Vol. XIX, Issue 47
As a reminder, the 90-day premium holiday for the Comprehensive Protection Plan (CPP) ended in July; therefore, August bills will reflect a payment due for CPP. These premium credits were applied to the May, June and July 2020 bills; the credits were designed to provide short-term, financial relief to address financial strain on churches and conferences during the pandemic. The premium holiday was first announced in an April letter to annual conferences from Wespath Board Chair Bishop Robert Schnase and Wespath General Secretary Barbara Boigegrain.
In an effort to help plan sponsors—as well as potentially local churches—cope with the financial impact of the pandemic, HealthFlex plan sponsors will be provided a refund of March 2020 premiums. This payment will be determined based on net premiums billed in March, excluding health account contributions and pension deductions; therefore, it will not exactly match the total amount billed on March invoices.
Wespath previously provided financial support in 2020 by allowing HealthFlex plan sponsors to defer May and June premium payments for 90 days. Those who took advantage of this delay will be required to send May payments with August payments and send June payments with September payments.
This is the first time Wespath will issue a premium refund, although performance dividends have been paid in the past. Wespath has evaluated past and current experience of HealthFlex, and this premium refund is possible due to the better than expected recent performance and sufficient reserves. The premium refund will be paid in August. Plan sponsors should ensure they are up-to-date with payment of July premium payments before receiving their March premium refund dividend.
In July we unveiled the Wespath Market Update, a weekly investment summary designed for our institutional investors that succinctly recaps economic and financial market activity for the prior week. If you, or others, wish to receive this email update, please send your contact information (name, email and organization) to InvestmentInfo@wespath.org.