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Healthcare and Dues

Important changes to the Medical Plan

Several modifications to the comprehensive Medical Benefits provided to enrolled Plan members were approved at the June 27 meeting of the Board of Directors.

These changes were designed to simplify the Plan, ensure compliance with federal law, and address an overture to the 218th General Assembly (2008), all while preserving the integrity of the Plan to care for church workers under the principles of community nature and call neutrality.

Most of the changes, described below, will go into effect January 1, 2010. One change, an option to waive coverage for spouses and dependent children who have comparable medical coverage, takes effect October 1, 2009.

2010 medical dues

Traditional Program
For the third year in a row, there will be no increase in the dues percentage for active coverage under the Medical Plan's Traditional Program for 2010. This is possible because of favorable medical claims experience over the past year combined with the Medical Plan's stable reserves.

The dues percentage remains at 19.5% of effective salary. Individual invoices may increase slightly due to changes in effective salary or adjustments in the medical participation basis, which was changed to reflect an increase in the ordained median salary for 2010. 

Affiliated Benefits Program
Taking the program's claims experience into consideration, the directors approved a modest increase of 2.5% to the monthly subscription dues for active Affiliated Benefits Program (ABP) participants and ABP early retirees. Medicare Supplement subscribers are not affected by this action, as their dues are decided upon at the October Board meeting each year.

Seminary students
Seminary students will see no change in the dues percentage in 2010. Individual invoices may increase slightly since dues are based on the medical participation basis, which was changed to reflect an increase in the ordained median salary for 2010.

Application for Medicare Part D subsidy

The Board intends to continue participation in Medicare's Part D subsidy program in 2010 and has applied to do so. The effect of the subsidy will be considered in the 2010 Medicare Supplement dues decision, made at the October Board meeting.

Out-of-pocket costs and deductibles restructured

Congress extended and expanded the mental health parity law so that the benefits provided through the Medical Plan for mental health and substance abuse services cannot be subject to financial or benefit limits that are more restrictive than those imposed for medical services.

The desire to achieve parity and to better integrate, simplify, and control costs in the Medical Plan (including the Prescription Drug Program) has prompted the following changes to out-of-pocket costs and deductibles (see charts). Note that the restructured costs encourage use of network service providers and generic drugs. By using network providers and generic drugs whenever possible, members can save themselves, and the Plan, money. 

Modifications to Active Medical Plan and Medicare Supplement Program

Modifications to Prescription Drug Program for Active Medical Plan and Medicare Supplement Program

Directors approve provision to offer some flexibility in spouse and dependent coverage

Beginning October 1, 2009, active members enrolled in the Traditional Program may waive medical coverage for their spouses and eligible dependents who meet certain requirements. This coverage waiver provision is available if the spouse or dependents can demonstrate comparable medical coverage under another employer or military services-related plan (proof of creditable coverage). Choosing this option will not change the amount of dues owed by the employing organization.

New health management provider to offer full spectrum of services

ActiveHealth Management will serve as the Board's selected provider of health and care management services, replacing CareAllies, effective January 1, 2010. ActiveHealth Management's offerings for Benefits Plan members will cover a broad array of services, from pre-certification to case management to specialized support for individuals with certain chronic conditions.

ActiveHealth Management seeks to deliver a high standard of care for individual Plan members through the smart use of information technology. In addition, ActiveHealth Management will assign one nurse to work with the member (and his or her family) over the course of time, allowing ActiveHealth Management to more effectively personalize services and address any possible gaps in the quality of members' medical care. 

New coverage approved for children with congenital developmental disabilities

Children with certain developmental disabilities including Down syndrome and autism will have access to expanded therapeutic benefits, effective January 1, 2010. The directors voted to expand the definition of "medical necessity" to make possible this expansion of coverage under the Benefits Plan.

Medical Plan maximum benefit increased to $3.5 million

To reflect changes in the cost of living, the directors increased the maximum lifetime benefit payable under the Medical Plan. The maximum lifetime benefit will increase from $3 million to $3.5 million, effective January 1, 2010.

Improvements possible for Optional Dental Program; design under review

The Healthcare Committee authorized the Board to review the design of the Dental PPO (Preferred Provider Organization)/Passive PPO Program and to present possible improvements that, if approved, would go into effect in 2010.

Active Plan members should watch for more information to be mailed this fall.

