Synod 2024 discusses pension plans

Synod 2024 discussed pension plans Monday morning, with some talk about inflation and how retired pastors are being affected by the current plan. The Synod is the annual general assembly of the Christian Reformed Church in North America. It will meet June 14-20 in Grand Rapids, Mich.

The discussions stemmed from two proposals (formal requests) for the synod asking for the reassessment of the calculation of the pension salary (Overture 3, Agenda for the 2024 Synod, p. 420) or to close the pension fund for new members and create a new pension fund (Overture 4, agenda, p. 421).

The committee considering these synod-recommended requirements urges pension administrators to explore “a broader pension benefit that could include a mix of defined contribution plans along with defined benefit plans” rather than change the calculation of the average salary or end the pension plan of ministers. They also approved consulting a diverse group of American and Canadian pastors, including those who are bi-vocational and recently ordained, for feedback. Additionally, Synod approved that the pension board, along with the Nominating Committee and Calvin Theological Seminary, educate pastors and churches on both the current defined benefit plan and the defined contribution options available.

Ryan Schreiber, Classis Grand Rapids East, was against the recommendations. He said as a volunteer minister who has other jobs, “I think a lot of ministers here are confused and wondering if they’re getting the best deal they can with their benefits.” He said he would like to see the pensions board produce a “really comprehensive report of the different benefits packages so that ministers really have a definitive understanding of what’s going on.”

Bob Loerts, Classis Niagara, proposed an additional recommendation to urge “Trustees to prioritize work toward increased ministerial benefit accrual.” He gave an example, “such as the return of the 1.46% multiplier in the pension calculation”. He noted the value of giving pension administrators specificity and talked about how “in Canada valuations today are lower than they were in 2008.”

Jonathan Westra, Classis Pacific Northwest, reporter for the committee making the recommendations, said they are asking trustees, “Can we look at wealth growth while maintaining security?” He added that they are trying to “give administrators a wider playing field to say, ‘Come back to next year’s synod and show us what you’ve accomplished.’

Maria Bowater, Classis Kalamazoo said, “I’m hearing this language of ‘wealth building versus security—adjusting for inflation is not wealth building.’ … My concern is that we’re emphasizing educating our ministers that they should invest in ways others for wealth building” but that “our churches believe that our pension is creating security for pastors”.

David Salverda, Classis Toronto, wanted the synod to remember the potential financial burden on small churches. “I just want to mention that this can be a burden on smaller churches and I would hate for the pension plan to be a reason not to keep the doors open.”

In the end, the synod accepted the committee’s recommendations to provide more education to pastors about their options and to direct pension plan administrators to consult with a broad group of pastors to explore the possibilities of a comprehensive retirement benefits package. . He also requested, in the spirit of education, that the pension office provide the 2026 Synod and the churches with “a more detailed summary – understandable to the churches and the pastor – of the actuarial reports for the pension plans in the US and Canada, and that they do so every three years after the actuarial reports are completed.”

Synod 2024 will meet June 14-20 at Calvin University in Grand Rapids, Mich. Find daily coverage from Fixtures news team at thebanner.org/synod. Visit crcna.org/synod for synod schedule, webcast, recordings, photos, committee reports and live blog. The Synod is the annual general assembly of the Christian Reformed Church.