BOP fully funded
Rev. John Steppert shares this reply from Rev. Mark Frey regarding the stability of the Board of Pensions fund, given recent publicity about the ELCA.
Dear John,
Thank you for inquiry.
As I understand the ELCA pension situation they have found themselves,
due to the severe financial downturn of the last year and a half, in an
underfunded situation. In order to return to 100% funding (that is,
having the resources in their fund to meet 100% of their current and future
pension demands) they are needing to make these reductions to bring the fund
back up to that 100% funding level. It is a very difficult turn of events
for our retired Lutheran brothers and sisters.
So what is the situation at
the Board of Pensions in our Presbyterian Church (U.S.A.)? We were
blessed to enter the recent economic downturn with substantial reserves in our
pension fund. These reserves, under the wise management of our Investment
Committee and staff, have enabled us to weather this storm. Our current
situation is that we are more than 100% funded and are now rebuilding our
reserve levels to protect us against possible unforeseen future events.
It meant that we did not grant an experience apportionment this past
year. Our Board will review our ability to grant an experience
apportionment for the 2009 year at an upcoming meeting of the directors.
They will not, however, likely grant an experience apportionment until
our reserve levels are at a responsible level and there are additional
resources to warrant it.
In the meantime, please be
assured that your pension is secure. Your monthly payments will continue
to come and there is no need for the Board of Pensions to modify your pension
payment in any way.
A complete annual report of
our investments is due out in the coming weeks. You will be able to
access this at our website, www.pensions.org
<http://www.pensions.org> , at that
time.
Once again, thank you for
bringing your concern to me. I hope you may be assured that we are all in
good hands.
Many blessings,
Mark
The Rev. Mark T. Frey
Regional Representative - Synods of Alaska-Northwest and the Pacific
The Board of Pensions of the Presbyterian Church (USA)
18645 SW Farmington Rd, PMB 288
Aloha, OR 97007
Phone: (800) 510-3068 or (800)773-7752, ext 7042
Fax: (503) 848-0591
E-Mail: mfrey@pensions.org
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