Service provider partnerships continuing

With the exception of CareAllies, the Board will continue its partnerships with these providers in 2010:

  • Highmark Blue Cross Blue Shield
  • Anthem Blue Cross of Kentucky
  • Triple-S
  • CIGNA International Expatriate Benefits
  • Express Scripts

The Anthem contract was renewed with previously approved benefits modifications, most of which were implemented in 2009. One additional change will take effect January 1, 2010: the annual deductible for Anthem Plan members will increase from $150 per individual and $450 per family to $250 per individual and $750 per family.

Member advocate update

Since its formation in April 2008, the Member Advocate team at the Board of Pensions has drawn praise from Plan members for helping them to navigate a healthcare system that can oftentimes be confusing.

The member advocate's role is to resolve complex situations and to help members get the maximum value from the Medical Plan. In less than a year, the member advocacy team helped more than 1,000 members resolve issues related to their Medical Plan benefits.

To reach the member advocate or any Board representative, please call
800-773-7752 (800-PRESPLAN).

International SOS: Peace of mind while traveling abroad

The Board has renewed its contract with International SOS to provide medical assistance to members of the Benefits Plan when they travel outside of the United States. International SOS maintains clinics and 24-hour Alarm Centers worldwide, offering valuable security and peace of mind to Plan members.

No one ever hopes to need medical attention while out of the country, but it's reassuring to know that should it become necessary, medical information, referrals, and treatment, including emergency care, are available.

Read the brochure, How to Obtain Medical Assistance Worldwide, and use the included tear-off card listing a membership identification number. Members must use this ID number when calling International SOS for assistance. The card also lists the phone numbers needed to access medical benefits in the event of a medical emergency outside of the United States. 

Pension and Retirement

Median salaries announced for 2009

The most recent salary study, as of May 1, 2009, shows that the median salary of all Presbyterian Church (U.S.A.) minister members of the Benefits Plan serving U.S. congregations is $52,200, as compared with $50,800 one year earlier, an increase of 2.8%. The median effective salaries are used to calculate dues and benefits for the following year.

The increases in median salary for these pastors and for exempt and non-exempt lay members are:

Salary Study

*While the figures used to calculate the pastors' median include only ordained minister members serving churches, the median applies to all ordained minister members for determining benefits based on effective salary.

The following salary studies and reports can help decision-makers in reviewing clergy compensation: Median salary is an important measurement because it's used to calculate certain benefits, including pension credits, disability, and death benefits. The churchwide median salary is used, rather than pastors' actual salaries, reflecting the community nature of the Plan.

The pastors' median also plays a central part in determining the minimum salary participation basis for benefit dues and the maximum salary basis for healthcare dues. Consult the median salaries and dues minimums and maximums for 2010 for details. 

Minimum required distributions from Retirement Savings Plan amended

When financial markets fell severely last year, the IRS waived minimum required distributions (MRDs) from certain retirement accounts. The waiver's intent was to avoid forcing participants age 70½ or older to sell investments at significant losses.

In response to the IRS waiver, the directors approved an amendment that allows the temporary suspension of forced distributions for the 2009 plan year. This suspension will continue if the waiver is extended by federal law into 2010 and beyond. The amendment will be reported to the 219th General Assembly (2010). 

Benefits are secure; Pension Plan remains fully funded

Amidst the back-and-forth swings of the economy during the past year, promised benefits remain secure and the Pension Plan is fully funded.

The Board of Pensions Balanced Investment Portfolio had a 7.5% return for the six months ended June 30, 2009. The asset allocation on June 30, 2009, was 37.4% in U.S. stocks, 17.2% in international stocks, 36.1% in fixed income, and 9.3% in other assets.

The Balanced Investment Portfolio is the investment fund for the Pension Plan, Death and Disability Plan, Endowment Fund, and the Assistance Program, as well as for restricted gifts made to the Board of Pensions.

Read the 2009 Midyear Investment Review for analysis of the Board of Pensions Balanced Investment Portfolio through the first six months of 2009. 

Salary Continuation Benefit increased for retirees

At the October 25, 2008, Board meeting, the directors approved an increase to the post-employment Salary Continuation Benefit, raising it from $6,000 to $8,000, effective January 1, 2009. This benefit is intended to help with burial and transitional costs following the death of a retired member.

