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BENEFITS CORPORATIONStarting in late summer of 2014 and concluding in the winter of 2015 the EC Benefits

Corporation created a special Health Insurance Task Force to review the feasibility of maintaining a group health insurance plan, continuing with the HRA and continuing the health insurance mandate. After a thorough review and multiple lengthy discussions the task force concluded and confirmed by the EC Benefits Corporation Trustees to maintain the group health insurance plan, continue with the HRA and continue the health insurance mandate. All the task force members were in agreement at the end of their work on all the points mentioned earlier. Appreciation and gratitude is extended to all members of the task force especially to Becky Reigle and Ryan Taylor for their leadership, hard work and the care and concern they demonstrated for the health and well-being of the EC pastors and churches.

There were two main reasons for the continuation of the group health insurance plan for active pastors: the forthcoming changes required by the Affordable Care Act (ACA) and the financial cushion available in the HRA. The ACA is a wildcard. Employers and employees are finding themselves unintentionally in violation of the ACA. Until decisions from multiple court jurisdictions and jurisdictional levels interpret and issue decisions on the ACA, developing or creating an extensive case history, the true intent and reach of the ACA will not be known. Moving away from an established group health plan that exceeds the minimal essential coverage required by the ACA and a health plan that is operationally compliant with the ACA is too risky.

The HRA (Health Reimbursement Account) utilized by EC Benefits to manage the healthcare claims of covered active EC active pastors added to its financial cushion during 2014. The HRA gives the EC Benefits Corp flexibility in the rates charged to churches and in plan design. The current active pastor health insurance plan with Highmark Blue Shield was assessed a 7% rate increase when the plan was renewed on October 1, 2014. Due to the cushion in the HRA the EC Benefit Trustees voted to keep the health insurance rates to the churches effective on January 1, 2015 constant from the 2014 rates. If or when it becomes necessary for the EC Church to discontinue the active pastor’s group health insurance plan the HRA balance can be used to provide a soft landing for affected pastors and churches. There are many health plans available with different benefit levels that can be utilized to transition away from our current plan minimizing the financial impact for most pastors. The task force and EC Benefits Trustees were aware that any changes to the benefits provided by our current plan will adversely affect some participants.

The findings and decisions from the work of the task force do not guarantee that a health plan for active pastors will continue indefinitely. As more pieces of the ACA become clearer and the cost of health insurance continues to rise, the EC Benefits Corp. will struggle annually with the decision to continue health insurance.

Churches that are reimbursing a pastor or paying for health insurance premiums or healthcare costs outside of the EC Health Insurance are not in compliance with the ACA, and as such will be subject severe penalties in the latter half of 2015. Also, EC pastors are not eligible for a premium subsidy from the health insurance marketplace. Dave King or Kevin Henry at the EC Church Center can discuss your payment arrangements and provide resources to determine if the reimbursements are in compliance with the ACA. Also, any questions concerning health insurance Dave and Kevin can answer or provide a more qualified resource that can be contacted.

The health plan census (plan participants) decreased in 2014 by 4 to 76.The other substantial item that the EC Benefits Corp. Trustees wrestled with, at the request

of the Covenant Implementation Team, was the continuation of the Medicare Supplemental, Highmark Freedom Blue, premium payments for retirees of the EC Church. It was with sadness and regret that the Board of Trustees approved a five year plan to eliminate payments of retiree Medicare Supplemental by the National Conference. All costs of the denominational sponsored Freedom Blue plan will be fully borne by the retiree effective January 1, 2020, if the plan is approved by the

BOARDS AND AGENCIES

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members of the Benefits Corporation at the annual corporate meeting held during the May 2015 National Conference. The cost of a Medicare Supplemental plan is a function of the amount of reimbursement that Medicate will pay to an insurance company to administer a Medicare Supplemental plan and cover some of the claims of the participant. As with most government expenditures in recent years Medicare is reducing the payments to administrators of Medicare Supplemental plans thus increasing the cost of the plan. The cost of Freedom Blue premium has approximately doubled in the last eight years to $211 per person per month. At the current rate of premium increases the cost to the denomination of providing retiree health insurance may exceed $340,000 in five years and absorb more than 23% of all ministry funds paid, at the 2014 ministry fund level. While projecting the cost of anything more than a year into the future is highly unreliable however a trend of increasing healthcare costs is well established and not diminishing.

The EC Benefits Trustees have communicated the possible change to the Medicare Supplemental plan and the reimbursement phase-out schedule to the retirees affected by the change. On the positive side, there are multiple Medicare Supplemental plans available to retirees and depending on health conditions and geographical location, plans with $0 monthly premium are available. Not every retiree would benefit from one of these plans but lower cost plans are available albeit with lower benefits. The EC Benefit Corporation will provide resources to our retirees to assist them with choosing a new Medicare Supplemental plan if necessary. The Manna Fund is available to assist retirees with basic living expenses of which a Medicare Supplemental plan would qualify for reimbursement. The Manna Fund is a renewable source of funds that may require fund raising to meet the needs of retirees. The current Freedom Blue plan will continue as long as there is sufficient participation to keep the plan active.

The premium for the Highmark Medicare Advantage PPO increased about 10% with no changes to benefit levels. This plan provides additional coverage beyond the basic Medicare coverage for retired pastors, spouses, and widows. The number of participants in the Medicare Advantage and Medicare Supplemental plans decreased from 2013 by 5 to 115.

The 403(b) Defined Contribution pension plan had a positive investment return in 2014 of about $891,000 or about 5.9%. Contributions remained consistent from previous years at $484,000. The total number of active participants in the plan decreased to 168. Of the total participants in the plan two are taking advantage of the Roth 403(b) option. I would like to thank Jennifer Buehler, Wells Fargo Wealth Management, for her commitment and time spent working with our active and retired pastors and she is a tremendous asset for the EC Benefits Board.

The housing equity account also had a positive investment return of 4.3% in 2014 and with contributions the account balance increased to $65,000. The number of participants is lower than we would like but we are glad that a few pastors are taking advantage of the program. And I encourage pastors living in parsonages to consider opening a housing equity account of if you have an account consider making consistent small contributions.

The Manna Fund balance is $49,000 as of December 31, 2014 and there were no distributions in 2014. A bequest was received from the M. Catherine Heidke estate that substantially increased the Manna Fund balance. The income limits to qualify for a Manna Fund were recently changed to 150% of the federal poverty level as defined by the US Department of Health and Human Services, the current limits are $17,655 for a single and $22,895 for a couple. The Manna Fund was established to assist our retired clergy and surviving spouses and we know that we have retired clergy and surviving spouses that do have a financial need but they will not complete a Manna Fund application. If you are aware of any of our retired clergy or surviving spouses that could benefit from a Manna Fund distribution please encourage them to complete an application for assistance. Manna Fund applications are mailed to retired clergy and surviving spouses in April and an application can also be received from the Benefits Administrator at the EC Church Center.

The disability fund had a balance of $434,000 at the end of the year up by about $32,000 from 2013. There was one disability claim paid during 2014.

The Benefits Corporation also administers the Defined Benefits Plan for the National Conference. This is an unfunded liability of National Conference. At the end of 2014 there were 35 pastors and surviving spouses receiving monthly pensions of approximately $6,500. We lost one member from the Defined Benefit Plan in 2014.

A financial audit was completed by Hamilton and Musser, PC on the records of the Benefits Corporation. There were no significant discrepancies noted by the audit. Our appreciation and thanks to the church treasurers that responded to the audit confirmation requests.

An election will be held at National Conference. If there is anyone interested in serving as a trustee please contact Frank Schock, President, EC Benefits Corporation. The EC Benefits Corporation trustees are dedicated, active and knowledgeable and vital to the operation of the EC

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Benefits Corporation. Their service is appreciated and they cannot be thanked enough for their service.

