BOOK OF RECOMMENDATIONS AND REPORTS

Transcription

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2 BOOK OF RECOMMENDATIONS AND REPORTS The South Georgia Conference of The United Methodist Church 0 Annual Conference Session June -, 0 Tifton, Georgia This book belongs to:

3 The 0 Book of Recommendations and Reports Table of Contents Section - Preparing for Annual Conference. Agenda.... Bishop King s Welcome Letter.... Conference Secretary s Letter.... Information for Conference Members and Visitors.... Special Offering Letter.... Mission Outreach Emphasis.... Thursday Night Evening of Entertainment.... Driving Directions to Conference Center and Parking Map.... Clergy Photo Directory Information HealthFlex Flyer.... Wellness Flyer.... How to Make a Motion Parliamentary Procedures... Section - Consent Calendar Reports are in alphabetical order. Africa University.... Archives and History/Arthur J. Moore Methodist Museum.... Board of Laity... a. United Methodist Men... b. United Methodist Women Board of Ordained Ministry.... Conference Center.... Conference Personnel Committee.... Congregational Development.... Discipleship Ministries... a. Overview of Connectional Ministries... b. Outreach... i. Second Mile Giving Program... ii. Three Star Church Challenge... 0 iii. Carruth Mission Awards... iv. Advance Specials... v. Advance Special Guidelines... vi. Covenant Relationship Program... c. Witness... i. Fully Connectional Churches... ii. Witness Awards... iii. Evangelistically Fruitful Congregations... iv. South GA Black Methodist Church Renewal Distinguished Service.... Epworth By The Sea Georgia Pastors School Georgia United Methodist Foundation, Inc..... Higher Education and Campus Ministry... a. Georgia UM Commission on Higher Education and Campus Ministry... b. General Board of Higher Education and Campus Ministry... c. Schools of Theology... i. Boston University School of Theology... ii. Candler School of Theology... iii. Drew University Theological School...

4 iv. Duke Divinity School... 0 v. Gammon Theological Seminary... vi. Iliff School of Theology... vii. Perkins School of Theology... viii. Southern Methodist University... ix. United Theological Seminary... x. Wesley Theological Seminary.... Hinton Rural Life Center.... Lake Junaluska Assembly, Inc..... Magnolia Manor.... Methodist Home for Children and Youth... a. Special Recognitions... b. The Foundation of the Methodist Home.... Open Door Community Center, Inc..... Pastoral Counseling Services.... The Professional Association of United Methodist Church Secretaries (Georgia Chapter) St. Joseph s/candler.... United Methodist Connectional Federal Credit Union Vashti Center, Inc..... Wesley Glen Ministries.... Wesley Community Centers of Savannah, Inc.... Section - Recommendations Recommendations are in agenda order. Standing Rules Changes.... Commission on Equitable Compensation... a. Statement of Purpose, Policies, and Procedures... b. Minimum Salary Scale c. Equitable Compensation Churches... 0 d. Equitable Compensation Supplementing Beyond Minimum Salaries Conference Board of Pension and Health Benefits... 0 a. Pre- Pension & Benefits... 0 b. The Clergy Retirement Security Program (CRSP)... 0 c. United Methodist Personal Investment Plan (UMPIP)... 0 d. The Comprehensive Protection Plan (CPP)... 0 e. Health Insurance (HealthFlex)... 0 f. Wellness Initiative for South Georgia... 0 g. SGA Funding Plan for Retiree Healthcare Benefits... 0 h. SGA 0 Comprehensive Benefit Funding Plan... 0 i. Retiree Rental/Housing Allowance Resolution.... Conference Board of Trustees.... Council on Finance and Administration... a. Comparison Report... b. Report of Receipts and Disbursements... c. Budget Factors and Special Offerings... d. Pensions and Health Benefits Cost... e. Recommendations Regarding the Cabinet... f. Budget (0)... g. Budgets of Conference Offices... Section - Advertisements. Magnolia Manor SunTrust.... Vashti Center.... Wesley Community Centers of Savannah, Inc..... Wesley Glen Ministries...

5 RECOMMENDATIONS The South Georgia Conference of The United Methodist Church 0 Annual Conference Session June -, 0 Tifton, Georgia

6 RECOMMENDATION Standing Rules Changes Annual Conference, June 0 [Add... at the end of the section on Connectional Ministries.]... TASK FORCE ON HISPANIC MINISTRIES The work of Hispanic Ministries shall be under the umbrella of the Office of Connectional Ministries, in coordination with the Cabinet. A. The Nominations Committee may nominate up to persons to serve on the Task Force on Hispanic Ministries. These nominees will include at least one person from each district, and shall include Hispanic persons and persons from other congregations which support or host Hispanic congregations. Hispanic Pastors who are nominated shall be ex-officio members of this task force, and have voice, but no vote. District Superintendents whose districts host Hispanic congregations shall be ex-officio members of this task force, and have voice and vote. The Chair of this Task Force will be nominated by the Nominations Committee. B. Persons asked to serve as paid Coordinators of Hispanic Ministries shall be appointed as part-time Associate Directors of Connectional Ministries, and come under the supervision of the Director of Connectional Ministries and the Conference Personnel Committee. Such persons will serve as staff persons relating primarily to the Task Force on Hispanic Ministries and other duties as assigned by the Director of Connectional Ministries. (RATIONALE: Taking Hispanic Ministries out from under NRCD and allowing it to operate as its own task force under the umbrella of Connectional Ministries is intended to improve focus and alignment in a way that benefits both Hispanic Ministries and Congregational Development.). NEW AND REVITALIZED CONGREGATIONAL DEVELOPMENT (RATIONALE: The simpler title Congregational Development already encompasses both new and revitalized congregational development and therefore does not need the words new and revitalized to convey it.).. PURPOSE The New and Revitalized Congregational Development Committee will bring district and representative leaders together from across the conference to pray about, discuss, and implement new congregational development and church revitalization in order to more effectively reach the diverse populations throughout the South Georgia Annual Conference. The committee will meet at least twice each year. (..e) The work of Hispanic Ministries shall be under the umbrella of the Office of New and Revitalized Congregational Development, in coordination with the Cabinet. (See RATIONALE under...).. DIRECTOR... SELECTION In consultation with the Personnel Committee, the Bishop shall appoint a Director of New and Revitalized Congregational Development to provide focus and leadership within the Annual Conference for the work of new congregational development and church revitalization. The Director may be lay or clergy. The Director shall be a contributing member of the non-appointing, extended Cabinet in matters that pertain to new congregational development.... DUTIES In partnership with the Bishop, the Cabinet, and the South Georgia Annual Conference, the Director of New and Revitalized Congregational Development will support the Bishop, the District Superintendents, and District groups charged with the responsibility of planning and implementing new congregational development and church revitalization.

7 The Director of New and Revitalized Congregational Development will have the following duties:. To cast a vision for new church development in the South Georgia Annual Conference.. To develop a supportive climate for the planting of new churches through strategic planning, the building of networks and teams, and promotion in the South Georgia Annual Conference.. To assist the South Georgia Conference in developing policies and programs to further the cause of church development.. To design and oversee a process of identifying and training persons who might serve effectively as new church pastors and to advise the Bishop and the Cabinet about those who might be considered for appointment to a new church plant.. To explore and develop methods of financially underwriting the efforts of new church development.. To serve as a source of information to the conference concerning policies, procedures, methodologies, and trends in new church development.. To network with leaders in church development in other United Methodist conferences, other denominations, and para-church agencies.... ACCOUNTABILITY The New and Revitalized Congregational Development Committee is accountable to the South Georgia Annual Conference.... MEMBERSHIP EX-OFFICIO MEMBERS The Bishop The Director of New and Revitalized Congregational Development REPRESENTATIVE LEADERSHIP One layperson from each district shall be nominated by the District Superintendent Three pastors nominated by the Bishop CONFERENCE STAFF Two District Superintendents appointed by the Bishop The Director of Connectional Ministries AT-LARGE MEMBERS The Bishop and the Director of New and Revitalized Congregational Development will confer to appoint up to six additional persons for purposes of making the committee more balanced in terms of race and gender. Special consideration will be given to persons who have gifts which can be utilized by the committee in implementing its mission.... OFFICERS The Bishop will appoint the chair of the committee. The chair of the committee will appoint a secretary for the committee.... EXECUTIVE COMMITTEE There will be an executive committee made up of the Chair, the Director, and four persons appointed by the Chair. The executive committee is empowered to act for the committee between meetings in matters of the use of funds. The executive committee reports to the full committee and is accountable to the full committee.... USE OF TASK GROUPS The Congregational Development Committee is expected and empowered to create as many task groups as needed to carry out its work. These groups will work under the supervision of the Congregational Development Committee. Each task group will be evaluated regularly to determine

8 whether it is to be continued. (RATIONALE: This direction the Congregational Development Committee is taking is in keeping with one of the stated principles of our Standing Rules [.()].) Proposed Change To Appendix F of the Standing Rules Regarding Proceeds from Sale of Abandoned or Discontinued Church Property In accordance with paragraph of The Discipline of The United Methodist Church (00 0), be it resolved that if the Bishop, Cabinet, and District Board of Church Location and Building make a decision to sell the property and assets of discontinued or abandoned United Methodist churches in the South Georgia Annual Conference and if there are no deed restrictions, then the proceeds be distributed as follows to expand the Kingdom of God: First, any unpaid debt to the South Georgia Conference for pensions and/or health benefits already paid by the Conference on behalf of the church will be repaid from the proceeds of the sale. This shall not include unpaid apportionments. If there are other monetary assets from which to pay this debt, they shall be exhausted first, before using proceeds from the sale of the property. 0% of the remainder shall go to the District Board of Missions (or comparable body), which shall be used for birthing new congregations or officially designated revitalized congregations within the district or outside the district in partnership with one or more other districts. In accordance with paragraph.. in The Discipline, if a discontinued or abandoned church is located in an urban center with more than 0,000 population (determined by the last official U.S. census), these district funds will be used for new and revitalized congregations within that urban center. 0% of the remainder shall go to the South Georgia Annual Conference Committee on New and Revitalized Congregational Development for the purpose of starting and revitalizing congregations. In accordance with paragraph.. in The Discipline, if a discontinued or abandoned church is located in an urban center with more than 0,000 population (determined by the last official U.S. census), these NRCD Congregational Development funds will be used for new and revitalized congregations within that urban center. RATIONALE: Many times these churches leave behind debt for clergy benefits, which the annual conference has had to pay, and needs to collect. This allows for the conference to collect if the church does not have sufficient funds to cover this debt. Otherwise, the payment of this debt would have to be apportioned among all the local churches of the conference. RECOMMENDATION Commission on Equitable Compensation REPORT # STATEMENT OF PURPOSE, POLICIES AND PROCEDURES I. PURPOSE: In keeping with the duties and responsibilities set forth in the Book of Discipline, 0, the Commission on Equitable Compensation of the South Georgia Conference understands its purpose as follows: A. To affirm the basic and traditional United Methodist principle that each pastoral charge is responsible for setting and paying the salary(ies) of its minister(s). B. To develop a plan of adequate ministerial support of those who have committed their lives to the itineracy. C. To establish a minimum standard schedule for ministerial support in the Conference. D. To encourage pastoral charges to provide adequate salary support to which their pastor is entitled. E. To administer a system of assisting those charges which are unable to provide that minimum standard through a supplement which is paid monthly to the church/charge treasurer. F. To recommend to the Annual Conference for their approval that Equitable Compensation funds be used to supplement base compensation beyond the minimum base compensation schedule when the Commission feels that the mission and ministry of the Annual Conference will be served best by so doing. (. The Book of Discipline, 0.)

