[Oe List ...] [Dialogue] Order annuity

[Paula Philbrook]

Paula Philbrook here.
I was sitting in the ICA accounting chair in Chicago when the Mexico event
happened in 1988.  Although I was not in the decision meetings, I was a part
of the implementing team.

When people returned from Mexico, the decision had been made to follow the
decision of 1984 to dismantle the assignment system with a decision to
dismantle the Order Ecumenical legal structure.  For many years, Joe
Slicker, Carol Pierce, David Wood and others had served on the legal board
of the Order Ecumenical.    The O:E Corporation only had one asset: the
Receiveable from the USA ICA and EI Corporations. The programatic advances
the ICA/EI used to launch various program missions in many places like our
first team to India or Latin America.

The decision was made in consultation with the "Long Term Investment Team
(at that time I remember Raymond Spencer, Justin Morrill, Carol P and Ike
Powel were members).  EI USA mortgaged the 4750 property,  it paid all the
debts of ICA's around the world and then the remaining balance to OE.  The
revenues of 4750 were to be used to pay to mortgage.

Along with Sidley and Austin legal advisors, the Order Ecumenical then made
a gift back to EI to establish a RABBI Trust for the benefit of individuals
who had served greater that ?? years and were currently serving.  The
definition of currently serving was a list submitted by the last assignment
location (primary units as defined in 1984) of everyone.  So Chicago made a
list, Hong Kong made a list etc.  I think maybe you had to be a US citizen
as well, but maybe I remember incorrectly.  The Trust documents are about a
ream of paper and it took Sidley and Austin's great legal research team to
find the Rabbi Trust vehicle.  The EI Board officially accepted the
restricted gift and estabished the trust.

The funds were assigned to individuals based on chronological age.   So
those closest to 65 got more.  Lyn Edwards and Louise Albright were already
over 65.  People were given the option of cashing out immediately.  And some
of the younger aged people did get a check for $500 and some of the older
aged people were written checks of upwards of $20,000.  Individuals were
also given the choice to take their name out of the pot.  Some individuals
did.  Tax had to be paid when drawn.

A Rabbi Trust of the Ecumencial Institute allowed the funds to grow tax
exempt.  When individuals turned 65, their original value and its growth
were to be used to purchase an annuity in the name of that person.  The
company in Florida was hired to manage the funds.  Carol was named to be the
contact person. (she has an official title)  I think maybe Betty Pesek and
she were named Trustees.

The Ecumencial Institute holds the RABBI TRUST and reports it on its 990 tax
return each year.  Barbara Hawley continued to do the accounting and tax
filings for O:E until the legal corporation was dissolved.  This took quite
a few years.

I have not been in the finance chair since 2002, so I do not have current
information.

Submitted with respect.  Others might need to clarify or correct these
statements.

On Fri, Apr 24, 2009 at 7:27 AM, Jack Gilles <icabombay at igc.org> wrote:

> Dear Colleagues,
>
> I can't be sure my memory is correct, but I think the formula for receiving
> Order Annuity funds required a minimum of 10 years in the Order.  Then the
> amount was determined by your age, with the eldest, like Lyn, getting the
> maximum amount and the youngest getting the least.  You had a choice to
> withdraw your total amount or leave it in (no future withdrawal) and receive
> a minimum of a 10 year monthly amount when you turned 65.  The rate paid
> into the annuity through interest was less than 3%.  I thought there was a
> clause that if you died before obtaining all of your annuity it would be
> rolled over to fund those still living.  That is why we left our money in so
> that it would benefit those who really needed it.  Now I'm not sure that
> rollover is in affect.
>
> G&P,
>
> Jack
>
>
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-- 
Paula

Happiness is when what you think, what you say, and what you do are in
harmony.
   Mahatma Gandhi
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