Reformed Presbyterian Minutes of Synod 1995 - Rparchives.org

44 MINUTES OF THE SYNOD OF THEthe insurance company involved. Financial reports for Plan B are included inthe Treasurer's report.In an effort to give participants in Plan B some idea of what their pensionbenefit might be at the time of retirement, two (2) exhibits are included atthe end of this report. Exhibit A, Part I, shows the amounts that could beexpected to be in one's account at certain selected years to retirement.Exhibit A, Part 2, shows the monthly income that could be expectedprovided that the total amount in one's account would be annuitized. ExhibitA assumes an annual contribution of $2,000. Exhibit B, Part I and Part 2,shows the same thing as described above, except that it is assumed that theannual contribution is increased by 5% per year. It should be noted,however, that no decision as of yet has been made to increase the annualcontribution of 5% per year, but this is a possibility. It should also be notedthat these are projections based on certain assumptions and are in no wayguaranteed. It is hoped that this information will be helpful in your financialplanning.FUNDING THE PENSION PROGRAMSThe 1993 Synod adopted what was then a new approach to funding thePension Programs of the RPCNA. As noted in the report of the 1993Finance Committee, "a study prepared for the Pension Trustees in 1992indicated that a contribution of approximately $50,000 per year for 15years to Plan A would maintain the current payments to Plan A participants."It may be further noted that funding for the Pension Programs of thedenomination now comes from four sources: 1) employer contributions toPlan B, 2) congregational assessments, 3) unrestricted undesignated funds,and 4) gifts designated for the Plan A Supplement Program. The intent wasto give the Pension Program of the denomination a more stable source offunding (see 199J Minutes of Synod, p. 96).In accord with this new approach, it is recommended that $50,000 begranted to the Pension Trustees from the unrestricted undesignated funds forthe funding of Pension Plan A for 1996 and 1997.Since the 1992 acturial valuation of Pension Plan A, another acturial wasjust completely by the Board and carefully considered. The latest acturialreveals that there is an unfunded liability of $485,000. If the Board were tocontinue to fund Plan A at the level of $50,000 per year, it is projected thatover $76,000 would be needed in 1998. In order to address this problem,the Board has decided to transfer an additional $10,000 from its currentaccount in 1995, 1996, and 1997 to Pension Plan A. This means that withthe above funding of Synod and with the additional funds from the CurrentAccount of the Board a total of $60,000 will be applied to the unfundedliability of Pension Plan A in 1995, 1996, and 1997.RECOMMENDATION 5: That $50,000 be granted for 1996 andagain for 1997 to the Pension Trustees from the unrestricted undesignatedfunds of Synod for the funding of Pension Plan A.