LCMS Convention Workbook St. Louis, Missouri — 1973, Page 383

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STEWARDSHIP AND FINANCE 383

Exhibit E

ANALYSIS OF ENROLLMENT

Canada
December 31, 1972
Concordia Retirement and Survivor Plan only

Employer Worker
Congregations 112 110
Districts 4 19
College 1 22
LCIC 1 2
Other 1 1

Total 119 154
Exhibit F

REPORT OF PENSION WORK COMMITTEE

As directed by Resolution 12-10 of the Denver conven-
tion, the Pension Work Committee, comprised of two repre-
sentatives each of the Board of Trustees and the Board of
Managers — Worker Benefit Plans, has continued to give
consideration to the improvement of the benefits of the
Pension Plan for Pastors and Teachers which was the ob-
jective of the directives given to the committee by the con-
vention in 1969. The committee, currently consisting of
Ralph E. Petering, chairman; and Arthur Wellman, repre-
senting the Board of Trustees: and Edward Kasch and Fred
Heisler, representing the Board of Managers — Worker
Benefit Plans, has held several meetings during the last
biennium, has initiated further and new studies on matters
of continuing interest and concern. and has consulted with
the staff and the actuary for the Pension Plan for Pastors
and Teachers.

The committee reports the following results of its activity
and the progress on various matters currently under con-
sideration:

1, Minimum Pension Increased to $175 per month on
Oct. 1, 1971. Based on the favorable investment results, im-
proved earnings. and projected investment performance. and
a favorable level of reserves in the Pension Fund, the Pen-
sion Work Committee recommended to the then Board of
Pensions and Support, and to the Board of Directors that
the minimum pension be increased from $165 to $175 per
month. This was approved by those boards and became
effective Oct. 1, 1971. This was accomplished without in-
creasing the synodical budget for pension subsidy by in-
creasing the interest assumption in the annuity purchase
rate from 414% to 5% and using a portion of the accumu-
lated credits in the Contingent Reserve Account.

2. Pension Fund Reserves and Contingent Funds. The
Plan actuary is in the process of preparing a valuation of
the Annuity Fund as of Jan. 31. 1973, and preparing further
studies reauested by the committee. Although final reports
have not been completed, some preliminary figures have
been made available indicating a surplus in the Annuity
Fund with the possibility of potential benefit improvement.
When final and complete figures and reports are available,
the committee will review the results and studies, and make
its recommendations as to improvement in benefits and
distribution of surplus.

3. Allocation of Investment Appreciation. The allocation
of 50% of the appreciation in the common stock investments
of the Pension Fund has resulted in significant additions to
both the Annuity Fund and the accounts of active workers.
In consideration of the favorable investment performance
during the past several years, and the structure and quality
of the equity portfolio, the committee is studying the pos-
sibility of increasing the percentage of the appreciation
allocated to the various accounts.

4. Mortality Experience. The actuary reports that ex-
perience in the mortality of retired lives over the past 4 years
compares very closely with the assumptions for mortality
in the annuity purchase rate. Consequently, the committee
sees no reason at this time to change the mortality assump-
tion adopted in 1969.

5. Investment Performance. The investment yield and
investment performance of the Pension Fund is described

in some detail in the report of the Board of Trustees. These
results have been very favorable for the last few years, and
the committee is currently studying the possibility of a
further increase in the interest assumption in the annuity
purchase rate. Extensive actuarial data is being prepared
in connection with this study. Recommendations for changes,
if any, will be made to the Board of Directors of Synod as
soon as the committee has reached a conclusion.

6. Optional Forms of Retirement Payments. The Com-
mittee still has under consideration the matter of lump-sum
or other alternate optional benefit payments at retirement.
Further study of the legal and actuarial aspects of the
various forms of payments is required before recommenda-
tions can be made.

Actuarial studies indicate that the next 6 or 7 years is
the period when most attention to providing adequate pen-
sions is required. The committee has exhibited its concern
for improving benefits from a basis of sound evaluation of
all factors involved. The committee is committed to this
same approach in its efforts in the future.

Pension WorK COMMITTEE
Ralph E. Petering, Chairman
Arthur Wellman

Edward Kasch

Fred Heisler

farl E. Haake, Secretary

12-04

Report of Board of Pensions and Support

(Final Report)

When a synodical board goes out of existence, that is
indeed news! This notable milestone has been reached in the
history of the Pension Plan for Pastors and Teachers. The
Board of Pensions and Support, which during 1972 served as
a joint board with the Board of Managers — Concordia Plans,
ceased to exist as of Jan. 1, 1973. In accord with synodical
resolution, the administration of the Pension Plan for Pas-
tors and Teachers has as of that date been assigned to the
Board of Managers — Worker Benefit Plans.

Administration

In order to effect continuity in the administration of the
prior Pension and Support Plans, two members of the former
Board of Pensions and Support, Rev. Walter E. Lichtsinn and
Mr. Fred Heisler, have become members of the Board of
Managers and form a subcommittee on those matters.

The Pension Plan for Pastors and Teachers must still,
however, be maintained as a separate plan. The funds of
the Pension Plan must be kept in a separate fund, and
Synod’s Board of Trustees will continue to be charged with
the responsibility of investing those funds. The more than
2.650 beneficiaries in the United States and Canada will con-
tinue to receive regularly the appropriate Pension and/or
Support benefit.

Activities

The Board met four times in 1971. In 1972 the Board met
six times, four times in joint meetings with the Board of
Managers — Concordia Plans as a transition, and twice in
special meeting in connection with special support matters
and with the Special Support Project, described later in this
report. The members of this former board will continue to
meet periodically during the first half of 1973 as a super~-
visory subcommittee to implement the findings of the Spe-
cial Support Project in an effort to upgrade the entire Sup-
port Program of the Synod.

Plan Revision

Effective June 1, 1972, the Plan was amended to provide
that if a widow beneficiary remarries after she has attained
age 60, her annuity is to continue. However, the subsidy por-
tion of her benefit, if any, is to be discontinued with the
month in which such remarriage takes place. If her second
husband predeceases her. and if she has been receiving a
subsidized benefit prior to her remarriage, the subsidy por-
tion of her widow benefit shall be reinstated beginning with
the first month following the death of her second husband.