Benefits Reviewed

If you are retired (or planning on it), you're probably acquainted with Social Security, Medicare, 401-k, 403-b, Pension, Saving Accounts and a few other terms. Actually, retirement is not historically an ancient custom. Government plans and workers' retirement benefits are rather recent developments.

In 1759 the Presbyterian Church created a plan to help widows and orphans of deceased pastors. In 1783 a predecessor Lutheran Church to the ELCA took formal action to provide for sick or old preachers . . . as well as each widow of a regular pastor.

In 1796 the Methodist Church established a retirement program called the Chartered Fund. The CBA (Church Benefits Association) includes 50 denominations involved in retirement benefits for over one million pastors and missionaries and their families in over 150,000 faith communities. In 1875, American Express established the first private pension plan in America.

My own denomination, originated in 1885, raised the issue of a pension plan in 1887 but was not adopted until 1913 with the first pension made in 1917 to two persons. In 2009 our pension plan had $147.9 million in assets serving its pastors and missionaries and those widowed (data taken from the Covenant Pension Plan Newsletter, August 2010). Thanks, Dean Lundgren.

The US came up with a Social Security plan in 1935 and was offered to retirees at age 65 when the longevity rate was a couple of years less. In other words, the plan was very cost effective. Today, early retirement can begin before age 65 and our average longevity is in the mid 70's with many living well beyond that. Many changes were made over the years and some other than retirees became eligible.

Medicare and Medicaid followed. President Truman proposed it in 1945 but didn't become a reality until 1965 and it too has a long history of modifications. These are vital programs which makes us wonder how our elders managed their latter years. How easy it is to take things for granted. And how vulnerable some of these amenities can become.

In an age when we think how fortunate we are that our government cares, we tend to forget that many of these benefits: education, social welfare, retirement funding were much earlier church functions which became actual pacesetters. When these church endeavors are understood and appreciated, it is much easier to know why benevolent organizations have earned and deserved their tax deductions.