special issue – dfmc iewpoint september...

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Special Issue – DFMC Annual Conference September MMXVV iewPoint

Inside This IssueSCHEDULE OF EVENTSWe hope to see you at DFMC 2015!

SUNDAY, SEPTEMBER 2711 a.m. Gallagher Golf Outing

(Kevin Barry, Chair) Stone Mountain Golf Club

2–5 p.m. & Gallagher Exhibit at DFMC 7–9 p.m.

hMONDAY, SEPTEMBER 289 a.m.–3 p.m. Gallagher Gold Exhibit at

DFMC

Evening Dinners Hosted by Gallagher Regional Teams

9 p.m.–Midnight Rooftop Hyatt, Polaris BPIC/Brit Post Dinner Event (Invitation Only)

hTUESDAY, SEPTEMBER 298–9 a.m. Ministry Partners’

Networking Breakfast, Dunwoody Room

9–11:30 a.m. Gallagher’s Religious Practice Meeting, Dunwoody Room

6–10:30 p.m. Gallagher’s DFMC Gala at World of Coca-Cola J.P. Gallagher Audax Award

We are pleased to have the Gallagher Diocesan Consultants

Team joining our corporate leadership in supporting this vital annual event. While I can only recount about 18 of these (how fortunate I am!), I know I have colleagues, including our Chairman and CEO, Pat Gallagher, that come close to double that number!

Our roots are clearly Chicago-based and we are thrilled to be coming to an archdiocese led by a Chicago cleric, Archbishop Wilton Gregory. What is also exciting for us is that we are now global and welcome the dioceses and archdiocese of New Zealand to the Gallagher family! Imagine the challenge of configuring efficient earthquake coverage after the Christchurch 2011 earthquake experience. Good news there is that GB was there to help as well!

While our broader Nonprofit Practice has grown to serving more than 24,000 nonprofits around the world, including such Atlanta-based nonprofits as the Arthritis Foundation, North American Mission Board and Meals on Wheels, we remain steadfast about the cornerstone of our company—our service to dioceses and archdioceses. What can make a company great is a proven and firm cornerstone, and we believe we are certainly on terra firma when it comes now to supporting our workforce of over 22,000 Gallagher employees around the world with an established reputation that began with the Church in America!

Can’t wait to share DFMC 2015 Atlanta with you!

Welcome to Atlanta and the 2015 DFMC.

Schedule of Events .............................. 1

J.P. Gallagher Audax Award 2015 .......... 4

Announcing 2016 Convocation ............. 5

Gallagher Bassett: Guide. Guard. Go Beyond ........................................... 6

The Value of Secondary COPE Data ...... 7

Teachers, School Administrators and Coaches—Independent Liability Insurance ............................................ 8

Update on the National Risk Management Survey & Study ............... 9

PSIP Commentary .............................. 10

New Benchmarking Initiative for Dioceses ............................................ 11

Lockdown: Will Your Charities’ Locations Be Ready in a Moment’s Notice?........ 12

The Launch of GB Gentle Bear ........... 13

EventUs! ........................................... 14

Data and the Diocese ......................... 15

Cyber Liability—Are we covered? ...... 16

Current Trends In Background Screening .......................................... 17

Consultative Q & A: “Ask Phil” ............ 18

Challenges to the Church Plan Status .... 19

Abuse and Reporting in Athletics: Clear Conscience v. Minimum Compliance ....................................... 20

NAPA Think Tank 2015 ....................... 25

Are You Prepared? 3 Questions to Ask Yourself When Preparing for Church Emergencies ...................................... 26

Grant Programs—Revisiting Archdiocese of Portland in Oregon’s Investment in Stewardship ................ 27

Gallagher Receives the Ethisphere Award—Now Four Years in a Row! .... 30

Thinking About Your Volunteers .......... 31

Dedicated Religious Practice—Capabilities Serving the Diocesan Sector ................................................ 32

Four Practical Ways Churches Can Reduce Their Cyber Risk ............. 34

Creating a New Catholic Financial Ecosystem ......................................... 36

School Visitor Training Module............ 36

Gallagher Golf Outing @ DFMC ......... 42

A publication of Arthur J. Gallagher & Co. | Global Religious Practice

Peter Persuitti

Venue of Gallagher’s 2015 Gala Dinner!

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2 September 2015 DFMC Conference

Gallagher @ DFMC 2015

Tony AbellaMaria AlbertsSheryl AndersonChris BaldwinKevin BarryGates BlodgettLynne BoyerSteve BoyerDave BrownWally BryceBob BurnettPhil BushnellDan CallinanJack CampbellJoe CarusoCharles CoonrodJosh CostaRichard FamiglettiMike FewerPat GallagherJim GaultLaurie GregorioJohn HeadNorman HenleyScott HudsonAmpy JimenezKyle KingMeredith KrafcheckMike Levin

Jim LinnChris LuedersMelinda MailletShawn McCallMark NoffertPeter PersuittiRep PlasenciaBill RaffertyJeff ReaganMarty RocheThyra RomitoKristy SandsSharon SizeRobert SloanChris SpalaJohn SteinDena StewartSam StewartCharlane ThompsonKen UrrutiaMichael Vaughan-FowlerMaria VerghoJanet Wagner-WilhelmsTim WaltersAmanda WellerGary WoodMike WroblewskiBarbara Yoshimura

CONGRATULATIONS!