9 II. POLICIES REGARDING ADMINISTRATION OF MINIMUM SALARY SUPPLEMENT: (. The Book of Discipline, 0) A. QUALIFYING REQUIREMENTS FOR CHARGES:. The Fall Charge Conference sets the pastor's total compensation (including salary and accountable reimbursable expenses) for the ensuing year. In consultation with the District Superintendent, the Charge Conference shall examine this salary in light of the minimum standard set by the Annual Conference. If the salary set by the Charge Conference is below the minimum standard for the pastor, the Charge Conference shall request the District Superintendent to file for a minimum salary supplement. This application should be signed by the pastor and two lay persons from each charge.. Each charge which applies for minimum salary supplement is expected to conduct an approved financial stewardship program. The District Superintendent and pastor should encourage each charge to fulfill this expectation.. Any local church or charge other than new church starts with additional paid staff other than the pastor requesting equitable compensation must document in writing with their request the specific need for additional staff.. Each charge shall furnish a parsonage or housing allowance for the pastor and family in keeping with guidelines established by the Annual Conference.. The maximum supplement from the Commission on Equitable Compensation should not exceed 0% of the pastor's salary, except in special situations approved by the District Superintendent and this committee.. No local church or charge shall receive minimum salary supplements for more than five consecutive years, except in special consideration approved by this committee.. It is the responsibility of every charge receiving equitable compensation funds to report these funds on the pastors W- for the year. B. QUALIFYING REQUIREMENTS FOR PASTORS:. The minimum salary supplement shall apply only to pastors serving full-time (with the exception of full conference members serving less than full-time, in keeping with., The Book of Discipline, 0.): Full Conference Members, Associate Members, Probationary Members, Provisional Members, and Local Pastors. Retired Supply Pastors shall qualify up to the amount established by the Annual Conference.. If at any time a change of status of the pastor occurs which would affect his/her minimum salary payments (i.e., loss of a dependent, marriage, birth of a child, salary change, change in conference relationship, change in appointment, etc.), it is the responsibility of the pastor to notify the District Superintendent. The District Superintendent shall then notify the Commission and the Conference Treasurer.. Definition of "dependent" shall be any person in the pastor's family who is considered a dependent on the pastor s income tax returns.. Special cases will be considered when the District Superintendent presents a request. If an appointment does not normally qualify for minimum salary supplement and the District Superintendent feels it is warranted (mission situations, specialized ministries, etc.), the case will be considered and an appropriate amount decided upon by the Commission. III. EQUITABLE SALARY SUPPORT FOR NEW CHURCH STARTS: A. The Commission on Equitable Compensation will provide a maximum of $0, for new church starts, to be used over a period of five years. Distribution over the five-year period will be at the discretion of the Director of New and Revitalized Congregational Development and the District Superintendent in consultation with the local leadership. Perhaps as much as half of the total could be used in the first year. This supplement would be contingent upon the annual evaluation and recommendation of the Director of New and Revitalized Congregational Development and the District Superintendent. It would be expected:. That any new church should become self-supporting in regards to salary within five years.

10 That all new churches would be served by a full-time pastor with several years of pastoral experience and possibly some specialized training, and therefore, might have a salary above normal minimum salary level for their conference status.. That pastors and local leaders would be required to file the same annual application forms as other applicants for supplements from the Commission on Equitable Compensation.. That new church starts would not receive supplement from the Commission on Equitable Compensation during the second five-year period, except in unusual circumstances, as might be determined by the Cabinet on an annual basis. IV. PROCEDURES FOR APPLICATION AND DISBURSEMENT OF FUNDS: A. The Pastor and District Superintendent are responsible for filing all requests for minimum salary supplements for the charges in his/her district and for notifying the Treasurer and Chair of the Commission of any changes during the year. B. In August, the Chair of the Commission will send application forms to each District Superintendent. After the salaries for the ensuing year have been set by the Charge Conference, the District Superintendent will supply application forms to the appropriate persons of each charge to complete. They shall then be returned to the District Superintendent for his/her approval. The District Superintendent will then forward all applications to the Conference Treasurer no later than December. A copy of these applications shall also be sent to the Commission Chair. No checks will be issued until applications have been processed by the Commission on Equitable Compensation. The Commission shall return incomplete applications. C. Each application should include:. Completed forms including appropriate signatures,. Copies of the requested budgets for the two years shown on the form, and. Copy of actual income and expenses for the current year.. Indication of what financial stewardship program the charge is using, and the results of that program.. Applications from a charge or a church on a charge must include budgets and financial reports for each church on the charge. D. Prior to conducting the Fall Charge Conference, the District Superintendent shall notify the officials of each charge that in setting the salary for the next year, they are encouraged to set the salary above the minimum to which their pastor is entitled. If the salary set is below the minimum salary standard, the District Superintendent shall inform the charge that they should file an application for minimum salary supplement to be paid to their pastor by the Annual Conference. E. The Conference Treasurer is responsible for the disbursement of funds on a monthly basis. The checks will be mailed directly to the church (or charge) receiving the supplement prior to the first day of the month for that month. F. The Conference Treasurer and the District Superintendent shall inform each other of any changes that occur in his/her district of which he/she may not otherwise be aware. G. The Commission realizes that errors can be made. In the event of error, either over paid or under paid, please return the check immediately to the Conference Treasurer for correction. The pastor shares the responsibility with the Commission in seeing that the payments are correct. REPORT # MINIMUM SALARY SCALE FOR JANUARY - DECEMBER 0 The Commission on Equitable Compensation is recommending an increase for 0 of % to the 0 base salary for all categories. The amounts will be as follows: 0 0 Full Conference Members $, $, Probationary and Associate,, Full-time Local Pastors,0,0 Retired Supply,000,000 ADDITIONAL BENEFITS: Spouse or first dependent, if not married First dependent if married (second if not married) Each additional dependent

11 We point out that the Retired Supply category is a salary supplement, not a minimum standard. When a Retired United Methodist minister serves a church, the Commission will supplement his/her salary if needed up to $,000. The amount of the supplement is determined by the work load, upon the recommendation of the District Superintendent who consults with the pastor and the church. We call your attention to the legislation of the 0 General Conference which affects Equitable Compensation payments to Full Conference Members serving "less than full-time" (. "Support for Ministers Appointed to Pastoral Charges Who Render Less than Full-Time Service. Each pastor who is in good standing and who is appointed by the Bishop for less than full-time service under the provision of. shall have a claim upon the Conference Equitable Salary Fund in one-quarter increments according to the guidelines established by the Annual Conference Commission on Equitable Compensation. ) We also call attention to 0. which states "Pension and benefit contributions are the responsibility of the salary paying unit of a participant in the Clergy Retirement Security Program and the Comprehensive Protection Plan..." (The Book of Discipline, 0). This legislation makes the Commission on Equitable Compensation responsible for paying its share of the minister s pension and benefits. In order to maintain the proposed minimum salary scale, the Commission on Equitable Compensation has requested of the Council on Finance and Administration a budget of $,00 for the year 0. Our budget request is the same as in 0, even with the increase in minimum salary. Our District Superintendents and churches work hard to fully support their appointed pastors, and to appoint pastors at a conference relationship which the church is able to fully support. 0 Budget Requests Salary Support $00,000 CRSP, CPP Benefits,000 HealthFlext Benefits 0,000 Committee Expenses,00 TOTAL $,00 This budget request is based on the following assumptions:. That churches paying minimum salary and below will raise their salaries by at least the amount that the minimum standard is raised.. That the District Superintendents will continue to work closely with each charge paying the minimum scale or less to ensure that at least a raise of the amount proposed in the standard will be adopted by each charge.. That the responsibility of the pastor's salary rests with the local church. Each church shall work to ensure and maintain adequate salary support.. That a strong minimum salary program will have a ripple effect throughout the churches paying above the minimum; thus, the Conference will be providing a standard by which all churches may be guided in setting an equitable salary for pastors in 0.. That Equitable Compensation for Hispanic Ministries will follow the salary guidelines established by the Equitable Compensation Committee for each conference year. The Commission reminds the Annual Conference of the work of the Clergy Workload Task Force in. This task force report, which was approved by the Annual Conference, pointed out that a minimum number of members to sustain a full-time work load and be able to provide support for a full time pastor was 0 members, with 00 average worship attendance. This is a very delicate and sensitive area of concern. All of us want our churches to provide full services. At the same time, other churches feel they have been called upon to support pastors at smaller, neighboring churches to a level which challenges the ministry of their own congregation. The purpose of Equitable Compensation is not to delay decisions churches need to make about their own size, activity, and ability to financially support a fulltime pastor. We believe those discussions best occur within the local church, as the members look realistically at their own situation to determine if they should call upon funds from the offering plates of sister congregations. We wish to commend all the District Superintendents, Local Church Committees on Pastor/Parish Relations, Committees on Finance, Administrative Boards, and others who have worked diligently over the past years to help many churches to rise above the Conference minimum salary level and to pay their own way. 0

12 REPORT # LIST OF CHURCHES RECEIVING EQUITABLE COMPENSATION FUNDS IN 0 Districts Churches Total Coastal Canaan Community $,.0 Coastal Grace,.00 Coastal Oak Hill 0,. Coastal Haven Sheffield,.00 North Central Grace Corner,. North Central Joycliff,.00 Northeast Langston 0,. Northwest Unadilla,.0 South Central Emory Chapel/Scott s Chapel (ES),.0 Southwest Palmyra Road,.00 Southwest Reynolds Chapel,0. Total $,0. REPORT # EQUITABLE COMPENSATION FUNDS BEING USED TO SUPPLEMENT SALARIES BEYOND MINIMUM SALARY The Book of Discipline, 0. provides that an annual conference can approve the use of Equitable Compensation Funds to supplement the base compensation beyond the minimum base compensation schedule upon the recommendation of the Equitable Compensation Commission when the Commission feels the use of such funds is in the best interest of the mission and ministry of the Annual Conference. In 0 the churches are: Canaan Community UMC Respectfully Submitted, Dr. P. Shane Green, Chairman Dr. Derek W. McAleer, Dir. of Administrative Services RECOMMENDATION Conference Board of Pension and Health Benefits Caring for the pensions and health needs of those who have and are faithfully serving the church continues to be the mission of the General Board of Pension and Health Benefits (GBOPHB) and the Conference Board of Pension and Health Benefits (CBOPHB). The Conference will continue to bear, on the decimal apportionment system, the financial responsibility for the following: Pension liability for the Pre- Pension Plan, the Comprehensive Protection Plan, and Health Insurance (HealthFlex) for ministers on disability and HRA funding for retired ministers. Churches will be billed directly for the cost of the following plans (if their minister is a participant): Clergy Retirement Security Program (CRSP) for full time & / time ministers United Methodist Personal Investment Plan (UMPIP) for / time and / time ministers Health Insurance (HealthFlex) for active ministers The Denominational Average Compensation (DAC) for 0 will be $,. The Conference Average Compensation (CAC) for 0 will be $,. These figures are based on salary plus % for housing. 0

