Unless the LORD builds the house, its builders labor in vain. Unless the LORD watches over the city, the watchmen stand guard in vain.
Psalm 127:1
On a recent visit to Chennia, India, I stood in a creatively renovated building, home to an exciting and growing congregation being served by Christo and Sarah Emmanuel, PAOC global workers. While there, I reflected again on how the Lord builds people, families, churches and fellowships. Be assured, the Lord does build! It is humbling to pause at this District Conference and reflect on how the Lord is building us as a Fellowship in Canada and around the world, accomplishing his purposes through the dedicated ministry of PAOC credential holders, churches and Districts. Your ministry for the Lord is both important and appreciated.
Allow me to briefly highlight a couple of important Fellowship items in this report, also mentioning that a copy of the 2010 audited financial report is available at the Registration Desk.
We are grateful to report that the 2010 financial report again indicates continued health and I specifically wish to note an increase in Fellowship tithes received from districts of $112,382, from $1,201,945 in 2009 to $1,314,327 in 2010. This growth of 9.35% indicates an increasing number of assemblies supporting the Fellowship by tithing. Thank you for your faithfulness throughout 2010. The result of your giving has global impact through the ministries of the PAOC.
Shared Funding support of PAOC global workers in 2010 remained consistent with 2009, and I would add there are global workers in your district experiencing budget challenges that would appreciate additional ministry support. If you wish to know who requires assistance and are able to support them, please contact International Missions or Mission Canada and they will provide you with the information needed for your missions committee and congregation.
2012 General Conference
The 2012 General Conference, hosted by the Eastern Ontario District, will be held from May 7 to 10, 2012 at the Ottawa Convention Centre in our nation’s capital. We look forward to uniting for these important days of worship, prayer, visioning, fellowship and business.
Shared Funding:
Increasingly, churches across the nation are committing to the financial support of our own PAOC global workers. At December 31, 2010, the majority of our global workers had surplus balances totaling $1,411,920. There are, however, others facing budget deficits. These global workers would appreciate extra support.
See printed binder for related graph(s)
District Missions Giving:
The attached (See printed binder for related graph(s)) Missions Giving by District report shows the total giving to missions to be on par when compared to 2009. Below we note that of the total $14,208,350 missions donations received in 2010, 62% was from churches, 20% was from partner organizations and 18% from individuals.
See printed binder for related graph(s)
Church Loan Services:
Presently, 164 church loans are in service in Canada through combined Church Loan Services provided from the Pension Fund of PAOC, Pentecostal Financial Services Group, and PAOC Trust Funds. Loans are primarily secured by first mortgages on church properties.
See printed binder for related graph(s)
Overseas Loans:
In addition to the above loans, several overseas loans have been provided to various church projects. These loans are funded through the IMD from PAOC funds. As of December 31, 2010, the balances outstanding on these loans were as follows:
See printed binder for related graph(s)
Pentecostal Financial Services Group Inc:
The Pentecostal Financial Services Group Inc. (PFSG), directed by Jim Richards, has a mandate to creatively raise funds for the missional and ministry purposes of the PAOC.
To accomplish this, PFSG administers the Certificate Mortgage Program in which there is a nominal interest spread between what the churches pay and what the investors receive. To date, the PFSG mortgage program has grown to over $41,000,000. There have been two new developments in this program this year. The first is that PFSG is now funding mortgages for both re-financing as well as new construction. The second is that PFSG investments are now undergirded by a $3,000,000 line of credit with TD Canada Trust.
PFSG has also entered into three affinity agreements with insurance and web site design providers whereby PFSG recommends a provider in return for quality service and preferred premiums for the churches as well as a profit share for PFSG. These agreements are with D.L. Deeks Insurance (home and auto insurance), Robertson Hall Insurance (church property and liability insurance) and Celect.org (web site design and maintenance).
By supporting these insurance and web site design providers, there is a win-win result: churches and individuals benefit and the kingdom projects of the PAOC receive additional funding.
The Pension Fund (1969) of The Pentecostal Assemblies of Canada:
The PAOC Pension Plan reached several milestones as of December 31, 2010, the date of the information included in a Report to Members in December 2010. During 2010, the number of members who now receive a benefit from the Plan reached 534. Pension Plan assets have grown to more than $81 million.
Several key indicators reflect the growth in plan participation in 2010:
· 2,324 pastors, global workers and staff employees are plan members (2,281 in 2009)
· 66 new members enrolled in the plan (57 in 2009)
· 445 churches and PAOC ministries contributed to the fund as participating employers (440 in 2009)
· 534 members are receiving a pension benefit from the plan (509 in 2009)
Employee contributions may begin at a rate of 2.5% and as high as 8.33% on eligible income. All contributions must be matched by the employer and are income tax deductible. Contributions presently guarantee an annual pension of 12 per cent of contributions made by you and your employer.