Patrick Markey and the Program Committee of DFMC, especially Chair Brad Wilson, for all your preparation in bringing us another great DFMC

experience in Atlanta!

“Your people are your brand.”

September 2015 DFMC Conference 3

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The value of relationships—

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At our DFMC Gallagher Gala Dinner at the World of Coca-Cola,

Pat Gallagher will announce the 2015 Recipient of the J.P. Gallagher Audax Award. This lovely Waterford Crystal Bowl is beautiful hewed each year and personalized. This will be a very personal experience for Pat, not only because we once again remember his deceased Dad who was so instrumental in serving the Church during his time at Gallagher, but also because the recipient is near and dear to Pat personally.

We have a great tradition being established with the recognition of this award—great memories as well. What is important for all of us is to lift up great examples of bold leadership as mentors, as examples of biblical stewardship and fearless in faith. We are so fortunate to have such pioneers to help us follow the call.

Our past recipients each has a story—a record of achievement—a grateful heart for being able to lead like Jesus!

Shared by Peter A. Persuitti, Managing Director, Gallagher’s Diocesan Service Team

J.P. GALLAGHER AUDAX AWARD RECIPIENTS

2014 | ChicagoBishop Melczek Diocese of Gary

2013 | BostonBishop Paprocki

Diocese of Springfield in Illinois

2012 | HoustonBishop Kmiec

Diocese of Buffalo

2011 | MinneapolisBishop Kicanas Diocese of Tucson

2010 | New OrleansSister Monica Kostielney SM Michigan Catholic Conference

2009 | ChicagoRev. Paul Stein

Archdiocese of Chicago

2008 | MiamiMonsignor Kohls

Diocese of St. Augustine

2007 | PhiladelphiaBishop Trautman

Diocese of Erie

L-R: Pat Gallagher; Minneapolis DFMC 2011 Recipient Bishop Kicanas; Peter Persuitti

J.P. Gallagher Audax Award 2015


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Arthur J. Gallagher & Co. – Founded 1927 – Serving dioceses around the world!

Insurance Brokerage | Benefits & Retirement Consulting | Claims Administration & Advocacy | ERM

Investment Advisory & Fiduciary Services | Unemployment Insurance | Alternative Risk Financing, Actuary & Underwriting

Risk Management & Loss Control | International Mission & Travel | Nonprofit Compensation Consulting

ANNOUNCING...

We are pleased to share the news of our upcoming Convocation 2016, to be held at the Gaylord Texan just outside Dallas!

Since 2002 we have lent our hand at bringing diocesan leaders together to collaborate and share successes, challenges and opportunities. We are blessed as well with so many ministry partners who have helped fund this cooperative effort, and once again we are reaching out to invite you to join us May 5–6 in Texas for another great event—30 workshops, keynote plenary speakers and more.

As we prepare for this event, feel free to let us know what you would like to see in the way of content. We have formed an internal Steering Committee, representing all of our divisions, and ask that you consider sharing your insights so we make this event the most effective ever!

We will be working on the site (www.ajg.com/convocation), but we also encourage you to visit the site for past presentations that are all online!

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Guide.

This is a story about one woman’s strength of spirit. Another’s

dedication and compassion. And the bond they forged.

And it comes from Barbara Griffith of Catholic Health Services.

Way back in 1991, a key member of CHS, Diane, was injured in a fall. Despite years of pain and complications, Diane “fought the good fight,” determined to keep doing her job. Her partner in it all was Dorinda Derrigan. Dorinda assisted Diane through the majority of the resulting Workers Compensation Claim, by approving the required medical services, knee surgery and a wheelchair.

Ultimately Diane was diagnosed with cancer. And the focus shifted from enabling her recovery, to ensuring that her final days were dignified and comfortable. And that her affairs were in order for Diane’s children and grandson.

Dori led a unified team of Gallagher Bassett, CHS, the attorney and her family in coming together with compassion and speed to deliver for Diane.

In July of last year, Diane asked Barbara Griffith if she could receive a settlement for her injury. Barbara reached out to Dori, who began marshaling resources and collaborating to give Diane her settlement. We’re pleased to report that, thanks to everyone’s dedication and cooperation, it took only a few days.

Here’s what Barbara said about the experience:

“It was a great relief to Diane that the claim was financially settled and she always felt that she was treated respectfully and fairly by Dori. She was extremely grateful for everyone’s above and beyond assistance…In working with Dori for many years, I have learned that her professionalism is blended with compassion and a desire to assist claimants to reach maximum medical improvement; which was never more evident than when she handled Diane’s claim.”

Mike Pacheco, also a Senior Resolution Manager, shares a case that shows the power of compassion. In the spiritual sense, yes. But even in the mundane, “dollars and cents” sense.

A volunteer was cooking at St. Jerome Church from the Archdiocese of Miami when a shelf carrying cooking supplies— including a can of cooking spray—gave way. It ignited the area and his arm caught fire. He was rushed to the hospital and spent a few weeks there healing.

He filed his claim reluctantly because he was a volunteer and he didn’t want the church to have to pay. But he was having a really

hard time. And he needed our help. After all, he’d done nothing wrong. And neither Gallagher Bassett nor the Archdiocese was willing to see a man, giving to others through his volunteerism, suffer.

