R-6
Resolution Regarding Board of Pensions
and
ELCA Participating Annuity and Bridge Fund - Passed as Amended
amendment in bold print
WHEREAS, the ELCA Participating Annuity and Bridge Fund ("the Fund") experienced significant losses as a result of the recession that began in 2008; and
WHEREAS, the board of trustees of the ELCA Board of Pensions, in consultation with Board of Pensions senior staff and advisors, acted in a number of ways to address losses in the Fund, including: closing the Fund to new contributions; reducing payments to annuitants in the Fund by 9% for 2010; advising annuitants of potential decreases in annuity payments in 2011 and 2012; reducing in 2010 by 3.5% the value of not yet annuitized accounts of participants in the bridge component of the Fund; and advising these participants of potential decreases in account values in 2011 and 2012; and
WHEREAS, the 2010 reductions and possible future reductions have the potential of working severe hardships on many with fixed financial responsibilities; and
WHEREAS, the ELCA Special Needs Retirement Fund was created to provide assistance for eligible plan participants, spouses, and surviving spouses, who have financial need; and
THERFORE BE IT RESOLVED, that the Northern Illinois Synod Assembly requests the Church Council of the Evangelical Lutheran Church in America to consult with the Board of Pensions regarding the background of, reasons for, and implications of the decisions made with respect to the ELCA Participating Annuity and Bridge Fund, to explore possible alternative ways to restore Fund losses and increase payment levels for annuitants and account values for those with bridge component accounts not yet annuitized, and to report on the results of the consultation at the November 2010 meeting of the Church Council, and to those members who experienced a reduction in their pensions; and
BE IT FURTHER RESOLVED, that steps be explored to mitigate the adverse effects of the Fund reductions and possible future reductions, including the expansion and promotion of the ELCA Special Needs Retirement Fund; and
BE IT FURTHER RESOLVED, that the Northern Illinois Synod Assembly direct the Synod Council to forward this resolution to the Church Council for consideration and possible action.
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Action of the Resolution Committee
Date of Action: April 26, 2010
Action Taken: Recommend Adoption
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