Congregations will have to pay health and dental premiums only during the first six months of a vacancy as of July 1st. A 1988 decision held premiums for 12 months. The Pension and Benefits board will review this on an annual basis. The estimated loss of revenue of about $105,000, or about 2.2 per cent of the total benefit plan premiums, may eventually result in increased premium amounts.
There was much debate about the use of undesignated bequests for the pension fund. Nay-sayers argued that undesignated bequests should be used for various projects and ministries of the church, and not to fund pensioners' income. Two overtures asking that either 10 or 20 per cent of undesignated bequests go to the pension fund were referred back to the board.
One million dollars would be needed for a one per cent cost of living increase, something the board did not anticipate having available. It recommended instead for pension plan members who are facing financial hardship to consult with the Benevolence Committee and for those not yet retired, to the Norman M. Paterson Fund for Ministerial Assistance. A third overture requesting annual cost of living increases was also referred to the board. This would make the pension plan fully indexed for inflation. The board recommended to not grant this request, reporting that the practice has been to grant an increase only in years when an adequate surplus is available. About $2 million would be needed to offset an annual two per cent inflation increase, calling for an increase in pension contributions of about $1,700 per member. All three overtures were referred back to the board, asking that it consider how indexing of pensions can be achieved and report back to next year's assembly.
The board did report, however, that as to the authorization given by the 2004 assembly to grant a cost of living increase to pensions, pensions which have been in course of payment for at least one year to retirees, spouses and children will be increased by 1.6 per cent effective Jan. 1, 2007.
The assembly agreed to not pay the costs of health and dental coverage for pensioners through the Pension and Benefits board. An overture asked that all retired members of the pension plan receive this benefit. The cost for such coverage would be about $1.5 million annually. There are currently more than 800 retired members in the pension plan, with about 300 of those purchasing the health and dental coverage. – AM