13 REPORT # PRE- PENSIONS AND BENEFITS (FORMERLY CONFERENCE CLAIMANTS) Since, ministerial pensions have been funded each year by the church or agency which a minister serves. PRE- PENSIONS is the term used to describe the funding of pensions for those ministers, both active and retired, who have years of service credit prior to. Pensions for those ministers with service prior to must be funded annually from payments by the Annual Conference to the General Board of Pensions. This obligation is called UNFUNDED LIABILITY. This unfunded liability is determined each year based on the number of ministers we have who have years of pension credit prior to, their life expectancy, and the past service rate which is set each year. Beginning in 0, any increase in the past service rate for Pre- pension benefits must be fully funded in advance of the increase. In order to meet this obligation, your Board of Pensions began a plan in to retire this obligation by the year 0. We recommend that we continue using the sources as outlined in the next report. The Board of Pensions is pleased to approve a % increase in the past service rate for 0. Moving from $0 to $ a month created an up-front pension liability of $,0, which will be paid in December 0, using funds granted by the Conference Board of Trustees from the sale of superannuate homes. Income from the W. I. H. Pitts Memorial Fund has enabled us to set the rate above the prior minimum of 0.% of the CAC. For service rendered prior to January,, the following rates are recommended for 0: Retired Full Members, Associate Members and Local Pastors $.00 per service year Widows or Widowers of Participants $.00 per service year REPORT # THE CLERGY RETIREMENT SECURITY PROGRAM (CRSP) Employer contribution for ¾- and Full-Time ministers The 00 General Conference adopted a new pension plan for ministers called the Clergy Retirement Security Program (CRSP), which offers a unique two component benefit design that began on Jan., 00. The core program, which is provided to all eligible clergy (including deacons), consists of separate defined benefit and defined contribution plans. These components, which combined with Social Security and personal savings, are designed to replace % - 00% of income at retirement, assuming participants are contributing to Social Security and have saved some funds personally (either through the United Methodist Personal Investment Plan also known as UMPIP or other savings). A defined benefit retirement plan promises a specific dollar amount at retirement regardless of market conditions or investment performance. Since the beginning of CRSP, the Defined Benefit portion of CRSP has been a benefit equal to.% of the Denominational Average Compensation (DAC) at the time of retirement multiplied by the number of years of credited service in the plan. Changes to the plan made at the 0 General Conference have set the benefit equal to.0% of the DAC beginning January, 0. The prior CRSP benefit formula will remain effective for all covered service prior to January, 0. A defined contribution retirement plan promises that a defined amount of money will go into an active clergy person s account annually. The Defined Contribution portion of CRSP had a benefit equal to % of the minister s Pension Plan Compensation each year through December 0. The Pension Plan Compensation for each minister is the taxable salary plus non-taxable contributions to a 0 (b) plan and a section cafeteria plan plus % of the above for housing. If a parsonage is not provided, the actual amount the minister receives for housing will be included. Beginning January, 0 the Defined Contribution contributed by the Church is now % of the Pension Plan Compensation with an additional % matching contribution if the minister contributes at least % to UMPIP. Ministers contributing at % to UMPIP will have church contributions to the Defined Contribution Plan equal to %. Those opting not to participate will receive church contributions equal to %. We recommend that the minister s pension be billed to his/her local church as follows:. Beginning January, 0, the defined benefit portion of CRSP (CRSP DB) will be assessed to churches based on a specific percentage of the clergy s Pension Plan Compensation. The actual percentage to be used will be calculated by the conference after consultation with the actuaries at the General Board of Pension and Health Benefits (GBOPHB). Churches will then be charged for their share of the CRSP DB based on their current appointment status and salary information. Changes to appointments and salaries midyear will be reflected in the billing at the time of the change. 0

14 Each church having a participating clergy will be assessed % of the their clergy s Pension Plan Compensation, which will go directly into their clergy s designated account at the General Board of Pensions to fund the defined contribution portion of CRSP based on the decision of the minister to participate in the minimum contribution requirements for matching funds; and. The amounts calculated for the two parts of CRSP will be combined on the bill sent to the church or salarypaying unit. (Item plus item equals the total bill). Pastors and/or Church Treasurers who experience any billing problems are asked to contact the Conference Administrative Services Office. Employer Contribution for ½- time and ¾- time ministers The 0 Annual Conference approved that the benefits for ministers serving / time or / time appointments will be provided by the United Methodist Personal Investment Plan (a defined contribution plan). These benefits are described in Report # under United Methodist Personal Investment Plan. EXTENSION MINISTRY APPOINTMENTS Under the new pension plan, CRSP, church-related institutions and agencies can sign an agreement with the General Board of Pension and Health Benefits (GBOPHP) to offer the United Methodist Personal Investment Plan for the employers portion of the minister s pension or they can sign an agreement with the Conference Board of Pensions and Health Benefits (CBOPHB) in order to allow their active ministers to participate in the Clergy Retirement Security Program. Church-related institutions and agencies which choose to enroll their active ministers in CRSP through the South Georgia Conference will be responsible for the costs associated with their minister s participation in the plan. Church-related institutions and agencies are also encouraged to enroll their active ministers in the Comprehensive Protection Plan. Ministers appointed to extension ministries are reminded that when their compensation changes, they need to notify the General Board of Pensions and the Administrative Services Office in order for their pension contributions to be calculated properly. REPORT # UNITED METHODIST PERSONAL INVESTMENT PLAN (UMPIP) Employer contribution for /- and /-Time ministers As of January, 0, ministers serving less than % appointments are no longer eligible to participate in the CRSP and will be enrolled in UMPIP as their primary pension plan. Churches will be billed % of the minister s pension plan compensation as described above which would be directly deposited in the minister s account subject to the minister s personal participation of a % match. Those choosing not to participate would only receive % in their UMPIP account. Churches will be billed by the Administrative Services Office for the church s cost of their ministers participation in UMPIP. (The General Board of Pensions will direct bill the churches for the minister s personal pension contribution.) Minister s Personal Pension Contribution Beginning in January 00, the Personal Investment Plan was modified, and the new name is United Methodist Personal Investment Plan (UMPIP). In 0 and 0 ministers covered by the Clergy Retirement Security Program (CRSP) are urged to pay a minimum of % of their salaries into his/her United Methodist Personal Investment Plan (UMPIP) accounts with the General Board of Pension and Health Benefits (GBOPHB). These UMPIP contributions can be tax deferred ( Before Tax Contribution ) or tax paid ( After Tax Contribution ) based on an agreement with the church prior to the beginning of the year. A new option is to have them invested in a Roth IRA, which may be attractive particularly to younger clergy. The General Board of Pension and Health Benefits will continue to send bills directly to churches and church-related institutions and agencies for their minister s contributions into UMPIP. Local churches are asked to sign an adoption agreement with the General Board of Pensions in order to allow their ministers and lay employees to participate in the plan. Contributions to UMPIP over the minimum % matching contribution will continue to be encouraged of all ministers as an important part of their retirement planning. REPORT # THE COMPREHENSIVE PROTECTION PLAN (CPP) In 0, the Contribution Rate for CPP shall be % of the Active Participant s Plan Compensation for the year, not to exceed twice the Denominational Average Compensation (DAC). Plan Compensation for the Comprehensive 0

15 Protection Plan is the same as it is for the Clergy Retirement Security Program, which is defined above. Based on this rate and the DAC, the maximum premium for each full-time minister will be $, for 0. The South Georgia Conference pays for CPP through the conference budget, and it is based on the decimal used to calculate the apportionments. Therefore, the amount each church pays for the Comprehensive Protection Plan will not usually be equal to the actual cost of CPP for their minister(s). It is recommended that funds for the Comprehensive Protection Plan (CPP) be as follows: () CPP will be apportioned to the charges based upon the same decimal which is used for the other apportionments. () Each local church treasurer is urged to make a monthly payment of the CPP apportionment to the Administrative Services Office with their other apportionments. () The Director of Administrative Services shall remit payments on a monthly basis to the General Board of Pension and Health Benefits (GBOPHB) on behalf of all pastors covered by the Comprehensive Protection Plan (CPP). REPORT # HEALTH INSURANCE (HEALTHFLEX) In 0, the Conference Board of Pension and Health Benefits will continue to offer a health benefit program. Health insurance is not mandated by the General Conference, but we wish to provide these benefits as long as they are affordable. In a group policy, the cost of premiums is directly related to prior claims experience. When South Georgia s claims exceed our premiums, along with the higher average age of our participants, it has contributed to higher than average increases in premiums for health insurance. Participation in the Conference health insurance (HealthFlex) is mandatory for persons in the following categories who are under full time appointment:. To the Local Church: A. Members of the South Georgia Annual Conference appointed to full-time service who are: a - an elder in full connection (0 Discipline,.); b - an associate member (0 Discipline, ); c - a provisional member on the elder track (0 Discipline,.); B. A full-time local pastor who is under episcopal appointment to a charge located in the South Georgia Annual Conference (0 Discipline.); C. An ordained elder or ordained clergy from other annual conferences or other Methodist denominations appointed to a local church within the South Georgia Annual Conference (0 Discipline,.); or, D. A clergy member from another denomination under episcopal appointment to a local church within the South Georgia Conference as defined by the 0 Discipline,... To an Extension Ministry: An ordained elder, an associate member or a probationary member (other than a missionary) appointed beyond the local church within the connectional structure to a unit of the South Georgia Annual Conference (0 Discipline,.(a)()) with pension responsibility by the Annual Conference. This includes members who are serving as district superintendents, conference connectional ministries directors and staff, congregational development officers, assistant to the bishop, and conference treasurer, director of ministerial services and other appointments with salaries funded by the Annual Conference. ACTIVE MINISTERS. All ministers covered under the mandatory participation rules will have 00% of the cost of their premium billed directly to the local churches they are serving.. The cost of health insurance for participants on incapacity leave and receiving disability benefits from the Comprehensive Protection Plan who are in a mandatory participation category will be paid by the conference through the apportionments.. Salary-paying units of Extension Ministers (including Conference Evangelists) must pay the full cost of the premiums in order for them to participate in the health insurance (HealthFlex). 0

16 RETIRED MINISTERS Beginning January, 0, retired ministers and their spouses eligible for Medicare were moved to individual insurance policies with the assistance of Extend Health, Inc., the largest private Medicare exchange in the industry. In 0, Extend Health changed its name to One Exchange. Health Reimbursement Accounts (HRAs) are established with One Exchange to help cover the cost of the insurance for the ministers based on previous participation in HealthFlex and years of service in the South Georgia Conference. Beginning July, 0, the rates will be: 0 years of service/participation in South Georgia - $0 annually 0 years of service/participation in South Georgia - $0 annually less than 0 years of service/participation - no contribution These amounts are subject to change based on the decision of the Conference Board of Pensions. They reflect an increase of % over last year s reimbursement. MISCELLANEOUS INFORMATION NEW PLAN OPTIONS: Beginning in 0 our active plan (for participants under age ) was changed to a Consumer Driven Health Plan (CDHP), a type of health insurance plan that allows the participant to use a health reimbursement account (HRA) to pay certain health care expenses directly, while a high-deductible health plan protects them from catastrophic medical expenses. This model resulted in significant savings for the conference, and delayed premium increases for years. The Conference Board of Pensions has monitored the type of plans available and their costs, and has decided to participate in the private HealthFlex Exchange in 0. Participating in the Exchange will mean that participants will be able to choose form several health plans instead of only one. Each plan will have its own deductibles, coverages, and costs. Participants will hopefully be able to choose the plan which suits their particular need. Pastors will be asked to choose his or her plan during the annual Open Enrollment period each November. The default plan will be the one we currently use (CDHP C000). If a pastor fails to make a selection, he or she will be enrolled in this plan. Churches will be billed the premium for the default plan. Pastors will then have those funds available to purchase insurance. Should they choose a more expensive plan, the difference will be billed. Should they choose a less expensive plan, the difference will be available to purchase other medical expenses, or to purchase dental or vision coverage. The Office of Administrative Services will sponsor training events for pastors this fall to assist pastors in knowing how to select the coverages they wish to have for themselves and, if desired, their spouse or family. HEALTHFLEX PREMIUMS FOR 0: The premium for the default plan (CDHP C000) is $0/month in 0; in 0, the rate will increase to $0/month. The reason for the increase is mainly due to high claims; in 0, claims were % of premiums for South Georgia. In an effort to help local churches, the Conference Board of Pensions will pay ½ of this increase ($.0/month) in 0, and only bill the church $.0/month. In 0, the church will be billed the full increase. We are pleased to have funds available with which to assist our congregations, pastors, and families. SOUTH GEORGIA CONFERENCE WEBSITE: The Administrative Services section of the Conference website includes many useful forms and articles regarding pension, health insurance, flexible spending accounts, and related matters. In addition, the Housing Resolution for Retired or Disabled Ministers is available on the website. ADDITIONAL HEALTH INSURANCE INFORMATION: The health insurance industry is in rapid change, and it is hard to predict the future. The Conference Board of Pensions is in regular conversation with the General Board of Pensions and Health Benefits and with other annual conferences as we seek to determine the best offering for our pastors and churches, both in terms of coverage and cost. Moving to the HealthFlex Exchange with options for pastors is a result of these conversations. With the Cadillac Tax looming on high-coverage health insurance plans, we anticipate a shift from gold plans to silver and bronze plans, with higher costs for participants. While we cannot be sure about what offerings will be available in future years, it does 0

