LCMS Convention Proceedings St. Louis, Missouri — 1981, Page 165

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church plans and represents a fair estimate for
all locations around the country when a single
rate is desirable for plan use.

12. What are typical monthly payments to pastors and

their widows from the old Pension Plan?
For retired workers, age 65 and older, who retired
between Jan. 1, 1981, and May 31, 1981, the
following figures are applicable to the Pension
Plan for Pastors and Teachers (Concordia Re-
tirement Plan benefits and Social Security arein
addition to the following):

Average benefit ....$218.88 month
Highest benefit ..... $344.29 month
Lowest benefit ...... $ 11.16 month
Mean benefit ....... $177.73 month

A detailed study made in mid-1979 indicated the
following benefit payments are applicable:

WORKERS RECEIVING BENEFITS

($200 mo. Minimum Pension) ..........-------- 2,062
More than $200 month ......... 461)
Less than $200 month* ........ 384)=845 41%
Less than $200 montht ........ 615 30%
Exactly $200 month ........... 602 29%
2,062

* Receive less than $200 month from Pension Plan for
Pastors and Teachers but overall benefits exceed $200
because of Concordia Retirement Plan

+ Reasons for less than minimum of $200 month:

Arrears (less than required contributions) ..... 442

Early retirement ..........-.-- 0000s sees eee 99

Not fully qualified ............--:.e eee ee ees 14

615

WIDOWS ($120 mo. Minimum Pension) ........ 1,317
More than $120 month .......... 166)

Less than $120 month* .......... 111)=277 21%

Less than $120 monthf .......... 305 23%

Exactly $120 month ............. 735 56%

1,317

* Receive less than $120 month from Pension Plan for
Pastors and Teachers but overall benefits exceed $120
because of Concordia Retirement Plan

+ Reasons for less than minimum of $120 month:

Arrears (less than required contributions) ..... 207
Not fully qualified ............. eee eee ener eee 98
305

13. Please give specific assurance to the church and its
workers that for the future there will be adequate
retirement funds.

A row of Veeps

RESOLUTIONS 165

The Board of Managers has established the
objective of replacing 85% of net compensation
for a career worker (35 years) when both the plan
benefits and Social Security are considered.
Funding objectives of the Concordia Retirement
Plan covering asset levels, cash flows, and
liability coverage are evaluated each year by an
independent actuarial firm employed by the
board. Annual audited statements are provided
each year to every participant. These statements
included footnotes that further address this
matter;
and
WHEREAS, The concerns raised in the above questions
are legitimate; and
WHEREAS, Information concerning the plan, its
investments and performance is, and should be, avail-
able to participants; therefore be it

Resolved, That the Synod’s Board of Directors and
the Board of Managers continue to monitor the invest-
ments and performance of the investment agents so
that the best possible return on investment can be
achieved; and be it further

Resolved, That the Board of Managers include in
their annual report information about the investments
and the performance of the investment agents and,
upon request, provide any participant in the plan
detailed information about the investment portfolio.

Action: Adopted (4).

To Continue to Study
and Improve Worker Benefit Plans

RESOLUTION 4-04
Overtures 4-16A—B (CW, p. 210)

WHEREAS, One of the basic purposes of the Worker
Benefit Plans is to provide benefits to pastors and other
church workers at retirement; and

WHEREAS, Benefits for retired workers are based
upon contributions to the plans during the worker’s
years of creditable service; and

WHEREAS, A thorough review of the Concordia Plans,
by an independent consulting firm, has recently been
completed, indicating favorable comparisons with 14
other major church body plans; and

WHEREAS, Retirement and Survivor Plans’ benefits
will be increased effective Jan. 1, 1982; and

WHEREAS, While costs of the Concordia Health Plan
have increased during the past two years, it is also true
that benefits have increased; and

WHEREAS, Health care benefits for retired workers
are now provided at approximately 75 percent of actual
cost; and

WHEREAS, The Board of Directors of the Synod
regularly reviews and monitors the operation of the
Worker Benefit Plans, and has already made changes in
the plans, based on independent studies and the