In This Issue

2

3

4

The Christian church was

in crisis at the beginning

of the 4th century. Two

rival reform movements

arose to restore the integrity

of the Church. Those in the

�rst movement, the

Donatists, believed

that the Church

needed to purify

itself and return to its core identity. The mission

of the Church, in the Donatists’ view, was to

provide a holy alternative to an unclean world.

The Donatists wanted to purge the traitors from

the priesthood.

After they pruned their membership, the

Donatists wanted to close ranks to create a

community of committed believers. They would

separate themselves from impurity, re-establish

their core principles, and defend them against

hostile forces. In those hard times, they believed

the �rst job was to defend Christian law so it

wouldn’t be diluted by compromise. With this

defensive posture, the Donatists would have built

a sturdy ark for those who wanted to be Christian.

This tendency – to close ranks and return

defensively to �rst principles – can be seen today

whenever a movement faces a crisis. Modern-day

Donatists emerge from every Republican defeat:

conservatives who think the main task is to purge

and purify. There are modern-day Donatists in

humanities departments, who pull in as they lose

relevance on campus. Modern-day Donatists feel

history is �owing away from them, and when they

gossip, it’s always about intra-community rivalries

that nobody outside their world could possibly

care about.

In the 4th century, another rival movement arose,

embraced by Augustine, the Bishop of Hippo.

The problem with the Donatists, Augustine

argued, was that they were too static. They

tried to seal themselves o� in an ark to ride out

the storm, but ended up sealing themselves in,

cutting themselves o� from new circumstances

and growth.

Augustine, as his magisterial biographer Peter

Brown puts it, “was deeply preoccupied by the

idea of the basic unity of the human race.” He

reacted against any e�ort to divide people within

the Church from those permanently outside,

instead wanting the Church to go on o�ense

and swallow the world’s impurities as well as its

purities. It would mean putting to use those who

are imperfect. This was the price to be paid if you

wanted an active Church.

In this view, the Church would be attractive

because it was hungering and thirsting for

ful�llment. Far from being a sturdy – but closed-

o� – ark, the Church would be a dynamic, ever-

changing network, propelled into the streets by

its own tensions. Augustine had a deep, volatile

personality; his ideal Church was �rmly rooted in

doctrine, but yearning for discovery.

This alternate response to crisis is rare because it

requires a lack of defensiveness, and a con�dence

that your identity is secure even amid crises.

The point is, how do you revive a movement

in crisis? The natural instinct is to become like

Donatists, building an ark and defending what’s

precious. It’s a survivalist instinct that’s re�ected

in conversations about “the future of the Church.”

The counterintuitive, but more successful, strategy

is to follow Augustine – to exploit a moment of

weakness by making yourself even more vulnerable,

striking outward into complexity, swallowing the

pure and impure, and counterattacking crisis with

an evangelical assault. This is envisioning the

Church of the future – envisioning new models and

possibilities for ministry, always remaining open to

the fresh leadings of the Holy Spirit.

As the Pension Boards concludes its �rst century

of service to the United Church of Christ, we are

con�dent, prepared, and moving into the next

century in support of the Church of the future.

Faithfully,

Michael A. Downs

President/CEO

The Future of the Church, or the Church of the Future?

&NEWS VIEWS

Spring 2014

475 Riverside Drive, Room 1020New York, NY 10115

1.800.642.6543 | www.pbucc.org

A Quarterly Update from the Pension Boards

Years of Service to Those Who Serve

the Church

CelebratingOur First

EMPLOYEE

Years of Service

Our First

http://bit.ly/PB_2010

@pensionboards

http://bit.ly/PB-UCC

Faithfully,

Michael A. Downs

The Christian church was

in crisis at the beginning

of the 4th century. Two

rival reform movements

arose to restore the integrity

of the Church. Those in the

�rst movement, the

Slow and SteadyPBUCC and Socially Responsible Investing

In Support of New ChurchesWhat Is the Mission of Your Financial Life?Here’s a Thought for the Future from the Past

