OF THE CANADIAN REFORMED CHURCHES
MINUTES - MAY 12, 2007 TRI-ANNUAL MEETING
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Minutes of the Tri-annual membership meeting of the Foundation for Superannuation of the Canadian Reformed Churches held on May 12, 2007, in the Smithers church building. OPENING The chairman, Dr. J. Visscher opens the meeting, reads Proverbs 17:1-13; asks that we sing Psalm 27:1, and then leads in prayer. A word of welcome is extended to everyone present at the meeting, and the work of the Foundation is explained briefly. The Foundation board is made up of the Councils of Cloverdale and Langley. The minister in Cloverdale is usually the vice- chairman; br S. Vander Molen is the longtime treasurer and br. C. Baarda is the secretary. The tri-annual meeting of the Foundation is held in conjunction with the meeting of Synod, and is normally held in the same church as well. CREDENTIALS A total of 22 delegates representing 16 churches are present at this meeting of the Foundation. AGENDA The agenda for the meeting is adopted after one letter is added. REPORTS a) Secretary
The report indicates that in the past three years Professor J. Faber (2004) and the There were also a number of retirements in the past three years. Prof. J. DeJong retired just before the last the last tri-annual meeting of the Foundation on January 31, 2004; Rev. C. VanSpronsen at the end of April 2004; Rev. C. Stam at the end of September 2004; Rev. B. J. Berends in July of 2005, and Rev. K. Jonker at the end of January 2007. At the last tri-annual meeting it was reported that discussions with the VSE of our Dutch sister churches were continuing but discouraging. Since then the board has decided to abandon the attempt to reach a reciprocal agreement with the Dutch churches. Finally in March of this year, after a number of proposals and counterproposals were exchanged, the Board also decided not to proceed with a reciprocal agreement with the Emeritus fund of our Australian sister churches. It was decided that the movement of ministers to and from Australia would best be handled on a case by case basis, since a reciprocal agreement as proposed would work to the disadvantage of the Foundation. Discussion Clarification is requested as to why the Foundation would be at a disadvantage if an agreement with the Australian churches was in place. Brs. Baarda and Vander Molen respond that based on a number of calculations the Foundation’s asset base would be faced with a loss of about $500,000 over a period of years, if a reciprocal agreement as proposed was in place. Rev. Visscher adds that he had a meeting with representatives of the Emeritus Fund of the Australian churches, and found that their plan is very different from what we have, and therefore difficult to harmonize with ours. Rev. Visscher also points out that churches contemplating calling a minister from Holland should be aware that missed contributions to the VSE ( Vereniging Samenwerking Emeritering) will be their responsibility in the event that the minister returns to Holland to serve a church there. b) Treasurer Br. S. Vander Molen first presents the introduction to the financial statements for 2006 and then the financial statements. He points out that the one significant change that occurred was the increase in benefits beginning in 2005. As a result of this the benefits for a married minister rose from $17,853 in 2004 to $27,476 in 2006. The increase was funded in part by increased assessments to the membership and in part by drawing on our annual investment income. The investment rate of return was 7.5% in 2004, 10.4% in 2005, and 4.3% in 2006. These rates were better than the published averages for those years. Members receiving benefits from the Foundation at the end of 2006 was 14, which was up from 12 three years earlier. Discussion The first questions deal with issues such as whether a single is considered the same as a widow or widower (yes); whether the life expectancy of 82 is reasonable (it is based on past actuarial projections); and whether benefits continue to be paid after age 82 (yes). Another question relates to supplementary benefits: how do these benefits function? Br. Vander Molen explains (see Foundation website for further information). Br. H. Berends asks if the supplementary benefits were reduced when the regular benefits were increased. Rev. Visscher responds that the supplementary benefits also increased by 50%. Br. Berends states that increasing these benefits makes no sense. Rev.Visscher explains that this increase is under review. Br. Berends considers these benefits to be too high and makes a motion (seconded by br. G. Nordeman) that the board review the supplementary benefits with a view to correct or reduce the amounts paid out. This motion is passed by a large majority. A question is raised about underfunding and actuarial reports. Response: we are not a pension fund, and our fund is still adequate by a good margin. A remark is made that the Theological College has a pension fund and that the Foundation supplements the pension. Br. Vander Molen explains that our Fund has no official status. After the financial statements are explained, several questions relate to some of the items in the statements.
Rev. Visscher responds to comments that superannuation benefits are too low by remarking that Canada Pension Plan benefits and Old Age Security should also be considered when one looks at the total amounts that a retired minister and his wife are entitled to. When this is done it is clear that superannuation benefits are not too low. Rev. Visscher also responds when one of the delegates remarks that the membership does not realize how the benefits actually function. Again, for more information see the website. CORRESPONDENCE Ebenezer Canadian Reformed Church in Burlington The church would like to know if the church is the beneficiary of the payments made by the Foundation or is it the retired minister? Article 4 of the constitution states that” benefit payments shall be made to the member concerned, but shall not be paid directly to the minister”. The church is therefore persuaded that the benefit payment it receives can be used as it sees fit in fulfilling its responsibility as per article 4 of the constitution and Article 13 of the Church Order. In discussing the letter, most of the delegates are of the opinion that the church should pay the retired minister the amount it receives from the Foundation, and if the funds are not required by the minister, then it should inform the Foundation so that the amount it receives can be reduced to the actual amount it pays to the minister. Several delegates remark that retired ministers should not be penalized in their retirement because they were good money managers. Another delegate suggests that the Fund should pay up to the amount the minister receives rather than the maximum, if the retired minister does not need the maximum amount the Fund pays to his supporting church. In the end it is still the recipient church that must decide if it should keep the funds it receives, or inform the Foundation that all the funds are not needed. OTHER MATTERS There are no other issues to be discussed. NEW BUSINESS There is no new business to be discussed. QUESTION PERIOD A number of comments are received in regard to the material for this meeting; one delegate did not receive the information; another would like the financial statements sent out earlier, and if possible also the secretary’s report. One delegate suggests that the board put out a one page description of the Fund because of the lack of understanding of what the Foundation is all about. The response to this is that the website has all the information and can be accessed by any member. Consideration will be given to posting the information for the next tri-annual meeting prior to the actual meeting, so that delegates can peruse the reports before they come to the meeting. CLOSING The chairman thanks the members for attending the meeting and expresses appreciation for the cooperation received from everyone present. Br. Baarda, br Vander Molen and the Committee of Administration are thanked for the work they do in keeping up the correspondence and the administrative work of the Foundation. Br. Vander Molen, the treasurer, receives special thanks for preparing the financial statements and looking after the day to day financial affairs of the Foundation. After br. C. Baarda closes in prayer the meeting is adjourned.
Chester Baarda, Secretary |