Reformed Presbyterian Minutes of Synod 1997 - Rparchives.org

REFORMED PRESBYTERIAN CHURCH OF NORTH AMERICA 41
Program in their annual budgets. The good response to this program is much
appreciated and it is hoped that even more congregations, individuals, and groups
may become involved.
Under Plan B, annuities are normally purchased for individuals when they retire,
from which participants receive monthly checks from the insurance company
involved. In 1996 one (1) annuity was purchased for a total of $64,020. As of
March 31, 1997, three (3) annuities were purchased for a total of $191, 671.
Financial reports for Plan B are included in the Treasurer's report.
RECOMMENDATION 4: That $50,000 be granted to the Pension Trustees
from the unrestricted undesignated funds of Synod to fund a cost of living increase
to participants in Plan A according to the plan outlined above.
FUNDING THE PENSION PROGRAMS
A study prepared for the Pension Board in 1992 indicated that a yearly
contribution of approximately $50,000 would be needed for 15 years to Plan A
to maintain the current payments to Plan A participants. It should also be noted
that funding for the Pension Programs of the denomination now comes from four
sources: 1) employer contributions to Plan B, 2) congregational assessments, 3)
unrestricted undesignated funds, and 4) gifts designated for the Plan A Supplement
Program.
The latest actuarial study of Pension Plan A, done in 1992, indicated at that
time that there was an unfunded liability of $454,000. Therefore, beginning in
1993 Synod began the process of funding this unfunded liability by granting funds
to Plan A from the unrestricted undesignated funds of Synod from the McLaughlin
Trust income. Also, the Board decided to transfer an additional $10,000 per year
from its Current Account in 1995, 1996, and 1997 to Plan A. This means that
with the above funding of Synod and with the additional funds from the Current
Account of the Board a total of $60,000 will be applied to this unfunded liability
in 1997, as was done in 1995 and 1996. Projections indicate that if $60,000
per year is added to Plan A it will be funded by the year 2000.
RECOMMENDATION 5: That $50,000 be granted to the Pension Trustees
from the unrestricted undesignated funds of Synod towards funding the unfunded
liability of Pension Plan A.
RECOMMENDATION 6: That Synod receive the Auditor's Audit Report of
Plan B for the year ending December 31, 1996 for information. (This report has
been supplied to the Finance Committee.)
HEALTH INSURANCE
Health insurance is also part of the work of the Pension Trustees. As previously
reported, the present state and future of the denominational health insurance
program is a matter of considerable concern. A number of persons, are not
enrolled in either the program with Blue Cross and Blue Shield or in the Keystone
Blue HMO (available in western Pennsylvania). This means that a small group is
becoming even smaller as more people are obtaining health coverage elsewhere.