Mike spent a lot of time with the man walking him through the process of how a claim would be made, including resolving a complex Medicare lien. He made sure the claimant understood everything in layman’s terms and really made him feel valued and protected. That type of openness and concern set the tone for the whole case. A case that ultimately was settled for significantly lower than the easy six figures that would have come into play, had litigation arisen.

Again, we see the values of both the Church and Gallagher Bassett working hard for real people in need.

Guard.CFO Mike Casciato offers this take on how the Archdiocese of Miami has benefitted from a partner that understands stewardship. A partner that’s shown repeatedly, how to handle the church’s business with care and commitment. Mike says:

“In fiscal 2015 we cut our entity billing by 9% and in fiscal 2016 we have cut it another 11%.”

Much of that savings is down to better claims management: improved closing rates, and prudent settlements.

He goes on to describe this success story as also being a lesson in teamwork:

“I think the story here…is for insureds to know their claims and take ownership. Oftentimes, because claims adjusting is outsourced, some insureds assume it’s out of their hands and whatever will be will be. I believe our working relationship with GB has drastically changed that, for the good.”

Mike points to the savings as proof. And the good news that GB, has reduced the Archdiocese’s fees as the number of claims has shrunk. We share his satisfaction and pride in knowing that monies being saved from effective claims strategies are being passed on to Diocesan entities throughout the Miami area. The savings benefit the Archdiocese’s own stewardship and ministries.

Go Beyond.At Gallagher Bassett we talk about “Going Beyond.” Sometimes, doing that takes you a step past the simple facts. Sometimes, it takes you to charity and justice. That’s what our Senior Resolution Manager, Brian Holobicky, experienced.

An elderly female parishioner was at a church in the Diocese of St. Augustine when she fell over a floor carpet. She sustained a fractured pelvis and lost her hearing aid. This kindly and devout woman

Gallagher Bassett: Guide. Guard. Go Beyond

Kristy Sands


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didn’t want to pursue a claim against her church. But, she asked if the Diocese could help replace her hearing aid. She was still making payments on the lost one and could not afford to purchase another.

Brian’s investigation into this incident found absolutely no liability against the church. But Brian wasn’t going to shrug off the real need. He told the claimant, that despite there being no liability, he would review the situation with the Diocese to see if they’d consider a charitable gift of a new hearing aid.

Of course, the Diocese was willing. And for the mere cost of a few hundred dollars, not only was the matter settled with a complete release…not only was the potential for adversarial and wasteful litigation avoided…something deeper was achieved.

The claimant and her daughter were extremely grateful that the Diocese would help in this regard given the fact that there was no liability. They thanked Brian several times and asked that he also thank the Diocese on their behalf for the generosity.

Both the Diocese and GB showed their values in action.

SummaryThese really are stories of stewardship. And at Gallagher Bassett, we work hard every day to be “good and faithful servants” of the Church’s resources. We know those resources are finite and shrinking. And that what we guard here, can be used to advance the mission of the Church throughout the parish, the diocese and the world.

We’re seeing the fruits of our good partnership today. And we look forward to serving the Church for many years to come. Guiding. Guarding. And going beyond.

Throughout her 24 years in the claims industry, Kristy Sands has served her clients in both claims operations management and account management. As an Account Principal, she attends to all aspects of her clients’ risk management program, including data and risk analysis. Ms. Sands is a specialist in the Religious & Nonprofit, Education and Public Sector programs, and recently celebrated her 16th anniversary with Gallagher Bassett Services.

The Value of Secondary COPE Data

Gary Wood

Insurance buyers and brokers are increasingly looking for ways to expand the collection of Construction, Occupancy, Protection and Exposure (COPE) data for

buildings beyond what is currently considered as standard. The integration of this data with current COPE data is valuable to CAT modeling along with other issues pertinent to calculating building replacement loss control data.

Evolving insurance coverage requirements from insurance carriers and re-insurers have contributed to the growing need for optional, secondary COPE data information. Secondary COPE elements can include, but are not limited to:

• Roof tie downs• Anchors• Flashing• Hurricane-resistant windows• Safety glass windows

• Roof cladding• Roof age (actual or estimate)• Bracing and sheathing• Elevator Certificate(s) current and posted• Exterior security lighting

In order to address the optional secondary COPE data elements, Gallagher Bassett Appraisal Services, in tandem with Arthur J. Gallagher & Co. BSD brokers, has developed a Secondary Wind Characteristic, Secondary Earthquake Characteristic and an On-site Additional Building COPE Information Form. When secondary COPE data elements are requested by the client or broker, these forms can be customized to meet requested needs and are then used by the field appraiser to interview designated client location staff and obtain the appropriate secondary building COPE information.

Upon combining this information with the Marshall & Swift / Boeckh (MSB) Replacement Cost Valuation codes, clients are provided with comparable International Standards of Organization (ISO) construction codes, which are included on the COPE spreadsheet.

For more information on secondary COPE data elements and how it can benefit your organization, please contact Gary Wood, Senior Account Executive, Gallagher Bassett Appraisal Services at 630.694.5133 or send an email to [email protected].

mailto:Gary_Wood%40gbtpa.com?subject=

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Tony Abella, Sr. Arthur J. Gallagher & Co.

