sbc_annuity_62303

Posted: 6/20/03

Hawkins reports on
Annuity Board options, urges fitness

By Tony Martin

Mississippi Baptist Record

PHOENIX–In a climate of uncertain financial stability, O.S. Hawkins gave a glimmer of hope to participants in the Annuity Board's investment programs.

Addressing 7,000 messengers at the Southern Baptist Convention annual meeting in Phoenix June 18, Hawkins said: “In this past year, America has seen something that hasn't been seen in the past 70 years, and that is three consecutive years of decline in the equity market. I don't think I have to tell any of us that who watch our retirement accounts.”

However, there is good news, he added: “Since the trough of that market back in October of 2002, every retirement equity fund we have is up over 25 percent. We're having one of the greatest years in investments we've had in a long, long time.”

Hawkins cited the benefits of the protection section of the Annuity Board's retirement program, stating that all participants in the retirement program automatically receive a $100,000 survivor benefit and a $500 per month disability benefit.

He rebuffed the assessment that churches might do better buying programs on the open market.

“Insurance continues to be our biggest challenge,” Hawkins acknowledge. “We're in a national crisis. We have been giving strategic focus to these insurance issues.”

Since moving administration of health insurance claims to the Principal Life Insurance Co., more than 90 percent of claims have been processed within 10 days, he reported.

He outlined three steps the Annuity Board is taking to address health insurance issues.

“First, we're taking responsibility,” he said. “We've totally revamped our program for 2004. Since we get no money to subsidize our program, it becomes a matter of claims paid out versus premiums received. Some people couldn't get in because of underwriting issues. Unfolding in 2004, we hope to provide a limited benefits program to get those folks in as well as their families.”

Second, a wider range of deductibles and plans will be available, Hawkins said, with options to move from plan to plan.

“The deductibles will make a big difference in the premiums,” he explained. “People who are paying a thousand dollars a month in premiums can choose a higher deductible and have their premiums decline by 40 to 50 percent. We've got a real attack going on the affordability issue.”

Hawkins admonished Baptist ministers to take responsibility for the health insurance crisis by taking better care of themselves.

“Forty percent of the claims we paid out last year were due to preventable diseases,” he said. “If we would get ourselves in physical shape by exercising and eating properly, it would be astronomical how we could reduce the rate of medical insurance.”

Third, Hawkins said he has written letters to deacons in SBC churches, telling them the church needs to take responsibility for providing the best staff benefits they can. Churches also should provide benefits such as annuity and insurance separately from the minister's pay, he advised.

Churches that fail to provide adequately for their ministers leave those ministers to struggle in old age, he warned, noting that “our biggest heartbeat is our relief effort.”

He showed a video about the plight of retired ministers and their spouses who don't have sufficient funds to retire.

“We have over 9,000 pastors and sometimes their widows living on $200 or less a month in benefits,” he explained. With help from the Adopt an Annuitant program, “we've been able to move our annuitant benefits from $75 a month to $200 a month for a single widow and $260 a month for a couple,” he reported.