LCMS Convention Workbook St. Louis, Missouri — 1981, Page 205

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LIABILITLES AND FUND BALANCE

Accounts payable Ss 41,396
Fund balance--Reserve for future
plan benefits 24,625,858

ADMINISTRATION 205

S$ 17,4746

20,478,935

$20,496,409

See notes to financial statements.

STATEMENTS OF REVENUES, EXPENSES, AND FUND BALANCE

CONCORDIA SURVIVOR PLAN

Year Ended December 31

1980 1979
Revenues:
Contributions from members $ 3,567,157 S$ 3,199,835
Interest income 1,208,317 590,814
Dividend income 194,500 342,384
1,402,817 933,198
Earnings on funds on deposit with
insurance company 516,798 442,048
Gain on sale of investments--net 340 ,042
Other 8,686
Expenses:
Survivor benefits paid:
Member's death prior to retirement 146,566 162,478
Member's death after retirement 4,501 4,827
Member's death while disabled 3,739 3,739
154,806 171,044
Insurance premiums 1,373,849 1,603,062
Loss on sale of investments--net 199,655
Administrative expenses 159,922 126,368
1,688,577 2,100,129
EXCESS OF REVENUES OVER EXPENSES 4,146,923 2,474,952
Fund balance at beginning of year 20,478,935 18,003,983
FUND BALANCE AT END OF YEAR $24,625,858 $20,478,935

See notes to financial statements.

STATEMENTS OF CHANGES IN FINANCIAL POSITIO*®

CONCORDIA SURVIVOR PLAN

Year Ended December 31

1980

1979

Increase in cash resulted from:
Excess of revenues over expenses S$ 4,146,923
Add (deduct) expenses (income) not
requiring outlay of cash:

$ 2,474,952

Depreciation 669 646
Loss on investments sold 199,655
Amortization of bond discount
and premium (48 , 267) (12,757)
TOTAL FROM OPERATIONS 4,099,325 2,662,496
Proceeds from investments sold
or redeemed (less gain of $340,042
in 1980 included above) 63,257,284 20,879,022
Increase in accounts payable 23,922 13,447
Other 2,568
67,380,531 23,557,533
Decrease in cash resulted from:
Cost of investments purchased 65,775,285 22,807,762
Cost of data processing software purchased 16,766 9,937
Increase in contributions receivable 105,921 75,368
Equipment purchases 466
Increase in accrued interest
and dividends 103,947 6,911
Increase in funds on deposit with
insurance company 1,961,793 892,776
Increase in prepaid expenses and
other assets 321,807
67,385,985 23,792,754
DECREASE IN CASH § (5,454) S (235,221)

See notes to financial statements.

EXHIBIT
Page le
NOTES TO FINANCIAL STATEMENTS

CONCORDIA SURVIVOR PLAN

December 31, 1980

NOTE A--SIGNIFICANT ACCOUNTING POLICIES

Investments are carried at amortized cost. Bond premiums and discounts
are amortized on a straight-line basis over the period from date of
purchase to date of maturity.

All office space is rented from The Lutheran Church - Missouri Synod.

Equipwent and data precessing software is recorded at cost. Depreciation
is computed on the straight-line method over the estimated useful life of
the equipment. Amortization of data processing software will begin when
the software is fully developed and in use for its intended purpose.

The cost of certain administrative expenses incurred for the benefit of
each of the Concordia Plans (Retirement, Survivor, and Health) and the
cost of shared equipment are allocated to each of the plans based upon
management's estimate of the use of the service.

NOTE B--DESCRIPTION OF THE PLAN

The Concordia Survivor Plan has been established for the ministers of
religion and lay workers of The Lutheran Church - Missouri Synod and its
controlled organizations. The Plan has been made available to member
congregations and other affiliated organizations. The Plan is
administered by a Board of Managers which is appointed by the Board of
Directors of The Lutheran Church - Missouri Synod. All contributions are
paid by the employer organization.

The purpose of the Plan is to provide benefits to survivors of the
members of the Concordia Retirement Plan whose income is interrupted by
death. Benefits include monthly payments of reduced salary amounts for
deaths prior to retirement, monthly payments of reduced retirement
benefits for death after retirement, and lump sum death benefits. A more
comprehensive description of the Concordia Survivor Plan and its benefits
is contained in the pamphlet A Brief Description - Concordia Survivor
Plan. This pamphlet is available from the Board of Managers.

The Plan is fully insured through Travelers Insurance Company for
benefits arising from deaths occurring subsequent to July 1, 1969.
Benefits arising from deaths prior to that date are self-insured.

The Plan can be terminated by The Lutheran Church - Missouri Synod in
convention. Following the effective date of termination, the Board of
Managers shall utilize and apply the assets of the trust fund and any
other assets then or thereafter available under the Plan in a reasonable
and expedient manner. Utilization of the assets should provide or
continue to provide all or any part of the benefits under the Plan. In
no event shall any part of these assets be used except as permitted by
the Plan.

NOTFS TO FINANCIAL STATEMFNTS--CONT'D

NOTE C--AMOUNT DUE FROM INSURANCE COMPANY

The amount due from insurance company is an experience balance which,
under the terms of the policy, is due from the insurance company and
represents the insurance company's estimate, based on the latest
information available, of the difference between premiums paid by the
Plan plus interest earned and the sum of claims paid, claims provided
for, and the insurance company's retention.

The Plan has agreed to leave experience balances on deposit with the
insurance company as a claim stabilization reserve. These funds earn
interest and, subject to final adjustment, are available for withdrawal
at the request of the Plan on the yearly anniversary date of the policy
(January 1).

NOTE D--ACTUARIAL VALUATIONS

An actuarial valuation of the Plan was performed by Tillinghast, Nelson &
Warren, Inc. as of December 31, 1980. The primary purposes of this
valuation are to determine the progress of the funding to date and to
determine the adequacy of the contribution structure for the costs that
will be incurred during the following year.

The actuary has reported that the liabilities of the Plan are soundly
financed and all future benefit payments will be adequately provided for
by past and future recommended contributions.

As of December 31, 1980 the assets of the Plan on the basis of reported
book values exceeded the total of all accrued liabilities.