Reformed Presbyterian Minutes of Synod 1993

REFORMED PRESBYTERIAN CHURCH 59participant's account. It is noted that in 1992 twenty-two (22) employerscontributed more than the minimum contribution. We are gready encouragedby this increase in pension contributions (we had 5 employers in1991). We continue to encourage all employers, which includes the boardsof the church, to contribute over the minimum contribution rate.Recommendation No. 2• That Synod approve and set the minimum contribution rate of $ 1,600by each employer of a participant of Plan B for 1994 (an increase from$1,400 for 1993).Having had an actuarial study done on Plan A, we know that Plan A isseriously underfunded. Due to dwindling assets, we must begin to transfer$50K in 1993 and continue a yearly transfer of $50K until Plan A no longerrequires that level of funding. (The actuarial study done in 1987 showedthe need to designate approximately $50K per year to Plan A for 15 yearsto adequately fund Plan A at the payment levels then in effect.) Weanticipate a deficit in 1993 of approximately $ 15K and we request that thedeficit be funded from the Unrestricted-Undesignated funds of Synod.Having forewarned the Synod for years of the impending funding problems,this is what we feel we must do at this time.BENEFITSPlan A:As of January 1,1993, pensions for Plan A (those over 54 years of ageon January 1,1974) are being paid to 13 couples and 18 singles. To thosereceiving a full pension, couples are receiving $ 360 per month and singlesare receiving $ 300 per month. In 1993 we estimate we wUl pay out a totalof $113,150. With the cunent financialpicture, the pension tmstees do notfeel that they can recommend an increase to the Plan A pensions for 1994;however, the pension tmstees are initiating a program to supplement PlanA pensions. We wiU be making appeals to congregations and/or individualsfor funds to supplement the Plan A pensions. The money received willbe distributed proportionately to all Plan A participants along with theirpension payment at the end of each quarter. Cunently it would take $5Kto give each participant in the plan $10 per month more. Congregationswill hear more about this program soon. In 1994 we estimate we wUl payout a total of $113,160.Plan B:We have six participants receiving monthly benefit checks. Annuitieshave not been purchased for these participants due to market conditions at