# LCMS Convention Proceedings_St. Louis Missouri_1981_S164 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 164 RESOLUTIONS 1980—15.7% 1974 (04 3) 1969(i 3% — Common Fund Regulated & Trans. 1979—9.55% 1974—(24.3)% 1 —(1.6 _ 1978—7.9% 1973—(21.4)% 1968—4.4% Common Fund Natural Resources anid 1977—(2.7)% 1972—19.81% 1967—6.7% Processing 1976—20.3% 1971—20.0% 1966—(0.3)% Fiduciary—Examples of Common Stock The above investments are comparable to what has been achieved for other retirement funds as evi- denced by review of a study conducted by A. S. Hansen, Inc., which reported on the performance of 250 managers investing a total of $40 billion. . Who exactly does the investing? Morgan Guaranty Trust Co. and Fiduciary Trust Co. . Upon whose counsel are investments made? Morgan Guaranty and Fiduciary Trust Company invest the funds within the investment objec- tives, asset strategies, and performance targets, established by the Board of Managers. . What professional investment firms and counselors are being utilized? Morgan Guaranty and Fiduciary Trust Co. are the investment managers employed by the Board of Managers. Investment counseling is provided to the Board of Managers by Merrill Lynch and Meidinger and Associates Asset Planning 7 Services. . Are there possible conflicts of interest between investors and investments? No. . What are we investing in? Please be specific. Morgan Guaranty Examples — Common Fund Money Market Liquidity 9 — Common Fund Bonds—Private Placement — Common Fund Mortgage Real Property — Common Fund Bonds—Medium Term — Fixed-Public Utilities American Tel & Tel Commonwealth Edison — Fixed Gas and Pipeline Colonial Pipeline Sohio Trans Alaska — Fixed-Finance and Bank Montgomery Ward Credit Corp. NCNB Corp. — Fixed-Investment & Misc. Anaconda Co. Honeywell, Inc. — Fixed Canadian Province of Manitoba Quebec Hydro Electric — Common Fund Special Situation— Convertibles — Common Fund Special Situation— International Fixed — Common Fund Special Situation Invest- ments International Equities — Common Fund Special Situation Invest- ments—Equities — Common Fund Consumer & Service Co’s. — Common Fund Tech. & Machinery 11. . Does the Synod or anyone else have the right’ . Have loans been made from the retirement portfolié . Are government regulations for pension funds beit 10. United Banks of Colorado Foster Wheeler Exxon Corp. Cities Serv. Panhandle Eastern Pipeline Tenneco CPC Intl., Inc. Central Soya, Inc. Syntek Corp. American Hosp. Supply Int'l. Minerals & Chemical Corp. TRW, Inc. Burlington Northern Mo. Pac. Corp. Santa Fe Inds., Inc. Fiduciary—Examples of Fixed Income Gen. Motors Accep. Corp. Hudson Bay Co. Inland Special J. C. Penney borrow retirement funds, and at what interest rat No. This would be a “prohibited transaction” p Section 503 of the Internal Revenue Code. . To whom? In what amount? At what interest r ral No. : followed? Yes, The Concordia Retirement Plan is a “qual ified plan” under Section 401(a) of the Inter Revenue Code. The plan is not subject to th Employee Retirement Income Security Ac (ERISA), but provisions regarding fiducia responsibility are followed. Why no plans or thoughts, in an age of double-digi inflation, to indexing benefits to adjust for inflati The government and other institutions are doin such. Must the church be the last to care for its own The possibility of indexing postretirement in creases to inflation have constantly bee: viewed. Cost factors are prohibitive—e.g., a 69 automatic adjustment would require a 909 increase in the contribution rates—as calculate by the plan’s actuarial firm. Only the gove 4 ment can grant increases and not fund the c The objective of the Board of Managers provide ad hoc increases—e.g., Jan. 1, 1982— when the increases can be funded and stability of the plan can be maintained. : Why continue with the “antique” formula of 2 percent for housing and utilities? On a national basis the formula of 25% of compensation for housing and utilities furnishet has been determined to still be common: for