Minutes of the Tri-annual membership meeting of the Foundation for Superannuation of the Canadian Reformed Churches held on May 14, 2016, in the Dunnville church building.

OPENING

The chairman, Dr. J. Visscher opens the meeting, reads Psalm 67 and then leads in prayer. Everyone present is welcomed to the meeting

CREDENTIALS

A total of 21 churches are represented at this meeting of the Foundation.

AGENDA

The agenda for the meeting is adopted.  In response to a question about the minutes of the last meeting held in Carman three years ago, Dr. Visscher states that the churches have approved the minutes, therefore they do not need to be approved at this meeting.

REPORTS

a) Secretary

The report is read by secretary, C. Baarda.  The report was posted to the website prior to the meeting and is accessible here.  There are no questions about the report.

b) Treasurer

Br. S. Vander Molen introduces the Treasurer's Financial Summary for the three year period ending December 31, 2015 (accessible here) and goes on to present the Financial Statements for the same period.

           Discussion

Br. A. Baartman asks why the statements have not been audited.  Br S. Vander Molen responds that they will be audited but there was not sufficient time to arrange the audit prior to this meeting. Once the audit has been completed the letter from the auditor will be sent to the member churches.

A further question deals with the asset base of the Foundation and whether there is enough money to cover projected funds going out.  Response: everything looks good but changes will be made if that is necessary.  The Board of the Foundation will be reviewing needs on an ongoing basis.  Dr. Visscher adds that it is difficult to project needs into the future but going by the past, everything will turn out well.

Another delegate asks if the Fund is going to run out of money in 2029, should that not be considered now? Response: the Board may have to revise the assessment to the members, but it is difficult to project that far into the future.  We will watch year by year and then make changes when they are needed.    

Question: what is the legal status of the Foundation? It has no legal status but it is similar to a 
“Joint Venture”.  What about charitable issues?  The investment income earned by the Fund may 
be reportable by the churches but since every one of them is a registered charity it would not be 
taxable in any event.

Question: does the organization report management fees? Yes, the fees are reported in the Financial Statements.

CORRESPONDENCE

Guidance letter to the churches:  

The letter is read by br. VanderMolen. He also mentions that a church can establish an RRSP,
but the Foundation cannot do this, nor can the amount the member church receives from the
Foundation be rolled into an RRSP, since it is not “Earned Income”

Question: should housing be included on a T4A slip?  It should probably be added to T4A income.
What then about a housing allowance?  The same standard applies, since it is much the same as
a church supplying a free house. In both cases it is income and therefore reportable on the T4A.

At this point Dr. Visscher explains his own status as “associate pastor”.  Again, make sure that
however you report, as mentioned in the “Guidance Letter’, that it can be justified to the Canada
Revenue Agency.

OTHER MATTERS

Revision of the constituion and by-laws

The Board of the Foundation had hoped to have the new constitution ready prior to this meeting.
The reason why it is not yet ready has been explained in the secretary’s report, which can be 
accessed on the Foundation’s website (here).

Question: is the operational board or “small board” in place yet?  No it is not, all changes will be
made once the new constitution has been adopted.

Do we need an external review or audit?  No it is not needed, our income and outflow is simple
and predictable.  A proposal to do a full audit was voted down at the meeting in Carman three years
ago.  Br. Vander Molen explains the difference between an audit and a review engagement, if we
obtain the services of an accounting firm to do the work.  An audit will cost more than a review
engagement, but neither is needed in our situation.  After further discussion as to the necessity of an
audit, Dr. Visscher mentions that if a member church feels strongly about this issue a letter should
be sent to the Foundation, so it can be placed on the agenda for the next tri-annual meeting.  

NEW BUSINESS

Review of benefits

Br. H. Leyenhorst asks if a change in government benefits should be considered when the Foundation sets its benefit rates. The CPP and OAS benefits change every year.  Has a survey been done to determine if Foundation benefits are adequate or maybe too high?  A discussion follows this question.  It is pointed out that housing costs can be a problem for a retired minister. The consensus appears to be that aside from housing costs our retired ministers are well-cared for.     Br. A. Baartman mentions that the Review Committee did cover the issue of benefits in their questionnaire several years ago; in the end it is a church’s responsibility to provide for their retired minister.  If a retired minister gets hit with an unexpected tax increase, his church should provide.  Rev. K. Janssen mentions that the split income for tax purposes is now gone, and therefore it might be wise to do a review.  He makes a motion that a review be done every three years of the churches that support a retired minister to find out if support is adequate. A discussion follows. There appears to be some confusion in the churches as to how the Foundation functions, what the benefits are, and how assessments are levied. The churches should provide for the ministers, and they should also monitor government regulations.  It is generally agreed that local churches should deal with the various issues that arise and that the Foundation for Superannuation benefit amounts are generous.  From the discussion it appears that no additional guidance letter, or review is needed. At the end of the discussion a show of hands indicates that the motion is defeated.

QUESTION PERIOD

Should church treasurers form an association so they can share information?  The Foundation gets a few questions, so it is up to the church treasurers to decide if an association would be of benefit to them.

Br. Vander Molen explains the rationale for assessments and why a member church gets a discount if it does not have a minister.  Would it not be better to  have an assessment by member only?   It might appear simple but it is actually more complex than our current system. We should not change the assessment system unless we get a serious proposal that deals with all the issues involved.

Is the Board still working on the proposed constitution and bylaws?  Yes, and the new constitution and bylaws may have to circulated to the churches twice before a final versions is agreed upon.  A draft copy will be sent to the review committee for their input and comments. It will then be reviewed by the Board, and may have to go to the review committee once more before the Board finalizes a draft to be sent to the member churches, possibly twice, as mentioned above.  We are hoping that most of t his, if  not all of it, can be completed this year.

There still appears to be a mail problem, with some member churches or their treasurers not receiving letters and notices.  How do we resolve this?  Mail will be sent either to the church of the clerk, if the church does not have a mailing address.

How do we get a quorum at the meetings?  We  have a quorum this time, but we need to let the member churches know the importance of attending the tri-annual meeting.

Since there are no further questions, Dr. Visscher thanks secretary, C. Baarda, and treasurer, S. Vander Molen, as well as the Dunnville church for providng us with the space for the meeting and the ladies of the church for providing coffee and goodies.

CLOSING

The meeting is adjourned after br J Homan closes in prayer.

Chester Baarda, Secretary
Board of the Foundation for Superannuation