Dean of our Religious Practice

There are various professional associations that provide

individual educator’s liability insurance for school principals, teachers and coaches. Most diocesan insurance programs provide sufficient coverage for these individuals while they are acting within the scope of their employment at a diocesan school or school sanctioned activity. However, there may be instances and circumstances where an individual educator may not be “within course and scope of employment” and may want to consider obtaining their own insurance through an association’s program.

A salient advantage of the association program is that it’s coverage is independent from whatever program the diocese may have. Additionally, the individual educator’s liability coverage may go beyond the employer’s scope of services and may apply while tutoring or coaching outside of the school sponsored environment.

Over the years, I have experienced two instances where this individual coverage responded affirmatively in a big way. In the first case, a high school cross country coach was sued when one of his team members was killed by an automobile while crossing a street

at the direction of the coach. In that case, the individual coach’s Association coverage, for which the coach was paying only $65 a year, paid $1 million thereby helping settle what turned out to be close to a $2 million case.

The second instance, involved a vehicle accident that resulted in the death of one student and the permanent injuries to a second student so severe that he is a quadriplegic. Because a reference was made at school about a private “end of the school year” party at a student’s residence and because the principal went by the party, he was held partly responsible, together with the school on a $55 million judgment in favor of a senior that became a quadriplegic. That judgment was later vacated on appeal. However, before it was all said and done, the principal’s association liability policy paid $1,250,000 to release him individually from any and all charges.

Anyone interested may consult with their own Association if they are already members or may check with their peers about their preference of the various associations of Catholic and non-Catholic school teachers. Well-known organizations such as the National Association of Elementary School Principals (NESP) and the National Association of Secondary School Principals (NASP) have programs to select from. There are multiple national and intrastate coaches Association such as the National High School Coaches Association (NHSCA) each with a comparable program offering.

Special thanks to team members Maria Vergho and Calvin Ellis of our Gallagher Miami office for their peer review.

Teachers, School Administrators and Coaches—Independent Liability Insurance

The State of the Nonprofit Sector in 2015 https://www.grantthornton.com/issues/library/whitepapers/nfp/2015/state-of-NFP/State-of-NFP-2015-overview.aspx


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UPDATE ON THE NATIONAL RISK MANAGEMENT SURVEY & STUDY

Report Being Issued @ DFMC 2015 Atlanta

A comprehensive study to op�mize the role and effec�veness of risk management

within the Catholic Church.

National Diocesan

Risk Management Process

Benchmark Study

National Diocesan-Level Risk Management Benchmark Study Collaborative Team (Get a copy of report at the DFMC Exhibit Booth)• Bishops’ Plan Insurance Company (BPIC)• Catholic Mutual Group (CMG)• Diocesan Risk Managers FORUM• National Leadership Roundtable For Church

Management• The National Catholic Risk Retention Group (TNCRRG)• Arthur J. Gallagher & Co.• Lead Consultant – IGS (Integrated Governance Solutions)

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PSIP CommentaryDiocese of Ogdensburg’s Protected Self-Insurance Program | July 1, 2014 – June 30, 2015

L-R: Broker Kevin Barry of Arthur J. Gallagher & Co.; Reinsurance Underwriter Jan Stiff, Munich RE; and Diocesan Fiscal Officer (DFO) Michael J. Tooley, Diocese of Ogdensburg

In 2014-15 the Diocese of Ogdensburg suffered two significant fire losses which impacted its

Protected Self-Insurance Program (PSIP). One loss occurred in Ticonderoga, where St. Mary’s Grade School was allegedly victimized by an arsonist, with the fire significantly damaging a majority of the school structure. The second loss was a fire sustained at the former

St. Mary’s School in Champlain, where the building was a total loss. These losses were the first of this nature in the program’s 40-year history of operations.

The diocese’s PSIP has been very successful over its 40-year history in achieving financial stability to the point where a small diocese such as ours was able to move from a self-insured retention of $50,000 at inception in 1975 to attain a self-insured retention of $250,000 in its existing property coverage, a level maintained since the 2002-03 fiscal year. We believe this has allowed the diocese to achieve significant savings in premium payments for excess insurance coverage over the past 40 years.

In its 40 years of operation the diocese’s PSIP only sustained losses in excess of $1 million twice, both primarily due to workers compensation claims, and the largest of which was $1.46 million. Total claims and reserves for losses occurring in 2014-15 total $8.57 million, with the diocese’s net claim cost currently estimated at $762,700, the largest net claims expense in program history. $500,000 of this net claim total is the self-insured retention for

each fire loss. In comparison, the program’s average net claims cost over the past 10 years is $381,000.

The program’s financial stability mentioned earlier is certainly tested with the claims experience of 2014-15. However, as of June 30, 2014 PSIP’s fund balance was $1,979,172, so while it will be reduced significantly in 2014-15 it is still projected to exceed $1 million as of June 30, 2015 (books are not yet closed as of the date this is prepared, and we await an actuarial determination of IBNR to determine the total reserve required for the program as of June 30, 2015).

