The following letter was mailed to all retirees in the middle of September. If you did not receive a letter, and the forms to fill out regarding the 2010 health insurance premiums, please contact Rev Keith Anderson or 217-529-3221.
The Board of Directors of the Preachers’ Aid Society and Benefit Fund met on September 9, 2009. One of the items discussed at the meeting was the health insurance premiums for retirees and spouses for 2010.
If you recall, PASBF assets were significantly impacted by the economic down turn in 2008 and the early part of 2009. Our assets declined over 35% during this downturn, dropping our total assets below the corpus level. The Board has been able to honor all of our commitments in 2009 by borrowing against the corpus, and the Board waited to make a final decision on the health insurance premiums for 2010 until this fall to have a more accurate picture of the financial markets. A letter was sent to you in March of 2009 with this information and encouraging you to begin to plan on paying for your health insurance premiums.
While the markets have, and continue to, recover, PASBF is still approximately 5% below the corpus level. The Board has always interpreted the paying of the monthly health insurance premiums as a sharing of the earnings.
Since PASBF continues to be below corpus, the Board very reluctantly voted to not pay the health insurance premiums beginning January 1, 2010. This expense will be the responsibility of each individual retiree or spouse.
Remember, PASBF will continue to contribute $2.5 million toward the Medicare Supplement. This is a savings for each retiree and spouse of around $3,600 per year, or $300 per month. We are pleased to be able to continue this contribution.
For your information and to assist you in making plans, the premiums for 2010 are listed below:
• Retired Clergy premium ------------ $65/monthly, $780/year
• Retired Spouse premium ----------- $100/month, $1,200/year
• Retired Clergy and Spouse - --------$165/month, $1,980/year
• Retired Clergy Couple ---------------$130/month, $1,560/year
Please note these figures are for clergy and spouses who are over 65 and enrolled in our plan. There are other assessments for retired clergy and spouses who are under 65. Surcharges may also apply for those with service years less than 20 years. If you have specific questions regarding your unique situation, you may call Rev. Rick VanGiesen at 217-529-2132.
The enclosed letter from Rev. Rick VanGiesen will explain the different options available to pay for the premiums. If you have questions regarding the different options, please call Robin Coats Gauss in the Benefits Office at 217-529-2308.
The Board is concerned that this decision may cause a hardship for some. The Board is continuing to explore ways on how to assist those in need. If you are in need, please let me know at email@example.com or 217-529-3221. All information will be kept strictly confidential.
If you need any assistance with financial planning concerning this situation, or any other situation, do not hesitate to contact me.
We regret having to share this news with you. The Board will continue to watch the situation carefully, and when we are able to, the Board will explore ways in which we can share the earnings with you. We appreciate your prayers during this time.