LCMS Convention Workbook St. Louis, Missouri — 1981, Page 200

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200

Mixed Account “‘C”’

Jan. 31.1978 Jan.31.1979 Jan. 31, 1980
Utility Bonds .................. 861,315 811,826 $811,826
Railroad Bonds ................ 50,000
Industrial Bonds ............... 239,891 331,742 224,574
Common Stocks ................ *631,155 *631,135 *631,133
$1,732,361 $1,774,723 $1,737,535

* Invested in Equity Fund "B”

General

Banks and trust companies in St. Louis and Chicago are
employed to render custodial services for the securities held by
the respective trust funds managed by the Board of Trustees,
and a trust company in Toronto is employed as trustee for the
Canadian portion of the Pension Plan for Pastors and
Teachers. The board attempts to meet at least six times a year
to review investments, to plan and authorize further invest-
ments or changes in investment, and to consider and act upon
policies or any other matter coming within the purview of the

oard.

— The board notes that it has not received all funds required
by Bylaw investment by the board. There appears to be
considerable duplication of effort being made by separate
college foundations and college and District staffs and boards
to handle their own investments and to bypass the established
procedures. The receipt of all such funds will be welcomed and
invested in accordance with synodical policy and the objectives
of the donor.

The Synod, through the efforts of its members, cares for its
servants by providing endowments, pension funds, and other
means of support for demonstrated need. The Board of Trustees
is privileged to assist the Synod in this Christian responsibility
as fiduciaries. For whatever the board has been able to
accomplish through its endeavors it gives thanks toa gracious
and merciful God.

The current membership of the Board of Trustees is Mr.
Robert W. Selle; Mr. Arvid Jouppi; Mr. Robert H. Long; Mr.
Harold W. Mattfeld; Mr. Harlan G. Klotz; Mr. Kenneth E.
Guebert; Dr. J. A. O. Preus; and Dr. Norman D. Sell.

Norman Sell, Treasurer

4-07

Report of Board of Managers—
Worker Benefit Plans

Concordia Health Plan, Concordia Survivor Plan,
Concordia Retirement Plan, Pension Plan for Pastors
and Teachers, Supplemental Benefits Plan,
Support Program, Accident Insurance Program

As the Worker Benefit Plans conclude their 15th year of
operation and as one realizes the millions of benefit dollars
that have already been paid to the workers serving the Synod,
one can only thank the Lord for the vision and foresight of
those responsible for the creation of these programs.

Although the workers who have benefited from the plans
appreciate their value, the Board of Managers has recognized
the need to continually evaluate these programs because of the
changing conditions of the economy and the workers’ ongoing
needs. Therefore, the activities of the board can best be
characterized by describing the past biennium as a period of
review, analysis, and projection. This report will give substance
to these activities.

The Board of Managers—Worker Benefit Plans, as the
trustees of the Concordia Plans, is ever mindful of its assign-
ment from the Synod, as well as its fiduciary responsibility to
the workers and the employers participating in the benefit
programs. Perhaps this can best be illustrated by the active
role our church body took in the “Church Alliance for Clarifi-
cation of ERISA” through the staff of the benefit programs.
The signing of the “Multiemployer Pension Plan Amendment
Act of 1980” by President Carter on Sept. 26, 1980, was a
historic event for church plans, because this legislation
included amendments extremely important to such plans. For
our retirement plan, this legislation literally saved thousands,
and possibly even millions, of dollars that remain available for

ADMINISTRATION

benefits instead of otherwise being spent fulfilling govern-
ment-legislated requirements.

The board feels that it is extremely important to maintaina
sound financial program and consistently has the benefit
plans reviewed by an actuary to assure they are being ade-
quately funded. Maintaining an adequately funded program of
benefits assures all workers that their future promised benefits
will always be available when needed.

Administration

During the past biennium, Mr. Richard Peters was re-
appointed to an additional term of four years. Two new board
members were appointed to serve on the board: Rev. George J.
Beto and Mr. Julian G. Hoffmann. The terms of Rev. William
Graumann and Mr. Richard A. Meyer expired during this last
biennium. We acknowledge with deep appreciation theirmany
years of service on the board and their valuable contributions
to the administration of the benefit programs.

Quarterly meetings were held each year during the last
biennium.

To assist in the administration and evaluation of the benefit
programs, the board regularly consults with the Plans’ actuary,
insurance consultant, investment advisers, legal counsel, and
auditor.

Communications

Workers and employers are furnished information about
the Worker Benefit Plans each quarter through the “Benefit
Plans Bulletin.” One issue each year contains the annual
report of the Plans’ operations so that each enrolled employer
and member is informed about the financial condition of the
benefit programs.

Information about each workers’ individual protection,
including accumulated and projected retirement benefits, is
provided through the use of a computer-prepared Personal
Statement of Benefits. This personalized annual report, sent to
each worker around May 15, has proved to be of real service to
the members in both personalizing the program to them and
also helping the worker’s entire family understand the pro-
tection provided through the Synod’s benefit programs.

Consideration is currently being given to securing the
services of communication specialists to provide assistance in
the preparation of our program brochures and other benefit
communications in order that even better understanding ofthe
programs can be achieved.

In addition to written communications, the staff of the
Worker Benefit Plans makes itself available for larger meetings
(pastors conferences, teachers conferences, etc.) to review the
programs and answer questions concerning them.

Program Studies
Worker Participation in Social Security Program

To assist the board in its analysis of the role that Social
Security benefits play in the total benefits applicable to
workers enrolled in the Concordia Plans, information was
gathered and provided to the actuary forinclusion in the study
of the retirement and survivor benefit programs.

In February 1980, questionnaires asking about their par-
ticipation in the Social Security program were mailed to all
enrolled ministers of religion (pastors and male teachers). The
results indicated that 89% of these workers are participating in
Social Security.

With regard to lay workers, it was unnecessary to go to the
expense of a separate questionnaire since our office records
indicate that 85% of the enrolled lay workers are in Social
Security and 15% are not participating.

Discussion Group-Benefit Preferences

Feeling that it was important to secure workerinput prior to
an actuarial review of the Concordia Retirement Plan and
Concordia Survivor Plan, the actuary conducted a two-day
workshop (each day was several weeks apart) during March
1980 involving a representative group of workers covering the
various classes of participants covered in the benefit programs.
The pastors, teachers, clerical personnel, including males and
females from large and small parishes and personnel from