John Upton, executive director of both the Baptist General Association of Virginia and the Virginia Baptist Mission Board, released this letter Oct. 15 following the Oct. 13-14 meeting of the Mission Board at Eagle Eyrie Baptist Conference Center:
Dear Virginia Baptist Church Leader:
I wanted to inform you of an amendment approved by the Virginia Baptist Mission Board (VBMB) in its recent meeting (October 13–14) at Eagle Eyrie. This amendment will affect a matching retirement contribution the VBMB has paid on the behalf of those eligible since 1994.
Starting in 1978 each State Convention of the Southern Baptist Convention has paid for Protection Benefits contributions (life insurance and disability insurance) through the Annuity Board of the Southern Baptist Convention on behalf of eligible ministers and church staff. In 1994 the VBMB (then the Virginia Baptist General Board) voted to make a matching retirement contribution on behalf of each eligible participant. The Annuity Board at that time, now known as GuideStone, assisted the State Conventions by using surplus funds due to investment returns which exceeded requirements on behalf of each state to cover the Protection Benefits. In 2002 those allocated funds were depleted by most states and surplus funds were no longer available.
GuideStone, in its generosity, continued to pay the Protection Benefits billing credits until the end of 2006. In 2007 GuideStone informed the states they would need to assume one half of the Protection Benefits cost by phasing in a gradual increase over a five-year time period. This meant the cost to the VBMB would eventually rise from $17.50 per person to $29.00 per person per month to cover both Protection Benefits and Matching Retirement for over 1,500 eligible participants in the BGAV.
The annual cost of this commitment will have grown from $290,000 in 2003 in the VBMB budget to an anticipated cost of $500,000 in 2011.The escalating cost, which is a fixed cost in the budget, has caused the VBMB to re-examine this commitment.
It was the unanimous feeling of the VBMB that it wanted to maintain the Protection Benefits for both eligible ministerial and non-ministerial staff in BGAV churches. This is an important safety net and an incentive to participate in the Church Retirement Plan. The Board struggled in making the decision to amend the 1994 Policy for the Virginia Annuity Plan by discontinuing the Retirement portion of the contributions. The VBMB strongly urges each church to cover the $210 annual contribution on behalf of their ministers and staff. This would reduce the VBMB budget over $200,000 a year in costs.
When you gather in Fredericksburg for the Annual Gathering of the BGAV you will see this reflected in the Budget proposal. I wanted to make sure you received information informing you of the decision and the details regarding it. There have been funds set aside for those for whom this will be a major hardship. If this decision poses a major threat to your retirement funds please notify my office and we will be happy to discuss options with you as long as funds are available.
Virginia Baptists are committed to advancing the Kingdom through it missions and ministries. We want our leadership, critical to that mission, to be adequately protected so their attention can be placed on the calling.
Blessings in the Name of our Lord Jesus Christ,
John V. Upton Jr., Executive Director
Virginia Baptist Mission Board