Reformed Presbyterian Minutes of Synod 1997 - Rparchives.org

REFORMED PRESBYTERIAN CHURCH OF NORTH AMERICA 119
pension expense, are substantially all paid from ordinary investment income,
proceeds of sales of certain investments or funds transferred from the Pension
Board. Current comprehensive aauarial reports and valuations are not available
for Plan "A". Accordingly, the information necessary to provide the disclosures
required by Statements of Financial Accounting Standards 87 and 88 has not been
determined. Under Plan "A", the Trustees charge pension benefits to expense as
incurred and credit investment income and net gain on investment transactions to
revenue. Generally accepted accounting principles require that pension expense be
determined using an acceptable aauarial cost method. Plan "A" was substantially
curtailed as of December 31, 1996, as there were no participants still actively
employed by the Trustees and, as such, use of an acceptable actuarial cost method
would have resulted in insignificant expenses for the years then ended. Use of
actuarially determined costs as of the most recent valuation (January 1, 1987) for
Plan "A" would have resulted in an increase in pension liability and a decrease in
the unrestritted-designated fund balance of approximately $225,000.
Investments with a cost of approximately $73,000 and market value of
approximately $103,000 at December 31, 1996, included in the financial
statements of the Trustees, are available to satisfy a portion of the Plan "A"
pension liability. A 9% assumed rate of return was used in determining the
present value of accumulated vested benefits. There are no nonvested
accumulated benefits.
Plan "B" - Plan "B" is a defined contribution plan and covers substantially all
ministers, missionaries and employees of the Synod who are not covered under
Plan "A". Total pension expense for the year ended December 31, 1996, was
$183,801, which includes amortization of past service cost over an average period
of approximately 25 years. The Trustees' policy is to fund pension costs accrued.
Plan "B" is administered and the funds are invested by the Pension Trustees of the
Synod of the Reformed Presbyterian Church of North America. The estimated
amount of vested benefits as of December 31, 1996, is less than the amount of
the net assets of Plan "B".
Comprehensive aauarial reports and valuations are not available for Plan "B".
Accordingly, the information necessary to provide the disclosures required by
Statements of Financial Accounting Standards 87 and 88 has not been
determined. However, the finaldetermination of such amounts is not expected to
have a material effea on the accompany financialstatements.
NOTE 6 - CONTINGENT ASSETS
At December 31, 1996, approximately $52,000 of cash (based on the
prevailing exchange rates) were held in blocked accounts in Cyprus. Because of the
restrictions imposed on these assets and the uncertainty with regard to their
realization, they are not recorded by the Trustees until funds are recovered.
Approximately $19,400 was received in 1996.
NOTE 7 - CONCENTRATION OF CREDIT RISK