Are You a Healthy Steward?Vendor Partner Contact InformationHealthy Stewards Wellness Screening, UCC Church House, Cleveland, Ohio (March 25, 2014)Upcoming Member Education Webinars

2 | Employee News & Views

Equity and �xed-income markets opened

the �rst quarter of 2014 with modestly

positive returns. Global economic

weakness, and geopolitical challenges,

resulted in a re-establishment of less-risky

assets like bonds as a good bu�er from

uncertainty. This uncertainty included the

Russian annexation of Crimea, continued

concerns about China, and the U.S.

economy struggling to overcome extreme

winter weather. As the quarter came to a

close, some of these concerns seemed to

abate, and equities rebounded. Speci�cally,

emerging market (EM) equities and EM

�xed income received the largest boost

towards the latter part of March.

Domestic equities, as represented by

the Standard and Poor’s 500 stock index

(S&P 500) returned 1.81% for the quarter.

International developed equity markets

(EAFE) had a positive �rst quarter, up

0.66%, despite weakness in Japan. The

backdrop in Europe is of positive, albeit

sluggish economic growth. Emerging

markets equities (MSCI EM ND) were

up 3.07% for March but ended the quarter

at -0.43%.

All �xed-income indices were positive in

the �rst quarter. Federal Reserve (Fed)

Chair Janet Yellen continued the “taper,”

a reduced level of asset purchases, from

$85 billion a month down to the current

$55 billion. Even against that backdrop,

�xed-income yields decreased, erasing the

losses that bond investors experienced in

2013. Although we have been positioning

portfolios to protect against rising interest

rates, the performance in Core U.S. Fixed

Income exceeded benchmarks. In addition,

asset classes that bene�t from a stronger

economic environment, such as high yield

bonds, were a positive. Our continued

focus in this part of the portfolios is on

earning a competitive return and yield.

For 2014, investor focus is on the global

economy, and earnings. Slow economic

improvement continues in the U.S., as

investors wait to see if better results are in

store for the spring. U.S. corporate pro�ts

are at all-time highs, driven by record-

high pro�t margins. With unemployment

improving, it is possible that wages can

take a greater share of the economy.

Improved revenue growth is paramount for

sustained high corporate pro�ts. Europe

appears to have bottomed and represents

better value, especially if earnings

improve. Emerging economies are far less

certain, o�ering more compelling long-

term opportunities under most scenarios

but with higher political instability.

Finally, we reiterate our outlook for more

muted returns in 2014, with the possibility

of more volatility than 2013.

The majority of the Pension Boards’

equity and �xed-income portfolios

remain allocated to the U.S., invested

with well-positioned managers and

strong companies. We remain somewhat

less exposed to higher-growth emerging

markets during early 2014. However,

the managers whom the Pension Boards

has hired on your behalf continue to

position portfolios to take advantage of

opportunities now being created, for long-

term bene�t.

There is no shortage of challenges,

economically and

politically. We

are grateful for

your con�dence

in us as always.

Slow and Steady

INVESTMENTS

David A. Klassen, Chief Investment Oªcer

Richard E. Walters, Director, Corporate Social Responsibility

I recently had the opportunity to make a

presentation to the new United Church

of Christ Board of Directors at its March

meeting in Cleveland, on the Pension

Boards’ socially responsible investing

e�orts on behalf of the UCC.

One of the points I made was this: “You

don’t have to divest shares in a company

to have a dramatic impact on the

transformation of society.” What does that

mean? Here are some points to consider:

• Divestment, just like corporate

engagement, is one of many

options available to social activists

addressing urgent social issues.

• We should be careful not to

confuse our deepest concern for an

issue with the method we choose

to address it, but rather allow for

freedom in the choice of multiple

paths to a solution.

• Divestment is a “one and done”

strategy that results in the end of

in�uence and conversation with a

company and prohibits any return

to further dialogue.

