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					TO: Board of Pensions

From: David Stotts

December 12, 2008

Re: Analysis and Observations about the November, 2008 financial statements enclosed.

I hope the following comments will assist you as you study the November 2008
financials.

CFA is taking a very serious look at the amount being put into the administration of the
conference. The Board of Medical Benefits will need to monitor the projected cost
savings. This just may be the area that will give us some relief. Because the pension
plan is governed by General Conference, there is not much we can do about the
additional pension cost. I believe by moving to direct bill we will achieve what we had
anticipated. Having a larger savings in the medical benefits than anticipated short fall in
pensions certainly shows that we are headed in the right direction and maybe the effect of
the direct bill will not be so hard.

CFA is looking at the apportionment formula to be sure it is still being fair and equitable
as the apportionments are set. Given the economy and the giving to local churches, we
must continue to positively thank our local gracious givers for being dollars ahead. Yet
we must continue to educate them in the ongoing ministry their apportioned funds
provide.

I have heard good stories as the Connectional Giving Toolkits are beginning to be
utilized. We need to be sure that all of the churches have and use them.

I agree heartily that the teaching of tithing and stewardship is a must for us. If we can
help strengthen the finances in each of our families, then the church and conference will
be strengthened.

Pensions
       1. Losses in the investments at the General Board exceed gains by $150,117. The
          superannuate fund has lost $237,323.
       2. The majority of the funds are maintained at the Foundation. Rates are lower than
          projected so the actual interest income will not make budget.
        3. Of the MPP/CPP/CRSP BUDGET, $3,057,789 is due on December 31. The rest is
           paid monthly.
        4. Audit fees are up due to the requirements of the American Institute of Certified
           Public Accountants and the related reporting requirements.

If you have any questions, please feel free to call me.

				
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