LCMS Convention Proceedings St. Louis, Missouri — 1965, Page 239

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10. PENSION AND WELFARE PROGRAM 239

[10-15 Un]

Supplementary Report Number Two —
Board of Support and Pensions

In the original report of the Board of Support and
Pensions as well as in “Supplementary Report Number
One” (10-02) it was stated that some of the necessary
or advisable amendments to the Pension Plan for Pas-
tors and Teachers which were to be recommended by
the Board of Directors in conjunction with the Board
of Support and Pensions could not be finalized until
after the May meeting of the Board of Directors. At the
writing of this report this meeting has now been held,
and the intended final group of overtures from the
Board of Support and Pensions has been formulated
and is presented herewith.

1. Since the Concordia Retirement Plan is now in
operation, it is appropriate to amend Section 10.15 c¢ of
the Handbook as follows:

Resolved, That Section 10.15c be amended so that
as amended it shall read as follows:

c. Workers in the Synod who are not participating
in the Synod’s Pension Plan for Pastors and Teachers
forfeit all claim to the benefits provided under Section
10.47 except as otherwise provided in Section 10.47 e.
This resolution is to become effective immediately

upon adoption.
2. It is recommended that Section 10.15d be re-
phrased as set forth in the following resolution:

Resolved, That Section 10.15d be amended so that
as amended it shall read as follows:

d. All cases of doubt shall be decided by the Board
for Support and Pensions, judging each case on its
merits and in Christian love.

This resolution is to become effective immediately
upon adoption.

3. Recommendation 3 of “Supplementary Report
Number One” (p. 350) recommends an amendment to
Section 10.43 b to provide for a discontinuation of addi-
tional voluntary deposits by a worker to his pension
account. So that Section 10.43 i be consistent with such
recommendation for the wording of Section 10.43 b, the
following recommendation is being made:

Resolved, That at the beginning of Section 10.43 i
there be inserted these words: “Prior to July 1, 1965,”
so that this section will now read: “Prior to July 1,
1965, any congregation or board... .”

This resolution is to become effective immediately
upon adoption.

4. It is recommended that the unnumbered para-
graph following subparagraph 3 of Section 10.47 b 3
be deleted and a new subparagraph 4 be added, provid-
ing as follows:

4. All cases of doubt shall be decided by the Board
for Support and Pensions, judging each case on its merits
and in Christian love.

This resolution is to be effective immediately upon
adoption.
5. Section 10.47 b 2 calls for a reduction of the work-

er’s and widow’s subsidized retirement benefit under
conditions of lack of full participation while the worker
was active.

This same reduction has in practice been applied
also in case of the subsidized disability benefit provided
for in Section 10.47 c. However, this is not clearly stated
in the section referred to. For the sake of clarification
and completeness, the following resolution is in order:

Resolved, That Section 10.47 c, “Free Subsidy,” be
amended by changing the title to “Disability Income
Subsidy” and by adding a new subparagraph 3 thereto,
providing as follows:

3. A corresponding reduction of the worker’s and
widow’s disability income subsidy shall be made if the
worker failed to join within three months after he
became eligible for membership or if the member or his
employer failed during the period of his membership
to contribute the full amount of the contributions re-
quired under the provisions of the plan. All cases of
doubt shall be decided by the Board for Support and
and Pensions, judging each case on its merits and in
Christian love.

This resolution is to become effective immediately
upon adoption.

6. Pursuant to prior recommendations of the Synod
in convention, many employers have been paying the
contributions required of the members — that is, have
been paying the employer’s 8% contribution and the
member’s 4% contribution. In such circumstances the
amount which the employer has contributed in lieu of
the worker’s contribution has been credited on the
books of the Pension Plan as though the worker him-
self had made the contribution. Counsel for the Synod
has advised that the worker thereby becomes imme-
diately taxable on the amount so credited to the
worker’s account.

Because of the many requests urging that something
be done, if possible, so that the worker will not be cur-
rently taxed where his employer contributes for him
the contribution required of a member by the regula-
tions of the Pension Plan, it is recommended that
Section 10.43 a be changed so that all contributions of
an employer shall be credited as an employer’s contri-
bution. Therefore the following amendment to Section
10.43 a is recommended:

Resolved, That Section 10.43 a be amended by adding
thereto the following:

A _worker’s employer may, if it so desires, pay to
the Pension Fund all or any part of the contribution
which such worker would otherwise be required to pay
personally. Any employer paying all or any portion of
the member’s contribution for any of its workers shall
so notify the board, and the amounts so paid by the
employer shall satisfy, to the extent thereof, the require-
ments of this and any other section or provision concern-
ing contributions required of a worker. For all other
purposes of the plan, however, all amounts so contributed
by the employer shall be treated as employer contribu-
tions and shall not become a part of such member’s
personal accumulation.

This resolution is to become effective as of Oct. 1,
1965.

7. Section 10.47 of the Handbook provides for cer-
tain benefits from the Synod’s treasury to participants