17 seem clear that the type and cost of health coverage we may offer will change, and that participants will experience greater out of pocket costs. Is our health insurance too costly? We think so. Can we find a better deal? We have not been able to, primarily because of our claims experience. As long as insurers spend more on claims than they receive in premiums, our expense will go up. Our clergy population is older than the average insured group, and our claims are higher. As long as our conference wishes to provide health insurance for pastors in a group plan, we will struggle with these costs. Our carrier, HealthFlex, does provide numerous wellness benefits and incentives to live healthier, as well as coaching and other assistance to those wishing to get healthier. These could produce better health in our clergy, which would benefit the clergy as well as lower our claims. REPORT # WELLNESS INITIATIVE FOR SOUTH GEORGIA The Conference Board of Pensions continues to embrace better health and wellness for our ministers and laity. Because of the increasing cost of health care and the increasing number of our participants with chronic illnesses, the Board of Pensions realizes that by emphasizing wellness and working to improve the health of our clergy, we will not only improve the ability of clergy to be in ministry but should in the long term have an affect on the rising costs of insurance. We want to encourage ministers to become more responsible for their health-related behaviors. Depending on the health plan the participant chooses in 0, there will be varying tiers and rewards plans through Virgin HealthMiles. This will be part of the participant s choice during open enrollment. Information on enrolling in Virgin HealthMiles can be obtained on the South Georgia Conference website or by contacting the Administrative Services Office at HealthFlex is further encouraging active participants to be more responsible for their health. We expect to continue the requirement that all participants in the active HealthFlex plan must take the Health Quotient (HQ) during August and September in order to avoid increased 0 individual deductibles. If a participant's spouse is covered under the active plan, then both the participant and his or her spouse must take the Health Quotient (HQ) by September 0, 0, in order to avoid an increased 0 deductible for the spouse/family. We encourage all ministers to have a wellness exam annually. Guidelines related to wellness exam by age groups are on the South Georgia Conference website, REPORT # SOUTH GEORGIA ANNUAL CONFERENCE FUNDING PLAN FOR RETIREE HEALTH CARE BENEFITS The South Georgia Conference (the Conference ) will continue to offer access to a health benefit program for our retired ministers. As long as the cost of this benefit is affordable, the Conference will continue to fund a portion of the cost of a Medicare Companion plan for our retired ministers. The Conference Board of Pension and Health Benefits has studied methods to fund or reduce this liability in the future. This has already been done with regard to funding of benefits for spouses of our retirees and surviving spouses of our ministers. Beginning in 0, the Conference no longer pays any part of the cost of a Medicare Companion plan for spouses of retirees or surviving spouses of our ministers. In addition, in January, 0, the retirees and their spouses were transitioned to individual Medicare supplements policies through One Exchange (formerly Extend Health). The Conference no longer offers HealthFlex for those that are Medicare eligible. Retirees with 0 years of service in South Georgia and who were on our HealthFlex insurance are having a Health Reimbursement Account (HRA) funded at $,0 beginning July, in 0. Those with 0 - years of service and who were on our insurance will have a $,0 HRA and those with less than 0 years will bear the full cost of their insurance. This change dropped our Accumulated Post- Retirement Benefit Obligation from $,, on //0 to $,, on //. The Conference is not liable for healthcare for retirees, their spouses, or surviving spouses. However, the Conference desires to provide access and assistance for such benefits as long as they are affordable (in the same way we desire to provide such benefits for active pastors). Because the Conference still has obligations that we must 0

18 meet on funding our Pre- Pension plan, our intention has been to meet the Pre- Pension obligation and that as soon as this obligation has been met we examine what can and should be done to provide retiree health benefits. Since the amount included in the Conference budget for funding of the Pre- Pension Plan has been and continues to be $,00,000 annually. The General Board of Pensions is in conversation with annual conferences regarding funding for retiree healthcare, including determining if an unfunded liability exists, and may issue directives on the matter next year. Our Conference plans to pay for these benefits through several potential funding sources. Both the interest and principal of non-plan funds may be available for funding our Retiree Health Care Benefits. A description of the nonplan assets which are or will be available to fund these benefits is described below: Our Conference maintains a Reserve Account for HealthFlex which included designated funds for Unfunded Retiree Health Care Benefits with the General Board of Pension and Health Benefits that has a value as of December, 0 of $,,. These funds came from the 00 Performance Dividend, Medicare D rebates and HealthFlex Incentives. Our Conference expects to utilize annual apportionments from the local churches as the primary source for funding our Retiree Health Care Benefits. As stated earlier, presently $,00,000 is in the Conference budget and is being used to help fund Pre- benefits. Once our Pre- benefit obligation is satisfied, the funds will be redirected to this purpose. Our Conference maintains a W. I. H. Pitts Memorial Fund account in the South Georgia Annual Conference Investment Account which is presently being managed by SunTrust and Ron Blue. At present the funds are reserved until our Pre- benefits obligation is fully funded. Once that is satisfied, they can be used for funding our Retiree Health Care Benefits. We receive approximately $00,000 from the W. I. H. Pitts Trust each year. Both the principal contributions and investment earnings are available for this purpose. The Conference will continue to explore possible sources of additional funding which may be available to help meet our obligations, as well as ways to reduce our liabilities in the future. By continuing to study our policies as they relate to funding of Retiree Health Care Benefits, our goal is to meet any Unfunded Liability earlier than 00. The Conference Board of Pensions has appointed a Task Force which will meet to examine the overall obligations of the Annual Conference (including retiree health care), the resources available, and the plans currently in place. This Task Force will then bring such recommendation for future actions as needed. REPORT # SOUTH GEORGIA ANNUAL CONFERENCE 0 COMPREHENSIVE BENEFIT FUNDING PLAN (Note: The 0 CBFP has been submitted, and we are awaiting its approval) The 0 Book of Discipline 0. requires that each annual conference develop, adopt and implement a formal comprehensive funding plan for funding all of its benefit obligations. The funding plan shall be submitted annually to the General Board of Pension and Health Benefits for review and be approved annually by the annual conference, following the receipt and inclusion of a favorable written opinion from the General Board of Pension and Health Benefits (GBPHB). This summary document is only a portion of the information contained in the actual signed funding plan. As such, it might not contain all the information required for a comprehensive view of the benefit obligations of the conference. You may request the full contents of the 0 comprehensive benefit funding plan from your conference benefits office. Following is the summary of the Comprehensive Benefit Funding Plan (CBFP) that received a favorable written opinion from GBPHB for the 0 conference benefit obligations: 0

19 CLERGY RETIREMENT SECURITY PROGRAM (CRSP) DEFINED BENEFIT (DB) AND DEFINED CONTRIBUTION (DC) Plan Overview: The Clergy Retirement Security Program (CRSP) is an Internal Revenue Code section 0(b) retirement program providing lifetime income and account flexibility designed for those who serve as clergy of The United Methodist Church. The plan is designed to provide participants with one portion of their overall retirement benefits. CRSP replaced the Ministerial Pension Plan (MPP) effective January, 00, which had previously replaced the Pre- Plan for service rendered prior to January,. CRSP consists of both a defined benefit (DB) plan, which provides a monthly benefit at retirement based upon years of credited service to The United Methodist Church, and a defined contribution (DC) plan, which provides a retirement account balance established and funded by annual conferences. The Clergy Retirement Security Program (CRSP-DB) annuities total liability as of January, 0 is $.0 billion, while total plan assets are $. billion resulting in a current plan funded ratio of %. The South Georgia Conference portion of the liability is.% and the 0 contribution is $,,0. The conference anticipates that the amount will be funded by direct bill to churches. Additionally, General Conference 0 approved a change to CRSP that provides each annual conference the discretion to determine whether to cover three-quarter and/or half-time clergy. The South Georgia Conference has elected to cover clergy serving %+ under CRSP effective January, 0. Effective January, 0 CRSP-DC plan was reduced by the General Conference from a % to a % of plan compensation non-matching contribution. Clergy have the opportunity to earn up to an additional % CRSP DC contribution by contributing at least % of their plan compensation to UMPIP; therefore, if a participant contributes at least % of plan compensation to UMPIP, the individual will receive a contribution of %, which is unchanged from 0 and prior. The 0 CRSP-DC contribution is anticipated to be $,00 and will be funded by direct bill to churches. MINISTERIAL PENSION PLAN (MPP) Plan Overview: Supplement Three to the Clergy Retirement Security Program (CRSP), also known as the Ministerial Pension Plan (MPP), provides clergy with a pension benefit for their years of ministry with The United Methodist Church from through 00. MPP is an Internal Revenue Code section 0(b) retirement plan. Effective January, 0, exactly % of the account balance must be annuitized when it is to be distributed. The remainder may be rolled over to UMPIP, another qualified plan, an IRA, or paid in a lump sum. The Ministerial Pension Plan (MPP) annuities total liability as of January, 0, is $.0 billion, while total plan assets are $. billion, resulting in a current plan funded ratio of % and no required contribution for 0. The South Georgia Conference s percentage of the total liability is.0%. Future MPP annuitants have a total account balance of $. billion and the South Georgia Conference s portion of that balance is $,0, or.% of the total. PRE- PLAN Plan Overview: Supplement One to the Clergy Retirement Security Program (CRSP), also known as the Pre- Plan, provides clergy with a pension benefit for their years of ministry with The United Methodist Church prior to. The Pre- Plan was replaced by MPP effective January,. If a clergy person retires within the Conference (and does not terminate), the minimum benefit payable is based on two factors: ) years of service with pension credit and ) Conference pension rate. Years of service with pension credit are approved by each Conference on the recommendation of the Conference Board of Pensions (CBOP) in accordance with plan provisions and The Book of Discipline. The pension rate, also called the past service rate, is the dollar amount chosen by the Conference as the amount payable for each approved year of service with pension credit. The pension rate may change from year to year. The number of years of service with pension credit is multiplied by the pension rate, and the product is the minimum annual benefit payable to those clergy eligible for Pre- Plan benefits. In certain situations, the benefit received from the Pre- plan may vary based on the applicability of what is referred to as Defined Benefit Service Money (DBSM), which is the defined contribution feature of the Pre- Plan. At the time that a participant retires, the DBSM account is converted to a life based benefit. At that point, the clergy s 0