In examining the diocese’s PSIP renewal of excess insurance coverage for the 2015-16 fiscal year we believe our long history of proactive risk management, as measured by the program’s claims experience, combined with the efforts on our behalf of our broker, Kevin Barry, resulted in a favorable outcome. While our program’s overall property excess insurance premium increased by 10.7% (original estimates back in February 2015 were much higher), successful negotiations of premium in other lines of coverage resulted in a total premium increase of 1.9% for all lines of coverage in 2015-16. Self insured retentions and limits for all lines of excess insurance coverage were maintained—no changes. As a result of these successful negotiations the diocese was able to limit the increase in premium charged to parishes and Catholic schools

to 5% in 2015–16.

Going into the 2014-15 fiscal year the diocese believed PSIP was in strong financial position. We sustained two unprecedented property losses, yet our program survives. Our diocese remains committed to its self insurance program and to continue our loss control efforts through proactive risk management in partnership with our parishes and Catholic schools.

Size is not an issue for self-insuring. Look at the Diocese of Ogdensburg’s experience, going back to 1978. Mike Tooley is in his 13th year as DFO, starting April 2002. Prior to that Mike was a public school business official for 20 years, 3 years prior a staff accountant at a local CPA firm. He graduated with a B.S. in accounting from University of Albany (NY).


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• What was the average age of the injured teachers and what was the length of their employment?

• Did any of the teachers retain attorneys?

Not only will you be able to see an in depth analysis of your own diocese, but you will also be able to benchmark your results against the results of many other dioceses. This study will allow you to pinpoint exactly where you need additional employee training or areas where loss control services would be beneficial.

This new benchmarking initiative will allow a diocese to analyze its property losses, fleet vehicle program, cemetery operations, schools, employee injuries, volunteer accidents, and injuries to people on church property. A diocese in turn will be able to see how it compares to other dioceses in all of these critical operations. This new benchmarking initiative will be available by the end of 2015.

Did you know that Mike Wroblewski has been serving the Church for more than 35 years, including a direct role as account manager on a number of Dioceses and as a branch manager of GB’s South Bend, Indiana, office…also that he and his wife have now moved to the Denver area and he didn’t miss a beat in his work of serving! Talk about passion!

New Benchmarking Initiative for DiocesesWould you like to know how

your diocese stacks up against other dioceses of similar size, in similar geographic areas, or across the country? Where is your diocese doing a good job? And in which areas do you need to improve? What data is important to you as a Risk Manager, Finance Officer, or CFO?

Gallagher broker consultants and Gallagher Bassett claims and resolution experts are working together to compile the data necessary to create a state of the art program for benchmarking Catholic dioceses across the country. We will soon be able to combine claims data with underwriting data into an integrated and powerful program for our diocesan clients. Of course, all data will be private and completely confidential. No one will know the identities of the dioceses in the benchmarking group.

The underwriting data includes the number of vehicles in a program, the number of parishioners, the number of employees, payroll information, types of employees (clerical, teachers, maintenance, counselors, religious), building values (TIVs), the number of schools, the number of teachers, and much more. The claims data also includes a wealth of information, such as the nature of an injury, the cause of an injury, an injured person’s age and sex, the part of body, the length of time to recover, the cost of medical treatment, the number of injured people who retain attorneys, the average settlement amounts for all types of claims, and so much more.

Many dioceses have a strong Catholic school program. How about being informed by data supporting answers to this litany of questions:• Would you like to be able to do a deep dive into how your schools

are doing—and compare your results to that of your peers? • How many teachers were injured on the job? • What was the average cost per teacher claim? • And the average length of recovery? • How were the teachers injured?

Mike Wroblewski, Managing Director- Religious Practice

Gallagher Bassett Services

Arthur J. Gallagher (AJG) Production teams and Protected Self-Insurance/Risk Placement Services (PSI/RPS) Itasca assisted in increasing Sexual Misconduct Liability (SML) limits this year for dioceses.

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Lockdown: Will Your Charities’ Locations Be Ready in a Moment’s Notice?• A shooting in a strip mall where your WIC

Food Center is located• A felony stop with weapons drawn in front of

one of your counseling offices • A bank robbery at the corner that turns into a

hostage situation near your senior housing complex

• A train derailment ¼ mile away from one of your homeless shelters where tank cars are emitting hazardous fumes

• A peaceful protest turns violent at a government building near your administrative offices

• A report of a person with a gun in your parish parking lot which houses childcare on a daily basis

• An estranged husband with a gun bursts into a counseling session for a mother and child

If there is an emergent reason to “lockdown” a Charity location in a moment’s notice due to

some type of adverse event occurring on or near your property or inside one of your buildings, will your employees be ready to meet the challenge? When it comes to assessing potential threats and perils that can impact any organization, you must expand your field of vision to account for incidents that may occur nearby or may not be directly related to your services. While a great deal of effort on “lockdown” and the development of security contingencies is typically focused on our schools, organizations must understand that any entity associated with a diocese or faith-based group must be prepared for emergency situations where securing and locking down the premises will be essential to help ensure the safety of building occupants. Whether the objective is to keep people in or keep people out, a formalized plan and of action and a good training program are essential components for a successful outcome during a lockdown.