Employee benefits are going to be a continual challenge. Circumstances in the marketplace and regulatory changes are going to adversely affect our group. Please be sensible with your health and saving for retirement. The accumulation of small purposeful positive and proactive steps will create large future gains. The current issues we are experiencing are not going to disappear nor become less important. By helping yourself you are helping your denomination.

Rev. Frank Schock

BibliographyKaiser Family Foundation, Health Research & Education Trust, NORC at the University of Chicago, Employer Health Benefits, Annual Survey. Survey & Analysis, Menlo Park: The Henry J Kaiser Family Foundation, 2013.

BY-LAWS

1) Remove sentence 3.b from the Article IX, Section D. MANNA FUND (change in bold).3. Eligibility for Manna Fund Distribution

a. The participant must have at least 10 years participation in the Pension Plan.b. The participant cannot be a resident of a retirement or nursing home.c. Maximum annual income levels will be determined by the Executive Committee.d. The participant must complete the Manna Fund Financial Disclosure Form

application.

2) Clarify language of eligible participants in Article IX, Section A. PENSION PLAN (change in bold).1. Participants

a. All Ministers licensed by the Evangelical Congregational Church who are employed Evangelical Congregational credentialed personnel employed by a Conference, Church, Commission, or Board of the denomination may immediately participate in the Plan, whether full-time or part-time, thus entitled to their employer contribution.

HEALTH INSURANCE TASK FORCE

The Benefits Corporation appointed a Task Force to review and discuss health insurance for the active pastors and what future options may be available to us. The Task Force reviewed several different plans, falling into two categories: a more traditional PPO-HRA Qualified health insurance plan, as we now have with Highmark Blue Shield, and a Qualified High Deductible plan coupled with a Health Savings Account.

The goal of this Task Force and the Board of Trustees has been and continues to be to provide the best coverage for our pastors while trying to control the cost to our churches. In addition, the Task Force was given the directive to evaluate if and for how long the EC Church/Benefits Corporation can continue to administer/offer health insurance coverage for our pastors and churches. No decision was made regarding the long term future of health insurance coverage. It will be continually reviewed and assessed with each annual renewal.

The Task Force recommended and the Benefits Board of Trustees accepted the following recommendation at their Feb. 24th meeting that we continue with a plan the same or very similar to our current traditional PPO-HRA Qualified health insurance plan, as we now have with Highmark Blue Shield, pending 2015-16 renewal rates and available group health plans.

Our 2014-15 renewal came in with a 7% premium increase. The Board of Trustees voted to absorb that increase by using excess funds held within our Health Reimbursement Account (HRA), keeping the premiums at the same rates as they were in 2013-14.

Our Health Reimbursement Account is averaging around 40% usage by the eligible participants of our health insurance plan. It is very hard to explain why this benefit is not being used.

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Participants pay their first $500 of their medical expenses (deductibles and co-insurance). Once these expenses exceed the $500 (co-pays are not included), they are eligible to submit their expenses to our third party payer, PrimeFlex, for reimbursements of their deductibles and co-insurance. Prescriptions can be submitted for reimbursement once they exceed $1800. The Benefits Corporation has tried to encourage our participants to complete the claim form and submit it along with the Explanation of Benefits from Highmark to PrimeFlex for reimbursement. Last year we emailed step-by-step instructions and related forms of the reimbursement process to all participants, but only 1 or 2 new ones submitted their expenses.

Since we have the excess in the HRA, it is the Corporations intend to again absorb as much of the 2015-16 renewal premium increase as we can, hoping to hold the premiums at their current rates. At this point, this is our intent. We have no idea what our increases will look like and won’t until late August-early September.

Let me conclude with some observations made by the members of the Task Force during our discussions:

We are not sure how long the Benefits Corp can sustain a health insurance plan for the denomination, much of this is out of our control because of the known changes, anticipated changes & the unknown changes coming with the Affordable Care Act (ACA). But beyond the ACA, we are not sure how many of our churches can financially continue to provide health insurance to their pastor and family. We are already seeing this with the many pastors who have gone part-time in recent years. By waiting at least through one more renewal year before making any major change, we hope to have a better picture of where things seem to be trending with health insurance.

The Task Force discussed at length the Health Insurance mandate approved by the National Conference in 2005. This was passed primarily to insure that those with pre-existing conditions had access to health insurance and to maintain our participant census at 100+. Neither of those are valid reasons anymore. Our census has long ago fallen to under 100 and is currently in the 70’s. We were moved to a community rated plan when it fell below 100. Pre-existing conditions are no longer an allowed exemption from coverage as a reason to reject someone for health insurance coverage as per the ACA. Because health insurance is in a constant state of change right now due to the ACA, the Task Force did not make any recommendation to repeal this mandate this year. But it will be under a yearly discussion and consideration from this point on.

It must be emphasized that as long as the Benefits Corporation administers a health insurance plan, no pastor (full-time or part-time) is eligible for a subsidy via the marketplace/exchanges of the ACA. Those not covered by the mandate (full-time pastors), can apply for coverage in the marketplace but because we provide access to group health insurance, with no restriction on full-time or part-time employment, they are not eligible for a subsidy. As with so much of the ACA, there are more questions than answers. There are many gray areas. We are taking this position because we do not want any church or the Corporation to be fined because an employee secured a subsidy when they are not eligible.

Recent guidance from the Internal Revenue Service stipulates that an employer (in our case the Church) cannot reimburse an employee (in our case the pastor) for health insurance costs outside of an employer sponsored group plan. Whether the reimbursements are taxable or nontaxable is not relevant. Payments to employees for health insurance outside of an employer sponsored plan group plan are in violation of the ACA. Some are getting around this by increasing the salary, but nowhere can it be specified that this additional salary is to pay for health insurance.

The Task Force recommended to the Board of Trustees that another group be appointed next fall after our renewal on October 1st, to evaluate the health insurance situation at that time and going forward.

Becky Reigle

Members of the Task Force:Frank Schock, Ryan Taylor, Don Metz, Martin Brown, Bishop Bruce Hill, Gordon Lewis, Gary

Kuehner, Chuck Campbell, Kevin Henry and David King

RETIREE PROPOSAL

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The Covenant Implementation Team (CIT) has been tasked with implementing the four components of the Covenant adopted by the 2014 National Conference. At the request of CIT, the Benefits Corporation’s Board of Trustees was asked to evaluate two of National Conference budget items that the Corporation administers. These two ‘legacy-heritage’ budget items are a major factor (approximately 20% of NC expenses) in ministry fund calculations. They are: Defined Benefits Pension plan and Retiree Health Insurance. The Defined Benefits Pension plan is an unfunded liability of National Conference. Defined Benefits will not be changed. The larger of the two National Conference budget items is the Medicare supplemental health insurance benefit provided to retired pastors, wives and widows. Since January, 2007 the retirees have been covered by Highmark Freedom Blue Medicare Advantage plan.

In 2004 National Conference grandfathered in any pastor, retiring up to & including 2005 or born prior to and including 1940. These retired pastors would continue to receive retiree health insurance as administered by the Benefits Corporation, paid 100% by National Conference, for him and his wife. The other aspect of the National Conference action was to phase-out health insurance payments paid by National Conference for those pastors born in 1941 (75% paid); 1942 (50% paid) & 1943 (25% paid). Any pastor born after 1943 would not have any of their retiree health insurance paid by National Conference. [Eligibility for retiree health insurance paid by National Conference is based solely on the pastor’s age, not his wife’s age.] Action taken by National Conference in 2007, did allow those born after 1943 to enroll in the denomination’s retiree health insurance plan but at their own expense.

In 2004 when this plan was presented to the Benefits Board of Trustees and adopted by National Conference, it was with every intention that this commitment could be honored. No one envisioned the extremely high rise in the cost of health care, prescriptions and health insurance that we have seen in the last decade. In 2015, this one budget item will cost nearly $250,000. With the ever increasing costs of insurance, Kevin Henry has projected that the cost for National Conference could easily exceed $340,000 by 2020.

