LCMS Convention Workbook St. Louis, Missouri — 1983, Page 162

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162 ADMINISTRATION AND PROGRAM IMPLEMENTATION

tracts, These contracts guarantee compounded effective annual earnings
rates of between 17.25% and 17.33%. Repayments to the Plan of the
original contract amount plus earnings thereon sre to be made at a rate
of one third annually beginning in 1986.

NOTE G--PLAN AMENDMENTS AND TRANSFER OF ASSETS

Under Plan amendments effective January 1, 1982, long-term disability
benefits incurred after 1981 are no longer provided by the Concordia
Retirement Plan. Instead, they have become a benefit of the Concordia
Disability and Survivor Plan, (CDSP). In addition, post-retirement death
benefits incurred after 1981 are provided by the Concordia Retirement
Plan. These benefits had been provided by the CDSP through 1981. As a
result of these amendments, the present value of the future benefits
assumed by the Concordia Retirement Plan, $21,264,653, as determined by
the Plan's consulting actuaries was required to be transferred from the
CDSP to the Concordia Retirement Plan. As of December 31, 1982,
$7,470,669 is receivable from CDSP which represents the unpaid balance of
this transfer plus accrued interest.

EXHIBIT D
Page 1

Ernst & Whinney

10 Broadway
St. Louis, Missouri 63102

314/231-7700

Board of Managers

Pension Plan for Pastors and Teachers
The Lutheran Church - Missour{ Synod
St. Louis, Missouri

We have examined the statements of net assets of the Pension Plan for
Pastors and Teachers of The Lutheran Church ~ Missouri Synod as of
December 31, 1982 and 1961, and the related statements of changes in net
assets for the years ther. ended. Our examinations were made in accor-
dance with generally accepted auditing standards and, accordingly, in-
cluded 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 of the Persion Plan for Pastors and Teachers of The
Lutheran Church - Missouri Synod at December 31, 1982 and 1981, and
changes in its net assets for the years then ended, in conformity with
generally 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 D, to comply
with the provisions of the audit end accounting guide, entitled Audits of
Employee Benefit Plans, issued by the American Institute of Certified

Public Accountants.
Gruev Whew

St. Louis, Missouri
March ll, 1983

STATEMENTS OF NET ASSETS EXHIBIT D
Page 2
PENSION PLAN FOR PASTORS AND TEACHERS
THE LUTHERAN CHURCH ~ MISSOLRI SYNOD
December 31
1982 1981
(Restated —
ASSETS Note D)
Cash $ 250,839 $ 226,367
Amounts receivable from sale of investments 4,266,254 234,624
Investments--Note C
Short-term investments 15,861,318 12,515,016
Bonds, notes, and debentures (cost
$47,325,444 in 1982 and $40,907,382
in 1981) 52,486,735 36,167,031
Equity securities (cost $32,530,918 in
1982 and $51,844,135 in 1981) 28,801,843 41,494,332
97,149,896 90,176,379
Accrued interest and dividends 1,650,298 1,034,432
TOTAL ASSETS $103,317,287 $91,671,802

LIABILITIES

Accounts payable:

Purchase of investments § 1,405,520 § 1,383,505
Lutheran Church - Missouri Synod 107,582 432,131
Other —— BF 23 507
1,524,389 1,839,183
Fund balance:
Pension Reserve Account 61,792,357 55,296,695
Annuities Account 39,426,395 33,508,412
Contingent Reserve Account--Note B 574,146 1,027,512
NET ASSETS $101,792, 898 $89,832,619
See notes to financial statements.
EXHIBIT D
STATEMENTS OF CHANGES IN NET ASSETS Page 3
PENSION PLAN FOR PASTORS AND TEACHERS
THE LUTHERAN CHURCH - MISSOURI SYNOD
Year Ended December 31
1982 196)
Pension Contingent (Restated ~
Reserve Annuities Reserve Note D)
Account Account Account Total Total
Additions:
Contributions on behalf
of menbers $ 10,619 $ s $ 19,619 = § 13,037
Net investment
earnings~-Note C 16,716,219 7,057,038 17,773,257 1,658,183
Other 918 918 1,214
10,726,829 7,057,038 918 17,784,785 1,672,404
Deductions:
Benefits paid to
annuitants (5,283,039) (5,283,939) (5,292,057)
Refunds to members
leaving service:
Personal accunu-
lation (28,467) (28,467) (26,492)
Eeployer accumu-
lation (58,716) 58,716
Transfer upon retire-
went of Plan membere (4,143,984) 4,143,984
Transfer to the
Lutheran Church
Missouri Synod--
Note B (513,000) (513,000) (252,065)
TIETTTTST) HTH OSS) TST TwL) TS 824, 506) TSC A9)
NET INCREASES
( DECREASES) 6,495,662 $,917,983 (483,366) 11,960,279 (3,598,145)
Net assets at beginning
of year--restated
Note D $5,296,695 33,508,412 _ 1,027,512 89,832,619 93,530,764

NET ASSETS AT

END OF YEAR $61,792,357 $39,426,395 $ 574,146 $101,792,898

$89,832,619

See notes to financial statements.

EXHIBIT D

NOTES TO FINANCIAL STATEMENTS
Page 4

PENSION PLAN FOR PASTORS AND TEACHERS
THE LUTHERAN CHURCH ~ MISSOURI SYNOD

December 31, 1982 and 1981

NOTE A--SIGNIFICANT ACCOUNTING POLICIES

Investments in securities are recorded at market value.

NOTE B--DESCRIPTION OF THE PLAN

The Pension Plan for Pastors and Teachers was established in 1937 by The
Lutheran Church - Miasouri Synod to provide benefits for retired pastors
and teachers. Since the beginning of the Concordia Retirement Plan in
1965, contributions to the Pension Plan for Pastors and Teachers have
continued for only a few participants, principally those ineligible for
the Concordia Retirement Plan.

Contributions have been made to the Plan by its members and their
employers based upon a specified percent of the members’ compensation.
Such contributions were credited to the individual accounts of members in
the Pension Reserve Account.

At retirement date, a member's Pension Reserve Account is transferred to
the Annuity Account. At that time, a life annuity is calculated based on
the member's account balance, age and actuarial tables in effect. Pay-
wents are made monthly from che Annuity Account.