20 benefit is the greater of the PSR benefit or DBSM benefit. If the conference increases the PSR, the clergy s benefit is recalculated; however, the DBSM based benefit does not change. The 0 Past Service Rate (PSR) recommended to the South Georgia Conference will be $0.00, the same as the 0 rate. Future increases will be made as the CBOP feels that the budget will allow the increase. The contingent annuitant percentage is recommended to remain at the 0% level. Based on the final actuarial valuations from the General Board of Pensions and Health Benefits as of January, 0 for 0, the portion of the Pre- liability attributable to the South Georgia Conference and funded status is (as of //0) as follows: Funding Plan Liability $,, Assets in the Plan $,,0 Funded status $(,,0) represented by a.0% funded ratio In addition to the assets in the Plan, it is anticipated that amount will be funded through the following funding sources: Non plan assets designated for retiring Pre- obligations $,00, Present value of incoming new money $,, ACTIVE HEALTH BENEFIT PROGRAM Plan Overview: The South Georgia Conference offers the Self Funded-HealthFlex program which is best described as a Self Funded-HealthFlex to its active eligible participants. The total cost of the program for 0 is anticipated to be $,, and will be funded by direct bill to churches. It is anticipated that increases for future years will average.00% due to the rising cost of healthcare. POST-RETIREMENT MEDICAL BENEFIT PROGRAM (PRM) Plan Overview: The South Georgia Conference post-retirement medical program currently offered is a OneExchange plan made available to retired clergy who were on HealthFlex at the time of their retirement. The expectation for 0 is to continue offering a OneExchange plan. The funding obligation for 0 is anticipated to be $,000 with the funding sources to be new incoming askings. On a longer term basis, the Conference includes funds in the Conference Budget to cover the cost of providing insurance and pharmacy plans purchased through OneExchange. COMPREHENSIVE PROTECTION PLAN (CPP) Plan Overview: The Comprehensive Protection Plan (CPP) provides death, long-term disability and other welfare benefits for eligible clergy of The United Methodist Church and their families. It is an Internal Revenue Code (e) "church plan" funded by plan sponsor insurance premiums. Generally, clergy are eligible to participate in CPP if the conference or salary-paying unit sponsors the plan and they are able to satisfy the eligibility requirements. These requirements include full-time appointment with plan compensation equal to or greater than 0% of the Denominational Average Compensation or the Conference Average Compensation, whichever is less. The South Georgia Conference has elected to make CPP eligible clergy appointed full time and ¾ time have mandatory participation. Elders, provisional elders, and associate members appointed ½ and ¼ time have optional participation under special arrangements. Elders and associate members on sabbatical leave have optional participation under special arrangements. For 0, the South Georgia Conference has an expected required contribution to the Comprehensive Protection Plan of $,00, which is anticipated to be funded through apportionments. The Conference anticipates that COLA raises will be given. District consolidation reduced total salaries from 0 to 0. 0

21 UNITED METHODIST PERSONAL INVESTMENT PLAN (UMPIP) FOR LAY AND CLERGY Plan Overview: The United Methodist Personal Investment Plan (UMPIP) is an Internal Revenue Code section 0(b) defined contribution retirement savings plan for clergy and lay employees of The United Methodist Church and affiliated organizations. Participants may make before-tax and/or after-tax contributions through payroll deductions. Participant contributions, various optional plan sponsor contributions and investment earnings comprise the individual s retirement account balance. Conference office lay employees working an average of 0 hours per week or more are eligible after months for a plan sponsor-funded pension contribution of % of salary. Lay employees are encouraged to make contributions toward their retirement through payroll deductions to the UMPIP. The estimated contribution for the South Georgia Conference is anticipated to be $0, and will be funded through the Conference budget paid through apportionments. The South Georgia Conference will continue to sponsor the UMPIP for clergy serving one-quarter and one-half time and are eligible for a pension contribution of % of salary. If the clergy person contributes at least % of their salary, he or she can receive an extra % from the church/conference. The estimated contribution for the Conference is anticipated to be $,00 and will be funded through the Conference budget paid through apportionments. OTHER CONFERENCE BENEFIT OBLIGATIONS: DEFINED CONTRIBUTION (DC) TYPE DC Plan Overview: The South Georgia Conference currently offers a UM Life Options - Long Term Disability & Death Benefits for lay employees and predecessor BPP plan for retired clergy/surviving spouses plan. The funding obligation for 0 is anticipated to be $,0 funded through the Conference budget - apportionments. Increases in premiums will be as a result of salary increases for the lay employees and age banding increases for the clergy plan. DC Plan Overview: The South Georgia Conference currently offers an Accidental Death Benefit plan made available to Conference employees. The funding obligation for 0 is anticipated to be $, funded through the Conference budget - apportionments. The Benefit premium has remained unchanged for several years; the only increase will be due to number of covered employees. OTHER CONFERENCE BENEFIT OBLIGATIONS: DEFINED BENEFIT (DB) TYPE DB Plan Overview: The South Georgia Conference currently offers a Retirement gift (DB amount) plan made available to full and part-time clergy upon retirement. This gift, in the amount of $,000 for full-time and $00 for part-time retiring pastors, is intended to assist with the final moving expenses of the pastor. The funding obligation for 0 is anticipated to be $0,000. This is a gift, and not a promised retirement benefit. Funds are included in the Pension budget in the Conference Budget each year and paid through apportionments. The amount of each gift is not projected to increase but the aging population of the conference will bring about increases in the total budget. CONCLUSION: The 0 Comprehensive Benefit Funding Plan and the above Summary document incorporates, to the best of our understanding, the South Georgia Conference s obligations and funding requirements of the benefits provided to the clergy and laity of the South Georgia Conference. Rev. F. Thomas Mason, Chair, Conference Board of Pensions Dr. Derek W. McAleer, Director of Administrative Services REPORT # RESOLUTIONS RELATING TO RENTAL/HOUSING ALLOWANCES FOR RETIRED OR DISABLED CLERGY PERSONS OF THE SOUTH GEORGIA CONFERENCE FOR 0 The South Georgia Conference (the Conference ) adopts the following resolutions relating to rental/housing allowance for active, retired, terminated or disabled clergypersons of the Conference. WHEREAS, the religious denomination known as The United Methodist Church (the Church ), of which this

22 Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 0) who were or are duly ordained, commissioned, or licensed ministers of the Church ( Clergypersons ); WHEREAS, the practice of the Church and of this Conference was and is to provide active Clergypersons with a parsonage or a rental/ housing allowance as part of the gross compensation; WHEREAS, pensions or other amounts paid to active, retired, terminated and disabled Clergypersons are considered to be deferred compensation and are paid to said active, retired, terminated and disabled Clergypersons in consideration of previous, active service; and WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as the appropriate organization to designate a rental/housing allowance for Clergypersons who are or were members of this Conference and are eligible to receive such deferred compensation; NOW, THEREFORE, BE IT RESOLVED: THAT an amount equal to 00% of the pension or disability payments received from plans authorized under The Book of Discipline of The United Methodist Church (the Discipline ), which includes all such payments from the General Board of Pension and Health Benefits ( GBOPHB ), during the year of 0 to each active, retired, terminated or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each Clergyperson; and THAT the pension or disability payments to which this rental/housing allowance applies will be any pension or disability payments from plans, annuities, or funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity, or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active, a retired, terminated or a disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church, general agency of the Church, other institution of the Church, former denomination that is now a part of the Church, or any other employer that employed the Clergyperson to perform services related to the ministry of the Church, or its predecessors, and that elected to make contributions to, or accrue a benefit under, such a plan, annuity, or fund for such active, retired, terminated or disabled Clergyperson s pension or disability as part of his or her gross compensation. NOTE: The rental/housing allowance that may be excluded from a Clergyperson s gross income in any year for federal income tax purposes is limited under the Internal Revenue Code section 0() and regulations there under to the least of: () the amount of the rental/housing allowance designated by the Clergyperson s employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year; () the amount actually expended by the Clergyperson to rent or provide a home in such a year; or () the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year. Retiring clergy may want to consider spanning major purchases such as a home over several years to take best advantage of this exclusion. Submitted by: Mr. Robert Anderson, Chair, Conference Board of Pensions Dr. Derek W. McAleer, Director of Administrative Services

23 RECOMMENDATION Conference Board of Trustees 0 ANNUAL REPORT THE BOARD OF TRUSTEES OF THE SOUTH GEORGIA ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH, INC. March, 0 REAL PROPERTY Title to the seven James A. and Virginia Willingham Wood Homes in Epworth Acres on St. Simons Island is held by the Trustees. Title to the two Office of Connectional Ministries parsonages in Epworth Acres is held by the Trustees. One of these is occupied by the Director of the Office of Connectional Ministries; the second one is presently being rented, but is being held in reserve if the need for its use should arise in the future. These properties have been maintained by the Trustees with funds appropriated through the Conference Budget, but this expenditure will no longer be funded from the Conference Budget because of the establishment of the maintenance fund discussed below. Proceeds from the sale of two OCM Parsonages in Epworth Acres (0 Coke Street and Asbury Street) were used to establish the OCM Parsonage Maintenance Fund at the Georgia United Methodist Foundation. Funds previously held by the Annual Conference in the OCM Parsonages Reserve Fund (see below) have been transferred to the Maintenance Fund. The Trustees believe that the amount held in the OCM Parsonage Maintenance Fund will be sufficient to take care of all future expenses related to these homes. There is no longer a line item in the Conference Budget for maintenance of these parsonages. Title to three homes for retired ministers at Magnolia Manor in Americus is jointly held by the Trustees of the South Georgia Conference and the Trustees of Magnolia Manor. Two additional homes at Magnolia Manor were built in 00 with the majority of the cost provided by the Superannuate Homes Fund. Title to the Episcopal Residence at Waverly Park Drive, Macon, Georgia, is held by the Conference Trustees. MAINTENANCE AND INSURANCE OF REAL PROPERTY Maintenance and Insurance for the OFFICE OF CONNECTIONAL MINISTRIES PARSONAGES is paid by the Trustees with funds from the Conference Budget. Expenditures during 0 totaled $,.. Maintenance and Insurance for the JAMES A. AND VIRGINIA WILLINGHAM WOOD HOMES is paid by the Trustees with funds generated by payments made by residents of the homes and income from investments restricted for that purpose. Expenditures during 0 totaled $,.00. Maintenance and Insurance for the RETIRED MINISTERS' HOMES AT MAGNOLIA MANOR, AMERICUS is paid by Magnolia Manor from funds remitted by the residents of the three homes. Maintenance, Insurance and Mortgage payments for the EPISCOPAL RESIDENCE are overseen by the Episcopal Residence Committee. Funds for this purpose are provided by the General Council on Finance and Administration and the South Georgia Annual Conference. The Conference Treasurer administers these funds. The total expenditures for maintenance and insurance during 0 was $,0.. FUNDS ADMINISTERED BY THE BOARD OF TRUSTEES. THE TOOLE FUND. Income from an original gift of $, by Mrs. C. L. Toole in memory of Dr. Toole was designated by the donor to be paid annually to the Conference Board of Missions. As of December, 0, the Fund had an inventory value of $,0.. Income for 0 of $. has been paid to the Office of Connectional Ministries.. THE FUND OF SPECIAL RELIEF. This Fund originated in 0 to be used for ministers of the