Our current retiree health insurance census has 118 participants, 14 are 100% self-pay, 72 at 100% paid by National Conference, 6 at 75% paid by NC, 11 at 50% paid by NC, and 5 at 25% paid by NC. The average age of those for whom National Conference pays some percentage of their premiums is 80. Actuarial studies have life expectancy at 88. The bottom line is those same studies would have National Conference paying this benefit well into the decade of 2030.

For the retirees for which National Conference pays 100% of their premiums, the proposal means that beginning January 1, 2016 the retiree will pay 20% of their premium. The annual reduction of an additional 20% paid by the retirees would continue from 2016 to 2019. Then in 2020, the retiree would be paying 100% of their health insurance premium and National Conference would no longer be responsible for any retiree health insurance. [All budget items being phased out as part of the Covenant are all using the same five year reduction schedule.] For those who are already paying some of their premium as per the 2004 phase-out, the attached proposal explains what the reductions will be for each year from 2016-2019.

If this proposal is not approved at National Conference, there are no guarantees as to how long retiree health insurance coverage can be paid by the denomination. Rather than announce to our retirees that this retirement benefit will be discontinued immediately, we felt it was prudent to have a planned phase-out so our retirees can plan their personal expenses, accordingly. Many denominations as well as businesses, have already taken the step.

The current National Conference Ministry fund percentage is 8.82%, approximately ¼ (or 2% of that 8.82%) of the ministry funds are used to fund the Retiree Health Insurance.

If this proposal is not approved, and the other CIT proposed NC budget item changes are also rejected, ministry fund percentage could easily exceed 14% by 2020.

If this proposal is approved and the other CIT budget items being reduced or phased out are also approved by National Conference, Ministry Fund percentage will be around 5.7% in 2020. (That would reflect a 40% reduction in Ministry Funds when including the camp add-ons.)

If the others are approved but the proposal to completely phase out the health insurance coverage for the retirees is NOT, the projection for the 2020 ministry fund percentage would only reduced by approximately 1.4% from its current 8.82%.

In addition we have 20+ pastors, wives & widows who are not covered under the current retiree plan but could still ask to be enrolled in our retiree health insurance. The majority of these qualify for 100% paid by National Conference. If the majority of these pastors would decide to do so,

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it could increase this budget item by an additional $50,000/yr. None of this information is factored into any of the previously referred to calculations.

All of this information is to show that the continuation of paying all or part of the retiree health insurance is unsustainable for National Conference. This information and proposal was presented to the Benefits Corporation Board of Trustees at their meeting held on February 24, 2015. The Board has adopted this plan and is recommending its adoption to the full membership of the Benefits Corporation at their annual meeting held during the 2015 National Conference in May.

The Retiree Health Insurance Proposal for 2015 follows on the next page. If approved by the membership, then the pertinent Corporation By-Law changes, removing the 2004 action of National Conference, would also need to be adopted by National Conference. The By-Law changes are included with this proposal.

Rebecca Reigle

RETIREE HEALTH INSURANCE PROPOSAL – 2015

Effective January 1, 2016, retired pastors, wives and pastors’ widows whose health insurance is paid entirely by National Conference will begin to pay a portion of their monthly premiums. For 2016 the retirees will pay 20%, 2017 – 40%, 2018 – 60%, 2019 – 80%, 2020 – 100%.

Effective January 1, 2016, retired pastors, wives and pastors’ widows for whom National Conference pays a percentage of their Health Insurance will begin to pay their premiums at the following percentage scale:

Those receiving 75% paid by National Conference with the retiree paying 25% of the premium will begin to pay a larger percentage. For 2016 – the retiree will pay 30%, 2017 – 45%, 2018 – 60%, 2019 – 80%, 2020 – 100%.

Those receiving 50% paid by National Conference with the retiree paying 50% of the premium will begin to pay a larger percentage. For 2016 – the retiree will pay 60%, 2017 – 70%, 2018 – 80%, 2019 – 90%, 2020 – 100%.

Those receiving 25% paid by National Conference with the retiree paying 75% of the premium will begin to pay a larger percentage. For 2016 – the retiree will pay 80%, 2017 – 85%, 2018 – 90%, 2019 – 95%, 2020 – 100%.

With these cost reduction schedules by 2020 National Conference will no longer be paying retiree health insurance for any retired pastor, pastors’ wife or retired pastors’ widow. Using the current Ministry Fund percentage of 8.82%, this change alone would lower the Ministry Fund percentage to approximately 6.82%. if all Covenant Implementation proposed budget item changes are approved by National Conference, Ministry Funds are projected to be reduced by approximately 40% by 2020.

NOTE: The Benefits Corporation will continue to annually select and administer a health insurance plan for retired EC pastors, pastors’ wives and widows. Effective Jan. 1, 2020, all participants will pay 100% of the premium as established and approved by the Board of Trustees of the Benefits Corporation. After Dec. 31, 2019, as authorized by National Conference through the Corporation By-Laws, the Board of Trustees will annually decide the merits of continuing to administer a health insurance plan for retirees. Ample notice will be given to the retiree participants on the plan if such a decision is made. Ample notice will be given to the retiree participants on the plan if such a decision is made.

PROPOSED BENEFIT CORPORATION BY-LAW CHANGES –IF THE RETIREE HEALTH PROPOSAL IS ADOPTED BY NATIONAL CONFERENCE

The By-Laws of the Benefits Corporation will be amended by removing the sections underlined below: Article IX,C.2.a,b,c,d,f,i.

THE HEALTH INSURANCE PLAN

2. Eligibility - Superannuated / Retired Pastors and spousesa. Superannuated Ministers and spouses of superannuated ministers may participate in the

retiree health insurance plan, if eligible, as outlined in the Retiree Phase-Out Plan

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(Section IX. C. 2. g. of these By-Laws). The same eligibility as applies to the pastor applies to his spouse. If a widow remarries, she is no longer eligible to participate in the retiree health insurance plan.

b. Ministers who are not superannuated but retire as Traveling Local Preacher-Permanent License, Traveling Elder or Traveling Deacon and their spouses, may participate in the retiree health insurance plan if they are serving a church at the time of their retirement, have no other source of health insurance and are eligible as outlined in the Retiree Phase-Out Plan (Section IX. C. 2. g. of these By-Laws)

c. Retired full-time employees and their spouses, or widow(er)s, of Evangelical Theological Seminary may participate in the retiree health insurance plan. If a widow(er)s remarries, he/she is no longer eligible to participate in the retiree health insurance plan. Retired full-time employees and their spouses, or widow(ers), of Evangelical Theological Seminary, who are eligible for health insurance coverage, but have outside employment, will not be covered by our plan if their employer offers health insurance. Payments for health insurance will be made per section 2.f.

d. Superannuated Ministers and their spouses, or widows, who are eligible for health insurance coverage, but have outside employment, will not be covered by our plan if their employer offers health care coverage. The Benefits Corporation will reimburse them for any premium contributions as required by their employer and as outlined in the Retiree Phase-Out plan (Section IX. C. 2. g. of these By-laws). Failure of full disclosure will require full repayment and termination from our health insurance plan.

e. A church which is assigned a retired pastor for full-time service shall pay 100% of the retired pastor and spouse's health insurance premiums and for part-time service shall provide 50% of their health insurance premium.

f. Those retired pastors and spouses covered by the Retiree health insurance plan and required to pay a percentage of their premiums, as outlined in the Retiree Phase-Out Plan (section IX. C. 2. g. of these By-Laws), must pay the premiums monthly, a month in advance, to the Benefits Corporation by the 15th of each month prior to the month being paid.

g. Retired pastors and their spouses not eligible due to the Retiree Health Insurance Phase Out Plan, may participate in the Retiree Health Insurance Plan at their own expense and subject to approval by the Finance Committee of the Board of Trustees, if they meet the insurance provider's eligibility requirements.

h. Retired, career missionaries may participate in the retiree health insurance plan at their own expense and at the recommendation of the Global Ministries Commission and the approval of the Board of Trustees of the Benefits Corporation, if they meet the insurance provider's eligibility.

i. Retiree Health Insurance Phase-Out Plan – Effective January 1, 2005 1) That an individual retiring prior to his Medicare Eligibility Date as determined by

Social Security will be governed by the modified plan regarding contribution limits.2) That retiree coverage will continue until retirement age for an individual who has no

other source of employment income and is unable to work due to an injury covered by Worker’s Compensation while in the employ of the Church, or due to a permanent disability as determined by Social Security.

