# LCMS Convention Workbook_St. Louis Missouri_1973_S392 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) STEWARDSHIP AND FINANCE 379 out of that Board by the end of 1972. As of Jan. 1, 1973. the administration of the prior Pension Plan for Pastors and Teachers becomes the responsibility of the Board of Mana- gers in accord with synodical resolution. Recognition The Board of Managers joins the Synod in extending heartfelt thanks to all those who have served on the Board of Pensions and Support from its inception in 1937. We ex- press a special word of commendation to the five men who gave much additional time cheerfully and energetically in assisting for the transfer of responsibility to the Board of Managers during this transition period while actively carry- ing on the administrative functions of that prior Board. A special word of recognition is expressed to the retiring executive secretary of the prior Board, Rev. John C. Knip- penberg. He was involved in particular in assisting in securing an increase in the retirement pensions for those retiring under the prior Pension Plan, at no additional cost to the Synod, and had a part in initiating the present study for improvement in the Support Program of the Synod. He was also a member of the Pension Work Committee, the re- port of which is presented elsewhere in this WORKBOOK. Concordia Welfare Plan The Concordia Welfare Plan provides benefits in the area of health care, disability income, and death, with free health care benefits to eligible survivors. In addition to the 1971 benefit improvements outlined in the report to the last synodical convention, the major objec- tive of improving claim service was achieved. Presently the processing of a claim takes about 14 days. Target time is 5 days. During 1972. 46.000 checks were written in reim- bursement of 40,0C0 claims. Regular consultation with the Plan actuary gives assur- ance of adequate financing and adequate reserves to meet Plan obligations. Concordia Retirement and Survivor Plans The Concordia Retirement and Survivor Plans provide retirement income and long-term disability income to the member, and monthly income benefits to dependent sur- viving spouse and children. A lump-sum death benefit is also provided in accord with the provisions of the applicable Plan. The major change accomplished in the Concordia Re- tirement Plan is the improvement to 160° (from the former 10°;) vesting at age 45 with 10 years of creditable service. As of Jan. 1, 1972, the Concordia Retirement and Sur- vivor Plans have been made effective in Canada. They have been properly registered with the Pension Commission of Ontario in Toronto, and with the National Department of Revenue in Ottawa. Actuarial Valuation It is the policy of the Board of Managers to have the Concordia Retirement and Survivor Plans valued each year by a competent actuarial firm. The valuation report gives assurance that the Plans are being adequately financed. Financial Statements and Other Exhibits The financial statements and notes thereto appended to this report reflect the audit of the financial records of the Concordia Plans by the firm of Ernst & Ernst. The other exhibits are intended to give a brief overview of the opera- tion of the Plans and the benefits provided for the period shown. On the Agenda 1, Concordia Welfare Plan A. Several amendments are currently being finalized (a) to bring a number of provisions into uniformity with those of the Coneordia Retirement and Survivor Plans, and (b) to recognize current Social Security and Medicare changes. B. A resolution of the 1969 convention requested that the Board of Managers in conjunction with the Board for Higher Education look into the possibility of securing a program of reasonable medical coverage for dependents of married stu- dents at our terminal schools. The two seminaries particu- larly expressed an interest in such a program. Since it ap- peared that soon after that convention the seminaries had been able to solve this matter through student medical pro- grams secured independently, the office of the Concordia Plans set this particular matter aside. Just recently, how- ever, the Concordia Plans office has again been approached by the two seminaries with the request to assist in securing reasonable medical coverage for all students at the re- spective seminaries. This matter is now again being actively pursued, C. In accord with Res. 12-08 of the 1971 synodical con- vention, the Board of Managers is studying the matter of making the Concordia Welfare Plan available to our eligi- ble people in Canada and to our eligible workers overseas. 2. Concordia Retirement and Survivor Plans An analysis study of the benefit structure of these Plans is in process in view of the recently increased benefits of the U. S. Social Security Program. In Closing The Board of Managers and its administrative staff ex- press their appreciation to the many treasurers and repre- sentatives in the various congregations and employer or- ganizations for their cooperation and suggestions in keeping these Concordia Plans on a continuing high benefit level. They further pledge to all of you of the Synod their con- tinuing efforts in your behalf. Boarp oF MANAGERS WorRKER BENEFIT PLANS Edward Kasch, Chairman Robert P. Hopmann, Secretary Carl H. Bensene E. Stanley Enlund Fred Heisler Walter E. Lichtsinn Richard A. Meyer Earl E. Haake, Administrator Lorenz F. Wahlers, Associate Administrator Exhibit A ACCOUNTANTS’ REPORT Board of Managers Concordia Plans Lutheran Church — Missouri Synod St. Louis, Missouri We have examined the financial statements of the Concordia Plans (consisting of the Retirement Plan, Welfare Plan and Survivor Plan) of The Lutheran Church — Missouri Synod for the years ended December 31, 1972 and 1971. Our examinations were made in accordance with generally accepted auditing standards, and ac- cordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circum- stances. In our opinion, the accompanying balance sheets, statements of revenues, expenses and fund balance and statements of changes in financial position present fairly the financial position of the Retire- ment Plan, Welfare Plan and Survivor Plan of the Concordia Plans of The Lutheran Church — Missouri Synod at December 31, 1972 and 1971, and the results of their operations, changes in fund bal- ances and changes in financial positions for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. Ernst & ERNST St. Louis, Missouri February 3, 1973 BALANCE SHEET Concordia Retirement Plan ASSETS December 31 1972 1971 Cash: Demand deposits $ 67,353 $ 50,845 Investment account —————__—_- 814 68,167 50,845 Contributions receivable ——_—___—_—_ 1,429,105 984,585 Investments — at amortized cost (approximate market value — $50,384,164 in 1972 and $38,053,034 in 1971): Bonds. notes and debentures —— 15,069,838 13,987,947 Common stocks ———————_- 23,337,351 18,948,707 Preferred stocks 265,921 395,771 $38,673,110 $33,332,425 Accrued interest and dividends 235,071 245,207 Prepaid expenses and other assets $40,405,743 $34,613,807