1. Updates for the Mid Council Financial network
Intro and thanks for invitation. Focusing on latest changes and developments regarding your Benefits Plan.
Clark Simmons
Regional Representative

2. Our mission
To provide pension, healthcare, and death and disability benefits and financial assistance to qualifying members who serve or have served the Presbyterian Church (U.S.A.).
Among our Plan members are pastors, educators, missionaries, musicians, administrators, and various other church workers who serve congregations, mid councils, agencies, institutions and other PCUSA-related employers.
We recognize that many congregations and employers are, in the words of your conference theme, “Coping with the Challenge of Doing More With Less.” In most settings, membership has declined. Financial resources have often declined with membership, or at the very least are stretched further.
That is a challenge of which we at the Board of Pensions are aware and strive to be responsive. It is a challenge that I will speak to in today’s presentation.

3. Benefit payments to members
Dues-Based Programs
Total
33% dues
Pension, Death
and Disability
12% dues
Medical
21% dues
Board of Pensions
Benefit payments to members
Short-term
investments
Short-term
investments
The 33 percent dues are allocated as follows: 21 percent for medical dues and 12 percent for pension and death and disability.
The medical dues are invested by Wells Fargo in a short-term bond portfolio similar to a money market fund. Because the Medical Plan has a “pay-as-you-go” funding model, these assets are used to pay current medical benefits.
The 11 percent pension and 1 percent death and disability dues (12% total) are also invested by Wells Fargo and used to pay benefits. ($4 dollars out in pensions for every $1 dollar received in dues)
The box at the bottom of the chart represents the Board of Pensions Balanced Investment Portfolio. No arrows showing flow into the Portfolio; there is only the arrow showing benefits paid to plan members. That’s because the Pension Plan is a mature, fully funded defined benefit plan.
Board of Pensions Balanced Investment Portfolio $7.4 billion in assets used to pay pension benefits

4. Good news in challenging times
The pension fund remains fully funded
Funding level as of September 30, 2013, was 136% (114.3% year-end, 2012)
In March, Board of Directors modified apportionment policy to provide for modest apportionments beginning at a 110% funding level
Apportionments are determined by the Board of Directors in March of each year based on the funding level as of the end of the previous calendar year.

5. Financial pressures on the Medical Plan
Rising healthcare costs, making services more expensive
Shrinking dues base (fewer churches/plan members)
Aging member population, resulting in increased service demand and plan use
Deteriorating plan reserves
Coping with the Challenge of Doing More with Less is certainly one of which we are aware as we manage the medical plan.
The plan is considered a “pay-as-you-go” model,
Yet we experienced shortfalls in 2010 of 6 million; 2011 of 14 million; 2012 of 9 million.
The shortfall is caused by several things:
the unrelenting rise in healthcare costs (which has been going on for decades but has now finally reached an unsustainable level);
a shrinking dues base as a result of a steady decline over the past 10 years in the number of churches, as well as the size of churches and their staffs, resulting in fewer members in the plan; and
a population that’s getting older – as we age we simply use more medical care.

6. Medical Plan Changes…
2014
Current medical dues model continues w/ dues increase
Minimum Participation Basis increases to $42K
Generic drug copay increases from $8 to $10
Pharmacy benefits manager changes from Express Scripts to Catamaran
“Call to Health” launches
Here’s an overview of upcoming changes in the medical plan to which I will speak.

7. Medical Plan Changes… 2015 New medical dues model takes effect
Minimum Participation Basis increases to $44K
Medical plan deductible increases to 1.5% of effective salary (may be reduced by taking “Call to Health”)
Here’s an overview of upcoming changes in the medical plan to which I will speak.

8. Medical Dues 2013 2014 2015 Member + Dependents Member Only
% Effective Salary
21%
23%
24.5%
Minimum Dues Basis
$40,000
$42,000
$44,000
Minimum Dues
$700/mo
$8,400/yr
$805/mo
$9,660/yr
$843/mo
$10,120/yr
$898/mo
$10,780/yr
May Waive
Dependent Coverage No
Yes
As the church (including the Board of Pensions) “Copes with the Challenge of Doing More with Less”, previous and existing subsidy levels are unsustainable. We therefore have increased minimum medical dues participation levels in recent years. They will increase again in 2014 and Even with these increases, participation at minimum levels remains subsidized. This is one of the aspects of Community Nature.
For example, the Actuarial Value for Family Coverage in 2013 is around $12,000, while minimum participation dues are $8,4000.

9. Managing the Medical Dues Changes
Communication Plan and Employer Tools
November 2013
Guide to Medical Dues Considerations
January 2014
E-learning module
Dues modeler on pensions.org
The Board of Pensions has created a web module to help mid councils, employers and employees deal with the upcoming changes to medical dues. Here’s a #minute module that will be available at pensions.org.

10. Managing the Medical Dues Changes
Communication Plan and Employer Tools
February/March 2014
Guide to Planning
Member listing
Section 125 Plan information
Customized dues modeler
September–November 2014
Guide To Making Coverage Changes
Online medical coverage change process
The Board of Pensions has created a web module to help mid councils, employers and employees deal with the upcoming changes to medical dues. Here’s a #minute module that will be available at pensions.org.

11. Managing the Medical Dues Changes
Communication Plan and Employer Tools
December 2014
Confirmation of 2015 Medical Coverage for employers and members.
The Board of Pensions has created a web module to help mid councils, employers and employees deal with the upcoming changes to medical dues. Here’s a #minute module that will be available at pensions.org.

