# LCMS Convention Workbook_St. Louis Missouri_1975_S177 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) ADMINISTRATION 177 STATEMENT OF CHANGES IN FINANCIAL POSITION Concordia Survivor Plan Year Ended December 31 1974 1973 Increases in cash resulted from: Excess of revenues over expenses a Add (deduct) expenses tincome) not requiring outlay of operating funds: $1,773,969 $ 1.343.585 Depreciation —__ 601 443 Loss on investments sold _.._. _ 217,345 265.680 Amortization of bond discount and premium — (10.044) (18.177) Total from Operations $1,981,871 $ 1.591.531 Proceeds from investments sold or redeemed _.__. .... a Other increases—net ... _— 6,233,264 13.092 $8,228,227 $12,757,827 11,166,296 Decreases in cash resulted from: Cost of investments purchased ....-____...__._ 7.741.964 12,022,341 Equipment purchases 7 lit 2.227 Increase in contributions receivable -__.__ 58.788 28.160 Increase in amount due from insurance company —.—.- oe ee 537.003 533,137 Other decreases—net = ne 8212 $8.337.866 $12,594.07 Increase (Decrease) in Cash ($109,639) $ 163.750 See notes to financial statements. NOTES TO FINANCIAL STATEMENTS Concordia Plans December 31. 1974 and 1973 Note A—Organization and Accounting Policies The Concordia Plans have been established for the ministers of religion and lay workers of The Lutheran Church — Missouri Synod and its controlled organizations. The Plans have been made available to member congregations and other affiliated organizations. All of the con- tributions to the Survivor and Retirement Plans and not less than one half of the contributions to the Welfare Plans are paid by the employer organization. All office space is rented from The Lutheran Church — Missouri Synod. Investments are carried at amortized cost. except for certain invest- ments carried at market where market values are below cost and the reduction to market is considered a permanent decline. Bond premium and discount is amortized on a straight-line basis over the period from date of purchase to date of maturity. The Plans became effective for Canadian workers in 1972. Amounts relating to Canadian operations have not been translated to U.S. dollars. as the effect of such translation would not have been material. Equipment is recorded at cost. Depreciation is computed on the straight-line method over the estimated useful life of the equipment. Cost and depreciation of certain equipment is allocated among the three Plans. based on anticipated use. Note B—Amounts Due from Insurance Company These amounts principally represent the insurance companies’ esti- mates. based on latest information available. of the difference between premiums paid by the Plans and the sum of claims paid. claims provided for. and the insurance companies’ retention. Note C—Reserve for Noncontributory Benefits An estimated liability for benefits to members or dependents for whom contributions have been waived due to disability or death is re- corded as ‘Reserve for noncontributory benefits.” The amount of the reserve and the provision for each year is determined by the Plan's actuary. Note D— Actuarial Valuations Actuarial valuations of the Retirement Plan and the Survivor Plan performed by consulting actuaries as of Dec. 31, 1974. indicated that the liabilities of both Plans are being soundly financed and that adequate provision has been made for all future benefits. Note E—Changes in Plan Provisions The Concordia Plans are excluded from the coverage of the Pension Reform Act of 1974 by the “church plans" exemption of the Act. However, the Board of Managers of the Plans will be making voluntary modifica- tions in the vesting and funding provisions of the Retirement Plan to conform to the new law. There are also certain other changes being made to the Retirement Plan and Survivor Plan effective Jan. 1, 1975. These changes will increase retirement benefit expenses of the Retirement Plan by approximately $2,700,000 and reduce survivor benefit expenses of the Survivor Plan by approximately $1.100.000 in 1975 and future years. Exhibit B CONCORDIA WELFARE PLAN—CONCORDIA RETIREMENT PLAN—CONCORDIA SURVIVOR PLAN December 31. 1974 Summary of Benefit Payments CONCORDIA WELFARE PLAN Type of Benefit Medical Expense—Health Care .- 2 2 2... Disability Income — Salary Continuation __ : Death Benefits Worker _____.- cose Dependent... Be ee eee Total Welfare Plan Benefits $ 254.493 _ 60.818 1974 1973 1965 to Date $7.265.909 $5,689,722 $31,562,916 440.831 398.085 2.335.294 $ 171.351 $1,807,029 315.311 49.280 220.631 397.341 2.204.370 $8.022.051 $6.308.438 $36,102,580 CONCORDIA RETIREMENT PLAN Retirement ~_. nee 704.843 $ 502.424 $ 2.617.773 Disability —_____. ee 118.736 _103.905 _ 813,923 Total Retirement Plan Benefits $ 823.579 $ 606.329 $ 3,131,696 CONCORDIA SURVIVOR PLAN Benefits to Dependents - Death before retirement __.__. . eee $ 891.780 S$ 768.599 $ 4.356.442 Death during disability _ ne 51.142 40,026 * Death after retirement — = eee 12,962 10,214 63.294 Lump sum death benefits ._ oe. 5,946 1,987 17,151 Total Survivor Plan Benefits $_ 961.830 $_ 820.826 $ 4.436.887 * Included in ‘death before retirement” total