Pension benefits, church insurance are secure, CPG says

By Mary Frances Schjonberg, September 18, 2008 [Episcopal News Service] In light of recent volatility in financial markets, the Episcopal Church Pension Group September 18 posted statements on its websites saying that its various funds and church insurance business are secure.

CPG's home page features a short statement pertaining to the Clergy Pension Plan, saying that "despite recent market volatility, the Fund's financial condition remains very strong, with assets well in excess of liabilities."

That statement links to a second, slightly longer statement on the Clergy Pension Plan. That statement reads in full:

"In light of the recent market volatility, the Board and staff of the Church Pension Fund want to reassure participants in the Clergy Pension Plan that the Fund's financial condition remains very strong, with assets well in excess of liabilities.

"The Clergy Pension Plan maintains substantial reserves, and the recent market volatility does not begin to call into question the soundness of the Fund. The pension benefits of the Clergy Pension Plan are fully secure."

CPG also offers a defined-contribution plan for lay employees, which is managed by Fidelity Investments. A statement on that plan's CPG page says, in full:

"We have received calls from individuals inquiring about the investment holdings in the Lay Employees' Defined Contribution Plan. The underlying investments of any mutual fund change on a regular basis. For the most current information about particular holdings of a mutual fund, please contact the Fidelity Customer Service line at 877-208-0092."

CPG's property and casualty insurance operations, known as collectively as Church Insurance, also placed a statement on its webpage explaining its lack of exposure to the financial issues facing American International Group (AIG), word's largest insurance company.

That statement reads in full:

"We have received inquiries about our insurance exposure as related to AIG. Currently, we do not use any AIG reinsurance company for our treaty, catastrophe, or facultative reinsurance programs. Therefore, there is no exposure to AIG for the largest areas of property and casualty insurance that the Church Insurance Company of Vermont and Church Insurance Company of New York provide."

More information about the CPG's financial health can be found here in its 2008 annual report, which includes summaries of audited financial information as of March 31, 2008.

-- The Rev. Mary Frances Schjonberg is Episcopal Life Media correspondent for Episcopal Church governance, structure, and trends, as well as news of the dioceses of Province II. She is based in Neptune, New Jersey, and New York City.

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