24 Conference as the name indicates. Stipulation has been made that three-fourths of the annual income be distributed by the Trustees to the Conference Committee charged with administering the Fund and the remaining one-fourth be added to the corpus of the Fund. Inventory Value of this Fund as of December, 0: $,000.. Total income for 0 was $.. $. (%) was paid to the Treasurer of the Fund of Special Relief, and $. (%) was added to the corpus of the fund.. MELTON CHILDREN'S HOME FUND. This Fund was created by the estate of Eddie Clark Melton through the Georgia Railroad Bank and Trust Company of Augusta, Georgia, in January. On December, 0, the corpus of this Fund was $,.. Income for 0 was $. and has been paid to the Methodist Home for Children and Youth.. CATCHINGS ESTATE TRUST FUND. This Fund was created under the will of Julia Cone Catchings, dated June, 0. The corpus of the Fund is "to be held by the Conference Trustees for, and the income therefrom applied to the relief of such infirm, dependent and friendless persons as may in their judgment, be worthy and deserving of aid." Under these terms, distribution of the annual income has been made to five causes in 0. The corpus of the fund as of December, 0, was $,0.. Checks in the amount of $. each have been made payable to the following Conference causes and institutions: Golden Cross Fund - Conference Treasurer Magnolia Manor The Methodist Home Necessities - Conference Board of Pensions Fund for Special Relief. COVINGTON CAMPING SCHOLARSHIP FUND. This trust fund was established in 00 through a bequest from the estate of Zlypha B. Covington of Thomasville, Georgia, in memory of her parents, John Nathaniel Bowman and Annie Renfroe Bowman and is to be used for camping scholarships. The initial corpus of this Fund was $,0.00. The annual income is forwarded to the South Georgia Conference Office of Connectional Ministries to be used for deserving children and youth who participate in the camping program at Epworth By The Sea. The value of the Fund on December, 0, was $,.. Income of $.0 was paid to the Office of Connectional Ministries.. COWART FUND: The Annual Conference received an undesignated bequest from the estate of Mrs. Wilma Cowart of Effingham County. The 00 Annual Conference passed a resolution designating this fund for:. New Congregational Development. Legal Expenses. Assistance for persons leaving the ministry. Discontinued or abandoned property, and. Future capital needs of the Annual Conference. These designations remain in effect unless changed by future action of the Annual Conference.. HARNSBERGER FUND: The Annual Conference received an undesignated bequest from the estate of Mr. and Mrs. Clyde Harnsberger of Macon. This fund is governed by the same 0 resolution as the Cowart Fund.. BIRCHALL FUND: The Annual Conference received an undesignated bequest from the estate of Mrs. Eloise Birchall of Macon. The 0 Annual Conference designated $00, of this amount to be added to the capital projects needs of the Annual Conference with the remainder to be held as a contingency until designated for future uses.

25 MAJOR GIFTS FUND: In order to account for the Cowart, Harnsberger and Birchall gifts according to the expense categories established by the Annual Conference, the Trustees have consolidated the accounting for these gifts under the Major Gifts designation. As of December, 0, the balance remaining in the designated categories was as follows: Balance as of //0 Percentage of Fund New Congregational Development $ % Legal Expenses,0..% Assistance for persons leaving the ministry,0..% Discontinued or abandoned properties,..% Future capital needs,. 0.% Contingency,0..% $, % 0. SUPERANNUATE HOMES FUND - This fund has accumulated from the sale of Conference owned homes and other property and was previously used to provide and maintain retirement homes such as the one formerly owned by the Trustees in Waynesboro. During the last two Conference years, two-thirds of the money in this fund has been sent to the Conference Treasurer to be used by the Conference Board of Pensions as it deems appropriate. The Trustees have under consideration where to expend the balance in this Fund consistent with the sources from which it came. The balance held in the Georgia United Methodist Foundation as of December, 0, totaled $,... WOOD HOMES FUND - This fund has accumulated from gifts, grants, rents, fees, etc., from the eight James A. and Virginia Willingham Wood homes at Epworth Acres on St. Simons Island. It is used to maintain these homes. Balance in the Wood Homes account at Morgan Stanley and checking account as of December, 0, totaled $,... OFFICES OF CONNECTIONAL MINISTRIES ( OCM ) PARSONAGES FUND - This is the fund discussed above which was created from the proceeds of the sale of two of the Office of Connectional Ministries Parsonages and the amount remaining in the Parsonage Reserve Fund which had been held by the Annual Conference. The balance in this fund on December, 0, was $0,.0.. EPISCOPAL RESIDENCE RESERVE FUND - If the entire budget item for the maintenance and insurance of the Episcopal Residence is not spent in a given year, the unused funds are placed in the reserve fund. Expenses vary from year to year, so this practice provides a cushion against major expenses which may exceed the budget in a given year. The balance in this fund on December, 0, was $,... TRUSTEES' EXPENSE FUND - This fund comes from the Conference budget and is used for accounting, financial, travel, and internal business of the Board of Trustees of the South Georgia Conference of The United Methodist Church, Inc. Balance in the fund on December, 0, was $,.. LEGAL TITLE The correct legal name of the Board of Trustees corporation is The Board of Trustees of the South Georgia Annual Conference of the United Methodist Church, Inc.

26 All gifts, grants, and bequests should be designated accordingly. Any gifts or bequests of property should be in fee simple, and title should be vested in the above-named corporation. Respectfully presented, Sam Warren, President BOARD MEMBERSHIP Trustees (Directors) of the Corporation classed according to The Discipline with ( ) noting the year they were first elected. 0 - Gwen Barber (0), Katherine Johnson (0), James Buddy McGhin (0), 0 - Sam Warren (0), Earl S. James (0), Lee Bush () 0 - Hugh Lawson (), Tommy Mason (), Melissa Traver () 0 - Linda Moore (), H. Arthur McLane (), Glenn A. Martin () Officers of the Corporation: Sam Warren, President Tommy Mason, Vice President Gwen Barber, Treasurer Melissa Traver, Secretary RECOMMENDATION Council on Finance and Administration REPORT # The Council on Finance and Administration expresses its profound appreciation for the faithful stewardship of our people that make this report possible. The South Georgia Annual Conference gave a total of $0,, in all funds sent through the Conference Treasurer in the calendar year 0, a decrease of $, overall. This decrease is mainly due to the decrease in the Conference budget. We celebrate the payment of apportionments at a rate of 0.%, the highest rate since 00! We are grateful to the churches of the South Georgia Conference for their partnership. 0 SUMMARY OF FUNDS RECEIVED 0 0 Received on Apportionments,0,0,, Received on District Apportionment or Advance Specials,0,,0,0 Received From Benefits Billings and Other Funds,,,, Total Receipts $,0,0 $0,, COMPARISON REPORT AS OF DECEMBER % 0 0 % APPORTIONMENTS BUDGET RECEIPTS PAID BUDGET RECEIPTS PAID Conference Benevolence,0, %,, % Congregational Development,, %,0, % Clergy Support,,,, %,,0,, % Pre- Pensions,,,, %,,000,0, % CPP (Post-),, %,000,0 % HealthFlex (Retirees) 0,, 0% 0,000, % HealthFlex (Disability),0, % 0,000,00 % Administrative Expense,,,0, %,,0,0, % SEJ Mission and Ministry Fund,, 0%,0, % Christian Higher Ed.,, %, 0, 0%

27 % 0 0 % APPORTIONMENTS BUDGET RECEIPTS PAID BUDGET RECEIPTS PAID SGA Episcopal Office,,0 %,, % SGA Episcopal Residence,, 0% 0,000, % World Service,,,0, %,,,0, % Africa Univ. Fund,,0 %,0, % Black College Fund,0 0, % 0,0, 0% Gen Admin. Fund,,0 %,0, % Gen. Episcopal Fund,, %,,0 % Inter-Denominational Co-op Fund, 0,0 %,, % Ministerial Ed. Fund,, %,, 0% Received on Apportionments $,0,0 $,0,0 % $0,, $,,0 % 0 Increase (Decrease) from 0 ($,) % of TOTAL RECEIPTS ON APPORTIONED ITEMS: 0 0.% 0.% INCREASE (DECREASE). NON APPORTIONED FUNDS 0 0 District Apportionments (except for missions - Lane ) $,,, General (*) and Annual Conference (**) Special Offerings: Human Relations Day *,, Andrew College Day **,, Volunteers In Mission (VIM) Awareness Day**,,0 Kingdom Builders ** One Great Hour of Sharing *,0, Native American Awareness *,, Magnolia Manor Sunday **,,0 Peace with Justice Sunday *,, Wesley Glen Day** 0,, Golden Cross Day **,0, Christian Education Sunday **,0 Methodist Children s Home Day ** 0,0, World Communion Sunday *,, Vashti Day **,,0 Wesleyan College Day **,0 United Methodist Student Day *,, UM Global Aids Fund Day, Six Lane Advance Specials: Africa Church Growth - Lane,, World Hunger Specials - Lane 0,, Mission Personnel - Lane,0,0 Mission Projects - Lane,, UMCOR - Lane 0,0,0 Conference/District Specials - Lane,0,0 South Georgia s Plus Lane,0, Designated Funds (No advance special credit),, Total District Apportionments, Special Sundays, & Advance Specials $,0, $,0,0

28 Other Funds Received: HealthFlex Non-Apportioned Receipts,,,, Clergy Retirement Security Plan,,0,, Relief Association, 0 on Budget Items,0 Interest and Dividends,, Connectional Ministries (Camps, Events, and other items),, Pension Funds (Including Pitts Fund),, Other Designated Receipts (Including Pass Through Items),,0,, Total Other Funds Received $,, $,, APPORTIONMENTS & PERCENTAGE PAID BY DISTRICT Coastal Dr. Wayne Moseley,,.% North Central Dr. Rick Lanford,,.% Northeast Rev. Chris Ramsey,,.% Northwest Dr. Edwin Cooper,,.% South Central Rev. Henry Bass,,.% Southwest Dr. Nita Crump,,.% Total $,, REPORT # REPORT OF RECEIPTS AND DISBURSEMENTS In keeping with Standing Rule.., we are enclosing a report of receipts and disbursements. Our report summarizes each line of the conference budget for 0. In the following report, the 0 Budget amounts shown on the lines titled Receipts on Apportionments reflect the amount apportioned to churches for 0. Since all of the non-budgeted funds that we receive are designated and most of them are disbursed the following month, we have summarized them in groups. Some designated receipts are not disbursed until this office is authorized to do so by the committee or organization involved. If you are interested in more details about designated receipts and disbursements, copies of the audited financial statements of the South Georgia Conference will be available at the Administrative Services Office table during Annual Conference or by contacting the Administrative Services Office in Macon. The audited financial statements will also be available on the conference website, Look under Administrative Services and then select Financial Statements. 0 Summary of Budget Receipts & Disbursements Dec., 0 0 Budget Year to Date Percentage Type A: Items Paid Based On Expenses Conference Benevolences Connectional Ministries Receipts on Apportionments,,00.% Disbursements,,0.% Arthur J. Moore Receipts on Apportionments 0,,.% Museum 0 Disbursements 0, 0, 0.% Board Of Laity Receipts on Apportionments,,.% Disbursements,,0.%

29 Summary of Budget Receipts & Disbursements Dec., 0 0 Budget Year to Date Percentage Total Receipts on Apportionments,,.% Conference Benevolences Disbursements,,.0% Congregational Development New Congregational Receipts on Apportionments,0,0.% Development,00 Disbursements,0,.% Hispanic Ministries Receipts on Apportionments,0,.% Disbursements,0, % Total Receipts on Apportionments,0,.% Congregational,00 Development Disbursements,0,.% Clergy Support District Receipts on Apportionments,0,.0% Superintendent's Expense Disbursements,0,0.% Pre- Pensions Receipts on Apportionments,,000,, 0.% & Benefits Disbursements,,000,, 00.0% Comprehensive Receipts on Apportionments,000,0.% Protection Plan, Disbursements,000,.0% HealthFlex - Receipts on Apportionments 0,000,00.% Disability Disbursements 0,000,.% HealthFlex - Receipts on Apportionments 0,000,.% Retiree Disbursements 0,000,.% Benefits Receipts on Apportionments 0,000, 0.% Underpayment Disbursements 0,000, 0.% Equitable Receipts on Apportionments,000,.0% Compensation Disbursements,000,0.0% Pastoral Counseling Receipts on Apportionments,,.0% Service Disbursements,,.%

