PHILADELPHIA — The Presbyterian Church (USA) Board of Pensions (BOP) has voted to increase Medical Plan dues from 18.5 percent to 19 percent, bringing total dues for plan members — medical and pension coverage — to 31 percent of effective salary.

            The increase, which takes effect Jan. 1, 2005, “should enable the board to maintain reserves within it’s target range and avoid the need for major adjustments in 2006,” said BOP medical actuary John Cookson of Milliman USA. He said that, while medical cost growth seems to be moderating, it is still in the 10 -12 percent range, while church salaries, which drive the rate at which dues naturally increase, are only projected to rise 3 percent.

            The board made no changes in plan members’ co-pays or deductibles. Noting that those requirements are “already significant, particularly in families faced with the expenses associated with chronic illness,” senior vice-president for healthcare Margaret Mellen, said, “As difficult as a dues increase is for many of our smaller churches to fund, and even for some larger congregations facing budget shortfalls, we don’t believe it appropriate to recommend further transfer of cost to (plan) members at this time.”

            Other dues are rising as well. Medical dues for seminary students  will increase from 10.5 to 10.8 percent for member coverage, from 16.2 to 16.6 percent for member with spouse or children coverage, and from 18.5 to 19 percent for member with family coverage.

            The BOP also approved a 15 percent increase in the dues for the Affiliated Benefits Program. Dues for that program vary by coverage.

            When the board meets this fall, it will review the key principles on which the design of the PC(USA)’s medical plan — which was created 17 years ago, shortly after Presbyterian reunion — is based and what alternative strategies might be available to maintain maximum benefits at a manageable cost.

            The board increased the Assistance Program Income Supplement annual target levels for a single person from $22,400 to $23,760 and for a married couple from $26,940 to $28,560, also effective next January. The target level is the maximum income a retired recipient should have after an income supplement — supported by gifts, endowment income and half of the annual Christmas Joy Offering — has been added to the recipients other sources of income.

            Board members were told that the affiliated agreement between Westminister Gardens in Duarte, CA, and Southern California Presbyterian Homes has been finalized, thus relieving the BOP of management oversight of the facility.

            The BOP Investment Committee announced a return of 3 percent for the six months ending June 30.