has begun to diversify
investments of Synod’s Trust Funds, which includes the Pension
Fund, and has bought some Utility and Industrial Bonds, with
AAA rating preferred, but no lower than AA. Every precaution
is being taken to safeguard the principal, with yield of secondary
importance.

Earnings on Investments

At the close of each fiscal year of the Pension Fund, earnings
are distributed and credited to the individual Pension Fund ac-
counts. We now have about 11,000 accounts (5,700 workers’ per-
sonal accounts and 5,300 employers’ accounts in behalf of workers),
and the interest is computed separately on each account. This is
quite a task and involves much work and figuring. So far interest
credits have been made at the rate of 244%, which is the rate the
Fund has been earning. The Balance Sheet reflects earnings before
distribution to the various Pension Fund accounts.

Year-End Statements
After the interest credit has been entered on the accounts, a

' statement is sent to each active member. This statement shows the

beginning balance, amount of interest credit for the fiscal year,
amount of personal contributions, amount of employer’s contribu-
tions, and other credits, if any. A letter explaining the statement
and reflecting the Balance Sheet in comparative form is sent along.
Members are’ encouraged to notify us in the event our figures do
not agree with personal records.

Graduate Subsidy

The above schedule shows that this special benefit distributed
to those eligible amounted to $10,425.36 during the last fiscal year.
This new benefit was begun in 1943 and has been granted since
then to all graduates from our seminaries and teachers’ colleges
who join within 12: months after they become eligible and whose
employing organization is making full 4% contributions. For the
first two years of his membership the worker personally remits 2%
of his salary, Synod supplying the remaining 2% from budget
funds. For the next two years the worker remits at the rate of 3%
and Synod 1%. After that he remits at the full rate of 4%.