Retirement Savings Plan open to qualified individuals regardless of hours worked

All employees who work for a PC(USA) employing organization are immediately eligible to participate in the Retirement Savings Plan if it is offered to their employment classification by their organization. There is no longer a requirement that employees work a minimum of twenty hours per week to be eligible.

Classifying employees

Before lay employees can be enrolled in the Benefits Plan, their jobs must be properly classified. This is required by both the Plan document and federal law.

Employment classification for Benefits Plan purposes is based on job duties and the qualifications for exempt status under the Fair Labor Standards Act. Employment classifications for the Benefits Plan are:

ordained – full-time
ordained – part-time

exempt lay – full-time
exempt lay – part-time

non-exempt lay – full-time
non-exempt lay – part-time

Part-time employees are those who work more than twenty hours but less than thirty-five hours per week.

Treasurers must correctly identify the member's employment classification, scheduled hours to work per week, and total annual effective salary information, as well as provide timely notice to the Board of Pensions of any change in that classification or related information. 

Looking for that first pension payment?

When a fully vested member retires, pension payments commence the first day of the upcoming month after the retirement application is received. Please inform all members of this policy when they are preparing for retirement.

Understanding member couple rules

When both husband and wife are members of the Traditional Program of the Benefits Plan, they are collectively referred to as a "member couple." A member couple can consist of two members serving as pastors in installed positions, a lay member and a minister/pastor, or two lay members. However, when both husband and wife are enrolled in the Affiliated Benefits Program (ABP), they are not considered a member couple. Also, if one spouse is a member of the Traditional Program and one is a member of the ABP, they are not considered a member couple.

Special provisions apply to member couples and can be found in the Board's Your Benefits as a Member Couple booklet. For a printed copy, call the Board at 800-773-7752 (800-PRESPLAN). 

Assistance Program

Presbyterian CREDO supports pastoral reflection and renewal

In 2009, the Board of Pensions will hold seven CREDO conferences to allow clergy a time for prayerful discernment of the future direction of their vocation.

During the course of the eight-day conference, participants engage in personal and professional renewal, focusing on four aspects of well-being: spiritual, vocational, financial, and health.

The conferences typically make a significant and lasting impact on participants, resonating with them upon their return to their personal and church lives.

One minister said of the experience, "It was an exceptional time of grace-filled opportunities which touched my soul." Another said, "I am amazed at the impact of CREDO . . . I can hardly wait to see what renewal and strength will result in coming years as pastors in each presbytery and region receive the gift of this conference."

Invitations are sent to pastors randomly selected from the database of Benefits Plan members. The program guidelines seek ministers between the ages of forty and fifty-five with at least seven years of church service.

For additional information, visit www.presbyteriancredo.org. 

Middle Governing Body Grant recipients to be announced in November

The Assistance Program is offering ten Middle Governing Body matching grants in amounts of up to $15,000 for 2010. Grant applications were due in August for the grants, which help synods or groups of presbyteries to develop training programs that improve the practical skills of their pastors.

Recipients of the 2010 grants will be notified on or about November 15, 2009. 

Additional Assistance Program initiatives aid with vocational needs, seminary debt

Clergy face substantial challenges in answering their calls to serve the church. To help strengthen Presbyterian Church (U.S.A.) clergy, the Board of Pensions offers the following programs that address the needs for practical skills training and seminary debt assistance:

Board expands efforts to raise funds for Assistance Program

In 2008, the Assistance Program of the Board of Pensions provided nearly 1,900 grants, for a total of nearly $6.5 million. Grants are provided to church workers with urgent financial needs; retired church workers with financial and housing needs; and pastors with vocational, leadership, and other training and support needs. For all the good that the Assistance Program has managed, the need for assistance has never been greater. Many Presbyterian ministers, other church workers, and their families are struggling to make ends meet.

The Board's chief development officer, Kevin Garvey, outlined to directors at their March meeting in Philadelphia a three-year plan that expands efforts to raise funds for the Assistance Program.

The Assistance Program needs the continuing support of churches and individuals in order to continue helping those who serve the church and are in financial need. Recent improvements to the Pensions.org Web site now make it more convenient to make online donations.

For more information call the Board of Pensions at 800-773-7752 (800-PRESPLAN), extension 7300, or to donate online, go to the hompage of Pensions.org and click "Give Now" or visit the Giving Opportunities section of Pensions.org and click on the "Give Now" button to make a contribution.

