LCMS Convention Workbook St. Louis, Missouri — 1981, Page 202

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202 ADMINISTRATION

future so that the Plan can maintain its ongoing financial
stability.

Concordia Survivor Plan

Benefits are provided to an eligible surviving spouse and/or
children of deceased members. Benefit levels established under
the Plan take into consideration benefits available from Social
Security.

Concordia Health Plan

Benefits are provided in the area of health care (including
dental benefits), short-term disability (under one year dura-
tion), and death. After the death of a worker, free health care
coverage is provided for eligible surviving dependents.

During the years of 1979 and 1980, the following changes
were effective in this Plan:

—Name of Plan was changed from “Concordia Welfare

Plan” to “Concordia Health Plan.”

~—Provisions were changed to have the Plan conform to the
requirements of the Pregnancy Discrimination Act and
also the Age Discrimination Act.

—Open enrollment period established during the first six
months of 1980 for retired workers and spouses of deceased
retired workers who did not previously enroll in the Plan.

—Improved benefits for members age 65 and over; calendar
year deductible is waived and benefits available from
Medicare are deducted from Plan benefits

—Lifetime maximum increased from $200,000 to $500,000.

—Extension of coverage after termination of employment
changed from 3 years to 15 months.

—Outpatient psychiatric care per-visit limit was increased
from $25 to $50 and annual maximum increased from
$1,000 to $2.000.

The rising cost of health care made it necessary to increase
the contribution rates by approximately 10% on Jan. 1, 1980,
and 5% on Jan. 1, 1981.

Pension Plan for Pastors and Teachers

Although this program, known as the “old plan,” no longer
enrolls new members, it continues to provide retirement and
disability benefits to members, as well as benefits to eligible
surviving dependents. At present there are 3,437 beneficiaries
receiving a monthly benefit from this program. There are also
9,692 active accounts where workers have moneys on deposit
and will in the future receive benefits from this plan. This
program was not merged with the “new plan’”—Concordia
Retirement Plan. Upon retirement, death, or disability, many
workers will receive benefits from both the old and the new
retirement plans.

Supplemental Benefits Plan

The benefits of this program are provided by subsidy from
the Synod. Such subsidy is used to provide two types of benefits
for participants of the prior Pension Plan:

1) aguaranteed minimum monthly retirement benefit to an
eligible member of the prior Pension Plan, and a guaranteed
minimum monthly survivor benefit to an eligible surviving
spouse; and

2) alump-sum benefit upon the death of an eligible member.

Presently the minimum monthly retirement benefit (Con-
cordia Retirement Plan plus the Pension Plan for Pastors and
Teachers) is $200 for the eligible retired worker and $120 for an
eligible surviving spouse. The lump-sum death benefit is $500.

Effective July 1, 1981, the Board of Directors has approved
increasing the minimum monthly retirement benefit to $220
and the surviving spouse benefit to $132. This increase will be
applicable to all present beneficiaries.

Both of these subsidy benefits are offset by the respective
benefits payable from the Concordia Plans. The cost to the
Synod’s budget during 1979 was $1,084,760 and during 1980
was $1,022,139.

Support Program

The Support Program is a program of financial assistance,
based on demonstration of need, to eligible pastors, teachers,
and other professional church workers and their dependents

according to criteria established by the Board of Managers in
consultation with the appropriate synodical officials. Where
appropriate, counseling for the recipients is obtained from
professional] social workers from the Lutheran Social Service
offices in the respective geographic areas of the country. Such
aid is in the form of a gift from the budget funds of the Synod.
The cost to the Synod’s budget was $62,483 during 1979 and
$61,583 during 1980.

Accident Insurance Program

This all-cause accidental death and dismemberment pro-
gram offers low-cost, high-dollar protection to the family of a
member of the Concordia Plans who is under age 70 and not
retired. Also eligible for coverage are members of boards and
commissions of the Synod.

Because of good experience during the years 1977 through
1979, the insurance carrier has increased benefits by 10%
without any corresponding increase in cost for the period Jan.
1, 1980, through Dec. 31, 1982. It is anticipated that, if such
experience continues, such increased benefits will continue to
be available in the future.

Exhibits

Attached are exhibits covering the financial operations of
the benefit programs as well as enrollment data and other
items which will help you better appreciate the scope of
operations of these Worker Benefit Plans.

Appreciation

The Board of Managers and its administrative staff express
their appreciation to the many treasurers and representatives
in the various congregations and other employing organiza-
tions for their cooperation. Their assistance in providing
information about workers and the handling of enrollment and
other administrative duties has aided in our carrying out the
work effectively and in accordance with the provisions of the
various plans.

Board of Managers—Worker Benefit Plans
Ralph A. Niedert, Chairman

Frederick A. Spurgat, Secretary

Earl E. Haake, Administrator

Ernst & Whinney

10 Broadway
St. Louis, Missouri 63102

314/231-7700

Board of Managers

Concordia Plans

Lutheran Church - Missouri Synod
St. Louis, Missouri

We have examined the statements of net assets available for benefits of
the Concordia Retirement Plan of the Lutheran Church - Missouri Synod as
of December 31, 1980 and 1979, and the related statements of changes in
net assets available for benefits for the years then ended. Our
examinations were made in accordance with generally accepted auditing
standards and, accordingly, included such tests of the accounting records
and such other auditing procedures as we considered necessary in the
circumstances.

In our opinion, the financial statements referred to above present fairly
the net assets available for benefits of the Concordia Retirement Plan of
the Lutheran Church ~ Missouri Synod at December 31, 1980 and 1979, and
the changes in net assets available for benefits for the years then
ended, in conformity with generallly accepted accounting principles
applied on a consistent basis after restatement for the change, with
which we concur, in the method of accounting and reporting by the Plan,
as described in Note F, to comply with the provisions of Statement of
Financial Accounting Standards No. 35 issued by the Financial Accounting

Standards Board,
Guuee Wheimerracy

St. Louis, Missouri
February 24, 1981