Curtis D. Sharp
Executive Officer for Denominational and Public Relations
214-720-2127
Curt.Sharp@GuideStone.orgGuideStone 90 initiatives enhance financial security of participants
August 3, 2007
SAN DIEGO — GuideStone Financial Resources President O.S. Hawkins updated trustees on initiatives related to its long-range plan that are designed to enhance the financial security of participants.
During the meeting trustees received a report on GuideStone’s long-range plan, GuideStone 100, heard an update on GuideStone’s operations from Chief Operating Officer John R. Jones and approved the annual rerate recommendation for GuideStone’s medical plans. Trustees met in regular session July 30-31.
Speaking from Proverbs 29:18 which says, “Where there is no vision, the people perish,” Dr. Hawkins told the trustees, “Vision is vital. Where there is no perception of what God wants you to be, the people have no direction.” Hawkins then updated the trustees on the progress of the staff in planning to meet the objectives of GuideStone 90, the first step in the long-range GuideStone 100 plan that guides the organization’s work through 2018.
Of particular note were updates on initiatives that grow out of GuideStone 90. In an effort to reach out to seminary students, all full-time students at the six Southern Baptist seminaries will receive a free $10,000 life benefit, beginning this fall.
“We want to begin a lifelong partnership with seminary students,” Hawkins said. “Many of these students are unable to afford even basic protection for their family. This is just one way we can begin to enhance their financial security.”
Hawkins also shared information related to enhanced benefits and expanded guidelines for GuideStone’s financial assistance ministry.
“We have recently approved expanded guidelines that will enable more of our retired pastors or their widows to qualify for financial assistance,” Hawkins said. “Additionally, as of Jan. 1, 2008, we will double the amount of monthly assistance to our most needy recipients. In some cases, this will amount to as much as $530 per month.”
The launch of the MyDestination Funds was a major objective for GuideStone 90. Hawkins explained, “These five registered date target funds are managed to specific retirement dates and may be a suitable solution for investors of all ages looking to create or maintain a diversified, age-appropriate retirement choice in a single fund.”
Each of the MyDestination Funds is a diversified “fund-of-funds” that has an asset allocation that gradually becomes more conservative as an investor approaches retirement.
A final initiative reviewed for the trustees was the redesign of GuideStone’s Web sites. Easier navigation and added functionality were the goals in redesigning the most popular media through which participants receive information about GuideStone.
In his report to trustees, Jones reported on the operational areas of GuideStone for the previous quarter. With growth in the capital markets, Jones told trustees, “Thus far, 2007 has been an incredible year for our participants in growing their account balances through the success we have enjoyed in our investment funds.”
For the five years ending June 30, 2007, 8 of the 9 GuideStone Select Funds (GS2 class), and 9 of the 14 GuideStone Funds (GS4) exceeded the median of their peer universe according to Lipper. Lipper Inc., a Reuters Company, is a nationally recognized organization that compares the total return performance of mutual funds within a universe of funds having similar investment objectives. Please keep in mind that past performance does not guarantee future results.
“A highlight for the quarter was closing the month of April with more than $10 billion in assets under management,” Jones said. “This significant milestone represents growth in the capital markets as well as increased contributions by our participants.”
Jones told trustees, “We continue to see significant migration of participants’ assets into the MyDestination Funds. Through the first six months of 2007, participants have moved over a quarter of a billion dollars into these funds.”
The Financial Assistance area has experienced good progress during the first half of 2007. More than 240 new donors have joined thousands of other donors in providing the resources that make it possible for GuideStone to be God’s hand extended to more than 2,000 retired pastors or their widows who have significant financial needs. Expanded guidelines approved earlier this year have enabled the Financial Assistance staff to launch a discovery project that will identify others who need assistance.
The Relief Committee of the trustees added or upgraded 50 recipients to the financial assistance roll during the first six months of 2007. They approved 17 two-year monthly or expense grants.
In the insurance area, Jones related the success experienced in growing the participant base in the medical plans. Jones told trustees, “GuideStone’s medical plans have experienced over 15% growth in enrollment over the past three years, largely due to the affordability and flexibility of the plans offered to participants.”
After three consecutive years of rate stability for personal medical plan participants, the trustee insurance committee reported that it will be necessary to pass along a rate increase to participants in some medical plans for 2008. This increase is in line with projected national increases for Preferred Provider Organization (PPO) plans.
In the face of persistent, double-digit (10-12% per year) medical inflation over the past three years, GuideStone was able to avoid passing along inflation-based increases through savings in its extensive provider network and broader array of medical plans. In fact, more than half of Personal Plans participants received rate decreases in at least one of the last two years. Over the past three years, the cumulative average national increase for PPO medical plans has been approximately 26%. This increase includes medical plan inflation as well as prescription drugs inflation.
“Even with anticipated rate increases for 2008, in many areas GuideStone medical plans will still be priced lower than they were three years ago. In fact, almost 80% of our participants will pay less for their medical coverage in 2008 than they paid in 2004,” Hawkins said. “With a wide variety of plans available, participants have the opportunity to control costs by choosing a plan that meets their needs and their budgets.”
For example, a participant with family coverage can move from the Health Legacy 200 into the Health Choice 500, which has a slightly higher deductible but a lower family out-of-pocket maximum. Even accounting for age-based rate increases, this move could net no rate change from 2007 to 2008 for the participant. In some areas of the country, moving to a higher deductible plan could cut a participant’s monthly rate in half.
For the third year in a row, there will be no rate increase for the Seminarian Plan or the Senior Plans. The benefits for the Senior Plus Plan have been adjusted to maximize performance. The outpatient benefits have been improved for 2008. The $5,000 annual cap on Part B Medicare approved amounts will be removed.
More information related to the 2008 medical rates will be made available within the next 60 days. Participants are encouraged to review the various medical plans made available through GuideStone. Customer Service representatives are happy to help participants and churches look at the various plans and their features to help them select the plan that best meets their needs and budget.
In closing remarks, Hawkins reminded trustees, “Every decision we make as trustees and staff must be considered in terms of our vision statement, which says, ‘We exist to honor the Lord by being a lifelong partner with our participants in enhancing their financial security.’”
“In that statement we find our motivation — to honor the Lord. We find our message — to be a lifelong partner. And we have our mandate — to enhance the financial security of our participants. We must always ask, ‘Will this decision enhance the financial security of the pastor at the crossroads and our other participants?’”
The MyDestination Funds attempt to achieve their objective by investing in the GuideStone Funds Select Funds. By investing in the MyDestination Funds, you will incur the expenses of the fund in addition to the expenses of the underlying funds. You may invest in the underlying funds directly except for the Global Bond Fund.
You should carefully consider the investment objectives, risks, charges and expenses of GuideStone Funds before investing. For a copy of the prospectus with this and other information about the funds, please download a prospectus (pdf) or call 1-888-98-GUIDE (1-888-984-8433). You should read the prospectus carefully before investing.
GuideStone Funds shares are distributed by PFPC Distributors, Inc., a registered broker-dealer and underwriter of the funds, 760 Moore Road, King of Prussia, PA 19406.
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