The Board Bulletin Spring 2026

The Board Bulletin is published after each regular meeting of the Board of Directors of The Board of Pensions of the Presbyterian Church (U.S.A.) and reports information and actions taken that affect plans and programs administered by the Board of Pensions.

Support expands for congregations and pastoral leaders

The Board of Directors acted to balance stewardship of the Medical Plan with the needs of congregations and their pastoral leaders. They approved a subsidy for dependent children of participants in the Congregational Pastors Package, a two-year extension of Transitional Pastor’s Participation, and a Child Care Support grant.

The new subsidy for dependent children of pastoral leaders enrolled in the Congregational Pastors Package will cover 50% of the national, community-rated medical coverage cost of dependent children, effective Jan. 1, 2027. This subsidy will reduce the flat rates for both the 2027 Child(ren) and Family coverage levels. Using the 2026 rates as an example, the reductions in the coverage levels would be as follows:

*This is only an example, using 2026 dues. Dependent dues for 2027 will be released in July 2026.

The Board of Pensions continues to monitor medical cost trends and expects to release the 2027 dues for the Congregational Pastors Package and Transitional Pastor’s Participation in July 2026.

Directors also extended Transitional Pastor’s Participation through 2029, beyond its original end date of year-end 2027, for ministers currently enrolled in it. The package for ministers enrolled in Pastor’s Participation as of Dec. 31, 2024, was provided to give congregations and ministers time to transition to the Congregational Pastors Package.

Additional support for families came with Directors’ approval of a Child Care Support grant from the Assistance Program. The initial pilot phase of this grant, effective April 1, 2026, will provide $500 per month per child and up to $1,500 per month per family. This grant is available to PC(USA) ministers of the Word and Sacrament and commissioned pastors with dependent children ages 0-6 years to offset a portion of their child care needs. Congregational pastoral leaders must also be:

• employed by a PC(USA) congregation and sanctioned by the presbytery with an effective salary at or below 80% of the median effective salary ($56,880 or less for 2026);
• employed at least 20 hours a week;
• enrolled in the Medical Plan and/or Defined Benefit Pension Plan.
  

Dependent children do not need to be enrolled in the Medical Plan but must meet IRS rules for dependents.

Reserve fund supports Medical Plan

Directors established a reserve fund to bolster the Medical Plan and support the new and existing subsidies for the Congregational Pastors Package and Transitional Pastor’s Participation. Additions to this fund will be made annually.

The new subsidies will support the two-year extension of Transitional Pastor’s Participation and cover 50% of the national, community-rated medical coverage cost of dependent children, reported on above. The Board intends the subsidy for the cost of dependent children to be ongoing.

The newly approved subsidies are in addition to the historical subsidies inherent in the income-sensitive dues packages and plan design for ministers and commissioned pastors. Congregations pay dues based on the member’s effective salary; the lower the salary, the lower the dues amount, with a minimum medical dues amount set annually by the agency. This enables the lower-resourced congregations to provide medical benefits to their pastoral leaders at below the actual cost of the coverage. For example, the minimum medical dues amount represents approximately 50% of the actual cost of coverage for a single member. Subsidies also exist in the income-sensitive deductibles and out-of-pocket maximums in the preferred provider option (PPO).

Additional Medical Plan options approved

Providing more choice by expanding Medical Plan coverage options is critical to attracting and retaining PC(USA)-affiliated employers, who are driving membership growth in the Benefits Plan, helping to keep it vital. In response, Directors approved three additional medical coverage options, effective Jan. 1, 2027, bringing to six the number offered through the Board of Pensions. The three additional options include a second PPO, second exclusive provider organization (EPO), and second qualified high deductible health plan (HDHP) and will have the same features as the existing options with different out-of-pocket costs.

In addition to PC(USA)-affiliated employers, the new options will be available to PC(USA) employers and congregations for lay employees and ministers who are not in installed positions. Ministers, spouses, and children enrolled in the Congregational Pastors Package or Transitional Pastor’s Participation will continue to be offered the Board’s current PPO plan.

Balanced Investment Portfolio returns 14% in 2025

The Balanced Investment Portfolio is the investment fund for the Defined Benefit Pension Plan, Financial Protection Programs, Endowment Fund, and Assistance Program assets. On Dec. 31, 2025, the Balanced Investment Portfolio had a market value of $12.9 billion.

Policy benchmark consists of 65% MSCI ACWI, 30% Bloomberg U.S. Universal, and 5% 90 Day T‑Bill

Source: BNY

Directors approve 7.2% experience apportionment

The Board of Directors granted a 7.2% experience apportionment for the Defined Benefit Pension Plan, effective July 1, 2026. This is the largest apportionment granted since 1999 and the 14th consecutive apportionment granted, yielding a cumulative increase of 64.4% since 2013. Experience apportionments result in a lifelong increase in pension benefits or pension credits accrued.

The Directors’ decision in October 2025 to modify the guidelines in the agency’s apportionment policy made a larger apportionment possible. That decision came after the agency’s asset-liability study indicated a more generous apportionment policy was feasible. Solvency, or plan funded status, is the only factor in determining apportionments; the greater the funded status, the more opportunity to grant an apportionment. Pension assets are held in trust for beneficiaries of the Defined Benefit Pension Plan and cannot be used for any other purpose, based on federal law.

Disability benefit to increase July 1

Directors approved a 3% increase in the disability benefit received through the Death and Disability Plan. The increase is effective July 1, 2026, for those who were receiving the benefit as of Dec. 31, 2025. The increases help disability recipients maintain purchasing power in today’s economy.

The assets and liabilities of the Death and Disability Plan are evaluated independently of the other plans administered by the Board of Pensions. The Directors reviewed investment and actuarial experience, reserves, and inflation before deciding on an increase.

Changes to RSP fund lineup approved

The Investment Committee of the Board of Directors approved several changes in the fund lineup of the Retirement Savings Plan of the Presbyterian Church (U.S.A.):

• Allspring Special Large Cap Value Fund replaces T. Rowe Price Equity Income Fund
• Dodge & Cox Income Fund replaces Fidelity U.S. Bond Index Fund
• PC(USA) Socially Responsible U.S. Equity Fund replaces Impax Global Environmental Markets Fund
  

The committee regularly reviews the fund lineup and makes adjustments. These fund changes will be effective in the coming months. A communication noting the changes will be sent to members invested in any of the named funds.

The next meeting of the Board of Directors is scheduled for July 16-18, 2026. For further information, email the Corporate Secretary or call 215-587-7600.