3) Retiring pastors and widows who desire to receive their health care coverage, must submit a request in writing to the Benefits Corporation for such coverage within 60 days of their Medicare eligibility date and receive the approval of the Board of Trustees.

4) That retiree coverage shall be phased out according to the following schedule: Medicare Eligibility Year Percent Covered by Church

2005 ....................... 100% 2006 ....................... 75% 2007 ....................... 50% 2008 ....................... 25% 2009 ....................... 0%

By-Law change: Article IX, C. 2. G – delete the phrase that is underlined below and add the words in BOLD

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g. All Retired pastors and their spouses not eligible due to the Retiree Health Insurance Phase Out Plan, may participate in the Retiree Health Insurance Plan at their own expense and subject to approval by the Finance Committee of the Board of Trustees, if they meet the insurance provider's eligibility requirements.

Note: The Corporation is not adding the 2015 proposal to their by-laws. If approved by National Conference this proposal would no longer be applicable as of Dec. 31, 2019 since National Conference would no longer be providing funding for retiree health insurance coverage.

EVANGELICAL THEOLOGICAL SEMINARYWHO NEEDS SEMINARY WHEN YOU HAVE MOOCS, GOOGLE AND WIKIPEDIA?

Do you need information? The Library of Congress will help you. It now boasts nearly 37 million books, as well as nearly 70 million manuscripts. Or go online. Wikipedia, the online user-managed encyclopedia, now has over 4.6 million entries in the English language alone (there are parallel Wikipedias in 250 other languages). Wikipedia can’t help? Google has been recording well over 3.5 billion searches per day, or 40,000 per second, for a total of over 1.2 trillion searches for information each year. (This does not include searches on other engines.) Or maybe you need to learn something in depth? In the summer of 2014, nearly 10,000 MOOC’s (“massive open online courses”) were offered in the US, enrolling up to 300,000 students per course, most of them studying for free.

If you merely want to learn things you no longer need to go to college and pay tens of thousands of dollars for a degree. That is the old model. That model began, in the West at least, in the high medieval era, when bands of students would hire a person with specialized knowledge to teach them what they wanted to learn. In those days students ruled the academy; they were the employers and the faculty were their employees. Over time, instructors banded together, adopted the guild model, and turned the tables, offering their knowledge and conferring credentials (degrees) upon students only if they satisfied certain pre-determined requirements. If a student wanted to learn, he or she had to demonstrate aptitude by applying for admission and, if granted access (for admission was almost always selective), one had to fully and faithfully meet the expectations, no matter how difficult, of those who possessed the knowledge one sought.

Within this past generation, the tables have again turned dramatically. Students now have the upper hand. If they want to pursue higher education, institutions compete for them and students almost always have choices. If they are not learning what they want to, they move on, or they complain to a government regulator or an accreditor, and the institution must demonstrate that its students have indeed learned something of value upon graduation. Students are increasingly arguing to employers that their knowledge is best demonstrated by résumé, or by some other demonstration of skill acquisition, rather than through a process of formal education; this is particularly true among clergy, who have been the traditional student base of North American seminaries. Students are also less impressed by the academic credentials of faculty members and far more likely to dispute grades and even to sue. They understand themselves to be customers and approach institutions of higher learning as retailers whose responsibility it is to provide customized, high quality services at reasonable cost. They are increasingly unwilling to incur the debt necessary to purchase educational services without significant assurance that the value proposition makes sense.

Needless to say, these trends are affecting both the traditional learning model and the traditional financial model of higher education and, in my opinion, the most drastic changes are yet to come. Online education will likely minimize, if not obliterate, the geographical realities that once justified the creation of hundreds of small seminaries. The demand for individualized, customized learning will call into question the generic standards imposed by traditional accrediting bodies. Students will increasingly demand ownership of aspects of the curriculum, now tightly controlled by the faculty. The availability of nearly infinite amounts of information will significantly change the role of the professor in the classroom, who can no longer be merely a purveyor of specialized knowledge; students already have easier, cheaper ways to access that knowledge.

SEMINARY OF THE FUTURE: WISDOM LABORATORY?

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Yet seminary will still be needed, even more so than it has been, even as the culture shifts and the learning model changes with it. Why? Because those preparing to serve the Church need wisdom. For these individuals, education is not primarily about acquisition of knowledge but about growth in wisdom. I have asked our senior leadership team and faculty to imagine with me what a seminary as “wisdom laboratory” would look like – for this, I suspect, is the best model for the future of theological education. And it would represent an invaluable contribution that any seminary could make to the Church of this generation.

Future church leaders require the wisdom of knowledgeable and experienced practitioner-scholar-teachers capable of providing guidance. In a climate of every-increasing availability to information, evaluation and discernment are imperative, and educational institutions must lead the way in determining what information will be most useful to students pursuing a calling in ministry. Evangelical’s motto of “integrating heads, hearts, and hands” is intentional: it invites students to do more than gather bits of information and it acknowledges that the integration of all aspects of one’s self is necessary in order to minister to others. It is an invitation to step away from the distractions of the “quick fix” approach so often found online, and in mainstream culture. Evangelical’s motto is an intentional invitation to evaluate information (head), discern truth and meaning (heart), and lead accordingly (hands).

Evangelical’s integrated approach to educating leaders of the future is particularly relevant within the context of our current culture. Without seminary, who will guide students through the process of integration? Who will offer wisdom to supplement or supersede the mere acquisition of knowledge? Who will teach discernment, so individuals can determine what information is valid or valuable, and what is not? The look and feel of a seminary will change over the next generation but our function will become more critical, not less so, in this era of information overload.

Whatever seminary looks like in the future, it will need to pay for itself. None of us knows what will eventually emerge as the new dominant financial model of theological education. In 2010, I published a book in which I presumed to look a quarter century into the future and imagine what this new financial model might entail. Much of what I said only a few years ago I still hold to but some of what I anticipated has already changed, or has accelerated to a point I could not have imagined. It is therefore difficult to propose what Evangelical should become in the years ahead in any definitive sense. As we engage in conversations with other institutions with similar outlooks and goals, we are exploring possible strengths in combining our resources and talents. Yet, there are visible trends, and we need to keep this broader context in mind as we deal with the strategic issues of the present, as they may benefit us in our own decision-making.

SEMINARY OF THE PRESENT: EXPERIMENTATION AND EXPANSIONAs I have noted in nearly every report I have presented to you these past four years, these are

hard days for theological education institutions nationwide. As a result, many schools like Evangelical are experimenting with new deliveries and new academic programs, and many are attempting to expand their market by going online or seeking new markets. What Evangelical has been doing is perhaps remarkable in the sense that we have invested a great deal of energy into exploring, creating, and marketing programs that acknowledge the current trends in educational culture. What follows is a rather brief update on changes at Evangelical since my last report:

Our MA in Leadership Development program began classes at our new Lancaster site at the end of March. We have had an office in Lancaster since last summer. The MA in Leadership Development is primarily designed for current and future leaders in nonprofit, public, or parachurch settings and is delivered in a hybrid online/on-ground format. The on-ground portion consists of five weekend residencies per year for two years. Please inform the members of your congregations about this affordable, accessible program that creatively blends leadership training with spiritual formation.

