November 5, 2012
Portico Benefit Services approves annuity increases for 2013
Meeting Nov. 2-4 in Minneapolis, Portico Benefit Services' board of trustees approved a 1.1 percent annuity increase for members receiving ELCA participating annuity payments and a 5.6 percent interest-crediting rate for members with bridge accounts. Both increases will take effect in January 2013, and were calculated based upon the funded ratio of the ELCA Participating Annuity Investment Fund as of Sept. 30, 2012.
Portico Benefit Services (formerly the ELCA Board of Pensions) provides health, retirement, disability, survivor benefits and related services for some 50,000 active and retired ELCA pastors, rostered laity, lay employees and their families.
Jeffrey Thiemann, an ELCA pastor who serves as Portico president and CEO, said that for members, "the health of the fund to provide income for life and the ability to increase annuity payments are both important."
"We recognize that the past three years of annuity decreases have been difficult for our members who are in this fund," Thiemann added. "Favorable market conditions and the funded ratio above 100 percent allowed us to provide an increase to annuity payments and the interest-crediting rate."
Dividend-eligible annuity payments will remain at their 2012 level, and a lump-sum cash dividend of 12 percent will be paid out in January 2013.