Enrollment

Open Enrollment: Optional Dental and Supplemental Death Benefits

Open enrollment for Optional Dental and Supplemental Death Benefits is October 5 through November 20, 2009.

New this year, members will be able to view and download the Optional Dental and Supplemental Death Benefits open enrollment materials and forms from Pensions.org. The online rate checkers will enable them to identify the coverage for which they are eligible, as well as to review the death benefits levels and monthly contribution amounts.

To enroll or change coverage in either or both plans beginning October 5, 2009, members should download the appropriate forms or call the Board of Pensions at 800-773-7752 (800-PRESPLAN). Members must correctly complete and submit their forms to the Board by November 20, 2009, for enrollment changes to take effect January 1, 2010. 

Members should watch for a reminder mailing about the open enrollment in the fall.

To find out more about these programs, please visit the Optional Dental program and Supplemental Death Benefits program pages on Pensions.org.


Reporting

Service and salary change forms

Be sure to report changes in effective salary, hours worked per week, and employment classification within thirty-one days of the change. These changes are important to report because all of these items affect the accrual of a member's pension credits. Please use the Service Change form (ENR-110) to report changes to hours or employment classification and the Change of Salary form (ENR-111) to report changes to effective salary, or contact the Board for more information.

By the end of 2009, church treasurers and business administrators will be able to submit salary changes quickly and securely using Benefits Connect on Pensions.org.

To avoid unnecessary expense, notify the Board of terminating employee immediately.

It can be easy to lose track of paperwork for a terminating employee, but it's quite important to report terminations of service to the Board within thirty-one days of the effective date. Otherwise, the employing organization will be responsible for additional dues when members access benefits beyond their eligibility period. The Board must also send terminating members information about benefits continuation, to which they have a limited time to respond.

Use the Service Termination for Traditional Plan Members form (ENR-301) to notify the Board. 

Make sure coverage begins when requested by reporting new enrollments promptly

Report new enrollments in the Benefits Plan (Traditional coverage) within thirty-one days of the requested effective date of coverage to ensure coverage begins on that date. Call the Board at 800-773-7752 (800-PRESPLAN) for an enrollment packet containing all the relevant forms and benefit information.

Timely reporting results in proper benefits payment, accurate invoices

Why does it matter how quickly changes are reported? Timely reporting of changes ensures that benefits are paid properly and promptly and invoices are correct. Limitations apply to retroactive changes in effective salary and may apply to termination dates reported more than thirty-one days after the event.

In order for active members to receive benefits from the promised effective date of coverage, treasurers and administrators must:

  • enroll all ministers of the Word and Sacrament serving in installed positions (pastor, co-pastor, associate pastor, and designated pastor) for full Benefits Plan participation as mandated in the Book of Order within thirty-one days of the effective date of the call
  • report all other new enrollments, salary changes, and service terminations within thirty-one days
  • report correct employment classifications, effective salary, and hours worked per week for all enrolled members

 

Board News

Visit Pensions.org for Board news, online tools, forms, and more

Pensions.org keeps growing as an invaluable online resource for Plan members, church treasurers, business administrators, and middle governing bodies to access important Benefits Plan information.

Within Pensions.org, you will find Benefits Connect, the convenient, secure Web site where active and retired members and surviving spouses can access their personal information. It provides members access to online tools that enable them to view and update their personal information and learn about their benefit offerings. The site includes a pension estimator, which estimates a Plan member's pension benefits at various retirement dates, and a total death benefit calculator, which estimates a Plan member's death benefit protection, including additional life insurance.

Simplify your payments with BoardLink

Never worry about forgetting to pay a Board invoice again – BoardLink® is the free, secure online payment service that makes payments of monthly Board invoices fast and simple. BoardLink is available to churches, employing organizations, and individuals who pay directly. It lets payers rest assured that their pastors' and other eligible members' benefits coverage will not lapse for lack of payment.

Using BoardLink, church treasurers and other users can:
  • receive an email notification that Board invoices are available
  • view invoice details and adjust payment amounts online
  • securely transfer funds from their organization's bank to the Board
  • set future payment transfer dates
  • establish recurring automatic monthly payments
To learn more about this service and for a demonstration, visit the Dues Payment page of the Treasurers & Administrators section on Pensions.org.