• Corporate engagement preserves

a seat at the shareholders’ table

to continue direct witness and

strategies of transformation.

• Engagement is a method of social

justice witness that �ts well with

our biblical and theological model

of prophetic ministry as we take

our grievances directly to our

neighbor, and dialogue directly

with those whose power we wish

to balance. I call this going to

Zacchaeus’ house. Jesus did not

avoid those who were in need of

transformation, but engaged them

directly in a dialogue about change

and service to the community.

We cannot avoid all the evil in the world

by simply avoiding those responsible for

harming our planet and its living creatures.

We are called to witness in direct and

meaningful ways. The Pension Boards

is committed to these principles in a

social justice witness through shareholder

activism. PBUCC views corporate

engagement as a valid, historic, and

purposeful form of social justice witness

in keeping with the heritage and polity of

the UCC and on behalf of the more than

21,000 members we are privileged to serve.

PBUCC and Socially Responsible Investing

politically. We

are grateful for

your con�dence

in us as always.

Spring 2014 | 3

Charitable gift planning involves much

thought and planning and is more than

a mere economic exchange. Depending

on your motivation and economic needs,

there are a variety of gift options you can

consider to support UCC ministries.

If you are interested in a gift that:

• costs you nothing today and can

be changed if your plans change –

consider a charitable bequest

• lets you change your gift if you

change your mind – consider

bequests, life insurance, and

retirement plans

• pays you an income now or

provides supplemental retirement

income – consider a charitable

gift annuity or charitable

remainder trust

• reduces current income tax –

consider outright gifts of cash,

securities, charitable gift annuities,

or charitable remainder trusts

For more information about ways to

make a charitable gift, please contact

the Rev. Keith A. Tussing toll-free at

1.800.642.6543, ext. 2718 or by e-mail at

ktussing@pbucc.org.

What Is the Mission of Your Financial Life?

April 23, 2014 marks the 100th

anniversary of the incorporation of the

Annuity Fund. One hundred years

is certainly a very long time, but the

Church’s concern for the welfare of its

clergy and their families extends even

longer. Thanks to the Rev. Dr. David

Greenhaw, President of Eden Theological

Seminary, and Michael Boddy, Director

of Eden’s Luhr Reference Library, we

have copies – in the original German

language and script – of the rules for

the “Pastors and Widows Fund of the

Evangelical Synod of the West.” These

were adopted in 1857, when the United

States comprised only 31 states and the

Civil War was still four years in the

future. Originally, support funds for

pastors, widows, and their orphaned

children were organized on a local district

or Conference basis, and an improved

organization on a national basis was

needed. The proposed fund provided a

continuing income to clergy widows with

a maximum monthly payment of $14 per

month – $340 in today’s dollars.

We are also thankful to have a copy of the

1907 proposal, also in German, to improve

the fund by adding income payments for

disabled pastors. In 1907, the country

was entering a �nancial panic resulting

from failed investments on Wall Street

and the impact of the 1906 San Francisco

earthquake. Church leaders recognized

the poverty this was bringing to the clergy.

The proposal from the Hudson and

Scranton Conferences of the Evangelical

Synod listed 180 persons receiving

ongoing income and recommended

formalizing the fund’s organization and

strengthening its �nances.

Also prompted by the �nancial stress

of these early years, the Congregational

Church received recommendations for

the creation of a formal retirement plan.

This plan, adopted by the Church in

1913, was formally incorporated in 1914

as the Annuity Fund for Congregational

Ministers, and continues today as the

Annuity Plan for the United Church

of Christ.

Almost immediately, the original 1914

plan began making improvements.

