The 2018 Iowa Annual Conference Session Board of Pensions report was given by Dave Peterson, vice-chair of the Board of Pensions and pastor at Clear Lake UMC, Clear Lake, Iowa.
“Assets in our Pension Funds are higher than our liabilities,” Peterson said. “As of January 1, 2017, our liabilities are funded at 105%.”
When the churches pay 15% of the pastor’s salary for those serving half-time and more, it is going to the current expenses, which are on-going pension liability, life insurance, and long-term disability premiums for eligible persons, explained Peterson.
The Pre 82 Retirement Fund is figured on how many years of Pre 82 credit the retiree has multiplied by the Past Service Rate (PSR.) The final figure becomes the yearly amount of the benefit.
“In 2018, the Pre 82 PSR was $640. For 2019 the BOP is increasing the Pre 82 PSR to $650,” reported Peterson.
The Health Care cost covers 91% premium, 8% HSA and 1% other fees such as administration, grandfathered exceptions, and Medical Assistance Fund.
“For 2019, we will be staying with Wellmark on the Blues Choice Program. It still includes 97% of the doctors and 100% of the hospitals in Iowa. The premium will increase by 4.77%,” said Peterson. “The plan deductible will remain the same at $3,500 for singles and $7,000 for families.”
As a mandatory plan, single plan participants are not charged any portion of the premium. The Family plan will remain the same premium for clergy which is $452 per month. The church share will increase $63.00 per month to $1,393.00.