LCMS Convention Proceedings St. Louis, Missouri — 1969, Page 161

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RESOLUTIONS 161

grated part of the Synod’s total program to provide for
the welfare of the workers in the Synod. The philosophy
in the design of the plans was to provide the greatest
benefits for the greatest number of covered workers at
the lowest reasonable cost to the participating congrega-
tions.

2. The two plans, the Pension Plan for Pastors and
Teachers and the Concordia Retirement Plan, are struc-
tured and funded in different ways and are controlled
by different actuarial, legal, and tax considerations. It
is therefore necessary to consider separately the impact
of the overtures on each of the respective plans.

3. Provisions in both plans limiting the vesting of
benefits in participants are not based upon any motive
or desire to deprive any participant of an accrued bene-
fit upon termination of employment but derive from
actuarial, tax, and other customary pension design con-
siderations.

4, The provisions of the plans do not permit the ex-
penditure of any pension trust moneys for other than
retirement plan purposes, and in particular none of the
pension moneys can revert to the Synod.

5. The old plan—Pension Plan for Pastors and
Teachers —is not an IRS-approved “qualified” retire-
ment or annuity plan, and the tax consequences of vest-
ing and withdrawal overtures are governed by Federal

tax provisions applicable to the special nature of that
plan. While it is designed as an individual-account
money-purchase plan, the group concept exists, in par-
ticular, from an actuarial and investment standpoint.
6. The Concordia Retirement Plan is a “qualified
plan” under the Internal Revenue Code and is governed
by the specific provisions applicable to such a plan. It
is also totally based on the concept of group funding
whereby the total plan liabilities are met by an across-
the-board rate structure. Therefore it is a misconcep-
tion to postulate that contributions based on a member’s
compensation buy a specific benefit for such member.

7. Present fund assets and contributions are ade-
quate to provide only the present benefits of each plan.
Changes such as permissive withdrawals or immediate
vesting will require greater contributions or reduced
benefits for members.

8. The operation of a pension plan involves such
technical and complex matters in the actuarial, invest-
ment, tax, and legal areas that a delegate convention
must exercise great care and intelligent restraint in
considering changes in the plans.

Wuereas, The adoption of Overture 12-20 requesting
$250 per month pension would result in higher subsidy
expenditures from the Synod’s future operating budgets;
for example, in 1970 alone this would amount to