Our new MA in Ministry will launch this fall. This program is a real game-changer in many respects. We know of no one else offering this kind of integrated, incarnational, and intentional learning opportunity. This, too, is delivered in a hybrid online/on-ground format, with three five-day residencies per year, each taking place in a different church setting. This is also a two-year program (36 credits), making it accessible and affordable for those out of the area, those beginning ministry, those seeking renewal or retooling in a particular area of ministry, and those for whom seminary would otherwise be a financial hardship.

Our new MA in Spiritual Formation and Direction officially launched this past fall but is being beefed up this year to include a stand-alone 12-credit practicum in Spiritual Direction

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training. Evangelical is leading the way on the East Coast by providing spiritual formation and direction training from an evangelical perspective.

Our Harrisburg classes will move to a new site late this summer. We have contracted with the Dixon University Center in uptown Harrisburg to offer our courses on their site, alongside other Pennsylvania universities. This move will provide us with an upscale classroom, additional marketing help, and a higher profile in the Harrisburg area.

Our faculty now includes some new members. Dr. Mark Draper started as our library director part-time as of January 1 and will join us full-time on July 1. He will also serve as our first-ever Director of Online Learning. Sarah Dorsey Bollinger and her husband Phil Bollinger have been jointly and permanently appointed as Assistant Professors of Old Testament to fill the vacancy created by the retirement and death of Sarah’s father, Dr. David Dorsey. We have also hired Dr. John Chuma as Affiliate Professor of Marriage and Family Therapy and Clinical Director.

Our archeology museum is being relocated, renamed, and re-funded. During Phase One of this project, we will relocate the current museum’s exhibits to the ground floor of the Rostad Library; this phase should be complete later this summer. We will have a subsequent renaming ceremony for the museum and the library building.

If you want more information on these or other new activities in which we are engaging, please ask. These tactical decisions are leading us toward our strategic goal: reaching the point of sustainability for our mission of preparing servant leaders for transformational ministry in a broken and complex world allowing us to focus on Evangelical’s unique contribution to the Church without the ongoing distraction of logistical, financial, and organizational shortfalls.

SEMINARY OF THE PRESENT: STRUGGLES AND STRATEGIESEvangelical has recognized disconcerting trends that have evolved over the past decade, and

a considerable amount of energy is being expended as we consider and engage in strategies that will reverse or adjust to these realities. The following data highlights some of these trends:

In the past eight years, enrollment in the Master of Divinity degree, our flagship program, has dropped by one-third, despite Evangelical’s expansion into a new market (Harrisburg) and ongoing efforts to attract new constituencies. Other programs have absorbed some of the loss, but have not fully compensated for the lower enrollment numbers. We recognize that this pattern is not unique to Evangelical; declining enrollment in MDiv programs is a national trend, but our loss exceeds the national average.

Despite a dramatic low point in 2011, we have seen enrollment figures pushing their way back up, very slowly. New programs, new sites, new online options, and new marketing strategies have been necessary to make this happen and will continue to be necessary. Please view our updated website, which provides a great example of our strategic efforts: www.evangelical.edu.

Last summer we closed FY 2014 in the black, breaking an eight-year pattern of deficit spending. The apocalyptic year was 2011, which we survived only because of an extraordinary number of bequests that helped offset what would have been a $400,000 deficit. Each year since we have been decreasing the deficit. It’s important to note that last year’s budget was “balanced” on a cash flow basis. If we had funded depreciation or been at full staff complement, it would not have worked.

Giving has increased noticeably in the past several years, which is very helpful. But even with that increase it has not kept pace with inflation over a ten-year period.

A major fiscal challenge has been the mortgage on Christ Hall, which was remodeled at considerable expense ten years ago. Although the renovations were necessary, the new mortgage coincided with the decline in enrollment. If we were able to pay off this additional expense, we would create some breathing room in our operational budget.

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Big-picture strategies that Evangelical has been pursuing to lead us toward sustainability as a stand-alone institution or in partnership with a sister institution:

Last year the Board of Trustees developed and approved a financial sustainability plan for the seminary, and it is rather radical. It calls for a property development plan and, as a result, by the time National Conference meets, the board will likely have acted on a proposal to sell our townhouse property. Doing so would permit us to use the proceeds to pay off our mortgage on Christ Hall, direct seed money to new initiatives, create a reserve fund to offset depreciation, and update our technology.

The board also authorized me to initiate conversations with other theological institutions about long-term strategic partnerships—including the possibility of a merger, or becoming a satellite campus of a major seminary. And so I have. Those conversations are very preliminary at this point, and there’s nothing to report. I will say that the healthier we are financially and the stronger our denominational support, the more attractive we will be to potential partners.

SEMINARY AT THIS MOMENT: DECISION TIMEThat brings us to where we are this spring. Despite our internal efforts to improve our

situation, we are very, very dependent on the actions of others outside of Evangelical—government regulators, accreditors, the economy, and, yes, denominations. Two major denominational decisions will take place before the end of June that will play a major role in the future and fate of your seminary.

In late June, the United Methodist Church will decide whether or not to continue listing us as an approved seminary. If they do not list us as an approved seminary, their decision will create long and short term consequences. Being dropped from the UMC listing will release us from certain restrictions (such as online learning) and will provide us with more freedom to reimagine our MDiv program; this is a long term consequence. The short term consequence, however, would greatly affect our enrollment numbers and could result in the closure of Evangelical. We would have to find a way to survive the hit of losing the denomination that provides us with more students than any other.

In May, your national conference will decide whether or not to continue funding us past the year 2020. The Covenant Implementation Team Report proposes to draw down our funding to zero over the next five years. If that happens, over the long run, with your help, we may be able to find other revenue sources and create an even more robust interdenominational identity. We would certainly try. In the short run, however, it too could shut us down. We would have to find a way to survive the hit of losing our single largest source of revenue, precisely when we need it most.

So what am I asking for? Less than you may expect. I am sufficiently aware of the financial challenges of the denomination and the limited options with which you are dealing. Be assured of my prayers for you in the face of these challenges. You will need to do what you think is best and we all must trust in the provision of God to take care of this mission He has called us to here. Challenges provide us with the opportunity to think and act creatively, and we will continue to do so, whatever the eventual outcome. Therefore, I am not explicitly pleading for your money.

But I do need to fulfill my responsibility as the president of your seminary to make sure you know what impact your decisions will have. If I am asking for anything, it is that you take into consideration all that I have shared with you here, so that we can together envision what God still has for us to do together. If Evangelical needs to close its doors sometime in the next few years and say “mission accomplished,” then let’s do that with eyes wide open, with a clear decision made for the best of reasons. Or—the scenario I much prefer to imagine and work toward—if by the grace of God, Evangelical is still flourishing five years from today, please understand that we will probably look quite different than we do today.

Change will be crucial to our future success. And this is not only because what you do this Spring will be the single biggest decision to impact Evangelical since you voted in 1946 to start a seminary, but also because the culture shifts I have noted are driving all of us toward something new and, I believe, ultimately better. The Evangelical Congregational Church will still need a seminary, of one sort or another, because the Church will still need a wisdom laboratory, a place where your best

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and brightest will grow wise in Christ, wise in their understanding of ministry, wise in their application of knowledge, wise in the ways of the world. We may not know yet how to fund it, or what it will look like, but we know that it will be necessary.

Let us therefore plan for it, even now, for this is what the Spirit does – the Spirit whispers to us of things we have not yet imagined and guides us, if we dare, through the wilderness and into the land flowing with milk and honey awaiting us on the other side of the Jordan. My hope is that in 2020 we will have a flourishing seminary, one way or another. And you will all enjoy a flourishing denomination, one way or another. And we will still celebrate a flourishing, creative, and mutually beneficial relationship because we need each other, because we are both better when working closely together. We will walk forward and see what the future holds.

