LCMS Convention Workbook St. Louis, Missouri — 2007, Page 97

Transcription machine transcription, uncorrected

⤓ Download .txt · copy text

SYNOD REPORTS 97

R6-02

Board of Trustees—Concordia Plans
Board of Directors—Concordia Plan Services
(Formerly Board of Managers—Worker

Benefit Plans)

Our Mission is to “walk together” with the LCMS min-
istries by providing quality benefits and services that support
Plan members and their families throughout their service and
retirement. These responsibilities emanate from Art. III of the
Constitution of The Lutheran Church—Missouri Synod, which
contains 10 Objectives of the Synod. Art. III 10 specifies that the
Synod ... shall:

Aid in providing for the welfare of pastors, teachers, and other
church workers, and their families in the event of illness, disability, re-
tirement, special need, or death.

Our Vision is to be the benefits partner of choice for LCMS
ministries in the twenty-first century.

Our Values commit us to live out our Christ-centered mis-
sion and achieve our vision guided by Integrity, Compassion,
Excellence, and Stewardship.

The past three years have resulted in progressive changes for
the Synod-sponsored benefit plans. One significant change was an
organizational name change from “Worker Benefit Plans” to “Con-
cordia Plan Services” to more closely align with the different Con-
cordia Plans that are available, as well as help emphasize the
services provided. Accompanying the name change was a new logo
and brand identity that resolutely states the commitment to partner
with LCMS organizations to work together to provide for church
workers and their families as they go about their ministry of spread-
ing the Good News of the Gospel of Jesus Christ.

CONCORDIA
PLAN SERVICES
Your LCMS Benefits Partner

Major initiatives during the current triennium

During the past three years, we have undertaken four major ini-
tiatives:

1. Does the Concordia Retirement Plan (CRP) provide adequate
benefits for retirement, and is the related cost to the employer
reasonable? See—The Church’s Plan.

2. Does the Concordia Health Plan (CHP) provide a valuable
service to the LCMS? See—The Concordia Health Plan.

3. Can we improve the health and wellness of our members
without increasing cost and adding to the budget pressures
faced by LCMS employers? See—The Concordia Health Plan,
“Be Well ... Serve Well” comments.

4. Are our current methods of communicating with LCMS
employers and members adequate, and is our message being
understood? See—Communication Message and Methods.

The results of these four projects are discussed in the following
sections:

The Church’s Plan
The Background

In 2004, we commenced an in-depth study of the adequacy of
retirement benefits provided by the Concordia Retirement Plan
(CRP) and the interrelationship with benefits paid by the other
Concordia Plans. This study included detailed actuarial and finan-
cial analysis and various focus group meetings to explore the “‘cur-
rent state,” as well as possible alternative future actions.

The focus groups included representatives from many different
areas: congregational pastors and laypersons, district presidents and
business officers, Concordia University System business and
human resource officers, Association of Lutheran Secondary
Schools administration, Lutheran Elementary Schools administra-
tion, and LCMS national entities including the LCMS Council of
Presidents and The Lutheran Church-——Missouri Synod Board of
Directors.

After the initial focus group meetings, additional analysis was
performed based on the input received. Alternative actions were
more clearly defined, and various cost estimates were prepared.
Another round of focus group meetings were then held to obtain
further input and reaction to the changes proposed by Concordia
Plan’s management and Board of Managers. Throughout the
process, we were encouraged by the caring attitude and compas-
sion displayed for the church workers while tempered with a real
stewardship concern for the employers responsible for operating
within a balanced budget.

Key Study Findings

1. Basic security needs are not adequately provided for some
workers, particularly lower paid and mid-career hires.

. Little employer flexibility is provided.

. Worker responsibility and personal savings are not supported.

. Retiree health care is not provided for directly.

. There is no special support for mid-career hires.

. Benefits are related to assumed needs at the expense of indi-
vidual equity.

7. The retirement program is not effectively used as a retention
tool.

8. Retiree increases are not systematic and are not based on an in-
flationary index.

9. The current employer contribution rate (expressed as a percent
of compensation) has not been increased in more than 20 years
and is not adequate to fund current plan benefits over the long
term.

10. The current employer contribution rate is not excessive—less
than half of rates applicable at other large national church bod-
ies and secular employers.

DAmh WN

Key Directional Decisions—Based on Focus Groups’ Input

1. The Concordia Retirement Plan Primary Benefit should continue
to be the primary source of core retirement income.

2. Greater emphasis should be placed on a defined contribution
component with employer match to promote worker responsi-
bility and personal savings.

3. Consideration should be given to a component that specifically
addresses retiree medical benefits.

4, Retirement benefits should not be differentiated based on “ros-
tered” status.

5. Retirement benefits should not provide any incentive for early
or late retirement; this should be a local employer decision.

6. The Concordia Health Plan (CHP) should not provide access to
retiree medical coverage to those that did not participate in the
health plan prior to retirement.

7. Regular retirement increases (“cost of living”) are desirable but
should be funded primarily by excess investment earnings. Keep
it as a benefit increase versus an entitlement.

8. As the individual Concordia Plans are designed to work together
to offer a complete benefit package, any new benefits should be
used as an incentive to encourage participation in all of the Con-
cordia Plans.

9. Any increase in contribution rate should be phased in over time
at no greater than 1 percent per year to facilitate financial bud-
geting.

2007 Convention Workbook