Board of Pensions
Waiting to follow the lead of the PCUSA stated clerk on 2012 key issues
By Carmen Fowler LaBerge, The Layman, October 31, 2011
SAN DIEGO, Calif. – On matters related to larger churches discussing realignment, the potential of serving members “beyond” the Presbyterian Church (USA) and other “changes in church governance” as they relate to benefits, the Board of Directors of the Board of Pensions agreed to wait for the stated clerk of the PCUSA for guidance.
Imbedded in the 2012 business plan approved by the BOP directors on Oct. 29 were several references to the confluence of external challenges expected over the coming months. Among the top 10 are three related to the turbulent denominational dynamics in the PCUSA which the BOP serves. Of highest profile is the issue of extending BOP benefits to the same-sex domestic partners of church employees.
The BOP has a special task force discussing the issue and that committee reported to the board during a two hour closed-door executive session Oct. 29. At the conclusion of the executive session, the board meeting was adjourned and no public report was given on the matter.
It was noted that the PCUSA “is facing the potential for more change in church structures and relationships in the next 15 months than at any time since Reunion in 1983. The variables presented by the evolving healthcare environment, volatile financial markets and a potentially volatile meeting of the General Assembly present a multitude of possible scenarios.”
Many of the “large external factors” outlined in the business plan mirror the risks listed in the external risk assessment. The top 10 include:
1. “The sustainability of our business model is questionable, especially in light of healthcare reform and the results of our demographic study.” At issue is the possibility that federal healthcare reform would provide subsidies to lower income Americans (possibly the majority of the current members of the BOP plan) through state-based exchanges, threatening the viability of the PCUSA’s self-insured plan. Maximizing membership is the key strategy.
2. “Many large Presbyterian churches are becoming more ‘congregational,’ and there is a growing move for them to associate with mid-councils that are like-minded on matters of theology.” The opportunity is to provide benefits to Presbyterians who ultimately follow disparate denominational paths. However, the BOP is clear “our response to these developments will be guided in largest part by the stated clerk of the PCUSA.”
3. “The U.S. and world financial markets are very uncertain, due largely to soft world economies unable to support extraordinary amounts of sovereign debt.” It was noted that the Pension Plan is in the “mature stage,” meaning that “it pays out more than four times the amount it takes in from dues.” The Pension Plan is not at risk of default, but must be managed well and reserves protected in order to keep commitments made.
4. “Several other denominational church benefits boards are expanding their customer base beyond denominational borders.” It was reiterated here that the Board of Pensions will take its “guidance from the stated clerk.”
5. “Second career pastors are an increasing factor in the PCUSA and a greater part of our membership.” The plan is designed to fully support the retirement of members who have spent 30 or more years in ministry. People entering ministry as a second career must have savings or additional retirement funding plans beyond the BOP plan. The assistance fund is not currently positioned to close that gap.
6. “Over the last decade, there has been almost geometric growth in law and regulation, accounting rules and other quasi-regulatory strictures.” The burden of compliance with every increasing government regulation results in ever-increasing overhead.
7. “Revenues available to PCUSA employing organizations are declining, and the number of very small employing organizations is increasing.” Put simply: churches are struggling and many of the struggling to pay the ever-increasing burden of the cost of the Benefits Plan. The demographic study shows that 70 percent of plan members are from churches that only pay for one person to participate. That person is likely the one mandated into the plan (i.e. the installed pastor).
8. “Money shortages in the other national agencies will increase pressure for more inter-agency synergies.”
9. “The changing nature of the church, both in congregations and its pastors, will place increasing demands on our Assistance Program.”
10. “There are likely unforeseen risks and opportunities that we will need to address in the coming years.”
The Board of Pensions is an agency of the PCUSA and exists to provide benefits (medical, pension, death and disability) to its plan members.