Dr. Tony Blair

NEW DAWN CHRISTIAN COMMUNITY SERVICESFollowing Christ’s loving example, we will consistently provide responsive care,

organizational flexibility, a well-trained devoted team, and an appealing, secure residence within our continuing care retirement communities. This is the mission of StoneRidge Retirement Living. As I prepared to write this annual report it was imperative that the mission be understood by the conference as we prepare for the recommendations of the covenant implementation team. While the “legal” structure of our relationship may be changing, the functional purpose of StoneRidge to serve the aged with compassion as clearly stated in our mission will continue.

“Community” is not foreign to StoneRidge. We operate three Continuing Care Retirement Communities. We call all of our individual locations a StoneRidge Retirement Living Community. The importance of community is critical to the success of our organization. Resident’s desire to have that feeling of a community – where people care for each other, show love for each other and ultimately serve God in the process. Enter one of our communities and you will see what I am describing.

It is interesting as we age how our perspective on time changes. Under the age of 18 we can’t wait to grow up for the next best thing. Ages 19 to 30 we usually want to freeze and stay there forever. 31 to 65 we wonder where the time has gone. Over 65 we ask why things take so long and gradually become more impatient as the demand of being employed has passed and our focus becomes all about ourselves. I am in the 31 to 65 category and continue to wonder how another year could have passed. The daily challenge of being on top of your game and leading an organization helps eliminate dwelling on the little things and focusing on the more important things. Expanding our Ministry is one of those important things.

StoneRidge continued its growth in 2014 purchasing Schoolyard Square in Pine Grove. This acquisition allows us to enter Schuylkill County with the hopes of developing a skilled nursing facility. We have easily integrated our philosophy into this personal care facility as the previous owners were a Christian couple. As is normal, small changes were implemented and some shuffling of responsibilities took place in order to create the most efficient environment. Work has already been started to find beds and a location in Schuylkill County to grow our ministry.

TOWNE CENTREOur oldest Community continues to present challenges in physical layout and the age of many

interior mechanical systems. We have purposely limited re-investment into this community as the sustainability of this model continues to be a question. We have been blessed by a very solid occupancy in 2014 and have seen our admissions double over the prior year. Unfortunately the average length of stay continues to diminish. This is an on-going trend and a primary concern in our industry. We also saw at Towne Centre a significant reduction in the use of agency – a goal we had established at the beginning of the year. This provided a more consistent care model by our Team Members, which is appreciated by Residents, Family and Team Members. We oscillated between a four and five star rating throughout the year.

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POPLAR RUNPoplar Run finally began seeing our census grow in independent living. The Main Street

amenities have been the catalyst to bring our independent living into competition with other surrounding CCRC’s. The gradual housing market rebound coupled with the recent stock market growth has certainly boosted confidence for seniors looking to make a move. We continue to develop programs for our Residents to make use of the spaces created. We are currently evaluating renovation of our skilled and personal care centers as they are very dated and in need of significant improvement. Poplar Run maintained a five star rating throughout the year.

CHURCH OF GOD HOMEAfter a year of getting the right people in the right place, we are confident that Church of God

Home feels like a StoneRidge Retirement Living Community. Many systems have been changed and implemented during 2014. Hiring an experienced and knowledgeable Executive Director was critical. His focus on quality and system improvements has certainly yielded results. We had another excellent survey – deficiency free which is virtually unheard of in the industry. We are also considered the primary skilled nursing facility in the area to receive patients discharged from the hospital. Our skilled nursing occupancy has risen significantly, several times reaching 100%. Church of God Home has improved to a five star rating.

ORCHARDS AT MARSH RUN We recently completed an internal market feasibility study thanks to the experience of Carson

Ritchie. Realizing Carson was ready to retire in January 2015 we used the last few months of his employment to accomplish something we otherwise would have had to pay for. The study indicates the Carlisle market is not saturated and a project could be developed for the Orchards. We are currently working on the financial feasibility portion to determine if the project cost coincides with the average consumer finances. We have already been working with a capital markets broker to secure funding.

FIVE STAR RATING SYSTEMWe were recently notified that there will be a change in the five-star rating system currently

utilized by the Centers for Medicaid and Medicare Services (CMS). This system will undoubtedly change our facility ratings. We are carefully analyzing the importance of chasing a rating developed by CMS verses continuing to focus on providing the highest quality care possible. The new system is geared toward staffing numbers, something we have never found to be indicative of the actual care and the efficiency of systems in place to run the operations.

HOME CAREThere is significant buzz about Home Care being the future of healthcare. We continue to

evaluate the viability of developing this product but the forecast is not very attractive. It should be clarified that Home Care cannot replace the services provided in a skilled nursing facility, but rather will delay entry. The model also relies heavily on one caregiver, which at any point in time can be a potential disaster in a time of emergency. Acknowledging that future Residents want services at home is easy to understand, but delivering the quality that can be provided in a group setting still remains a question.

FINANCESWe had a very positive year in 2014 operationally, but continue to lag in our contribution

source income. Most facilities with strong development programs are able to begin re-positioning or renovating projects much quicker giving them a competitive edge. Our benevolent program costs continue to rise, creating pressure on our private pay rate structure. With the framework of our development program created in 2014, we expect to see positive results in 2015. Keep an eye out for opportunities to participate in helping us build stronger communities.

HUMAN RESOURCESOur second year of self-funding our health insurance program again produced positive

results. While two claims hit the maximum level, the overall total claims were less than projected. This move is slowly restoring balance to our health insurance costs, but the impact of OBAMACARE and the associated regulations continue eroding our savings. We will be experimenting with a wellness challenge at one of our communities in 2015. If successful, we will roll out to all communities to hopefully continue making an impact in healthcare costs while seeing improvement in the health of our Team Members.

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THE FUTUREThere are many opportunities to be a leader in the healthcare field. StoneRidge will continue

to be on the forefront of changes in order to offer services to those in need. We will continue to explore expansion opportunities to create additional communities in areas not served. Our philosophy of maintaining a Chaplain to serve the Residents and Team Members will continue, and hopefully be the example of what living “in community” was meant to be.

CONCLUSIONAs we look to sustain our current operations and expand into new opportunities there

continues to be unknowns. While we have a very talented team, we know the true leader is our Lord and Savior. Please pray that we have wisdom and receive direction through Him who makes all this possible through his servants.

Steven J. Reiter, CPA

COVENANTbetween

The Evangelical Congregational Churchand

New Dawn Christian Community Services, Inc.

Preamble:

The National Conference of the Evangelical Congregational Church (Church) and New Dawn Christian Community Services, Inc. (NDCCS) have had a long and valuable relationship. Since 1924, when the Burd and Rogers families founded a home for seniors and subsequently gave the home to the Church, the denomination has ministered to the needs of seniors. Over the years the Church has provided board members, residents, employees, volunteers, and contributions to NDCCS. NDCCS have provided care for many members of the Church, many of whom had limited financial resources. NDCCS has also provided resources on senior issues to the Church and provided facilities for various Church events.

NDCCS and the Church recognize the value of affiliations with external organizations whose missions are compatible with each other and who activities will significantly assist each other in advancing and achieving their strategic and ministry objectives. In recognition of this important relationship between the Church and NDCCS and with shared respect and trust for the ministries of each organization, the Board of Trustees of NDCCS and the National Conference of the Evangelical Congregational Church both agree to the following:

NDCCS covenants to:

1. Promote a compassionate and spiritual home environment consistent with the Church’s core values.

2. Prayerfully support the Church and its ministries.3. Encourage a clear line of communication concerning the needs of seniors within the church

community and where we can assist in providing viable solutions.4. Share personnel resources and facilities where possible to enhance ministry opportunities.5. Solicit recommendations from the Church when filling chaplaincy and/or employment

opportunities.6. Provide a network of services for older adults through resident communities, community

services, and educational opportunities.7. Provide benevolent care so long as it does not endanger the financial stability of the

organization.

