# LCMS Convention Proceedings_St. Louis Missouri_1950_S1268
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

FINANCIAL MATTERS 789

Participation at this increased per cent will eventually pro-
luce a pension that will begin to compare with the pension big
usiness already is paying to its retiring workers after age 65.
‘o illustrate: A young man may join the Pension Fund at age 25
“and make personal contributions at the rate of 4% on an average
~salary of $2,500 a year. If his employer contributes in his behalf
at the rate of 4% until retirement after age 65, his earned pension
~~ will be approximately $972 a year. If the employer’s payments are
:.made at the rate of 8%, his earned pension will be about $1,458
“- @ year.
| The accumulation to the credit of a Pension Fund member who
. still has ten to twenty years of service before him will provide him
with a larger earned annuity than would be the case if the em-
ployer’s payments are not increased from 4%. As a result, the
subsidy from Synod required to pay the minimum pension of $60
a month will not be so large and in many cases will not be needed
at all after the advanced rate of 8% has been in force a number
of years. .

Because we recognize that every Pension Fund member has
a disposable equity in the Pension Fund —at least to the extent
of his personal contributions—we propose the following two
amendments to the Pension Fund regulations:

10.45 g

Resolved that this section be amended to read as follows:
In the event of the death of a worker before entering upon
an Old Age or Disability Annuity and of his leaving no widow
and no minor orphans, that part of his accumulation which
originated from his personal contributions (see 10.43 a-c) shall
be remitted to his adult children in equal shares unless he has
otherwise stipulated in his last will and testament. If there
are no adult children, or if the member has failed to make
designation as hereinbefore provided, then the entire accu-
mulation shall be added to the Pension Contingent Fund.

10.45 gg

In the event that the member before entering upon an
age or disability annuity has elected, which privilege of elec-
tion is hereby made a part of the Pension Plan, a partial re-
fund option under which, if the amounts paid in annuities to
the member and to his surviving widow and/or minor orphans,
if any, aggregate less than the personal accumulation of the
member at the time any such annuity was entered upon, then
an amount equivalent to the excess of such personal accumu-
lation over such annuity payments shall be paid to such living
beneficiary as may have been designated by the member; other-
wise such excess payments shall be paid to the legal representa-
tive of the member or of the surviving widow, as the case may
be. The value of the reduced annuity payable under the terms
of this option shall be the actuarial equivalent of the full an-
nuity otherwise payable.