Collection › LCMS Convention Workbook (St. Louis, Missouri) › 1975 · 51st Convention › Page 177
LCMS Convention Workbook St. Louis, Missouri — 1975, Page 177

Scan: The Lutheran Church—Missouri Synod
Transcription machine transcription, uncorrected

ADMINISTRATION 177

STATEMENT OF CHANGES IN FINANCIAL POSITION

Concordia Survivor Plan

Year Ended December 31
1974 1973
Increases in cash resulted from:
Excess of revenues over expenses a
Add (deduct) expenses tincome) not
requiring outlay of operating funds:

$1,773,969 $ 1.343.585

Depreciation —__ 601 443
Loss on investments sold _.._. _ 217,345 265.680
Amortization of bond discount

and premium — (10.044) (18.177)

Total from Operations $1,981,871 $ 1.591.531
Proceeds from investments sold
or redeemed _.__. .... a

Other increases—net ...  _—

6,233,264
13.092

$8,228,227 $12,757,827

11,166,296

Decreases in cash resulted from:

Cost of investments purchased ....-____...__._ 7.741.964 12,022,341
Equipment purchases 7 lit 2.227
Increase in contributions receivable -__.__ 58.788 28.160
Increase in amount due from insurance
company —.—.- oe ee 537.003 533,137
Other decreases—net = ne 8212
$8.337.866 $12,594.07
Increase (Decrease) in Cash ($109,639) $ 163.750

See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS
Concordia Plans
December 31. 1974 and 1973

Note A—Organization and Accounting Policies

The Concordia Plans have been established for the ministers of
religion and lay workers of The Lutheran Church — Missouri Synod and
its controlled organizations. The Plans have been made available to

member congregations and other affiliated organizations. All of the con-
tributions to the Survivor and Retirement Plans and not less than one
half of the contributions to the Welfare Plans are paid by the employer
organization.

All office space is rented from The Lutheran Church — Missouri Synod.

Investments are carried at amortized cost. except for certain invest-
ments carried at market where market values are below cost and the
reduction to market is considered a permanent decline. Bond premium
and discount is amortized on a straight-line basis over the period from
date of purchase to date of maturity.

The Plans became effective for Canadian workers in 1972. Amounts
relating to Canadian operations have not been translated to U.S. dollars.
as the effect of such translation would not have been material.

Equipment is recorded at cost. Depreciation is computed on the
straight-line method over the estimated useful life of the equipment.
Cost and depreciation of certain equipment is allocated among the three
Plans. based on anticipated use.

Note B—Amounts Due from Insurance Company

These amounts principally represent the insurance companies’ esti-
mates. based on latest information available. of the difference between
premiums paid by the Plans and the sum of claims paid. claims provided
for. and the insurance companies’ retention.

Note C—Reserve for Noncontributory Benefits

An estimated liability for benefits to members or dependents for
whom contributions have been waived due to disability or death is re-
corded as ‘Reserve for noncontributory benefits.” The amount of the
reserve and the provision for each year is determined by the Plan's
actuary.

Note D— Actuarial Valuations

Actuarial valuations of the Retirement Plan and the Survivor Plan
performed by consulting actuaries as of Dec. 31, 1974. indicated that the
liabilities of both Plans are being soundly financed and that adequate
provision has been made for all future benefits.

Note E—Changes in Plan Provisions

The Concordia Plans are excluded from the coverage of the Pension
Reform Act of 1974 by the “church plans" exemption of the Act. However,
the Board of Managers of the Plans will be making voluntary modifica-
tions in the vesting and funding provisions of the Retirement Plan to
conform to the new law. There are also certain other changes being made
to the Retirement Plan and Survivor Plan effective Jan. 1, 1975. These
changes will increase retirement benefit expenses of the Retirement
Plan by approximately $2,700,000 and reduce survivor benefit expenses
of the Survivor Plan by approximately $1.100.000 in 1975 and future years.

Exhibit B

CONCORDIA WELFARE PLAN—CONCORDIA RETIREMENT PLAN—CONCORDIA SURVIVOR PLAN
December 31. 1974

Summary of Benefit Payments

CONCORDIA WELFARE PLAN

Type of Benefit
Medical Expense—Health Care .- 2 2 2...
Disability Income — Salary Continuation __ :
Death Benefits
Worker _____.- cose
Dependent... Be ee eee

Total Welfare Plan Benefits

$ 254.493
_ 60.818

1974 1973 1965 to Date
$7.265.909 $5,689,722 $31,562,916
440.831 398.085 2.335.294
$ 171.351 $1,807,029
315.311 49.280 220.631 397.341 2.204.370
$8.022.051 $6.308.438

$36,102,580

CONCORDIA RETIREMENT PLAN

Retirement ~_. nee 704.843 $ 502.424 $ 2.617.773
Disability —_____. ee 118.736 _103.905 _ 813,923
Total Retirement Plan Benefits $ 823.579 $ 606.329 $ 3,131,696
CONCORDIA SURVIVOR PLAN

Benefits to Dependents -
Death before retirement __.__. . eee $ 891.780 S$ 768.599 $ 4.356.442
Death during disability _ ne 51.142 40,026 *
Death after retirement — = eee 12,962 10,214 63.294
Lump sum death benefits ._ oe. 5,946 1,987 17,151
Total Survivor Plan Benefits $_ 961.830 $_ 820.826 $ 4.436.887

* Included in ‘death before retirement” total