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The Evangelical Congregational Church covenants to:

1. Promote the identity and ministry of NDCCS within the congregations of the Church.2. Prayerfully support NDCCS and its ministry.3. Encourage a clear line of communication about the needs of seniors within the church

community and be open to where NDCCS can assist in providing viable solutions.4. Encourage congregational support through volunteer service.5. Share personnel resources and facilities where possible to enhance ministry opportunities.6. Propose qualified candidates to serve on the NDCCS advisory and/or governing Boards.7. Encourage congregational financial support the benevolent, capital, and other specific

fundraising initiatives.

NDCCS and the Church both covenant to:

1. Maintain a mutually supportive relationship.2. Keep open lines of communication between leaders in order to build and maintain trust.3. Work together to identify possible qualified candidates for the NDCCS Board of Trustees.

This statement of covenant is foundational and precedent (in terms of significance if not chronology) to formal legal documents, contractual arrangements, or partnership opportunities. It may be amended as necessary by the consent of both parties when such amendments are deemed good and necessary for their joint mission to glorify God. Nothing contained in this covenant is intended to pass on, directly or by implication, any financial responsibility or liability from one party of this covenant to the other.

Ratified by the Board of Trustees of NDCCS on ________________________. (date)

Authorized Signature: ____________________________________________

Print Name and Title: ____________________________________________

Ratified by the National Conference of the Evangelical Congregational Church USA on ____________________ .

(date)

Authorized Signature: ____________________________________________

Print Name and Title: ____________________________________________

HISTORICAL SOCIETY

Change is part of life. This is true of the National Conference of the Evangelical Congregational Church as it is with the Historical Society of the church. Harold Scanlin has stepped

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down as president of the Society and has been replaced by Michael Sigman. Terry Heisey has also retired not only as librarian at the seminary but as archivist for the society. Julie Miller will assume the role of archivist. We wish to thank both Drs. Scanlin and Heisey for their years of leadership and service in these roles.

The archives of the church will be relocating from the Rostadt Library on the campus of Evangelical Seminary to a room in the Church Center. This will continue to be accessible for research and display purposes. The Society continues to collect materials from conference churches and pastors for safekeeping and for research.

Work continues on the release of our English translation of Jacob Albright: A Tile Maker Becomes a Bishop. Written in German by Karl Heinz Voight, this work provides an account of the spiritual formation of our founder.

Bishop Emeritus Michael Sigman and Bishop Bruce Hill will collaborate to produce an updated version of the DVD Streams of Influence. This popular retelling of the origins of the Evangelical Congregational Church will serve as a tool for pastors and churches as they seek to articulate who we are as a movement.

The Society has provided funds to help with the on-going renovation of Albright Chapel in Kleinfeltersville, PA. This is a project undertaken by the General Commission on Archives and History of the United Methodist Church. Harold Scanlin is our liaison to that group for this project.

As the direction of restructuring in the Evangelical Congregational Church becomes clear the Society will take actions to bring ours into alignment with the structure of the Church as a whole.

November 15, 2015 is designated as Heritage Sunday in the Evangelical Congregational Churches. Information will become available to help our congregations celebrate our common history on that day.

Rev. Gary M. Brown

CAMP ECCOCamp ECCO finds itself in an interesting position as we prepare for the 2015 camping season.

Everything looks bright and shiny, but there is a subtle underground shadow lurking.We are close to being able to add a caretaker to our wonderful leadership team. Verbal

agreements have been made, but since we are a volunteer organization whose leaders all have full time jobs, things usually take longer to finalize than they would in the business world. Maybe by conference time, I will be able to elaborate. This person would be an addition to our present staff. No one’s jobs would change, we would just be adding another strong person.

We also have a commitment from Aaron Wilson to give us solid legal advice. Aaron grew up in our Cottage Grove EC Church and spent many summers at our camp. Aaron will be working with our CPA Vance Adams to help us get all of our legal and corporate papers and constitutions in order. These two men are gifts from God. Their work is invaluable to our present and our future.

Our Property Committee is heavily involved in a major project relative to our boys’ dorm. After the contractors got involved and prices were considered, a new floor plan was drawn up and work is in progress. We will do everything possible to have this building completed by the start of the camping season. This will give us newly renovated boys’ and girls’ dorms with more modern shower facilities. We were also able to include a storage shed/storm shelter under the new addition to the boys’ dorm. Camp deans have often asked what they should do if they faced a serious weather condition. We will now have a solid and safe answer.

All of our volunteer staff continue to donate their time and talents at a very high level. Jeff Sitz heads a property team of Dick Parr, Jim Dotson, Dave Woodhall, Tom Baldt and a variety of helpers from among their friends and church members. We want to thank our Youngstown Wedgewood Park church for their great work on new benches last year. This year our Southington Delightful EC Church raised about $1600 toward the purchase of new bunks and beds for our dorms.

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These kinds of workers and donations make a huge difference. We thank all of you for your help. Julie Beltz heads a larger team of volunteer workers who promote the camp, man the snack bar and t-shirt sales, check campers in and out of the camp, clean and prepare the camp for camping weeks, and do so much more. Julie is also available to make presentations regarding Camp ECCO in any local church.

Rev. Joshua Reinders leads our camping committee. This committee is headed by our summer camping deans (Bob McGinnis, Andrew Carr, Jen Compston, & Julie Beltz), our secretary and former dean, Jessica Jones, Ron Monday, our camp registrar, and various other volunteers, many of whom also serve as counselors during the summer months. Jessica Jones also initiated a movement among high school campers who have now formed a camper advisory board led by Paige Huffman who help our committees stay relevant in a culture-changing world. Their input has proven invaluable.

Bob McGinnis leads our personnel committee and is busy with our new hires and ironing out the flow of information and decision making. Vance Adams, Don Voegeli, and Deborah Hill comprise a tremendous financial team. We have all gifts to camp sent to Akron First EC Church whose Stewards count the money. Then Don Voegeli deposits the money. Deborah Hill writes the checks, and Vance Adams verifies everything and advises us how to use the money wisely. He also keeps us correct regarding our tax responsibilities. We share this so that everyone knows we take every precaution to use money wisely and keep Camp ECCO out of financial difficulties.

The natural gas and oil money has begun arriving. While the drop in gasoline prices makes all of us as drivers happy, the checks have been somewhat smaller because of the drop in prices. Right now we are averaging around $25,000 a month.

And therein grows the shadows. As word of the coming natural gas and oil money spread, church and individual gifts to Camp ECCO began decreasing. We now operate the camp on a budget that pays the regular bills for the camp, but includes nothing for ongoing maintenance and property upkeep and improvements. A real budget shows about a $20,000 a year short- fall. In the past half dozen years, we have paid off our loan to the National Conference for a new maintenance building, repaid an unpaid tax responsibility this administration inherited, bought a new tractor, added a new roof to the main building, redone the girls’ dorm and added a new area to the back of it, added a nurses’ station, made significant improvements to the caretaker’s home, built new bunks and added new beds, painted, cleaned, and improved almost every area of the camp. Now we are working on the new addition to the boys’ dorm. We still need to improve the lake and the lakefront, finish what we started in the caretaker’s house, and decide what to do with the small cabins on the hillside. We are committed to maintaining what we have and making about $10,000 a year in maintenance and property improvements. If we continue to lose $20,000 there will come a day when we can no longer maintain what we have.

Underlying all of this is that our churches are sending less campers to camp. We can hold 130 or so for each week of camp. Our senior camp runs around 100, but our other two camps average around 50 to 60 kids. We believe this reflects the attendance of young people in our core churches as well as the reluctance of parents to send younger children away for a week of camp. If we added the other 100 or so campers we can hold, we would cut that deficit in half. Our other alternative is to rent the camp to more outside groups. This was not the original mission of Camp ECCO, but may become necessary. One or two more weeks of camping would make up this entire deficit. Maybe some of your churches might want to contact us about what is available. We hardly rent the camp in the months of August, September, and October when camp is beautiful.

