LCMS Convention Workbook St. Louis, Missouri — 1973, Page 379

Transcription machine transcription, uncorrected

⤓ Download .txt · copy text

STEWARDSHIP AND FINANCE 379

out of that Board by the end of 1972. As of Jan. 1, 1973. the
administration of the prior Pension Plan for Pastors and
Teachers becomes the responsibility of the Board of Mana-
gers in accord with synodical resolution.

Recognition

The Board of Managers joins the Synod in extending
heartfelt thanks to all those who have served on the Board
of Pensions and Support from its inception in 1937. We ex-
press a special word of commendation to the five men who
gave much additional time cheerfully and energetically in
assisting for the transfer of responsibility to the Board of
Managers during this transition period while actively carry-
ing on the administrative functions of that prior Board.

A special word of recognition is expressed to the retiring
executive secretary of the prior Board, Rev. John C. Knip-
penberg. He was involved in particular in assisting in
securing an increase in the retirement pensions for those
retiring under the prior Pension Plan, at no additional cost
to the Synod, and had a part in initiating the present study
for improvement in the Support Program of the Synod. He
was also a member of the Pension Work Committee, the re-
port of which is presented elsewhere in this WORKBOOK.

Concordia Welfare Plan

The Concordia Welfare Plan provides benefits in the area
of health care, disability income, and death, with free health
care benefits to eligible survivors.

In addition to the 1971 benefit improvements outlined in
the report to the last synodical convention, the major objec-
tive of improving claim service was achieved. Presently the
processing of a claim takes about 14 days. Target time is
5 days. During 1972. 46.000 checks were written in reim-
bursement of 40,0C0 claims.

Regular consultation with the Plan actuary gives assur-
ance of adequate financing and adequate reserves to meet
Plan obligations.

Concordia Retirement and Survivor Plans

The Concordia Retirement and Survivor Plans provide
retirement income and long-term disability income to the
member, and monthly income benefits to dependent sur-
viving spouse and children. A lump-sum death benefit is
also provided in accord with the provisions of the applicable
Plan.

The major change accomplished in the Concordia Re-
tirement Plan is the improvement to 160° (from the former
10°;) vesting at age 45 with 10 years of creditable service.

As of Jan. 1, 1972, the Concordia Retirement and Sur-
vivor Plans have been made effective in Canada. They have
been properly registered with the Pension Commission of
Ontario in Toronto, and with the National Department of
Revenue in Ottawa.

Actuarial Valuation

It is the policy of the Board of Managers to have the
Concordia Retirement and Survivor Plans valued each year
by a competent actuarial firm. The valuation report gives
assurance that the Plans are being adequately financed.

Financial Statements and Other Exhibits

The financial statements and notes thereto appended to
this report reflect the audit of the financial records of the
Concordia Plans by the firm of Ernst & Ernst. The other
exhibits are intended to give a brief overview of the opera-
tion of the Plans and the benefits provided for the period
shown.

On the Agenda
1, Concordia Welfare Plan

A. Several amendments are currently being finalized
(a) to bring a number of provisions into uniformity with
those of the Coneordia Retirement and Survivor Plans, and
(b) to recognize current Social Security and Medicare
changes.

B. A resolution of the 1969 convention requested that the
Board of Managers in conjunction with the Board for Higher
Education look into the possibility of securing a program of
reasonable medical coverage for dependents of married stu-
dents at our terminal schools. The two seminaries particu-
larly expressed an interest in such a program. Since it ap-

peared that soon after that convention the seminaries had
been able to solve this matter through student medical pro-
grams secured independently, the office of the Concordia
Plans set this particular matter aside. Just recently, how-
ever, the Concordia Plans office has again been approached
by the two seminaries with the request to assist in securing
reasonable medical coverage for all students at the re-
spective seminaries. This matter is now again being actively
pursued,

C. In accord with Res. 12-08 of the 1971 synodical con-
vention, the Board of Managers is studying the matter of
making the Concordia Welfare Plan available to our eligi-
ble people in Canada and to our eligible workers overseas.

2. Concordia Retirement and Survivor Plans

An analysis study of the benefit structure of these Plans
is in process in view of the recently increased benefits of
the U. S. Social Security Program.

In Closing

The Board of Managers and its administrative staff ex-
press their appreciation to the many treasurers and repre-
sentatives in the various congregations and employer or-
ganizations for their cooperation and suggestions in keeping
these Concordia Plans on a continuing high benefit level.
They further pledge to all of you of the Synod their con-
tinuing efforts in your behalf.

Boarp oF MANAGERS WorRKER BENEFIT PLANS
Edward Kasch, Chairman

Robert P. Hopmann, Secretary

Carl H. Bensene

E. Stanley Enlund

Fred Heisler

Walter E. Lichtsinn

Richard A. Meyer

Earl E. Haake, Administrator

Lorenz F. Wahlers, Associate Administrator

Exhibit A
ACCOUNTANTS’ REPORT

Board of Managers

Concordia Plans

Lutheran Church — Missouri Synod
St. Louis, Missouri

We have examined the financial statements of the Concordia
Plans (consisting of the Retirement Plan, Welfare Plan and Survivor
Plan) of The Lutheran Church — Missouri Synod for the years
ended December 31, 1972 and 1971. Our examinations were made
in accordance with generally accepted auditing standards, and ac-
cordingly included such tests of the accounting records and such
other auditing procedures as we considered necessary in the circum-
stances.

In our opinion, the accompanying balance sheets, statements of
revenues, expenses and fund balance and statements of changes in
financial position present fairly the financial position of the Retire-
ment Plan, Welfare Plan and Survivor Plan of the Concordia Plans
of The Lutheran Church — Missouri Synod at December 31, 1972
and 1971, and the results of their operations, changes in fund bal-
ances and changes in financial positions for the years then ended, in
conformity with generally accepted accounting principles applied on
a consistent basis.

Ernst & ERNST
St. Louis, Missouri
February 3, 1973

BALANCE SHEET
Concordia Retirement Plan

ASSETS
December 31
1972 1971
Cash:
Demand deposits $ 67,353 $ 50,845
Investment account —————__—_- 814
68,167 50,845
Contributions receivable ——_—___—_—_ 1,429,105 984,585
Investments — at amortized cost
(approximate market value —
$50,384,164 in 1972 and $38,053,034
in 1971):
Bonds. notes and debentures —— 15,069,838 13,987,947
Common stocks ———————_- 23,337,351 18,948,707
Preferred stocks 265,921 395,771

$38,673,110 $33,332,425
Accrued interest and dividends 235,071 245,207
Prepaid expenses and other assets

$40,405,743 $34,613,807