Holston leaders oppose new clergy pensions plan
By Annette Bender
The head of Holston's delegation to General Conference says she will vote against proposed legislation that could give United Methodist clergy their first new pension plan in 25 years.
Jean Henderson, one of 16 delegates representing Holston in Pittsburgh this week, said her delegation received a recommendation from Holston's Board of Pensions to vote against the proposed plan.
"We are trusting the opinions of an awful lot of people in our conference, including the Board of Pensions," Henderson said.
If approved by General Conference during the two-week meeting concluding May 7, the new pensions plan would start Jan. 1, 2007. Delegates to the church's top lawmaking assembly will find that the plan is among the lengthiest pieces of legislation, and it is not without opposition from other conferences, according to United Methodist News Service.
The proposal comes from the United Methodist Board of Pension and Health Benefits, which has described the plan as aligning "the denomination with the best practices of major corporations" by combining the characteristics of a defined benefit and a defined contribution plan.
According to Clyde McDonald, conference treasurer, Holston's Board of Pensions opposes the proposed plan because:
- the plan appears to be unduly complicated;
- the board questions why the United Methodist Church would endorse a new defined benefit plan which would raise the possibility of future unfunded pension liability after conferences have been trying since 1983 to eliminate the unfunded liability of the previous plan; and,
- the 2 percent annual increase cap on pre-1982 past service rate increases would work a hardship on retirees with significant pre-1982 service years. "The Holston Conference is committed to a 3.5 percent increase with the possibility of more as funds are available," McDonald said.
The proposal goes first to the General Conference's 95-member Committee on Financial Administration, which can recommend that the plan be adopted, amended, rejected or referred for further study.
The Pension and Health Benefits board explains the proposed changes on its Web site at www.gbophb.org. The General Conference site at www.gc2004.org allows persons to track legislation and read up-to-date news reports.
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