Diversity in the ELCA: Agree, or else?

Shrimp here, with this report from the Lutheran CORE Blog:

ELCA evicts African Lutherans because of opposition to new ELCA teaching and policy

The ELCA is taking harsh actions against African immigrant Lutherans who oppose the ELCA’s new teaching and policy on marriage and same-sex sexual relationships.

Two African immigrant congregations have been expelled from local ELCA congregations where they have worshiped at the direction of ELCA officials.

“Oromo congregations in Houston, Texas, and Denver, Colorado, were asked by their mission directors and host church to leave the church premises without delay. The reason they were given was they are not in agreement with the August 2009 Churchwide Assembly resolution,” the January newsletter of the United Oromo Evangelical Churches reported.

The 2009 ELCA Churchwide Assembly voted to change ELCA teaching and practice on marriage and sexual ethics to affirm same-sex sexual relationships and to allow pastors to be in those relationships.

The 2009 assembly also asked the ELCA to respect the “bound consciences” of those who disagree with the church’s new teaching and practice. But that part has been more difficult for ELCA officials.

“One of the things mentioned to the leaders of the church in Denver: ‘Rev. Gemechis Buba has resigned from his ELCA position and we assume you have a similar stand and we have no reason to keep you in our buildings,’” the newsletter reported.

The Rev. Dr. Gemechis Buba is the former Director of African National Ministries for the ELCA. He resigned his ELCA position Dec. 8 to accept a call to serve as Missions Director for the North American Lutheran Church.

Dr. Buba was the first prominent leader from the ELCA national offices in Chicago to leave the church body since the 2009 ELCA Churchwide Assembly.

Members of these congregations came to America to escape persecution because of their Christian faith in their native Ethiopia under the Communist regime that ruled Ethiopia until 1991. Some of them were imprisoned and tortured because of their commitment to Christ. They now face a different kind of persecution in their new home because of their faith.

“We ask all of our church leaders to announce fasting and prayer time for the difficulties we currently facing,” the newsletter requests.

ELCA, Board of Pensions Respond to Lawsuit...

Shrimp again.

Midday Friday the ELCA News Service issued a press release in response to the suit reported in our last entry. We'll close this entry with the entire release, but we wanted to highlight a couple of quotes first.

The ELCA's public response to the suit in essence is:

"While we deny the allegations, we will not comment publicly on the specifics contained in the lawsuit so long as this matter is in litigation."

"The ELCA remains concerned about the retirees who filed the lawsuit as we are about everyone adversely affected by the downturn in the stock market and the state of the economy. We ask everyone to keep the retirees and the church in their prayers during these difficult times," the statement said.

No mention that we could find of the ELCA Special Needs Retirement Fund which is available to supplement those prayers.

Meanwhile, the Board of Pensions is reported to say:

"We believe this lawsuit, brought by four individuals, lacks merit and we are vigorously defending against it," said a statement from the ELCA Board of Pensions. "The top priority of the Board of Pensions for the ELCA Participating Annuity and Bridge Fund has always been, and continues to be, providing annuity payments to participating plan members during their lifetimes.

Part of the lawsuit, though, has to do with how the ELCA Board of Pensions encouraged ELCA clergy and other church workers to move their retirement funds into the annuities in the first place. As the Pioneer-Press reported in its article:

[T]he pastors' lawsuit cites years' worth of documents from the ELCA, all of them discussing the security of the pension payments in the annuity plan. A 2001 description of the annuity option says that the plan's goal was to increase participants' monthly pension income at the rate of inflation — about 3 percent to 5 percent — over many years.

"Any increase is permanent and applies to all payments made to you, your joint annuitant and beneficiaries," the 2001 plan description said....

Like the Augsburg Fortress plan [Note: the Pioneer Press article is relating this pension suit to the Augsburg Fortress pension controversy], the ELCA pension plan also claims to be exempt from federal laws governing pensions because it's a "church plan." But the pastors' lawyer said that isn't a point of contention in their lawsuit, which alleges breach of contract on that part of the pension plan.

