The Proposed Settlement as known is undesirable for many reasons. The “details” are probably more troubling. Foremost, there is NO commitment to Wholeness guaranteed by The Church. Alarming is inattention to the disposition of denominational assets which will make it difficult to see a path to full restoration. Sadly, we need a court recognized and ordered commitment to push our Institution to act like The Church we love and of which we can be proud. The following is a summary of an alternative. A more detailed document may be forthcoming. We need legal assistance to polish an alternative and present it to the Court!

AN ALTERNATIVE SETTLEMENT PROPOSAL

Whole

“Wholeness” shall be defined as actual contributions; less approved fees; less loans, hardship and other early withdrawals; plus interest at the rate actually paid by Symetra compounded quarterly (which often exceeded 1.5%); plus interest at the Symetra paid rate of 1.5% for the period of July 2021up to final, full payment.

The AME Church shall ensure that all participants will be made whole within 16 years or by the time of their separation.

The AME Church will provide any additional funds necessary to make participants whole once all reasonable efforts have been made to collect court awarded funds.

The AME Church will advance payments of “wholeness” to those who have retired/separated with the understanding that if supplemental funds have been applied, the Church will be reimbursed up to the amount advanced in settlement.

Current Retirees (estates) Will be Made Whole Immediately

As indicated above, funds won through negotiation/judgement will reimburse the Church for funds up to the amount paid in advance. Additional amounts received above the advance payments will be paid to Retirees (estates) as compensation “above wholeness.”

Statement on Status of “Wholeness” to Be Issued

            The Church will maintain a separate record of the status of “wholeness.” Such statements will indicate the original sum, plus interest earned (1.5%/yr from July 2021), less appropriate fees, less payments to individuals (separated) or to accounts in approved, qualified plans. The record shall continue until the balance owed for all participants is zero.

            In no case shall the Church, or a Trust, fail to pay to each participant (or their accounts) a proportional share of ALL annual earned interest less reasonable fees.

Funding the Alternate Settlement

The Church shall liquidate 75% of investments, including the AME Future Fund. This should provide more than $10m. These initial funds shall be used to pay those who are already retired/separated.

The Church shall sell, or develop, the Washington, DC property. Up to $5m shall be used to make whole those already retired. The remainder shall pass through a Trust to accounts held in a qualified plan such as that currently managed by Wespath. The remaining participants shall be credited with their proportional share.

The Church shall establish a lien against the Sunday School Union Property (Nashville) which will have the effect of limiting excessive leveraging and secure the residual value to the Annuity Participants until all are made whole.

The Church and The Plaintiffs shall continue to pursue claims against other responsible parties. The total expenses/fees requested by The Plaintiff attorneys shall not exceed $20m, and it shall be the first paid claim against funds won/collected from the other parties.

Should more than $75m be won/collected from the other responsible parties, both The Plaintiffs and The Church may apply for additional compensation.

The Church shall provide no less that $4m each year to satisfy the cash requirements to make whole those who are retiring/separating. There shall be an actuarial analysis to determine the annual cash requirements and the amount to reach full settlement within 16-20 years. In no event shall funds not be available at the time of separation.

The Church shall ensure funds availability through its annual budget by exercising its discretion relative to decreases to expenses and increases to income.

Allocution

            The Church (and other responsible parties) shall submit an allocution to the court expressing regret for whatever role they played (or failed to fulfill) in the creation of the Annuity Crisis with an apology to the Participants and their families and to the AME Church.

This Summary does not address the Real Estate Deal or other suspect funding plans. The Participants have little concern on “how” the Institution finances settlement, but Participants cannot allow further financial abuse or underfunding of 100% Wholeness. The unfair binding of assets and “business as usual” at the expense of Participants is UNACCEPTABLE.