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Lutheran pastors sue ELCA over annuity cuts
Twin Cities Pioneer Press ^ | 1/11/11 | John Welbes

Posted on 01/11/2011 4:57:12 PM PST by SmithL

Four retired Lutheran pastors are suing their former employer, the Evangelical Lutheran Church in America, alleging that the church guaranteed lifetime annuity payments that it later decided to "drastically reduce."

While the retirees had been planning on a lifetime of steady and growing pension payments, they were told in September 2009, that the guaranteed payments would be cut 9 percent in 2010, with more cuts to come in 2011 and 2012.

And the four pastors are not alone.

Over the last 21 years, more than 10,000 eligible employees elected to take their retirement accumulations in a lifetime annuity or a pension, according to court filings from the ELCA, which has its headquarters in Chicago.

The pastors' lawsuit seeks class-action status and hopes to win back full payments for all retirees affected by the cut in annuity payments. The suit was filed in Minnesota state court last month and moved to federal court recently.

The ELCA Board of Pensions, in a message to the Pioneer Press, said that the cuts are the result "of the historic and virtually unprecedented downturn in the investment markets in late 2008 and 2009."

The board's three-year plan of "corrective actions" seeks to protect the long-term viability of the fund, and the message noted that "currently, we are on track to return the fund to a fully funded status, due primarily to improved investment market performance" and actions taken by the board.

The reduced payments for retired employees "have really impacted people," said Vincent Escades, a Minneapolis attorney representing the pastors in their lawsuit. "They didn't live off much to start with in their positions. They lived pretty modest lifestyles."

The plaintiffs in the lawsuit are the Rev. Benjamin A. Johnson, Dr. Ronald A. Lundeen, the Rev. Larry D. Cartford and the Rev. Arthur F. Haimerl.

"It really matters to people who are living on fixed incomes," Escades said.

The lawsuit, filed in December and recently moved to federal court, has the potential to impact a larger number of retirees than another pension-related lawsuit filed against Augsburg Fortress Press and the ELCA last year. Augsburg Fortress Press, based in Minneapolis, is the publishing arm of the ELCA. In the Augsburg Fortress case, about 500 retirees and employees were affected by the pension plan's termination.

Employees and retirees who participated in Augsburg Fortress' pension plan were told a year ago that the plan would be terminated. Participants were given a lump sum payment instead that represented a portion of the money they would have received. In that case as well, Augsburg Fortress pointed to investments that lost value in 2008 and 2009.


TOPICS: Current Events; Mainline Protestant; Moral Issues; Religion & Culture
KEYWORDS: elca; pension

1 posted on 01/11/2011 4:57:17 PM PST by SmithL
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To: lightman; rhema

Bound consciences don’t apply when money’s involved, I guess.


2 posted on 01/11/2011 4:59:01 PM PST by SmithL
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To: aberaussie; Aeronaut; aliquando; AlternateViewpoint; AnalogReigns; Archie Bunker on steroids; ...


Lutheran (EL C S*A) Ping!

* as of August 19, AD 2009, a liberal protestant SECT, not part of the holy, catholic and apostolic CHURCH.

Christ is in our midst!

3 posted on 01/11/2011 5:11:40 PM PST by lightman (Adjutorium nostrum (+) in nomine Domini)
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To: SmithL
ELCA isn't really a church after all. In a famous remark last year, CEO Mark Hansen referred to "this organization."
4 posted on 01/11/2011 5:26:10 PM PST by hinckley buzzard
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To: SmithL

Oh now this will really get interesting. Downturn in the markets, eh? How about downturn in following the Bible.


5 posted on 01/11/2011 6:25:29 PM PST by SgtHooper (Do not argue with an idiot. He will drag you down to his level and beat you with experience.)
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To: SmithL

“You ain’t been had until you’ve been had by ‘Christians.’”


6 posted on 01/11/2011 7:39:47 PM PST by topcat54 ("Dispensationalism -- like crack for the eschatologically naive.")
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To: SmithL

This is really only the beginning as many churches exit the ELCA and start moving their pensions elsewhere. It won’t effect them in the short-term because many pastors are still in the system but when churches start to hire pastors outside the system that will be the end.


7 posted on 01/12/2011 2:22:44 AM PST by bjorn14 (Woe to those who call good evil and evil good. Isaiah 5:20)
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To: SmithL
Bound consciences don’t apply when money’s involved, I guess.

Indeed! I don't know anything about the other three retired pastors, but the "retired" Rev. Larry D. Cartford has a uniquely "bound conscience":

From Pastor To Atheist.

8 posted on 01/12/2011 8:21:43 AM PST by PacesPaines
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