Board Approves Historic Good Experience Credits, 2022-24 Strategic Plan, New Product
INDIANAPOLIS - The Board of Directors of Pension Fund of the Christian Church met virtually November 11-13, 2021. During the meeting, the board approved a historic payout of Good Experience Credits (GEC – $82.7 million). GECs are paid in addition to the guaranteed base rate of interest. Earlier in the year, the board awarded the largest total dollar Special Apportionment - $187.3 million that increased pension accounts and payments by 10.5% on July 1, 2021.
On or before Dec. 17, 2021, members will receive GECs based on their Oct. 1, 2020, to Sept. 30, 2021, average daily balance and Pension Fund’s Sept. 30 defined contribution assets and liabilities. The GEC percentages are:
- Tax-Deferred Retirement Account – 16.5%
- Benefit Accumulation Account – 10.6%
- Traditional IRA – 4.2%
- Roth IRA – 7.5%
- 457(b) – 9.4%
“Our Board and staff are pleased that our excess reserve position allows for a significant GEC for all eligible products. The GECs for our newer products (IRA’s and 457(b)), when combined with the base rate of interest, offer a competitive total product return while also strengthening the products’ asset base with the addition of excess reserves” shared David Stone, Chief Investment Officer.
On Friday evening, Pension Fund President and CEO, Rev. Dr. Todd A. Adams, presented the 2022-24 Strategic Plan, which was approved by the board. In addition to our base business operations, Pension Fund will address three Strategic Initiatives: Diversity, Equity, Belonging, and Accessibility; lean process / Six Sigma; and Technology Enhancements.
The Diversity, Equity, Belonging, and Accessibility initiative will examine Pension Fund’s operations as an employer, a business in central Indiana, a benefits provider, and as the steward of ministerial relief and assistance. “We can no longer be dependent solely upon the traditional networks of the church and assume that all of our potential and eligible members are connected in these historic ways,” shared Adams. “This initiative will challenge us to make sure we are not simply window dressing when it comes to leveraging our presence in addressing the challenge of systemic racism in our country and in the church.”
The lean process/Six Sigma initiative will focus internally on eliminating waste, achieving efficiency, and a better project management approach that starts with the voice of the member. Internal and external technology enhancements will continue our focus on providing information to members through the portal, achieving internal efficiencies and reducing transaction times for members, and keeping our systems on the cutting edge of cyber security.
In other business, the board approved the addition of the Roth 403(b), which will be part of the Defined Contribution Retirement suite of products - a post-tax sibling to the TDRA. Members will be able to contribute through their employer on a post-tax basis, rollover similar Roth products (401k, 403(b), 401(a)), and convert pre-tax TDRA funds to their Roth account.
In addition to approving 2022 operating budgets, audit planning, the report of the Enterprise Risk Management Committee, and reviewing investment returns, the board and staff honored outgoing members Peggy Brittan (Texas), Rev. James Johnson (Florida), and Camilla Lindsey (Texas) and elected new board members Rev. Dr. Glen Miles (Ohio), Audrey Roling (Kentucky), and Martin Sallee (Illinois).
The next board meeting is scheduled virtually, April 20-24, 2022. The board will continue with online spring meetings, as a means of reducing expenses, and more focused time with detailed reports, such as the actuarial valuation and prior year audit.