The Board Bulletin Fall 2024
The Board Bulletin is published after each regular meeting of the Board of Directors of The Board of Pensions of the Presbyterian Church (U.S.A.), and represents key information and actions taken that affect plans and programs administered by the Board of Pensions.
Directors approve agency road map for two years ahead
The Board of Directors approved the 2025-2026 Strategic Vision and 2025 Business Plan, along with the supporting Financial Plan, which includes an administrative budget that is less than 8.5% of total expenses for the 10th year in a row. The guiding documents anticipate a period of transition for the Church and the Board of Pensions as the agency assesses the effects of the 2025 Benefits Plan of the PC(USA). Additionally, they support the development of innovative ministries to revitalize congregations that struggle financially to hold onto pastoral leadership.
The 2025 Benefits Plan includes an updated dues structure that gives congregations the flexibility to work within their resources. This was a significant change for the denomination. Ensuring a smooth transition, in which no member lost coverage, was a concern. Agency staff reported to Directors on steps taken to secure continuity of coverage, especially for ministers who were most affected. Every plan member was automatically enrolled for 2025 in the same benefits they have in 2024 — unless the employer proactively requested a change. Ministers enrolled in Pastor’s Participation for 2024 were placed in Transitional Pastor’s Participation for 2025. The transitional package, in place through 2027, is non-contributory for the minister and continues deep subsidies for full family medical coverage.
Staff also reported on innovative ministries, including the Shared Ministry Program, Benefits Grants for Organizing Pastors and Evangelists, and other concepts the agency is considering. Shared Ministry, born of a successful pilot in Pittsburgh Presbytery, launches nationally in 2025. The program will provide benefits support when two or more congregations covenant with the Board of Pensions to partner to employ one or more ministers.
The 2025-2026 Strategic Vision is the agency’s sixth such document, which enables longer-term planning within the cycle of the General Assembly of the PC(USA). With each Strategic Vision, the Church’s Benefits Plan has grown, the drive to support congregations has strengthened, and the agency’s Assistance Program has reached more members.
Travel grant added to Sabbath Sabbatical program
The Assistance Program provides eligible ministers with Sabbath Sabbatical Support of up to $5,000 to help them take time away for personal and professional renewal. Now, Directors have approved an additional travel grant of up to $5,000 for applicants who, as part of their sabbatical, are returning to their country or territory of origin or that of an adopted dependent. This new travel grant reflects the Board of Pensions’ commitment to supporting the growing diversity of the PC(USA) and to ensuring that all eligible members can fully benefit from Assistance Program offerings. It is effective immediately.
Balanced Investment Portfolio returns 9.6% through Aug. 31, 2024
Donald A. Walker III, Executive Vice President and Chief Investment Officer, reviewed the Board of Pensions Balanced Investment Portfolio asset allocation, risk, liquidity profile, and 2024 investment portfolio performance of 9.6% through Aug. 31, within the context of global economic and political events.
Through Aug. 31, 2024, the diversified Balanced Investment Portfolio underperformed its asset mix benchmark, calculated by blending returns composed of 65% MSCI All Country World Index, 30% Bloomberg U.S. Universal Bond Index, and 5% 90-day U.S. Treasury Bills. Despite the recent period of volatile interest rates and concentrated equity market performance, the annualized returns for periods five years and longer met, or exceeded, the Board’s asset mix benchmark. All but the annualized three-year period beat the 6% actuarial return assumption.
| Annualized returns shown as of Aug. 31, 2024 (except year to date) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Year to Date | 1 Year | 2 Years | 3 Years | 5 Years | 10 Years | 15 Years | 20 Years | |
| Balanced Investment Portfolio | 9.6% | 13.5 | 11.6 | 3.4 | 8.8 | 7.3 | 8.8 | 7.6 |
| Asset Mix Benchmark | 11.7% | 18.1 | 13.8 | 3.8 | 8.6 | 6.9 | 7.8 | 7.1 |
| Excess Returns | -2.1% | -4.6 | -2.2 | -0.4 | 0.2 | 0.4 | 1.0 | 0.5 |
The Balanced Investment Portfolio supports numerous programs, including the Defined Benefit Pension Plan, Financial Protection Programs, Endowment Fund, and Assistance Program. The Balanced Investment Portfolio had a market value of $12.1 billion after paying out $306 million in benefits through Aug. 31.
Asset allocations as of Aug. 31, 2024, were within Board-approved ranges, as shown below.
| Asset allocations as of Aug. 31, 2024 | ||||||
|---|---|---|---|---|---|---|
|
Asset Class |
Sub-Asset Class |
Adopted Ranges |
Allocations as of Aug. 31, 2024 | |||
|
Public Equity |
35-65% |
56.6% | ||||
| US Equity | 25-50% | 35.8% | ||||
International/ Global Equity | 10-30% | 21.1% | ||||
|
Alternatives |
10-25% |
14.7% | ||||
|
Fixed Income (including cash) |
25-40% |
28.4% | ||||
Andrew Junkin, Chair of the Investment Committee, provided an overview of the committee’s work on behalf of members of the Benefits Plan of the PC(USA) and their beneficiaries. The committee heard several updates, including a report on the implementation of previously approved investments and an annual review of the alternatives component of the portfolio. The committee also approved 2025 strategies and budgets for private equity, private credit, and real estate commitments.
The committee adopted the process for the development of proxy voting guidelines for 2025. Further, the committee recommended, and the Board authorized, Proxy Voting and Agency representation for 2025. The committee also heard a report from Board representatives to the Committee on Mission Responsibility Through Investment (MRTI) and adopted the General Assembly’s divestment list as its 2025 Prohibited Securities List.
As it does at every meeting, the committee reviewed the asset allocation and investment performance of the investment options in the 403(b)(9) Retirement Savings Plan of the Presbyterian Church (U.S.A.) and the 401(k) New Covenant Retirement Savings Plan.
Christmas gifts approved for retirees and surviving spouses
Directors approved the Christmas gifts for those receiving Housing and/or Income supplements from the Assistance Program as of Nov. 1, 2024. Single members and surviving spouses will receive $500, and members with a spouse will receive $1,000. This is an increase from last year’s gift. The Christmas gift tradition is one of the agency’s most appreciated expressions of compassion toward retirees and surviving spouses.
The next meeting of the Board of Directors is scheduled March 13-15, 2025. For further information, email the Corporate Secretary or call 215-587-7600.