One organization that recognized this vulnerability and has worked very hard to prepare each of its program locations to initiate an immediate “lockdown” is the Catholic Charities of the Archdiocese of Chicago. Working proactively for over ten years with a team of specialized Loss Control Consultants from Gallagher Bassett RCCS, Catholic Charities in Chicago has developed emergency procedures and protocols designed to help protect occupants at any of their program locations in a moment’s notice when the need arises to lockdown a facility. Like many charitable organizations, Catholic Charities provides services in a variety of locations in a metropolitan area where the potential for criminal activity along with other socioeconomic factors exist including the potential for gang violence. Additionally, many of their programs provide service to people with

emotional issues as well as those who live with the threat of domestic violence on a daily basis. Catholic Charities’ lockdown procedure has evolved from the strong focus that this organization has placed on general emergency preparedness for more than a decade.

Each Catholic Charities program location in the Chicago-area is provided with a comprehensive emergency procedures policy that specifically details the steps required to address a number of different emergencies including a concise lockdown procedures. Utilizing a recipe-type format, the procedures explains the actions required to initiate a lockdown including rationale, purpose, definitions, notification/initiation and the specific processes needed to lockdown a program site.

In addition to the development of the written procedures, Catholic Charities’ emergency preparedness program requires continuous training, drills and exercises to help ensure appropriate action during an emergency. GB RCCS subject-matter experts (SME) provide comprehensive emergency preparedness training workshops on a semi-annual basis to help maintain a “culture of preparedness” within the Catholic Charities organization. In addition to providing employees with essential information on facility lockdown and how to address situations like an armed intruder or active shooter in a building, staff is taught other emergency procedures ranging from how to use a fire extinguisher to the basic concepts of the Incident Command System (ICS). Chicago Catholic Charities has taken the training of this topic so seriously, an online training module has also been created that addresses lockdown. Taking this module will be mandatory for all employees.

It is difficult to measure the success of an emergency preparedness program at the operational level when good loss control, safety and security practices are integrated into an organization. The development of comprehensive emergency procedures along with continuous training, drills and exercises are critically important to the successful management and recovery from an adverse event. When reviewing your Diocese’s emergency procedures, make sure that there are developed written plans and protocols that will help ensure the safety of all areas that might have an exposure, including Charities locations. You won’t be able to predict when a facility needs to be locked down in a moment’s notice.

Amanda Weller, Gallagher Bassett Loss Control Consulting Services, is a leading loss control consultant serving dioceses and the broader nonprofit sector now for more than 20 years.

Stan Szpytek has been associate consultant with GB RCCS for the past 14 years servicing a wide variety of clients, including dioceses, school districts and nonprofit organizations. As a retired deputy fire chief and fire marshal, his experience and training is an asset to clients that have specialized needs in fire/life safety program management and general emergency preparedness.

Stan Szpytek

Amanda Weller


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The Launch of GB Gentle BearWho is Gentle Bear?

GB Gentle Bear is Gallagher Bassett’s (GB’s) symbol for acts of caring, compassion and charity. He is not your typical

teddy bear. He is an adventurer, an explorer and a fearless partner on any new journey. On the outside, Gentle Bear might just look cute, but deep down he has a greater purpose. He represents all that GB stands for. Gentle Bear is a symbol of caring and comfort during times of loss and trauma. As claims professionals, we encounter people at the most vulnerable times in their lives. It is our mission to compassionately guide them through this process and guard what is most important to them. By doing so, we help get them back to a normal, secure existence.

Gentle Bear’s “Birth”Gentle Bear came to existence through collaboration between GB and a valued client to find a way to help the client’s employees while also giving back to the community. Gentle Bear was born in Australia; in the State of South Australia to be precise. GB was doing work for the South Australia Police Department at the time and exploring ways to minimize Post Traumatic Stress. GB’s regional General Manager, Paul Easter (an ex-police officer himself ), had previously come across “trauma teddies” while working in the United States. So he proposed the idea of sponsoring teddy bears that could be carried in police and other emergency vehicles and handed out to young children involved in events such as serious road traffic accidents and domestic violence. The teddy bear serves as an emotional aid to distract a child’s attention from the immediate, distressing situation by providing a recognizable, reassuring and safe object to latch on to.

Gentle Bear’s History So FarSince his introduction, more than 2,000 Gentle Bears have been handed out in Australia. The South Australia Police still use the bear, and other State Police Services, such as Victoria Police and the Northern Territory, have joined the program. In fact, Gentle Bear is just about to start his first international assignment with the New Zealand Police.

Gentle Bear first appeared in police vehicles, but he has been used on occasions in other emergency vehicles. For example, in recent bush fires in Australia, Gentle Bear was donated to the State Emergency Services to again act as a trauma teddy for young children.

Gentle Bear’s EvolutionToday, Gentle Bear is being transformed into the overall symbol of GB’s caring, compassionate and charitable activities. He will be continuing his adventures in Australia, the United States, the United Kingdom and wherever else in the world he is most needed. Gentle Bear does not belong on a shelf. We encourage you to take Gentle Bear and make him a part of your own compassionate and charitable activities.

Please visit www.facebook.com/gbgentlebear, Gentle Bear’s Facebook page, where you can post photos of yourself and Gentle Bear in action at events of caring, compassion and charity. As you include Gentle Bear in the causes that mean the most to you, GB will become more familiar with your causes and we can embrace them as our own.

Join Gentle Bear’s JourneyWe thank you for being part of GB Gentle Bear’s launch in the United States. This is just the beginning of something very important. We hope you will join him, and us, on the journey.

