Synod 2024 discussed pension plans on Monday morning, touching on inflation and how retired pastors are impacted by the current plan. The Synod is the annual general assembly of the Christian Reformed Church in North America, taking place from June 14-20 in Grand Rapids, Mich.
The discussions arose from two proposals requesting the reassessment of the pension salary calculation (Overture 3, Agenda for the 2024 Synod, p. 420) or the closure of the pension fund for new members with the creation of a new pension fund (Overture 4, agenda, p. 421).
The committee reviewing these proposals recommends that pension administrators explore “a broader pension benefit that could include a mix of defined contribution plans along with defined benefit plans” instead of altering the average salary calculation or terminating the ministers’ pension plan. They also endorsed consulting a diverse group of American and Canadian pastors, including bi-vocational and recently ordained ones, for feedback. Additionally, Synod approved that the pension board, along with the Nominating Committee and Calvin Theological Seminary, educate pastors and churches on both the current defined benefit plan and available defined contribution options.
Ryan Schreiber, Classis Grand Rapids East, opposed the recommendations. He mentioned that as a volunteer minister with other jobs, many ministers are confused about whether they are getting the best benefit deal. He wanted the pensions board to produce a “really comprehensive report of the different benefits packages so that ministers really have a definitive understanding of what’s going on.”
Bob Loerts, Classis Niagara, suggested an additional recommendation to urge “Trustees to prioritize work toward increased ministerial benefit accrual,” citing the return of the 1.46% multiplier in the pension calculation as an example. He emphasized providing pension administrators with specificity, noting that “valuations in Canada today are lower than in 2008.”
Jonathan Westra, Classis Pacific Northwest, a reporter for the committee making the recommendations, stated they are asking trustees, “Can we look at wealth growth while maintaining security?” He added that they are providing administrators with flexibility to return to next year’s synod with their accomplishments.
Maria Bowater, Classis Kalamazoo, expressed concern that “adjusting for inflation is not wealth building” and emphasized that the church’s pension plan should focus on creating security for pastors rather than encouraging them to invest for wealth building.
David Salverda, Classis Toronto, reminded the synod of the potential financial burden on small churches, expressing concern that pension plans might prevent some churches from remaining open.
Ultimately, the synod accepted the committee’s recommendations to provide more education to pastors about their options and to direct pension plan administrators to consult with a broad group of pastors to explore comprehensive retirement benefits packages. They also requested that the pension office provide the 2026 Synod and the churches with “a more detailed summary – understandable to the churches and the pastor – of the actuarial reports for the pension plans in the US and Canada, and that they do so every three years after the actuarial reports are completed.”
Synod 2024 will meet June 14-20 at Calvin University in Grand Rapids, Mich. Find daily coverage from Fixtures news team at thebanner.org/synod. Visit crcna.org/synod for synod schedule, webcast, recordings, photos, committee reports, and live blog. The Synod is the annual general assembly of the Christian Reformed Church.