ELCA worried by shutdown of publisher pension plan
Augsburg Fortress employees suing
Jun 01, 2010
The Evangelical Lutheran Church in America says it is “deeply concerned” about the welfare of employees who are suing the denomination’s publishing arm over the termination of their pension plan.
Augsburg Fortress, which publishes ELCA hymnals, Sunday school materials and theological texts, told approximately 500 current and former employees in January that their pension plan was underfunded and would be terminated.
Beth Lewis, the publisher’s president and CEO, said the plan had only $8.6 million to pay about $24 million in pension obligations, according to the Wall Street Journal. The recession and declining sales contributed to the shortfall. Augsburg decided to terminate the plan and distribute the assets based in part on how long employees had worked at the company.