The Superannuates' Relief Association was chartered as an
Illinois not-for-profit corporation on October 15th, 1885. It was started by the
leaders of ten churches of the Rock River Conference of the Methodist Episcopal
Church. The original charter stated the purpose of the incorporation:
"...to procure, invest and manage money and property, the income
from and use and profits of, which shall go toward the support of superannuated
preachers of the Rock River Annual Conference of the Methodist Episcopal Church,
and the widows and dependent children of said preachers."
The fund was started with an initial gift by William Deering, a
well know industrialist, to be matched by other members of the first board of
managers. Gifts, memorials and bequests had accumulated to $455,000 by 1924 -
forty years after its inception. In 1943, a campaign was conducted throughout
the Conference, that raised $350,000 for the permanent fund.
The fund had grown to $3.5 million by 1973 and by 1992 had grown
to over $10 million. In 1963, the name was changed to the Methodist Ministers'
Pension Fund and changed to its present name in 1991. During that 106 year
period, the original by-laws governing the fund were still in force with very
little change. The original purpose of the corporation still stands with only
the changes in the name.
During the early years, earnings were used to fund pension costs
for retired clergy. As the years progressed and the Conference joined the
General Board of Pensions plan in 1982, the income was directed toward reducing
the unfunded liability of the retired clergy's pension due to increases in the
rate applied to years of service for a given retired clergy. Now the major costs
for clergy in the Conference are health benefits for both active and retired
clergy. These costs have been increasing year after year, and still remain a
major concern for the Conference.
While UMCF directors have traditionally considered the actual
pension cost, particularly the unfunded liability for the Conference, as the
major beneficiary of the Fund income, recent discussion has been focused on the
word "support" in the charter. Determination of the use of moneys given to the
Conference Board of Pensions is now left to their discretion. The only caveat is
that such moneys be used for the support of retired clergy.
In 1997, the UMCF Board adopted a policy of paying 6% of the
average yearend (November 30th) market value of the portfolio for the prior
three years to the Conference.
In 1998, the board of directors made a very important decision,
and moved the custodian and management responsibility to the General Board of
Pensions. Substantial savings in fees has been experienced along with increased
opportunity for greater return on the invested capital. Money managers at the
General Board have generated and distributed a high return for a number of
years.
During 1999, the by-laws of the Fund were amended. The time that
officers and directors may remain in office was extended. Other changes to
conform with the Illinois Not-for- Profit Corporation requirements were also
made.
At the end of 2003, the board transferred the usual 6% of three
years average assets which amounted to $1,100,000 to the Conference Board of
Pensions. Depending on market conditions, it is anticipated that the regular 6%
distribution will continue to be made annually.
The goal of the Fund remains to produce the greatest amount of
income possible so as to increase the asset base and make higher payments to the
Conference Board of Pensions.
The purpose of the Fund is thus carried out to the benefit of
retired clergy. The Fund continues to receive new money from bequests, gifts,
trusts, and memorials. For the past several years gifts by members of the board
have amounted to several thousand dollars each year.
Other gifts have come from retired clergy that benefit from the
Fund. Several trusts have been benefactors for many years dating back to the
days of the Superannuates Relief Association.
Years ago, the Annual Conference Journal published the
names of donors to the Fund. The list became quite long and it was decided that
the space required must be used for other conference business.
This report is the ninth of what has become an annual report to
interested members of the Annual Conference.
Your further interest in the United Methodist Clergy Fund will
be appreciated. You can receive information on making bequests or donations to
the permanent fund by contacting the Conference Office or any of the directors.
