University presidents, Board of General Superintendents come to aid of Nazarene ministers

Friday, March 9, 2012

Global Ministry Center

Presidents of U.S. Nazarene universities gave tangible support to Nazarene ministers at the recent meeting of the Church of the Nazarene’s USA National Board when they accepted a reduction in the funding formula for their institutions.

The presidents assented to a quarter-percent reduction, so that an additional quarter-percent might be added to the budget formula for the Pensions and Benefits Fund. The action of the USA National Board was subsequently ratified by the General Board, effectively increasing the goal for P&B and making it equal to that of the universities (2.25 percent).

The formula increase was recommended by the Board of General Superintendents, who also called for the reallocation of funds from other sources to bolster the Pension Trust, which provides retirement benefits to participants in the Single Defined Benefit Plan. For a listing of related recommendations, visit the following NCN News link.

A weakened economy and stagnant giving in recent years have prompted concern about fully funding the Pension Trust. That trust, like the assets of many pension plans in the U.S., has fallen to a level which requires additional support to assure sustained viability. More than 5,000 retired ministers and widowed spouses currently rely on benefits from the Pension Trust.

Pensions and Benefits USA Director Don Walter noted that the Board of General Superintendents led the effort to shore up the P&B Trust.

“Without the resolute commitment of our Board of General Superintendents leading the way through this funding challenge, none of this would have happened,” Walters said.

“None of our colleges or universities has extra money, yet the presidents of these institutions came alongside our active and retired pastors in a show of sacrificial support and solidarity,” he continued. “As Dr. Dan Boone [president of Trevecca Nazarene University], said to me following the decision, ‘We’re all in this together.’”

Full payment of formula goals by districts and churches, along with the other proposed recommendations could potentially result in an additional US$4.8 million annually for the fund.
--Pensions & Benefits USA

 

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