GCFA Board Adjusts Benefit Trust Distribution, Elects New Board Member
Monday, October 3, 2022
Nashville, Tennessee – The Board of Directors of the General Council on Finance and Administration (GCFA) held its monthly board call on September 30, 2022 and approved an adjustment to the benefit trust distribution schedule, along with electing a new member and a new Board Secretary. Any amendments to The Benefit Trust must be jointly approved by GCFA and Wespath, along with the Trustee.
Established in 1996 by the General Conference, The Benefit Trust is a wasting trust designed as a benefits funding mechanism to General Agencies for active employees and retirees. The Board voted to increase The Benefit Trust distribution rate from 6% to 8% beginning in 2023, four years ahead of schedule. As part of that vote, the rate of distribution is currently scheduled to increase from 8% to 10% in 2042 and would move back by four years to 2046. Prior to today’s vote, The Benefit Trust was projected to have a 20%-30% reduction of the distribution amount in 2023 due to the market downtown, further affecting General Agencies’ budgets already impacted by inflation and lower collection rates.
The Board also made changes in their membership after a vacancy occurred following the departure of Recording Secretary Judy Colorado. Board member Reggie Clemons was elected as Recording Secretary, requiring him to vacate his current position on the Committee on General Agency and Episcopal Matters (GAEM). The Northeastern Jurisdiction College of Bishops nominated Rev. Hector A. Burgos to replace Colorado’s Board seat; the Board duly elected Burgos, who will sit on the GAEM Committee.
“We are grateful for Rev. Burgos’ willingness to serve the United Methodist Church, for Reggie Clemons’ leadership, and for all of our board members who freely give their time in service,” GCFA Board President Bishop Michael McKee said.