PSI/RPS and AJG assisted dioceses in integrating their Catholic Charities coverages and exposures into their combined risk financing program.

https://www.facebook.com/gbgentlebear

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EventUs! No, this is not a Latin word waiting to be “declined” or a

masculine adjective waiting to find agreement with a noun—rather it is Gallagher’s brand for an online TULIP program that has been designed for Dioceses.

Making your facilities available for rentals is a great community service; however, there are additional hazards that have come with theses rentals, including additional liability for someone slipping and falling on your premise and/or causing damage to your property during the event. Your organization’s traditional insurance policy will cover these exposures, but most organizations that rent their facilities are now requiring renters to provide proof of liability insurance prior to an event, thus trying to protect the organization’s insurance policies by transferring the liability for these events to the renter. This is a good practice that will provide a buffer layer of insurance prior to any claims being brought against your Diocese’s insurance policies. At this time, several organizations are relying on either coverage provided by a homeowner’s insurance policy or monoline special event policies. There are a few issues with this practice:• Homeowners Policies—Providing event coverage through adding

an endorsement to a homeowner’s insurance policy is problematic because most homeowners policies don’t have sufficient amount of insurance (i.e., $1m liability limits) and in most cases, the homeowners will not be able to name your organization as an additional insured.

• Special Events Policies—Purchasing a separate Special Events Insurance Policy is a good option, but your organization will need to make sure property damage coverage is included, as well as making sure you name your organization as an additional insured. The main problem here is that most insurance companies have a minimum premium of $300 for special event insurance and this cost could be prohibitive to having the event at your facility.

• Liquor Liability Issues—Most of these policies exclude claims involving liquor, even for a vicarious liability situation (where a

catering company is providing the insurance for liquor liability, but the renter/facility arc still dragged in to the lawsuit).

There are two solutions to these problems. One is that you will most likely have several business/nonprofits that already have a liability policy in place and that can extend to include your organization as additional insured, include coverage for property damage and have at least a $1m liability limit. For these entities insurance shouldn’t be a problem.

However, most likely you will have several fundraisers, weddings, reunions, anniversaries, etc., who don’t have insurance and the best option for this situation is what we call a TULIP (Tenant Users Liability Insurance Policy) policy. Several insurance companies have come out with TULIP policies, but they are usually subject to a high-deposit premium; most deposits run $2,000–$5,000, which can be a cash flow drain on your organization.

Arthur J. Gallagher & Co. has developed a customized TULIP program for Dioceses called “EventUs” where the per-event cost can be as low as $103, the renter can get a quote online; the renter can even pay online with a credit card or check and both the renter and your organization will receive a proof of insurance within a few minutes. EventUs automatically names your organization as an additional insured on the policy. It includes host liquor liability for no charge and it does enable the purchase of standard liquor liability insurance, if needed. The EventUs policy is a separate policy that can be started at anytime. The best part is that there is no cost or deposit to your organization, yet it allows you to provide a low-cost option for insurance to the renters and ensures that the renters have adequate coverage.

For further information, contact Gallagher’s Religious Practice Team member: Brandon Cole, CPCU, CIC, CRM, ARM Irvine, California – 949.349.9871


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A diocese is a complex enterprise with multiple risks to manage—

from workers compensation to property claims. If there is an effective way to live out your ministry and mission, managing claims in a pastoral way has to be front & center in your program. That’s why we at Gallagher have always supported the concept of insuring expected loss and having control over the claims rather than abdicating to a third party carrier. In fact, while Gallagher Bassett Services is now a global company serving many Fortune 100 companies, it’s history extends back to helping dioceses manage claims, separate from the carriers, more than 50 years ago!

Such a protected self-insurance program requires a commitment to managing “the data,” however. The key to staying on top of these areas of exposure is a well thought out data structure, one with claim reporting in near real time. Better information equals better risk management; the more you know, the more you can anticipate and mitigate.

However, the claim and exposure data structure of many enterprises, like Topsy in Uncle Tom’s Cabin, “just grow’d,” reflecting point-in-time needs of diocesan leaders that have left them with outmoded, and limited capabilities. The result is often a mix of data points that will tell you half of what you need to know.

Diocesan leaders contemplating necessary upgrades to their systems should push vendors for answers to key questions to ensure they get what they need.

1. Is the information my claims function captures granular enough? The devil is always in the details. Don’t settle for headlines only. Detailed information is more searchable and actionable than high level generalizations. For example, can you track general liability claims by the type of location, the specific area in the facility and the function involved? Can you track auto liability by the type of vehicle, driver status and type of vehicle use?

2. Does my claim information map to the actual organization and operation of the diocese? Can I easily generate a view of costs unique to our seminary or, conversely, our cemetery so I can see clearly which asset is driving costs and who is responsible for them?

3. Does coding in the solution align to actual exposures? For example, are location and use related codes updated as facilities are remodeled or repurposed?

4. Do the solution capture key variable exposure data? For example, can you reliably express workers’ compensation claims as a function of payroll for paid staff or as a function of full time equivalents for volunteers? Do you capture miles driven per vehicle for your automobiles and light trucks? A lack of exposure data makes it difficult to normalize claims experience and this can mask problematic trends that are developing.

