At the
recent Western/Central Regional Benefits Consultation, the Board of Pensions
rolled out the 2017 Benefits Plan and provided important key information on the
changes that have been made to benefit the denomination and those served by the
Benefits Plan. 2017 represents the 300th
Anniversary of the Board of Pensions serving the membership of the
denomination.
What
The Benefits
Plan is made up of retirement, medical, death & disability, and optional
areas of coverage and care. Beginning in
2014 and continuing through 2015 there began conversations by concerned members
to make changes to primarily the medical coverage portion of the Plan. The
changes are scheduled to become effective January 1, 2017.
Why
Concerned
members had identified issues with the program in effect currently. Discussions were held with small & large
groups, presbytery volunteers, people not in the plan, Teaching Elders, church
administrators and participants in the 2015 Regional Benefits Consultation. The
results of the conversations indicated a need for flexibility to meet the many
constraints in our employment situations:
·
Menu options
move from one-size-fits all
·
Solution
helps congregations manage limited resources
·
New plan
provides options for CREs and new forms of ministry
·
Transparency
in pricing
Menu options
open benefits to tens of thousands now without PC (USA) benefits. The BOP Benefits Plan currently serves 10,300
active members with a potential to increase service to 130,000 members.
Who
There are
three broad categories of members:
·
Installed
pastors
·
Other
teaching elders
·
Other
employees
with the
following general eligibility
·
Pastors (Called and Installed Teaching Elders)
o
No minimum
hours requirement
·
Other
Teaching Elders
o
Pastor’s
Participation: 20 + hours per week
o
Specialized
Ministries (self-employed)
·
All other
employees
o
20 + hours
per week
When
With the new
Plan, major changes for the employer and employee are offered.
·
Employer choice and responsibility:
o
What may be offered: stand-alone options
o
Who may be covered: broad eligibility parameters
o
How much will it cost: pastor’s participation vs
menu options
·
Employee choice:
o
Enroll or
not
o
Needs –based
coverage
Employer decision making process
occurs from July 11, 2016 to September 30, 2016
Employee Annual Enrolment from
October 17, 2016 to November 11, 2016.
Pricing
·
Pastor’s
Participation
o
Uniform % of
effective salary
o
Non-contributory
o
Restores
call neutrality
o
Expresses
minimums and maximums as fixed dollar amounts
o
Eliminates
part-time income pro-rating
o
Extends as
option for other teaching elders
§
Annual
election by employer
·
Menu Options
o
Actual cost
of service
o
Coverage
level pricing
o
Employer
specific
o
Regional
adjustment of cost
o
Flexible
contribution policy
·
Transitional
Pricing
o
Designed for
employers with employees transitioning from income based dues to coverage level
pricing
o
Provides for
three year glide path
o
Applies to
specific coverage levels
§
Member +
Spouse
§
Member +
Family
o
Does not
apply Teaching Elders in Menu Options
Summary
We have
provided a summary of the basics of the new plan with major components of the
options now available to both employers and employees. There will be a lot to absorb, as we move
through the process of making selections.
More information will be provided by the BOP in brochures which should
be available shortly. Hopefully options
and flexibility will meet the needs of both existing and new members included
in the coverage. We are planning on
Clayton Cobb attending the August “Big Event” to answer questions and provide
additional information. If you have
questions you may contact Clayton at 800-773-7752, ext. 7048. As always is the case,
you may contact your Presbytery office for assistance.
Also know that with the celebration
of the 300th Anniversary of the BOP that the Pension Plan is in
great shape with Funded Status at 124 % full commitments.
Your Stated Clerk
Bob Schulz
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