Granted, Shrimp isn't a lawyer, but the "breach of contract" accusation seems to be a likely focal point. Pastors converted their pension funds into annuities because they would be "safer" than leaving those funds in their BOP accounts. Annuities promised greater protection from inflation and long life. On the other hand, most of those whose pension funds remained fully invested in their BOP accounts (members have a choice of several allocations between stocks, bonds, cash, and other investment vehicles), both retirees and those still working, took a significant hit -- many greater than those who annuitized -- when the markets plummeted.

Shrimp has to wonder if lawyering up against each other is the best way for the ELCA and its pastors to survive this continuing economic crisis.

Meanwhile, here's the entire ELCA News release. Shrimp out:

ELCA, Board of Pensions Respond to Lawsuit on Annuity Payment Reductions

10-006-JB

CHICAGO (ELCA) -- The churchwide organization of the Evangelical Lutheran Church in America (ELCA) and the ELCA Board of Pensions responded publicly to a Dec. 3 lawsuit filed against them in a Minnesota state court by four plaintiffs. The plaintiffs claim the ELCA Board of Pensions acted improperly to reduce annuity payments to retirees participating in an annuity retirement fund.

The suit was filed in a district court in Hennepin County, Minn., by the Rev. Arthur F. Haimerl, the Rev. Benjamin A. Johnson and two former pastors, Larry D. Cartford and Dr. Ronald A. Lundeen.

Named as defendants were the ELCA Board of Pensions, based in Minneapolis, and two members of its leadership team, John G. Kapanke, president and chief executive officer, and Curtis G. Fee, vice president and chief investment officer. The ELCA, a separate nonprofit corporation based here, was also named.

"The Evangelical Lutheran Church in America is aware of the allegations contained in the lawsuit filed in the Minnesota District Court," according to a statement from the ELCA churchwide organization. "The lawsuit claims that the ELCA Board of Pensions, a corporation separate from the churchwide organization, acted improperly by reducing certain annuity payments. We are disappointed the plaintiffs chose to name the ELCA as a defendant in this matter. While we deny the allegations, we will not comment publicly on the specifics contained in the lawsuit so long as this matter is in litigation."

"The ELCA remains concerned about the retirees who filed the lawsuit as we are about everyone adversely affected by the downturn in the stock market and the state of the economy. We ask everyone to keep the retirees and the church in their prayers during these difficult times," the statement said.

In 2009 the ELCA Board of Pensions informed about 12,500 retirees in the Participating Annuity and Bridge Fund that, because of significant market losses, their annuity payments would be reduced 9 percent for 2010, and would likely be reduced further by 9 percent in 2011 and 2012.

The reductions were needed because the Participating Annuity and Bridge Fund suffered significant market losses in late 2008 and early 2009, resulting in a funding shortfall of as much as 39 percent in February 2009. To ease the impact on plan members, the trustees decided to implement reductions over a three-year period.

Last month the trustees of the Board of Pensions announced smaller 2011 reductions in annuity payments for plan members in its Participating Annuity and Bridge Fund, primarily because of positive market performance in recent months. The trustees reduced annuity payments for 2011 by 6 percent instead of 9 percent for plan members in the Participating Annuity and Bridge Fund.

In the lawsuit the plaintiffs alleged that the defendants' actions were not proper and not permitted based on the terms of the retirement plan agreement. The plaintiffs claimed that "annuity payments were guaranteed for life" and that "increases in these guaranteed lifetime annuity payments would be permanent."

Earlier this month the Board of Pensions caused the lawsuit to be moved to the federal court in Minneapolis.

"We believe this lawsuit, brought by four individuals, lacks merit and we are vigorously defending against it," said a statement from the ELCA Board of Pensions. "The top priority of the Board of Pensions for the ELCA Participating Annuity and Bridge Fund has always been, and continues to be, providing annuity payments to participating plan members during their lifetimes.

"In January 2010, as a result of the historic and virtually unprecedented downturn in the investment markets in late 2008 and 2009, the Board of Pensions implemented a three-year plan of corrective measures to protect the long-term viability of the Fund for its participating plan members. The Board of Pensions believes it has acted in the best interests of plan members by seeking to return the Fund to fully funded status. The steps implemented by the Board of Pensions are intended to support continued annuity payments to participating plan members during their lifetimes. Currently we are on track to return the Fund to a fully funded status, due primarily to improved investment market performance and the action we have taken in our stewardship of the Fund," the Board of Pensions statement said.

