About the Retiree Medical Benefit Changes 

We have changed the retiree medical benefits which will be available for future full-time hires and for current full-time employees with less than 10 years of service as of July 1, 2007 (the "Medical Conversion Date") to a new "defined contribution" arrangement - the Retiree Medical Contribution Program.

If you are an employee who is eligible for the Retiree Medical Contribution Program, the General Church and Academy plan to establish a retiree medical investment account for you, and credit an amount for years of service as a full-time employee prior to the Medical Conversion Date. We currently intend to provide a credit of $1,075 for each full year of service (plus a percentage of this amount for each part year of service) and an annual credit going forward ($930 for the 2007-2008 fiscal year). The account will earn a return and may be used to fund your future retiree medical expenses.  Details of this Program are still being resolved while we are in discussions with several potential vendors about administering the Program. We hope to be able to give more specifics regarding the Program before June 2008. 

Existing retirees are not affected by this retiree medical change. Current employees with 10 years or more of service as of the Medical Conversion Date are affected only to the extent that, upon retirement, they will continue to pay a percentage of their health care premiums (or spouse or dependent premiums), equal to the percentage they are paying as an employee (presently 6%). We continually look for insurance carriers to provide excellent retiree medical coverage at a reasonable price. This, of course, could lead to changes with our carrier, Blue Cross/Blue Shield, in the future.

It should be noted that the details provided above in regard to the new Retiree Medical Contribution Program, as well as those provided in regard to the retiree medical insurance for current eligible employees and retirees, may change as the Academy and the General Church further consider how to best serve the needs of our current employees and retirees. For full details regarding the currently available retiree medical insurance (including who is eligible), please contact the Human Resource Department. Final details regarding the Retiree Medical Contribution Program will be made available to you as soon as possible.