Facing this deficit, Vance Adams is helping us construct a top-notch investment team that will help us use this gas and oil money wisely. We do not know how much we will end up receiving, but it makes no financial sense to spend money that raises a budget that we cannot presently meet. So we will invest this money, hope and pray for more rentals as our improvements make our camp even more competitive in the camping world, and refuse to be financially irresponsible. Pray for us as we, like the rest of the EC world face a cloudy future.

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To help our churches and our conference, we officially move that conference stop receiving any camp assessment fees for the purpose of the support of Camp ECCO effective July 1, 2015. We will continue to operate wisely without this assessment.

Please feel free to contact me, Rev. Scott Carr, with any questions you have. God bless.

Rev. Scott Carr

TWIN PINES CAMPIn 2014 Twin Pines celebrated its 50th anniversary with many events to commemorate the

milestone. The year started with an anniversary party that included a hymn sing and sharing of memories by those in attendance. A meal followed with fellowship and memory sharing throughout the evening. In March a day of prayer was held for the ministry. Many people took time that day to lift up the ministry of Twin Pines and begin praying for the future of the ministry. Summer Celebration was held in June and included a rededication of the camp. At the dedication service, Rev. Ken Weaver shared his memories and thoughts of Twin Pines. At the annual Twin Pines Celebration Banquet, we reflected on the history and began to look at what the future holds for Twin Pines. The final event to celebrate the 50th anniversary was the Ridge Runner 5k held at Twin Pines in November. More than 40 runners came out on a cold and rainy November morning to race around the property of Twin Pines.

With all the events commemorating the 50th anniversary as well as retreats, summer camps, and day events, Twin Pines was a busy place. The retreat ministry saw an increase in summer usage with several returning groups as well as some new groups holding retreats throughout the summer. There were also new connections made with groups looking for a camp to call home. One such group is the Trail Life USA group. This is a group that has split off from the Boy Scouts of America and is developing its own outdoor adventure scouting program. They spent an entire week at Twin Pines at the end of the summer holding their own summer camp program. They will be returning with more campers and their female counter parts, American Heritage Girls, for summer camp in 2015.

The 2014 retreat season saw an increase in use, particularly in November. We continue to see youth retreat numbers for returning groups remain about the same or show some increase. Adult retreat numbers continue to remain about the same or show a decrease. Unfortunately we had some groups who have had retreats at Twin Pines for 20 plus years cancel retreats because they could not get the people in their local church to sign up and attend. Twin Pines continues to look for ways to increase usage, and we are seeing limited success by partnering with other outside groups to host retreats and use the facilities of Twin Pines. Twin Pines is actively pursuing other ministries to utilize the facilities and provide organizations, such as Family Life, a place to hold events to further the Kingdom.

Twin Pines is aware that the future of the affiliation between E.C. Church and the ministry will look different. There are many questions left to answer looking ahead. Twin Pines will need to have the deed to the property signed over to the Twin Pines Camp 501c3 organization as it is currently still in the name of the Christian Education Society of the Eastern Conference of the Evangelical Congregational Church. Twin Pines will also need to continue to build relationships with non-E.C. organizations, as well as foster the relationship with current E.C. Churches and ministries. We look forward to the continued support of local E.C. churches.

Twin Pines ended the year of 2014 owing no back taxes. As of March 2014 we now know that Twin Pines will not receive any further exemption from property tax and therefore must be prepared to pay the $35,000 property taxes each year. This will require a significant increase in retreat guests and/or donations to meet this burden.

We continue to look for ways to increase awareness of the ministry of Twin Pines for both retreats and summer camps. For the last several years we have reported that E.C. churches, individuals, and groups are either not aware of what Twin Pines has to offer or are choosing to use other facilities. People who are new to the denomination have no idea what Twin Pines is or what it does because the churches have not passed along information. In a time when churches are

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bombarded with advertisements and information, it is difficult to pass all of it along to the people. As a ministry with deep E.C. roots, Twin Pines is asking for the help of the churches to make information available and to look for opportunities to promote events happening at the camp. Twin Pines also has people who are willing to come to your church and share about the ministry. Please contact the camp and ask for a representative to visit your church to help increase awareness of the various experiences that are possible at Twin Pines.

As in years past, we are aware that retreat groups, district events, and denominational functions are using camp and retreat facilities other than Twin Pines. We are thankful that these groups and individuals are seeking out opportunities for summer camp and the benefits of retreats, but Twin Pines would appreciate the opportunity to provide the facility and/or the program for these groups and individuals. Twin Pines is incorporated and run by a board of directors, but it belongs to the people and churches of the Delaware and Susquehanna Regions. If you or your church have a retreat or send kids to summer camp, please consider Twin Pines. The reasons we hear for not using the ministry can often be overcome with a phone call; price and availability can be negotiated for you to use the facility.

The full-time staff, the part-time staff, the summer staff, the summer camp directors, the volunteers, and the financial supporters are all committed to listening to God’s voice and direction for providing a place where people can experience God!

WE WANT TO SEE YOU AT TWIN PINES!Twin Pines has been and is a people-driven ministry. It takes each and every one of the

people involved to keep the ministry of Twin Pines moving forward. There is not enough time or space to thank everyone personally, but the list below provides a small glimpse of the number of people it takes to keep pushing on and building the Kingdom!

3 – Full-Time Employees 20+ - Retreat Hosts/Hostesses12 – Part-Time Year ‘Round Employees 15-20 – Spring & Fall Work Retreat Volunteers26 – Summer Staff 15+ – Committee & Task Force Members30-35 – Summer Program Staff 11 – Twin Pines Board Members10 – Week-long Nurses 100’s – Financial and Prayer Supporters3 – Sunday Afternoon Nurses8-10 – Summer Weekly Volunteers

We want to say “Thank you!” to all of those people who continue to support Twin Pines. We thank the National Conference and the leadership for their support. We would especially like to thank our supporting regions, Delaware and Susquehanna regions.

Please pray for the ministry of Twin Pines and what it has to offer to a hurting world. We ask that you also look for ways to utilize the facilities for your church. Working together we can continue to build the Kingdom.

Shawn Fetterhoff

Twin Pines Board of DirectorsMrs. Lois Matarazzi, President Mrs. Cindy Raezer, Vice-PresidentMrs. Cheryl Klopp, Secretary Mr. Dave Carpenter, TreasurerRev. Dave Long Mr. Tom ShollenbergerRev. Rob Valentine Rev. Gregory DimickRev. Wayne Houck Rev. Glenn Lambert

Names in bold are elected by the Board; the remainder are elected by the districts which comprise the Susquehanna and Delaware Regions of the National Conference.

TWIN PINES BALANCE SHEETFor the Period Ending December 31, 2014

ASSETS

Current Assets:Cash on Hand 124,675.29

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Commissions

Petty Cash 300.00Cash in Savings 4,787.44Cash in Payroll Account 300.00Accounts Receivable 0.00Material Inventory 20,000.00TOTAL CURRENT ASSETS 150,062.73

Fixed Assets:Fixed Assets – Property 615,000.00Fixed Assets – Buildings 1,539,388.00Fixed Assets – Equipment 125,000.00TOTAL FIXED ASSETS 2,279,388.00

2,429,450.73

LIABILITIES AND EQUITY

Current Liabilities:Cash Flow Loan 119,788.03Taxes Withheld 2,516.02Open Invoices 14,682.50Notes Payable – Line of Credit 00.00TOTAL CURRENT LIABILITES 136,986.55

Long-Term Liabilities:Notes Payable – EC Investment Pool o.ooNotes Payable – Board of Pensions 0.00Notes Payable – Demand Notes 43,000.00TOTAL LONG-TERM LIABILITIES 43,000.00

Owner’s Equity:Retained Earnings -105,872.37Gift Annuities 38,441.94Cash Reserve -50,737.89Unpaid Open Invoices -14,682.50Reserved Capital 2,270,747.06Net Income 111,567.94TOTAL OWNER’S EQUITY 2,249,464.18

TOTAL LIABILITIES AND EQUITY 2,429,450.73

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