Over the next 100 years, individual

accounts were added for younger clergy

who still had years of future ministry, a

retirement plan for lay employees was

added, professionally-managed choices

for investments were made available, and

new choices for methods of retirement

Since 2008, the United Church Board

for Ministerial Assistance (UCBMA)

has approved a grant of up to $100,000

per year to be administered by UCC

Local Church Ministries (LCM) to assist

pastors of new church starts with the cost

of health, dental, or pension bene�ts. We

recognize there is a good deal of start-up

cost involved in beginning a new ministry.

We want to give these forward-thinking

congregations a boost so they can begin to

adequately support their clergy leaders,

and then when the grant has ended, carry

on that responsibility.

The grant program is carried out in

partnership among UCBMA and the

Pension Boards, UCC Local Church

Ministries, and the Conferences of the

United Church of Christ. These grants

are disbursed by the Pension Boards in

the form of direct credits to the bene�t

accounts of the identi�ed clergy.

In 2014, there are eight grant recipients

from across the country, including

Colorado, New York, Ohio, Pennsylvania,

South Dakota, and Washington, D.C.

For an application, contact Ms. Karen

Koza of the UCC LCM Congregational

Assessment and Support Team at

216.736.3837 or kozak@ucc.org.

Congregations apply on behalf of their

pastors through their Conference Oªces.

Applications are accepted yearly from

January through August, with a deadline

of September 1.

Rev. Krista L. Betz, Director, Ministerial Assistance

In Support of New Churches

MINISTERIAL ASSISTANCE

Here’s a Thought for the Future from the Past

Rev. Keith A. Tussing, Major Gifts/Planned Giving Oªcer

(continued on p. 4)

“The heart has its reasons which reason

knows nothing of.” – Blaise Pascal

UCC Non-Medicare Health Plan

participants and their covered spouses/

partners can earn up to $300 each by

completing Wellness Rewards activities!

• Fill out the online Wellness Pro�le

and get an immediate action plan

with personalized recommendations

for improving your health.

• Get a Health Screening and learn

about your risks for health conditions.

• Take action and Set a Goal using

the online My Health Assistant,

or speak with a Health Coach by

phone at 1.888.BLUE.428.

Get Started Today:

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For log-in assistance, please call Highmark

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For general program questions, please

call a Pension Boards Health Services

Representative at 1.800.642.6543, ext. 2870.

HEALTH & WELLNESS

4 | Employee News & Views

Frank Loiacono, Director, Health Plan Operations

June 11, 2014, Noon (ET)

Overview of the New and Enhanced Pension

Boards Website

July 9, 2014, Noon (ET)

The Healthy Stewards Wellness Program

and Your Health

Check your e-mail for additional details and

registration information, or visit the Member

Education section of the Pension Boards’

website at www.pbucc.org.

Upcoming Member Education Webinars

Are You a Healthy Steward?

income were included. Each improvement

was carefully considered by the Trustees to

ensure that the covenant of support was the

foremost consideration.

Today, the Annuity Plan has more than

21,000 members, including over 10,000 who

are receiving monthly income payments.

Much has changed since 1857: 31 states

have become 50, the telegraph has given

way to the Internet, and the horse has

been replaced by the automobile. But the

needs of clergy, lay workers, and their

families have not changed. The needs for

�nancial security in an insecure world and

a continuing income when active ministry

is ending do not change – they are the same

yesterday, today, and tomorrow.

Here’s a Thought for the Future from the Past (continued from p. 3)

VSP

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www.vsp.com

Highmark Blue Cross Blue Shield

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United Concordia

1.866.851.7576

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ValueOptions

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www.achievesolutions.net/ucc

Vendor Partner Contact InformationFor participants in the UCC Non-Medicare Health Plan: The vendor partners that

administer our Plan each have websites that contain a wealth of educational, healthy lifestyle,

disease prevention, and wellness tips. Register today at the following websites, or call the

phone numbers listed for more information!

Express Scripts

1.800.633.2662 (actively employed)

1.866.544.6963 (retirees)

www.express-scripts.com

Healthy Stewards Wellness Screening UCC Church House, Cleveland, Ohio (March 25, 2014)