30 Summary of Budget Receipts & Disbursements Dec., 0 0 Budget Year to Date Percentage Conf. Bd. of Receipts on Apportionments,,.0% Ordained Ministry Disbursements,, 0.0% Total Clergy Receipts on Apportionments,,0,0,.% Support, Disbursements,,0,0,.% Administration Conf. Council on Receipts on Apportionments,00,0.0% Finance & Admin. Disbursements,00,.00% Administrative Services Receipts on Apportionments,00,.0% Office Disbursements,00,.% Annual Conf. Session Receipts on Apportionments,0,.0% Local Arrangements, Disbursements,0,.% Annual Conf. Session Receipts on Apportionments,00,.0% Program Expenses Disbursements,00,0.%,0 Retired Ministers - Receipts on Apportionments,000,.0% per diem Disbursements,000,0 0.0% At-Large Lay Receipts on Apportionments,000,.0% Delegates - per diem Disbursements,000,0.0% Conf. Secretary Receipts on Apportionments,00,.0% Expense Disbursements,00, 00.% Conference Journal Receipts on Apportionments,000 0,.0% ` Disbursements,000,.0% Committee on Receipts on Apportionments 00.0% Memoirs Disbursements 00,.% Conference Trustees Receipts on Apportionments,0,.0% Disbursements,0,.% Worker s Receipts on Apportionments,000 0,.0% Compensation, 0

31 Summary of Budget Receipts & Disbursements Dec., 0 0 Budget Year to Date Percentage Insurance Disbursements,000,.0% Leadership Forum Receipts on Apportionments,000,.0% Disbursements,000,.% Local Church Receipts on Apportionments,00,.0% Treasurer's Bond Disbursements,00,.% Gen & SEJ Delegate Receipts on Apportionments % Expense Disbursements % Nominations Receipts on Apportionments,000.0% Committee Disbursement,000.% Episcopal Committee Receipts on Apportionments,000.0% Disbursements,000,.% Contingency Funds Receipts on Apportionments 0,000,.0% Disbursements 0,000, 0.% Legal Fees Receipts on Apportionments 00,000,.0% Disbursements 00,000, 0.% Total Administration Receipts on Apportionments,,0,0,.0%, Disbursements,,0,.0% SEJ Mission and Receipts on Apportionments,0, 0.% Ministry Disbursements,0, % Totals For Receipts on Apportionments,0,,0,.% Type A Items Disbursements,0,,, 0.0% Type B Items Based on Money Received Christian Higher Receipts on Apportionments, 0,.% Education Disbursements, 0,.% Episcopal S. Ga Receipts on Apportionments,, 0.% Office Disbursements,, 0.

32 Summary of Budget Receipts & Disbursements Dec., 0 0 Budget Year to Date Percentage Episcopal S. Ga Receipts on Apportionments 0,000,.% Residence Expense Disbursements 0,000,.% World Service Receipts on Apportionments,,,0,.0% Disbursements,,,0,.0% Africa University Receipts on Apportionments,0,.% Fund Disbursements,0,.% Black College Fund Receipts on Apportionments 0,0, 0.% Disbursements 0,0, 0.% Episcopal General Receipts on Apportionments,,0.% Church Apportionment Disbursements,,0.% General Administration Receipts on Apportionments,0,.% Fund Disbursements,0,.% Interdenominational Receipts on Apportionments,,.% Cooperation Fund Disbursements,,.% Ministerial Education Receipts on Apportionments,,.% Fund Disbursements,,.% Total Other Receipts on Apportionments,,,,.% Apportioned Causes Disbursements,,,,.% 0 Totals Receipts on Apportionments 0,,,,0 0.% On The Decimal,0 Disbursements 0,,,,.% REPORT # BUDGET FACTORS AND SPECIAL OFFERINGS We make the following recommendations:. We recommend that the 0 apportionments assigned to each local church in the Conference be determined by the following formula: A. FINANCIAL FACTOR - % The figures for 0 and 0 of the total expenditures of each local church as reported in the annual statistical table (printed in the Conference Journal), minus the following items: amounts paid on apportionments,

33 the amounts paid on principal and interest on indebtedness, loans, mortgages, etc., the amount paid for building and improvements (not including loans and mortgages), other benevolences paid by the local church, and the amounts paid on General and Conference Advance Specials. The adjusted total of the expenditures for each local church shall be divided by the adjusted total expenditures of all local churches in the Conference for the years 0 and 0 (omitting the same respective items) to find the percentage of total expenditures by the local church. This percentage figure will then be multiplied by. to furnish the financial factor. B. MEMBERSHIP FACTOR - % The membership of each local church at the end of 0 and 0 as reported in the annual statistical table (printed in the Conference Journal) shall be divided by the total membership of the Conference at the end of those same years to find the percentage of total membership in the local church for each of these years. This percentage figure will then be multiplied by. to furnish the membership factor. C. FINAL DETERMINATION The membership factor and financial factor for each year are added together. The factors for the two years are averaged to arrive at the percentage to be used in figuring the church s share of each apportionment for 0.. Apportionment Determinations for New Church Starts Recommendations: A. We recommend adding grants from New and Revitalized Congregational Development (NRCD) or district funds (not including Equitable Compensation Supplements) to the list of deducted items prior to calculating conference apportionments. B. We recommend that new church starts begin paying apportionments in the January following the date of official constitution. C. We recommend that 00% of the Conference budget be apportioned to the existing churches prior to calculating any new church that is in a phase-in period. D. Churches will be phased in over a -year period: one-third in the first year, two-thirds in the second year, and their full share in the third year.. We recommend the apportionment figures be provided to local churches in the following manner: A. As soon as possible after Annual Conference, the Administrative Services Office will calculate the preliminary apportionments for each local church based on the statistical reports turned in by the local churches the preceding January. These preliminary apportionments will be mailed to pastors and treasurers of the local churches. B. Upon receipt of the preliminary apportionments, pastors and treasurers should examine their apportioned amounts carefully. If the church believes an error on its statistical report has resulted in incorrect apportionments, it must report any corrections to the statistical report to the Administrative Services Office by the date set by that office, printed on the preliminary apportionments sheet. C. If any statistical reports have been corrected, the Administrative Services Office will re-calculate the apportionments for the entire Annual Conference. These final apportionments will be mailed to pastors and churches before the end of August. D. After the final apportionments are prepared, no further corrections will be made to the statistics or conference apportionments until the following year.

34 We recommend that the following special days be observed in 0 with an offering as required by The Discipline and/or by the Annual Conference: Human Relations Day January * Andrew College Sunday February ** Volunteers in Mission Awareness Sunday February ** Kingdom Builders Promotion February ** One Great Hour of Sharing March * Native American Awareness April 0 * Magnolia Manor Sunday May ** Peace With Justice June * Wesley Glen Day June ** Golden Cross Sunday July ** Christian Education Sunday August 0 ** Methodist Children's Home September ** World Communion Day October * Vashti Day October ** Wesleyan College Day November ** United Methodist Student Day November * United Methodist Global AIDS Fund December ** * General Church Offerings ** Annual Conference Special Offerings. For 0 we recommend the travel rate of. cents per mile for each Board, Commission, Committee, and Council of the Conference, for automobile travel required in Conference work. We note IRS rules that mileage for charitable purposes may be reimbursed at. per mile tax free in 0, and any reimbursement above that amount is taxable income for the recipient...(b) The Book of Discipline, 0 and the South Georgia Standing Rules and Structure, Section.., mandates fidelity bond coverage for local church treasurers. The Council reminds all local churches of the importance of having adequate fidelity bond coverage for treasurers and others handling church funds. The conference will continue to provide excess coverage of $0,000 in addition to the coverage that local churches have as long as coverage is available and affordable. We request that the following officials be bonded in the indicated amount, that the respective board or agency pay the bond, and that these bonds be held in the Administrative Services Office: Director of Administrative Services $,000, Staff of Administrative Services Office $,000, Treasurer, Conference Trustees $, In compliance with. of The Book of Discipline, 0, we ask each agency receiving financial support from Conference Benevolences, or from any authorized conference-wide appeal, to make a complete report of all receipts and disbursements for the fiscal year ending in 0. A certified public accountant is to audit the books of all agencies, except those whose receipts and expenditures are handled by the Administrative Services Office on a voucher basis, and a copy of the audit be filed with the Administrative Services Office.. We commend the promotional emphasis given to the observance of World Service Sunday in the Church School and request that funds raised in these observances be so designated and sent to the Administrative Services Office.. We call attention to and request observance of the Standing Rules and Structure, Section.. &.., which stipulates that the Administrative Board/Council of each church and the board of other conference groups shall pay the expense of their lay and clergy delegates to the Annual Conference sessions.

35 We call attention to the Standing Rules and Structure, Section.., which reads as follows: Every Charge shall provide Worker's Compensation Insurance Coverage for their minister and all other staff members.. We call attention to. of The Book of Discipline, 0, which stipulates that special conference-wide appeals for funds shall have the approval of the Annual Conference upon the recommendation of the Council on Finance and Administration, except in case of an extreme emergency when such approval may be given by a twothirds vote of the District Superintendents and of the Council, acting jointly.. The 0 Annual Conference (volume, page ) approved a registration fee beginning with the 0 Annual Conference of $0 for all lay and clergy members (excluding retired clergy unless the retired clergy are serving an appointment in retirement).. We recommend that the amount of $.00 per day of attendance at Annual Conference be paid to retired clergy members who sign for their attendance at Annual Conference. This will comply with the Standing Rules and Structure, Section.. Expenses which states: retired clergy members and/or clergy on incapacity leave who do not serve appointments and who attend are to receive assistance with their expenses from the Annual Conference, provided by the Council on Finance and Administration.. We recommend that the amount of $.00 per day of attendance at Annual Conference be paid to at-large lay members of the Conference (who are determined by each district to equalize lay membership with clergy membership) who sign for their attendance at Annual Conference. (See Standing Rules and Structure, Section...). We recommend that once approved by the Annual Conference, all budgets are fixed for the ensuing year. Exceptions to this policy may be granted by the Council on Finance and Administration with the proper documents to justify the request in keeping with. & of The Book of Discipline, 0.. We endorse the capital campaign to raise money for a new Conference Center to be built in Macon. The center will hold the Episcopal Offices, the Administrative Services Offices, the Director of Ministerial Services Office, two offices for use by Connectional Ministries staff when they are in Macon or for others working temporarily in the building, as well as a meeting room and a conference room for committees to use. If the Conference Center Task Force raises funds such that the final remaining cost to build and complete the Center is $0,000 or less, we endorse borrowing up to $0,000 to complete the building of the Conference Center, with the understanding that the loan will be re-paid with the funds already in the Conference budget and GCFA budget for rent for the Episcopal Office and Administrative Services office. REPORT # PENSIONS AND HEALTH BENEFITS COST The Council has expressed concern over the continually escalating cost of pensions and health benefits provided to the clergy members of the Conference. As the 0 budget details show, $,0,000 is budgeted to satisfy the conference s liability for pre- pension obligation, $,000 for the Comprehensive Protection Plan and $0,000 for health insurance coverage for retired and disabled pastors. This total of $,,000 represents approximately.% of the total 0 conference budget and is in addition to projected clergy health insurance costs billed directly to churches, in the amount of $,0, and clergy pension bills estimated at $,,0 billed directly to the churches. We commend the Conference Board of Pensions and Health Benefits for their work to () assure the availability of funding to satisfy the conferences financial obligation for pre- pension liability, and () for exploring options for health insurance for retirees which is more affordable. We look forward to the conclusion of the payment plan to fund Pre- pensions in 0. We expect that some cost may continue for pre- pensions, depending on how well the estimates for earnings and mortality match up to what actually happened in those years. Still, the high cost of that asking should be reduced significantly. REPORT # RECOMMENDATIONS REGARDING THE CABINET Salaries for Cabinet members, the Director of Connectional Ministries, the Director of Administrative Services, and the Director of New and Revitalized Congregational Development are determined by a formula so that the salaries

