# LCMS Convention Workbook_St. Louis Missouri_1973_S396 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) STEWARDSHIP AND FINANCE 383 Exhibit E ANALYSIS OF ENROLLMENT Canada December 31, 1972 Concordia Retirement and Survivor Plan only Employer Worker Congregations 112 110 Districts 4 19 College 1 22 LCIC 1 2 Other 1 1 Total 119 154 Exhibit F REPORT OF PENSION WORK COMMITTEE As directed by Resolution 12-10 of the Denver conven- tion, the Pension Work Committee, comprised of two repre- sentatives each of the Board of Trustees and the Board of Managers — Worker Benefit Plans, has continued to give consideration to the improvement of the benefits of the Pension Plan for Pastors and Teachers which was the ob- jective of the directives given to the committee by the con- vention in 1969. The committee, currently consisting of Ralph E. Petering, chairman; and Arthur Wellman, repre- senting the Board of Trustees: and Edward Kasch and Fred Heisler, representing the Board of Managers — Worker Benefit Plans, has held several meetings during the last biennium, has initiated further and new studies on matters of continuing interest and concern. and has consulted with the staff and the actuary for the Pension Plan for Pastors and Teachers. The committee reports the following results of its activity and the progress on various matters currently under con- sideration: 1, Minimum Pension Increased to $175 per month on Oct. 1, 1971. Based on the favorable investment results, im- proved earnings. and projected investment performance. and a favorable level of reserves in the Pension Fund, the Pen- sion Work Committee recommended to the then Board of Pensions and Support, and to the Board of Directors that the minimum pension be increased from $165 to $175 per month. This was approved by those boards and became effective Oct. 1, 1971. This was accomplished without in- creasing the synodical budget for pension subsidy by in- creasing the interest assumption in the annuity purchase rate from 414% to 5% and using a portion of the accumu- lated credits in the Contingent Reserve Account. 2. Pension Fund Reserves and Contingent Funds. The Plan actuary is in the process of preparing a valuation of the Annuity Fund as of Jan. 31. 1973, and preparing further studies reauested by the committee. Although final reports have not been completed, some preliminary figures have been made available indicating a surplus in the Annuity Fund with the possibility of potential benefit improvement. When final and complete figures and reports are available, the committee will review the results and studies, and make its recommendations as to improvement in benefits and distribution of surplus. 3. Allocation of Investment Appreciation. The allocation of 50% of the appreciation in the common stock investments of the Pension Fund has resulted in significant additions to both the Annuity Fund and the accounts of active workers. In consideration of the favorable investment performance during the past several years, and the structure and quality of the equity portfolio, the committee is studying the pos- sibility of increasing the percentage of the appreciation allocated to the various accounts. 4. Mortality Experience. The actuary reports that ex- perience in the mortality of retired lives over the past 4 years compares very closely with the assumptions for mortality in the annuity purchase rate. Consequently, the committee sees no reason at this time to change the mortality assump- tion adopted in 1969. 5. Investment Performance. The investment yield and investment performance of the Pension Fund is described in some detail in the report of the Board of Trustees. These results have been very favorable for the last few years, and the committee is currently studying the possibility of a further increase in the interest assumption in the annuity purchase rate. Extensive actuarial data is being prepared in connection with this study. Recommendations for changes, if any, will be made to the Board of Directors of Synod as soon as the committee has reached a conclusion. 6. Optional Forms of Retirement Payments. The Com- mittee still has under consideration the matter of lump-sum or other alternate optional benefit payments at retirement. Further study of the legal and actuarial aspects of the various forms of payments is required before recommenda- tions can be made. Actuarial studies indicate that the next 6 or 7 years is the period when most attention to providing adequate pen- sions is required. The committee has exhibited its concern for improving benefits from a basis of sound evaluation of all factors involved. The committee is committed to this same approach in its efforts in the future. Pension WorK COMMITTEE Ralph E. Petering, Chairman Arthur Wellman Edward Kasch Fred Heisler farl E. Haake, Secretary 12-04 Report of Board of Pensions and Support (Final Report) When a synodical board goes out of existence, that is indeed news! This notable milestone has been reached in the history of the Pension Plan for Pastors and Teachers. The Board of Pensions and Support, which during 1972 served as a joint board with the Board of Managers — Concordia Plans, ceased to exist as of Jan. 1, 1973. In accord with synodical resolution, the administration of the Pension Plan for Pas- tors and Teachers has as of that date been assigned to the Board of Managers — Worker Benefit Plans. Administration In order to effect continuity in the administration of the prior Pension and Support Plans, two members of the former Board of Pensions and Support, Rev. Walter E. Lichtsinn and Mr. Fred Heisler, have become members of the Board of Managers and form a subcommittee on those matters. The Pension Plan for Pastors and Teachers must still, however, be maintained as a separate plan. The funds of the Pension Plan must be kept in a separate fund, and Synod’s Board of Trustees will continue to be charged with the responsibility of investing those funds. The more than 2.650 beneficiaries in the United States and Canada will con- tinue to receive regularly the appropriate Pension and/or Support benefit. Activities The Board met four times in 1971. In 1972 the Board met six times, four times in joint meetings with the Board of Managers — Concordia Plans as a transition, and twice in special meeting in connection with special support matters and with the Special Support Project, described later in this report. The members of this former board will continue to meet periodically during the first half of 1973 as a super~- visory subcommittee to implement the findings of the Spe- cial Support Project in an effort to upgrade the entire Sup- port Program of the Synod. Plan Revision Effective June 1, 1972, the Plan was amended to provide that if a widow beneficiary remarries after she has attained age 60, her annuity is to continue. However, the subsidy por- tion of her benefit, if any, is to be discontinued with the month in which such remarriage takes place. If her second husband predeceases her. and if she has been receiving a subsidized benefit prior to her remarriage, the subsidy por- tion of her widow benefit shall be reinstated beginning with the first month following the death of her second husband.