The normal form of pension is Joint and Survivor with a five year guarantee. If a married retiree is deceased prior to receiving a pension for five years, the spouse receives the full benefit for the remainder of the five years and a reduced benefit for life thereafter. If both retiree and spouse die within the five years, the remainder of the five year benefit will go to a designated beneficiary or estate.
Support services are available through our Member Services. We provide information regarding:
- Enrolment information and forms
- General information on contributions and plan information
- Retirement support – projections of benefits for retirement planning purposes
If you have any questions please contact Member Services:
- on the web at www.paoc.org/pensionplan
- via a hotline at 1-866-877-8481.
Annual Member Statements are sent to all members entitled to a benefit from the Pension Plan.
The December 2009 Investment update reported on the response of the financial markets to the recession that continued for most of 2009 and to December 2010. Positive indicators of economic turnaround have resulted in equity market gains in recent months. A second significant infusion of capital into the economies of the U. S., Canada, and other countries also contributed to the recent positive market results.
The Investment Committee of the Board meets quarterly to review our Investment Policy from both a long term as well as short term perspective. The Board of Trustees receives quarterly investment results and reviews these with
reference to the Policy. With respect to the investment return needs of the Plan, our Investment Policy reflects, among other factors, the key principles of protection of capital, diversification of investments, and opportunity with minimal risk. Our investment advisors are assisting us in navigating the uncertain waters of the future.
The positive equity gains to date have contributed to the new high in total Pension Plan assets of $81.5 million as of December 31, 2010; an increase from $77.2 million at December 31, 2009.
On a financial note, at the end of December 31, 2010 we celebrate:
* Investment gains are positive again, although lower than in 2009 and reflect the current market uncertainty and fluctuations
* Contributions in 2010 are higher than 2009; and increased 5% for the year
* Benefits paid to members finished slightly higher than in 2009
* Expenses finished below 2009 levels; lower actuarial and consulting fees comprise most of the reduction.
Our annual review of the Pension Plan’s return on investment covers the period September 1, 2009 through August 31, 2010. The return on investment for this period is 5.18%, slightly less than the minimum policy return of 5.5% required to establish a benefit increase for the 2011 calendar year. As a result, there will not be an increase to benefit recipients receiving a pension as of January 1, 2011.
The lower return for the twelve month period can be attributed in part to the period of low interest rates on fixed investments and recent fluctuating valuations related to the 2008 recession on the equity portion of the fund portfolio.
The 2009 Pension Plan update also outlined the detailed funding status of the plan as of September 30, 2008, the date of the last actuarial valuation. If the Plan had been terminated on September 30, 2008, the solvency test shortfall was $4 million and the Plan liabilities were estimated to be 92% funded. Without funding relief offered by the government, the reported shortfall would require additional contributions from the churches totalling $15,000 per year. With the decision to accept funding relief, no additional contributions are required for one year. In the interim, the Board of Trustees is monitoring the funding levels to ensure any significant changes are noted.
At its meeting in October 2010, the Board of Trustees has confirmed the date of the next valuation as September 30, 2011; three years from the last valuation. This was done to take advantage of the funding relief offered by the government.
The current investment policy of up to 70% first mortgage and 30% equity investments remains in place; at December 31 the actual ratio was 64% first mortgage, 34% equity and 2% cash. This change was achieved entirely through redirection of cash flow; no equity investments were liquidated. Benefits are the first item paid out of cash. The net reduction to 2% cash results from our policy of switching from short term investments (whose returns are below 1%) to mortgages whose returns are presently in the 4.5% range.
Our plan is registered as a Multi-Employer Pension Plan in Ontario and is governed under the appropriate legislation and regulations. The Plan is directed by its own Board of Trustees and is governed as a registered Canadian Pension Plan following its own Plan Text within regulatory guidelines. Since 1939, affiliated assemblies and credential holders have remitted contributions directly to The Pentecostal Assemblies of Canada with their missions giving and other contributions. The International Office has carefully maintained fully separate audited statements for all pension plan assets. The Plan is designed to provide a guaranteed lifetime pension for its members.
Under the oversight of the Executive Director, Roy Schellenberg, client services, plan and financial administration are provided through the International Office. These include member and employer contributions, mortgages, pension benefits and income tax related services. Professional management firms are engaged to handle equity and bond investments and provide plan administration services.
Fellowship Statistics - See printed binder
Credential and Congregational Statistics - See printed binder
Credential and Missionary Statistics - See printed binder
PAOC Report of Missions Giving by District (No ERDO/CCP) - See printed binder