Monday, July 6, 2009
CALGARY - A more confident stock market is helping rebuild the funding short-fall in LCC’s pension plan according to a report from the plan’s consultants. Members of the Board of Managers heard the news at a meeting in Calgary, June 17-18. Despite this, the plan is still expected to remain in an under-funded position and will require increased contributions from employers until it meets a mandated level of solvency. Rates to employers increased July 1 which will help rebuild the plan, However, the board is also looking at its overall investment strategy. “The members of the board are looking at all options available to them so that the plan contributions do not overburden our congregations and institutions,” reported Lois Griffin, the board’s chair.
At each of Lutheran Church–Canada’s district conventions this spring, plan administrator, Inge Schroeder reported on the state of the pension plan. While many delegates appreciated the candid nature of the presentation, some were not pleased with the announced increase but understood the reasons behind it. During her report, Mrs. Schroeder explained that 70 cents of each dollar in a pension cheque is funded from investments, with the balance coming from employer contributions. She assured the delegates that their “thoughts, ideas and concerns…will be gathered and considered through focus group meetings” and that congregations, schools and institutions “will have a voice and the opportunity to assist the board in developing solutions and decisions for your future.”
The Board of Managers will meet again in September to review all aspects of the plan including ongoing communication with members.