For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news
Facebook: http://www.facebook.com/elcanews
Twitter: http://twitter.com/elcanews

Pioneer Press: Lutheran pastors sue ELCA over annuity cuts

Shrimp here. While we've done some reporting on the cancellation one year ago of a pension plan for employees of Augsburg Fortress, "the ELCA's publishing ministry," it turns out that we've not made mention of the reduction in benefits announced in October 2009 to those members of the ELCA Board of Pensions who had converted their retirement fund balances into annuities. For those not up to speed:

The downturn in investment markets in late 2008 and early 2009 resulted in a gap between the net assets in the Fund and projected lifetime obligations to members, John G. Kapanke, Board president, said in a report to the ELCA Conference of Bishops, which met Oct. 1-6 in Chicago. Effective Jan. 1, 2010, monthly annuity payments will be decreased by 9 percent, he said.  Kapanke said the Board anticipates monthly annuity payments will be decreased "by an additional 9 percent in 2011 and 2012."  The interest-crediting rate for the non-annuitized portion in the "bridge component" of the Fund will be cut 3.5 percent for each of three years beginning in 2010, Kapanke said.

Last November came the announcement that the 2011 cuts would not be as severe as earlier anticipated:

The trustees reduced annuity payments for 2011 by 6 percent for plan members in its Participating Annuity and Bridge Fund and set the interest crediting rate for 2011 at -0.3 percent for bridge accounts.

Separately, the ELCA News Service reported:

The Church Council of the Evangelical Lutheran Church in America (ELCA) authorized one-time payments from the ELCA Special Needs Retirement Fund "as soon as realistically possible in 2011" to help people most adversely affected by reductions in ELCA Board of Pensions annuity payments caused by the crisis in financial markets in late 2008 and early 2009.

The council action was among a series of recommendations it approved from a report presented by an Ad Hoc Committee the council appointed in August....

In addition the council asked the Board of Pensions and the management committee of the ELCA Special Needs Retirement Fund to "develop criteria based on need and a process for distribution of available funds" to those with the greatest need. It asked for more frequent reviews of eligibility, including periodic comprehensive reviews to address plan members' needs in light of economic realities, and requested more information about the implementation of the recommendations at the council's April 2011 meeting.

Earlier today the Twin Cities Pioneer Press reported that some retired ELCA pastors aren't taking this lying down.

Four retired Lutheran pastors are suing their former employer, the Evangelical Lutheran Church in America, alleging that the church guaranteed lifetime annuity payments that it later decided to "drastically reduce."

While the retirees had been planning on a lifetime of steady and growing pension payments, they were told in September 2009, that the guaranteed payments would be cut 9 percent in 2010, with more cuts to come in 2011 and 2012.

And the four pastors are not alone.

Over the last 21 years, more than 10,000 eligible employees elected to take their retirement accumulations in a lifetime annuity or a pension, according to court filings from the ELCA, which has its headquarters in Chicago.

Read here for more about this lawsuit, filed last month and seeking class action status for all those who annuitized all or part of their pensions. As you read this we'll observe that while those affected by this are retired ELCA pastors, lay rostered leaders, and other church workers, most were actually employed by ELCA congregations or institututions, not the ELCA itself. And, as the ELCA's News Service repeatedly notes in its reports, the ELCA Board of Pensions is separately incorporated from the ELCA.

What these facts mean legally will, of course, be determined in the settlement of this suit. What they mean morally, well, we've written about "economic justice" in the ELCA before; as they say, "YMMV (Your mileage may vary)." We here at Shellfish do appreciate that, unlike with Augsburg Fortress pensioners, the ELCA Church Council has made some sort of attempt to alleviate some of the effects of the financial downturn on retired ELCA pastors and pensioners. And rather than cast further judgment, we'll point you to the ELCA Special Needs Retirement Fund and encourage you to act with your own sense of economic justice.

Shrimp out.