Use these tax resources to stay on top of filing requirements

The tax code is constantly changing, and it's often challenging to comprehend.

The Board offers help especially for church treasurers and ministers through its variety of tax resources.

First, there's the Tax Resource Center, available online at Pensions.org. This section includes annually updated tax guides, notice of federal reporting requirements, and more.

Also, you'll be hearing more soon about the upcoming Tax Tips for Ministers and Churches Teleconference. Hosted by the Board each year, this teleconference provides valuable tax information and education useful to church treasurers and administrators. There is no registration fee for participants. Featured speaker Richard Hammar is an attorney, CPA, and author specializing in legal and tax issues for churches and clergy.

Look for a notice by email or postcard announcing registration details this fall for the next Tax Tips for Ministers and Churches Teleconference. 

Boost your planning effectiveness with education seminars

The Board's education seminars help Plan members to plan to succeed financially by leveraging the experience of our knowledgeable education specialists. Topics include financial planning, planning for retirement, and financial management after retirement.

Of particular interest to administrators is the Render Unto Caesar seminar, a free, one-day session offering advice and information on structuring Terms of Call, clergy tax issues, and related topics. Participants can be certain that Terms of Call are structured to the full advantage of both pastor and church and that tax returns are filed correctly.

Render Unto Caesar is open to Presbyterian Church (U.S.A.):

  • clergy and spouses
  • church treasurers, business administrators, session leaders, etc.
  • presbytery staff and committee members
Watch Pensions.org for additional information about the Board's free seminars, including dates and locations, or to register. For questions, email the Education team at education@pensions.org.

Online e-learning: Learning at your convenience

To help familiarize Plan members with various aspects of the Benefits Plan, the Board offers a number of e-learning modules on Pensions.org. These narrated, graphical learning experiences offer one more method for Plan members to understand some of the important concepts that undergird the Benefits Plan. Modules include Community Nature: Caring for One Another, Effective Salary: Why It's So Important to Get it Right, and Stewardship of Self.

To access these modules, members need only an Internet connection and Adobe® Flash® Player, a free program pre-installed on most computers. 

Regional Benefits Consultations

This year's Regional Benefits Consultations (RBCs) were held in Tampa, FL; Kansas City, MO; and San Francisco, CA.

The Board of Pensions sponsors the Regional Benefits Consultations each spring to bring together representatives from the presbyteries and synods of the Presbyterian Church (U.S.A.), including synod executives, executive presbyters, COM and CPM moderators, stated clerks, and pension liaisons. At these annual gatherings, members of the Board's management team share information, engage attendees in constructive dialogue, and discuss an array of topics to raise awareness of the many programs offered by the Board to meet Benefits Plan members' needs.

At recent RBCs, the Board has offered a pre-event seminar that deals with a significant issue facing the church. These seminars have served as useful springboards to examine the topics in a continuing series of booklets produced by the Board. The next volume, based on the 2009 seminar, will be titled "Encouraging Generosity in the Church."

You can listen to audio files of some of the presentations from this year's RBCs by going to Pensions.org. Select Forms & Publications, then select E-learning, go to Regional Benefits Consultation, and select eRBC 2009, or click here and then select eRBC 2009.

To conserve financial resources in these times of budgetary constraints for everyone, next year there will be just two Regional Benefits Consultations. The 2010 RBCs are scheduled as follows:

Eastern Regional Benefits Consultation
Tampa, FL
April 21-22

Western Regional Benefits Consultation
Los Angeles, CA
April 28-29 

Reports available

The following reports are available online or in print by request from the Board (email your request for a printed copy to communications@pensions.org):

Share your story

Many of us have found ways to make our lives better by taking better care of ourselves. Here's a chance to talk about how you've incorporated the idea of Stewardship of Self into your life. We're posting Plan members' stories on Pensions.org because one person's triumph can serve as inspiration for many.

Do you have a story about how you used one of the programs offered by the Benefits Plan to overcome a challenge? An anecdote of how you exhibited Stewardship of Self in some other way? An inspirational tale of a marathon you ran or a weight loss goal you achieved? If so, we'd like to hear from you. Go to Share Your Story on Pensions.org, click on the "Share Your Story" button, and tell us about it. 

 
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