PCUSA pensions board faces board vacancies, controversy and aging client base
The Layman, July 30, 2012
As the Presbyterian Church (USA)’s Board of Pensions faces increased opposition to its recent decisions, its board has learned that Robert W. Maggs Jr., BOP president and chief executive officer; as well as Chief Operating Officer Frank Maloney will be retiring in 2014.
The board heard the announcements at its latest meeting on July 21 in Philadelphia. Maggs will retire at the end of the 221st General Assembly while Maloney will depart at the end of 2014.
The departures come at a time when the BOP is facing a growing tide of resistance to its March decision to offer health benefits to same-gender domestic partners.
In 2010, the 219th General Assembly of the PCUSA approved an increase in mandatory dues paid to the BOP to fund spousal and dependent benefits for same-gender domestic partners and their children.
After a closed-door session in March, the BOP decided that same-gender domestic partners of members of the benefits plan will be eligible for the equivalent of spousal and child benefits beginning Jan. 1, 2013. The member of the plan “must verify that he or she has a civil license or certificate evidencing a civil marriage, civil union or domestic partnership” in order to qualify, according to a BOP statement.
In response to the backlash from those opposing the move, the BOP released a letter on June 6 outlining the process by which sessions and other employing agencies can formally declare their objections.
So far, 112 churches have passed and sent dissenting resolutions, according to BOP Vice President Andy Browne – about 1.6 percent of churches billed by the BOP.
Some have simply decided to abandon the BOP plan altogether. The Rev. Mark Patterson, lead pastor of Community Presbyterian Church, Ventura, Calif., sent a letter to the BOP earlier this month stating that the board’s closed-door decision had forced him “to choose between staying with the BOP and its programs or submission to the Scriptures and constitution of the church.”
“My faith and conscience require me to take this second course,” Patterson said, adding that he had already procured other health insurance and pension services from another provider.
Browne said the BOP board will respond to Patterson’s letter — probably by Monday.
News of Patterson’s letter stirred up further disenchantment with BOP policy. “This immoral decision by the BOP is going to cause even further rifts in our denomination. If we wanted to implode, we could not be doing a better job if we had planned,” stated the Rev. Hershel Don Yancey of Bethel Presbyterian Church (Olive Branch, Miss.) in response to Patterson’s decision.
The BOP also faces the challenge of having to fund pensions of ministers on the brink of retirement. According to BOP figures, two-thirds of ministers enrolled in the plan are over the age of 50.
In 1995, 39-percent of ministers were under the age of 45. By 2010, the figure plummeted to 23 percent.
BOP member John Hamm will serves as chairman of a search committee to seek replacements for Maggs and Maloney. The board hopes to have at least one candidate ready for approval by the spring of 2014.
The BOP currently holds an investment portfolio of $7.1 billion and serves around 50,000 PCUSA ministers.