October 27, 2019

2020 Annuity Adjustments Approved

Minneapolis — Each fall at the board of trustees meeting, Portico recommends adjustments to monthly variable annuity payments, annual dividends, and the bridge fund crediting rate for the ELCA Participating Annuity Trust. This year, the board of trustees approved an annuity payment increase for 2020, the eighth consecutive increase in eight years.

Annual adjustments take effect in January of the coming year. They are largely determined using the Annuity Trust’s Funded Ratio: 1.103 as of Sept. 30, 2019. An increase for the coming year is possible when the Funded Ratio — Portico’s measurement of the health of the annuity — exceeds 1.0 as of Sept. 30. An approved formula distributes one-third of a surplus to members, and retains the other two-thirds for future annuity payments.

The vast majority of annuitants receive monthly payments that are adjusted annually. For 2020, these monthly payments will increase 3.4% as a result of the positive Funded Ratio.

For annuitants receiving a dividend-eligible monthly payment, their monthly payments will remain at 2019 levels, and a lump-sum cash dividend of 16.4% will be paid out in Jan. 2020.

For future annuitants with money in an ELCA Participating Annuity Bridge Account, their interest-crediting rate will be 6.6% in 2020.

Those with questions about ELCA Participating Annuity Trust payment adjustments can contact the Portico Customer Care Center at 800.352.2876 or via email at mail@PorticoBenefits.org.

About the ELCA Participating Annuity
The ELCA Participating Annuity provides monthly annuity payments for life to participating ELCA plan members. Participating annuity assets are adjusted based on the investment performance and mortality experience of the Investment Fund. The assets are held in trust and are separate from other Portico assets. The ELCA Participating Annuity Trust does not rely on future cash flows to pay current benefits, so annuitants are not dependent on active members to fund their annuity payments.

About Portico Benefit Services
Portico Benefit Services provides health, retirement, disability, and survivor benefits and related services for approximately 40,000 active and retired ELCA pastors, rostered laypersons, lay employees, and their families.