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 information and actions taken that affect plans and programs administered by the Board of Pensions.
Stewardship of the resources entrusted to it is of paramount importance to the Board of Pensions. In accordance with its bylaws, the Board of Directors’ second meeting of the year is to be the annual meeting, at which the final audited financial statements for the prior year are presented. On July 20, 2024, the Board of Directors concluded the annual meeting, during which the 2023 audited financial statements and the 2023 Annual Review were presented.
Details from the annual meeting follow.
The Board of Directors welcomed eight new Directors, elected by the 226th General Assembly (2024). Their names and committee assignments are:
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 performance of 4.7% through May 31, 2024, within the context of global economic and political events.
The Balanced Investment Portfolio performed as expected during a period that primarily rewarded investors who owned only seven U.S. technology stocks. It underperformed its benchmark for periods three years and less. In periods five years and greater, the portfolio exceeded the Board’s asset mix benchmark, calculated by blending returns from 65% MSCI All Country World Index, 30% Bloomberg U.S. Universal Bond Index, and 5% 90-day U.S. Treasury Bills.
| Annualized returns shown as of May 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 | 4.7% | 13.3 | 6.6 | 3.0 | 8.6 | 7.0 | 9.1 | 7.4 |
| Asset Mix Benchmark | 5.6% | 16.4 | 8.3 | 3.1 | 8.2 | 6.5 | 8.1 | 6.9 |
The Balanced Investment Portfolio is the investment fund for the Defined Benefit Pension Plan, Financial Protection Programs, Endowment Fund, and Assistance Program assets. On May 31, 2024, the Balanced Investment Portfolio had a market value of $11.6 billion.
Asset allocations as of May 31, 2024, were within Board-approved ranges, as shown below.
| Asset allocations as of May 31, 2024 | ||||||
|---|---|---|---|---|---|---|
|
Asset Class |
Sub-Asset Class |
Adopted Ranges |
Allocations as of May 31, 2024 | |||
|
Public Equity |
35-65% |
56.6% | ||||
| US Equity | 25-50% | 34.6% | ||||
International/ Global Equity | 10-30% | 22.0% | ||||
|
Alternatives |
10-25% |
14.7% | ||||
|
Fixed Income (including cash) |
25-40% |
28.7% | ||||
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 Presbyterian Church (U.S.A.) and their beneficiaries. The committee discussed the evolution of its investment governance and oversight of the Balanced Investment Portfolio, including a review of the Investment Committee Charter and adoption of an updated Investment Policy Statement. Periodic reviews of governance allow the Investment Committee and the Board of Directors to regularly integrate new investment and technology capabilities into a more comprehensive reporting and oversight framework.
The committee received its regularly scheduled report on the Fixed-Income component of the portfolio, including cash, and adopted a strategic framework for fixed income to align with the updated governing documents. For the Alternatives component, the committee adopted a private credit strategy, which may improve the risk and return ratio of the overall portfolio. The committee also approved additional investments and co-investments in private equity and real estate.
The committee reviewed the structure, asset allocation, and 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.
The Board of Directors amended the 2025 Benefits Plan regarding eligibility for the Humana Group Medicare Advantage PPO plan, which replaced the Medicare Supplement Plan this year. Effective Jan. 1, 2025, the plan is open to the following:
To be in the Medicare Advantage plan, an individual must be enrolled in Medicare Parts A and B.
Directors approved the appointment of Christopher W. Jackson as Senior Vice President, Human Resources, and Monica Buonincontri as Vice President, Marketing & Communications.
Mr. Jackson will serve on the agency’s Executive Team. He joined the Board of Pensions from United Way Worldwide, where he was Chief People and Culture Officer. In that role, he was responsible for the oversight and delivery of strategies related to diversity, equity, and inclusion and people and culture — ensuring alignment with goals for recruitment, retention, and succession planning. Mr. Jackson is expected to further position the Board as an employer of choice that attracts, develops, and retains top talent to better serve employers, Benefits Plan members, and the Church. Ms. Buonincontri joined the Board of Pensions more than six years ago and currently serves as Director, Marketing & Communications. She has developed and executed integrated strategies that enhance brand visibility and is skilled in leading cross-functional teams to achieve strategic business goals. She serves on the staff-led Diversity, Equity, and Inclusion Leadership Council.
The Directors reaffirmed the designation of the following advisers and auditors:
The next meeting of the Board of Directors is scheduled for Oct. 24-26, 2024. For further information, email the Corporate Secretary or call 215-587-7600.