# LCMS Convention Workbook_St. Louis Missouri_2007_S97 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) SYNOD REPORTS 97 R6-02 Board of Trustees—Concordia Plans Board of Directors—Concordia Plan Services (Formerly Board of Managers—Worker Benefit Plans) Our Mission is to “walk together” with the LCMS min- istries by providing quality benefits and services that support Plan members and their families throughout their service and retirement. These responsibilities emanate from Art. III of the Constitution of The Lutheran Church—Missouri Synod, which contains 10 Objectives of the Synod. Art. III 10 specifies that the Synod ... shall: Aid in providing for the welfare of pastors, teachers, and other church workers, and their families in the event of illness, disability, re- tirement, special need, or death. Our Vision is to be the benefits partner of choice for LCMS ministries in the twenty-first century. Our Values commit us to live out our Christ-centered mis- sion and achieve our vision guided by Integrity, Compassion, Excellence, and Stewardship. The past three years have resulted in progressive changes for the Synod-sponsored benefit plans. One significant change was an organizational name change from “Worker Benefit Plans” to “Con- cordia Plan Services” to more closely align with the different Con- cordia Plans that are available, as well as help emphasize the services provided. Accompanying the name change was a new logo and brand identity that resolutely states the commitment to partner with LCMS organizations to work together to provide for church workers and their families as they go about their ministry of spread- ing the Good News of the Gospel of Jesus Christ. CONCORDIA PLAN SERVICES Your LCMS Benefits Partner Major initiatives during the current triennium During the past three years, we have undertaken four major ini- tiatives: 1. Does the Concordia Retirement Plan (CRP) provide adequate benefits for retirement, and is the related cost to the employer reasonable? See—The Church’s Plan. 2. Does the Concordia Health Plan (CHP) provide a valuable service to the LCMS? See—The Concordia Health Plan. 3. Can we improve the health and wellness of our members without increasing cost and adding to the budget pressures faced by LCMS employers? See—The Concordia Health Plan, “Be Well ... Serve Well” comments. 4. Are our current methods of communicating with LCMS employers and members adequate, and is our message being understood? See—Communication Message and Methods. The results of these four projects are discussed in the following sections: The Church’s Plan The Background In 2004, we commenced an in-depth study of the adequacy of retirement benefits provided by the Concordia Retirement Plan (CRP) and the interrelationship with benefits paid by the other Concordia Plans. This study included detailed actuarial and finan- cial analysis and various focus group meetings to explore the “‘cur- rent state,” as well as possible alternative future actions. The focus groups included representatives from many different areas: congregational pastors and laypersons, district presidents and business officers, Concordia University System business and human resource officers, Association of Lutheran Secondary Schools administration, Lutheran Elementary Schools administra- tion, and LCMS national entities including the LCMS Council of Presidents and The Lutheran Church-——Missouri Synod Board of Directors. After the initial focus group meetings, additional analysis was performed based on the input received. Alternative actions were more clearly defined, and various cost estimates were prepared. Another round of focus group meetings were then held to obtain further input and reaction to the changes proposed by Concordia Plan’s management and Board of Managers. Throughout the process, we were encouraged by the caring attitude and compas- sion displayed for the church workers while tempered with a real stewardship concern for the employers responsible for operating within a balanced budget. Key Study Findings 1. Basic security needs are not adequately provided for some workers, particularly lower paid and mid-career hires. . Little employer flexibility is provided. . Worker responsibility and personal savings are not supported. . Retiree health care is not provided for directly. . There is no special support for mid-career hires. . Benefits are related to assumed needs at the expense of indi- vidual equity. 7. The retirement program is not effectively used as a retention tool. 8. Retiree increases are not systematic and are not based on an in- flationary index. 9. The current employer contribution rate (expressed as a percent of compensation) has not been increased in more than 20 years and is not adequate to fund current plan benefits over the long term. 10. The current employer contribution rate is not excessive—less than half of rates applicable at other large national church bod- ies and secular employers. DAmh WN Key Directional Decisions—Based on Focus Groups’ Input 1. The Concordia Retirement Plan Primary Benefit should continue to be the primary source of core retirement income. 2. Greater emphasis should be placed on a defined contribution component with employer match to promote worker responsi- bility and personal savings. 3. Consideration should be given to a component that specifically addresses retiree medical benefits. 4, Retirement benefits should not be differentiated based on “ros- tered” status. 5. Retirement benefits should not provide any incentive for early or late retirement; this should be a local employer decision. 6. The Concordia Health Plan (CHP) should not provide access to retiree medical coverage to those that did not participate in the health plan prior to retirement. 7. Regular retirement increases (“cost of living”) are desirable but should be funded primarily by excess investment earnings. Keep it as a benefit increase versus an entitlement. 8. As the individual Concordia Plans are designed to work together to offer a complete benefit package, any new benefits should be used as an incentive to encourage participation in all of the Con- cordia Plans. 9. Any increase in contribution rate should be phased in over time at no greater than 1 percent per year to facilitate financial bud- geting. 2007 Convention Workbook