Reformed Presbyterian Minutes of Synod 1961 - Rparchives.org

20 MINUTES OF THE SYNOD OF THE
During the year a study of this matter has been made, using
materials that have been supplied by mutual funds and by consultation
with individuals who are connected with such funds.
Based upon the performance of these funds over the past half
century, and particularly during the past 15 years, it is the opinion
of the Board that over a period of years Mutual Funds would provide
a sound and profitable means of investment.
The present policy of the Church is to provide pension benefits
to ministers, only upon retirement from the ministry. However,
there is a definite need for financial help at certain times prior to
retirement, One of the pressing problems for younger ministers is
to provide a college education for their children. We believe that
the Church might well undertake some sort of program to help alleviate
this need.
If $500 were to be invested in the name of each young man
who is ordained to the ministry, the original $500, provided all dividends
and capital gains distributed were re-invested, would at the
end of 20 years be worth from $5,000 to $8,000. This is based upon
the rate of growth of Mutual Funds over the past ten years. It
must be pointed out that Mutual Funds makes no guarantees as to
future growth.
If the Church were to adopt such a program, what sources of
income might be available for investment In 1963 two insurance
policies, with a combined value of about $21,000 will be maturing.
This money has been designated for the Endowment Funds for
Aged Ministers. However, Synod could divert this to some sort of
program which might involve Mutual Funds.
The Pension Board at this point is not ready to propose a definite
plan. Our work has only been of an exploratory nature. Therefore
we suggest that this study be continued. If the Synod is interested
in a further study of this matter, the Board would like to
send a questionnaire to pastors and sessions with a view to gaining
further knowledge of how such a plan might be administered.
This year marks the tenth year since the New Pension Plan
was adopted by Synod and put into effect by the Board of Pensions.
Considerable progress has been made. The endowment has
been built up to $25,000. The plan has been generally accepted by
the eligible ministers and the newly ordained ministers who are beginning
their pastoral work in our congregations. Most, though not
all, have taken out insurance contracts. In 1955, the contributions
of participating ministers was reduced to 1% of salary with the
thought that they would be in a position to elect Social Security
coverage. We understand that many have not done so. We would respectfully
urge each one who does not have Social Security to
consider the benefits to survivors as well as the retirement provisions
of this coverage. If, however, one does not elect to partici-