12. BOP Communication Plan and Employer tools

13. 2014 Changes to Prescription Drug Plan
Generic Drug Copays
$10 for a 30-day supply (currently $8)
$25 for a 90-day supply (currently $20)
Another change in medical coverage for 2014:

14. 2014 Changes to Prescription Drug Plan
Pharmacy Benefits Manager: Catamaran will replace Express Scripts
PC(USA) phone lines open 12/1/2013 for members
97% Formulary alignment
99% Network alignment
Commitment to service excellence
Trained in PC(USA) culture
Another change in medical coverage for 2014:

15. https://pensions.adobeconnect.com/_a701962636/calltohealth
Call to Health
Goals
Improve member health
Encourage personal responsibility
Increase early detection
Let me tell you about a final change regarding the medical plan. We have already started Call to Health. The goals are as follows… Let me share with you a 7 minute web module that introduces the program.

16. call to Health Plan Impact
Deductible will increase from 1.25% to 1.5% in 2015
Plan members can lower their deductible to 1.0% by taking the “Call to Health” between October 1, 2013 and September 30, 2014

17. Call to Health 2014 Health Actions
Members must complete the following:
Preventive Exam
Engage with ActiveHealth Nurse (if called)
Members must complete at least two of the following:
Online Health Assessment
Biometric Screening (Know your numbers)
Vision Exam
Tobacco Cessation Program (if appropriate)
Attend CREDO (if appropriate)
In 2015, the deductibles for medical coverage will increase to 1.5%. Plan members who participate in Call to Health and complete a number of actions between October 1, 2013 and September 30, 2014 can reduce their deductible to 1%. Let me review the actions that a Plan member must complete.

18. Additional BOARD-SPONSORED Programs and RESOURCES
Affiliated Benefits Program
Employee Assistance Program
Retirement Savings
Assistance Program
CREDO
Member and Employer Education
At the Board of Pensions, we realize that many congregations and employing organizations are having to work with less staff and have fewer financial resources with which to provide compensation and benefits to staff. We provide benefit alternatives that may be beneficial in some of those situations.

19. Affiliated Benefits Program
For non-mandated employees
Requires employment of 20+ hours/week
Provides flexibility
Employees can waive coverage
Family coverage not required
Premium-based dues
Employee contribution permitted: up to 50% of employee cost and up to 100% of dependent cost
The Affiliated Benefits Plan is a flexible medical plan for employees not mandated in the Traditional Plan (called, installed pastors). Employees must work at least 20 hours per week, but there is flexibility of coverage and cost.

20. Employee Assistance Program
Provided through Cigna Behavioral Health
For active members and their families
Confidential counseling/referral service for family, financial, alcohol, drugs, legal, life events, and stress issues
Six free counseling visits/per person/per issue
The Employee Assistance Program, offered through Cigna, offers counseling and referral service for plan members…
The counseling resource can also be helpful for church leaders and administrators who are enrolled in the Plan and are dealing with challenging situations in the life of the church or employing organization.

21. Retirement Savings Plan
Any employee of an eligible employing organization may participate
Contributions may be made by employee, employer, or both
Fidelity Investments is record keeper

22. Retirement Savings Plan Advantages
Tax-deferred savings
Tax-deferred earnings
Contributions through payroll deduction
Numerous investment options
Easy account access
Withdrawals designated as housing allowance for teaching elders
Low annual fee - $15

23. The Assistance Program
Church workers: Shared, Emergency Assistance, Adoption Assistance, and Transition-to-College Grants
Retired church workers: Income and Housing Supplements
Pastors vocational leadership needs: Seminary Debt Assistance, MGB Grants, CREDO, Sabbath Sabbatical Support
When church workers, active and retired, are coping with doing more with less and have needs that are not met through the Benefits Plan, the Assistance Program may be able to help. The Assistance Program is not funded by dues. It is funded entirely by the Christmas Joy Offering, congregational and individual gifts, bequests, and income from the Programs accumulated assets. The Assistance Program has programs to help…

24. EDUCATION: AN UPDATE ON THE AFFORDABLE CARE ACT
State Exchanges
Open October 1, 2013
Enrollment through March 31, 2014
Coverage effective January 1, 2014
Premium Tax Credits available for individuals and families:
With income up to four times the federal poverty level
Whose employers do not provide affordable healthcare coverage (no more than 9.5% of family’s adjusted taxable income)
There may be some church workers who do not meet the eligibility requirements for enrollment in a medical plan of the Board of Pensions. It is our hope that the newly established state exchanges, mandated by the Affordable Care Act, will provide a resource. Some church workers who are not enrolled in the Board’s Traditional Program (where the employer pays all or most of the cost) may qualify for Premium Tax Credits…

25. The Affordable Care act
A Comprehensive Overview
The YouToons Get Ready for Obamacare
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If time permits; it’s a little less than 7 minutes but provides update and overview.

26. The AFFORDABLE CARE ACT
Impact on Employers
All employers required to notify ALL employees of Exchange availability
Existing employees: by October 1, 2013
New employees: within 14 days of hire
LARGE employers (50+ FTEs) must “pay or play”
Delayed implementation to 1/1/15
Potential penalties for failure to provide affordable coverage to employees working 30+ hours/week.

27. FOR MORE INFORMATION

28. Contacts: 800-773-7752 (800-pRESPLAN)
Member Services team
Available Monday-Friday
8:30 a.m. – 5:00 p.m. ET
Member Advocate
Regional Representatives
Education Specialists
Or call the Board of Pensions staff. We will do our best to find someone who can help you.