On behalf of the Pension Boards-United Church of Christ (PBUCC), we are pleased to report once again good financial performance, improvements in service and new benefit plan offerings for the year ending December 31, 2006.

Annuity Benefit Plan

Eight thousand six hundred sixty four (8,664) retirees were provided a one-time opportunity to change the investments supporting their annuity payments. Seventy (70) percent of annuitants elected to make this change. Numerous communication and education opportunities were provided, including six telephone training events attended by more than 2,000 retirees. The success of the transition was in large part due to this extensive education campaign and well-designed election materials. Confirmation letters were sent to annuitants upon receipt of their election forms and again after the actual changes were implemented. This extraordinary task was completed in six months and has generated excellent feedback from retirees.

Accumulation Benefit Plan

All preliminary work was completed for the rollout of four new accumulation funds in the second quarter of 2007. The four Target Annuitization Date (TAD) Funds have anticipated annuitization dates of 2015, 2020, 2025 and 2030.

In addition to contributions received from church employers, additions to PBUCC's Retirement Savings Accounts (RSA) and Tax-Sheltered Annuities (TSA) totaled $5,159,246 and $5,638,215, respectively. The lay employee retirement savings initiative, which encourages employers to make pension contributions of at least 3 percent of salary on behalf of lay employees, resulted in the addition of 236 new lay employee participants and $693,112 in contributions.

Medical and Dental Benefits Plans

Medical Plan premium allocation increases for 2007 were, on average, 5.6 percent for non-Medicare participants and 0 percent for Medicare participants. Dental Plan increases were 2 percent for all populations. The increase for non-Medicare Plan participants is one-half the national trend and represents the fifth straight year the Pension Boards has been below the national trend.