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Pension Benefit Increase Effective January 1, 2008
CHICAGO, IL (October 25, 2007) – A pension benefit increase has been approved for Evangelical Covenant Church pastors, missionaries, retirees and their surviving spouses, to take effect January 1.
The increase was approved by the Executive Board upon the recommendation of the Covenant Board of Pensions and Benefits. It calls for a six percent across-the-board increase in benefits for retirees, surviving spouses, active participants, and inactive vested participants, as well as a six percent increase in the minimum benefit levels for retirees and surviving spouses.
The increase comes on the heels of an earlier six percent increase in April this year. This means that as of January 1, benefit levels will have increased a total of 12 percent over January 2007.
“Over the period 1996-2007, minimums have more than doubled with retiree minimums up 106 percent and the surviving spouses minimums up 132 percent,” notes Dean Lundgren in a letter being sent to pension participants. The total of across-the-board increases for active participants and retirees have increased 34 percent over the same period, about in line with inflation (35 percent), Lundgren notes.
“The excellent investment returns, following the 2000-2003 stock market that was down, have made this possible,” Lundgren explains, adding, “It is important to note that while these increases are wonderful, investment returns are such that increases generally do not occur on a regular basis. Obviously, we are delighted to provide such good news.”
Copyright © 2008 The Evangelical Covenant Church. |
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