36 paid by local churches set the salary of Cabinet members. When we had nine districts, the formula averaged the twenty-seven highest salaries of churches across the conference at the beginning of the preceding year (three per district). The 0 Conference voted to move to the top eighteen church salaries (three each for six districts), using this schedule: 0 churches, 0 churches, 0 churches, 0 churches. For 0 the salaries of these positions will be $0,, based on the average salary of the twenty-four highest local church salaries at the beginning of 0. The Council recommends that for 0 the amount of $,000 be set aside for each District Superintendent to cover all accountable reimbursements. This will include travel, continuing education expenses, and any other businessrelated out-of-pocket expenses. Each District Superintendent will be able to draw from this fund only by voucher of actual miles traveled and/or specific expenses. We recommend that $, be budgeted for Cabinet meeting expenses in 0. These funds are only drawn on by voucher of actual miles traveled and/or specific expenses. Housing for Superintendents is the responsibility of each District. We commend the Districts for maintaining District Parsonage Funds (for District Parsonage Indebtedness and Maintenance) and a District Operational and Program Fund. We remind the District leadership that the moving expenses and annual conference attendance expenses of the District Superintendents are paid by the District to which they are appointed. The money to pay the salaries, accountable reimbursement expenses, and Cabinet meeting expenses for the District Superintendents is included in the Clergy Support section of the budget as District Superintendent's Fund. Clergy Support is paid from receipts on the apportionment assigned to the churches of the Conference and is a priority claim. Such part of the salary that the Cabinet, Director of Connectional Ministries and Associate Directors, Director of Administrative Services, Director of New Congregational Development, Pastoral Counselor, Director of Ministerial Services, Chaplains and other clergy employees of the Conference pay to cover the actual cost of those utilities and other housing related expenses necessary to operate and maintain the respective parsonages, or their residence if a parsonage is not provided, is hereby designated as a housing expense. Housing and Utility Resolutions will be prepared by the various clergy employees of the Conference and copies maintained by the Director of Administrative Services. REPORT # BUDGET FOR 0 The Council on Finance and Administration (CF&A), in keeping with, The Book of Discipline, 0, presents the following budgets of anticipated income and proposed expenses for all funds to be apportioned to churches or charges. The Budget has been reorganized into two types of budget items: Type A - This group includes the various budget items which are paid based or vouchers (or when the expense is incurred). Type B - This group includes items in the budget which are paid out based on the apportionments collected. This group includes the budget for Christian Higher Education, the Episcopal Office, and the General Church and Southeastern Jurisdiction apportionments. The total collected each month is paid out to the agency or office. The Council expresses appreciation to the various conference committees and conference offices which have worked with the Council to keep our expenses reasonable and in keeping with our revenues. The past few years have been difficult, yet the cooperation and camaraderie we have experienced around budget issues has been rewarding. The Council is thrilled to report that apportionment collections in 0 were at 0.%, the highest rate since 00. We are excited that % of the churches in our annual conference paid 00% or more of their askings. The Council commends the Bishop and the Cabinet for their emphasis in encouraging churches to pay their apportionments. We continue to ask that churches who have not been able to pay their apportionments in full to begin working to increase the amount they are paying a little each year. Out of churches, only paid nothing on their conference apportionments in 0. We look for the day when every church pays something on these askings.

37 0 0 At the end of 0, our undesignated reserves totaled $,,. (unaudited figure). Our target for undesignated reserves is month s expenses for the Annual Conference (approx. $. million). Our reserves have helped us get though some difficult years; we were able to add $,. back to them, replacing funds we had to draw out in difficult days. The CF&A is proposing a 0 budget to be apportioned which is an increase of just over one-half percent (0.%) over the 0 budget. Most of the increase is due to an increase in the cost of health insurance and in the General Church apportionments (South Georgia s portion of the budget actually shows a.% decrease). The amount to be apportioned to local churches for 0 will be $0,,. This number may change, depending on the action of the 0 General Conference. Based on the projections below (meaning that we collect % of apportionments, spend 00% of our Conference budget and % of the General Church apportionments [since we pay those on the amount received], and receive $0,000 in investment income), we project a deficit of $,0. This projected deficit can be lowered if we collect more than % and/or spend less than 00% of the budget. While we projected a deficit in 0, revenues and expenses actually produced a positive remainder of $,. The same was true in 0, except the positive remainder was over $00,000. PROJECTED RECEIPTS FOR 0 PROJECTED SOURCE OF RECEIPTS: RECEIPTS: NOTE #:. Apportionments based on % collections of Type A & B items $,,. Income from Registration Fees 0,000. Income from NRCD Funds 0,000. Investment Income 0,000.,000 TOTAL PROJECTED RECEIPTS $,, 0 Approved Budget 0 Projected Budget Type A: Paid Based on Expenses I. Conference Benevolences Connectional Ministries,, Arthur J. Moore Museum & Archives/History 0, Board of Laity,, Total Conference Benevolences, 0, II. Congregational Development New Congregational Development,,0 Hispanic Ministries,00,0 0 Total Congregational Development, 0, III. Clergy Support District Superintendents' Expenses,0, Pre- Pensions & Benefits,0,000,,000 Comprehensive Protection Plan,000,000 HealthFlex - Clergy on Disability,000 0,000 HealthFlex - Retired Ministers 0,000 0,000 Benefits Underpayment 0,000 0,000 Equitable Compensation,00,00 0 Pastoral Counseling Service,0, Conference Board of Ordained Ministry,, Note #:

38 0 Approved Budget 0 Projected Budget Type A: Paid Based on Expenses Special S. Ga. Episcopal Funds Total Clergy Support,0,,00, IV. Administration Conference Council on Finance & Admin. 0,00,0 Administrative Services Office,, Other Conference Administrative Areas. Annual Conference Session Expenses: 0 Local Arrangements Committee,0,00 Annual Conference Program,00,00 Retired Ministers - per diem,000,000 At-Large Lay Delegates - per diem,000,000. Conference Secretary Expense, Conference Journal,00 0,00. Committee on Memoirs 0,000. Conference Trustees,0,00. Worker's Compensation Insurance 0,000,000. Leadership Forum,000, Local Church Treasurer's Bond,00,00. General and SEJ Delegate Expense,000, Committee on Nominations,000,000 Episcopal Committee,000,00 Contingency Funds 00,000 0,000 Legal Fees,000,00 Total Administration,,0,0, V. SEJ Mission and Ministry,0, 0 Type A Totals: Paid Based on Expenses,0,0,0, Note #: Type B: Paid Based Money Received 0 Approved Budget 0 Projected Budget GA UM Christian Higher Education,,0 Episcopal - S. Ga Office Expense 0,, Episcopal - S. Ga Area Residence Exp. (III,c),000,000 General Church Apportionments. World Service Fund,,,,. Africa University Fund,0,. Black College Fund,,. Episcopal - General Church Apportionment 0, 0, 0. General Administration Fund,,. Interdenominational Cooperation Fund,,0. Ministerial Education Fund 0,00,0 Note #:

39 Type B: Paid Based Money Received 0 Approved Budget 0 Projected Budget Type B: Paid Based on Money Received,0.,, Note #: Total Conference Budget 0,0,0 0,, Projected deficit if collect %/spend 00% of Type A and Type B items -,0 -, Projected deficit if collect %/spend 00% of Type A items/spend % of Type B items -,00 Contingency to Avoid Using Reserves Budget Notes:. The CF&A has projected that our collections on apportionments will be % which is the same amount projected for 0, and an increase in the amount we collected on Type A items in 0. Since we trimmed most of the extra funds out of the budget in recent years, the CF&A realizes that we will spend a higher percentage of the budget.. The registration fee income is calculated based on a registration fee of $0.. Since 0 we have asked New Congregational Development to reduce their budget and they also agreed to use funds from the South Georgia Investment Fund to help start new churches. We are again asking them to use some of their designated funds in 0 to help fund new churches.. The CF&A will use our investment income to help cover any shortfall in receipts.. This budget item is mainly needed in the years that the General and Southeastern Jurisdictional Conferences are held. Funds for one meeting in the conference are included in the 0 budget.. The Council on Finance & Administration has reduced the amount requested for Contingency in 0 to $0,000. Because we plan our budget so far ahead, an adequate Contingency is needed to allow flexibility to respond to new ministry opportunities and situations which may occur. Contingency expenses must still be approved by the CFA.. The Southeastern Jurisdictional Finance committee offered to reduce the Southeastern Jurisdictional (SEJ) Apportionments by one half as long as the Annual Conferences agreed to pay the SEJ apportionment in full. We have reduced the SEJ budget to $,, based on information from the SEJ Finance Committee. The actual amount will not be set until the SEJ Conference meets in July 0.. These general church apportionments are those proposed in the budget presented to General Conference. Actual numbers will not be known until General Conference passes a budget in May 0.. If we collected % and spend 00%, there will be a deficit. Because we prepare our budgets so far in advance, almost every year some items included in the projected budget may not be spent. In addition, Type B items are not paid at 00%; they are paid at the rate collected, so they do not add to any deficit. If our budget expenditures exceed our rates of collection on the budget, then the interest earned, as well as some conference reserves, will have to be used in order to pay all of our obligations. REPORT # BUDGETS OF CONFERENCE OFFICES In response to a request made at Annual Conference several years ago, we included the budgets of various conference offices in the Journal each year. In an effort to be responsible stewards of our budget while maintaining transparency, we are now posting that information on the conference website ( Posting this information on the website makes it more available to conference members, while saving us the cost of printing. The Council appreciates the understanding of the conference as we make this stewardship move. Submitted by, Rev. James A. Cason, Chair Dr. Derek W. McAleer, Dir. of Administrative Services

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43 Wesley Community Centers of Savannah, Inc. is your United Methodist Missions Institution. Our mission to promote the economic, educational, and spiritual growth of people in need is made possible by your support. Wesley provides: Nationally-accredited (NAEYC) Early Childhood education to young children in need (including free services for children who are homeless), Quality, full day camp services when public school is closed for youth in need, Emergency financial assistance to pay utilities and rent for families in crisis, Food for hungry people through our Food Pantry, Financial Literacy classes and in-depth case management for long-term solutions out of poverty and so much more. Here is how you can help: Volunteer Become a Wesley GEM (Giving-Each-Month) donor Donate items from our Wish Lists Join us for Love Walk 0 scheduled for February, 0. Call us at () - for details! 0 Drayton Street, Savannah, GA Find us on Facebook

44 You make miracles happen every day at Wesley Glen. Your generosity provides adults with developmental disabilities safe and secure homes where they receive round-the-clock care and support. Wesley Glen Ministries, an agency of the South Georgia Conference of the United Methodist Church, enables those we serve to become more independent as they learn and grow through our residential and day programs. Thank you for investing in the work we do! Cornerstone Day Program Participants 0 N o r t h M u m fo rd R o a d M a c o n, G e o r g i a w w w. we s l ey g l e n m i n i s t r i e s. c o m

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