A007 Invitation to CPF to Forecast Effects of Reduced Pension Assessment Obligations on Clergy Deployment and on Benefit Levels

Resolved, the House of Bishops concurring,

That General Convention request the Church Pension Fund, using its current economic forecast assumptions, by September 1, 2023, provide to Executive Council the Church Pension Fund’s best estimates (in writing) concerning (a) the effects, if any, that a reduction of the clergy pension assessment rate of 18% down to 15% would have on the size and ethnicity of the congregations to which clergy (full and part-time) are deployed over the next ten years, with particular attention to historically non-white and to small congregations, and (b) the effect such a reduction in the pension assessment rate would have on future clergy retirement and other benefits; and be it further

Resolved, That for the purposes of this resolution, the term “small congregation” shall mean a congregation whose pledge and plate income is in the lowest twenty percent for their diocese, and without significant income-generating resources of their own, and the term “deployment” shall include not only changes in the number of personnel deployed to such congregations but also an increase in the number of compensated hours they work; and be it further

Resolved, That the Executive Council shall contract with appropriate actuarial consultants to conduct appropriate peer review of the Church Pension Fund forecasts and shall report the results of that peer review to Executive Council; and be it further

Resolved, That the General Convention request the Joint Standing Committee on Program, Budget and Finance to consider a budget allocation of $25,000 for the implementation of this resolution.

Explanation

This resolution was referred from the 80th General Convention. It was proposed by Legislative Committee 17 - Agencies & Boards, listed as 2022-A163, and referred to Legislative Committee 17 - Agencies & Boards

Discussions before the Committee suggest that the 18% pension assessment rate discourages the deployment of clergy to historically non-white and small congregations. This resolution asks that the Church Pension Fund to provide its best estimates to Executive Council of the effects that reducing the pension assessment rate would have on such deployments, as well as upon future retirement benefits. The resolution asks that the Church Pension Fund use its current economic forecast assumptions so that there will be an “apples to apples” comparison of the costs and benefits of such a change. A peer review of these forecasts is to occur to assist Executive Council and the wider church in the evaluation of the results.