The larger and more complex your diocese or archdiocese, the more important it becomes to insist on both depth and precision in your growing claims’ database.

RMISHow useful is your risk management information system?

Top notch data capture requires well conceived and executed reporting to pay off in better control. Here are a few important questions to ask about your RMIS.

1. How close is the reporting to real time? A monthly refresh—the old standard—means that you are always playing catch up. Overnight refresh is the present standard.

2. Do you have a small number of customized dashboards that give you a quick overview of all important aspects of your risks? Can your RMIS provide interpretive graphics to highlight performance exceptions? Remember, well designed reporting brings the important information to you and lays it out in its most useful form.

3. Does your RMIS allow drill down capability, right down to individual claims when you need to understand a possible high dollar event or other unusual occurrence? A modern RMIS puts this power at your fingertips, allowing you to spot anomalies while they are small and potentially actionable.

4. Does your RMIS have a mobile app that allows you to stay current with developments even when you are not at your desk? This is 2015, after all, and many risk managers and diocesan fiscal leaders need to say connected to the diocese anytime, anywhere.

Information is an instrumental good. Well deployed, it allows you to conserve diocesan resources and reduce potential ongoing exposures, thus freeing funds, energy and creativity to address the higher purposes of the organization—your mission!

Gary Anderberg has been in the industry since 1976. He joined Gallagher Bassett in 2014 after working for Travelers, Zenith National, Prudential, and Broadspire. He is intricately involved in designing reporting systems and is currently working on a new mobile app for claimants.

Data and the Diocese

Gary T. Anderberg, PhDSVP, Claim Analytics

Gallagher Bassett Services

Viewpoint


Cyber Liability—Are we covered?In the complex, ever-changing world

that we live in we question every day whether you certain things happen we are adequately protected or if there is something more that we could do to prevent a financial disaster to our diocese.

As of today the specialized general liability policies covering dioceses do not exclude occurrences originating from cyber exposures that may cause bodily injury and certain forms of property damage. The same applies to automobile liability and physical damage policies as well as workers compensation.

One of the worst ways to represent insurance coverage is to provide the policy’s response to a hypothetical claim. Contrary to my good reasoning I will try to do that now.

Case 1: A hacker accesses personal information, including name address and phone number diocese from a website indicating that a family will be participating in the diocesan event out of town. Using that information someone breaks into the home and burglarizes and trashes the place or finding somebody there kills him or her in order to protect his identity. Following many clues an arrest is made, followed by a confession that discloses how the information was obtained. In this case, I believe the diocese bodily injury and property damage policy will respond in the absence of a specific cyber exclusion, which to date does not exist.

Case 2. Recent news showed how a pair of hackers managed to hijack a car controlling its engine, acceleration and breaks through the Internet. Such triggered a major recall by the manufacturer. In this case no one was arrested because the hackers used their own car to show how their protection system was deficient. However, if this have been a real incident and someone had gotten hurt in an automobile accident, the current automobile policy would respond to bodily injury and property damage. In the case of a diocese where we sometimes collect VIN numbers in order to provide insurance to some selected people, hacking that number may allow someone to get control of a car. As indicated such type of a claim would have been covered.

Case 3. Catholic high school records are stolen from the school’s computer including some damaging information collected by one of the counselor on a particular student family situation. The publication of such information causes serious emotional distress to the student and his family and they sue the school and diocese for defamation of character, emotional distress, etc. I believe that the current diocesan errors and omissions policy would respond with coverage on this case.

With these examples, I am not trying to dissuade anyone from obtaining cyber liability insurance. Such coverage includes multiple items that are not currently covered by any of the insurance available. I was just trying to emphasize that current policies do afford some coverage for some pretty far-fetched claims and should not be ignored when a claim is presented.

Cyber policies are most vulnerable by affording protection for very expensive claims that do not fall under any of the policies listed above. Such items include:• Enterprise Security and Privacy Liability• Regulatory Action Coverage• Forensic and Legal Services, including Public Relations Expense• Computer System Extortion• Website Media Liability

None of these necessary coverages are specifically provided by any of the policies listed at the beginning of this message. A cyber policy is the best way to protect your diocese from the fairly prevalent occurrence of hackers breaking into their computers.

A big challenge to date has been to properly identify the exposures in a diocese. Most chanceries have employed or on contract an IT person who is capable of managing password security and firewalls. However, as we go down the properties lists into parishes, high schools, elementary schools, nursing homes, housing projects, cemeteries, etc., the difficulty of ensuring that adequate protection is provided becomes very difficult to manage and almost impossible to affirm with certainty in an insurance application. Several of our clients likewise have been reluctant to complete an application indicating that their facilities are provided with some safety net for their computers and therefore convinced that in the event of a claim they are going to be faced with hard-to-argue insurance company defenses they have elected not to purchase the coverage. Others, however, have decided to do so with full knowledge that the most probable location for a loss will happen in the Chancery and that other locations have a much lower probability of a significant claim.

In conclusion, I do recommend meeting with a cyber-liability specialist to go over your specific exposures and obtain recommendations on how to best mitigate the possibilities of loss.

Steve Robinson leads a team of 30+ professionals focused on cyber risk out of the eastern shores of Maryland. He is a regular contributor to Church Executive magazine and a great resource for the Gallagher Team.

Steve Robinson


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Fair Credit Reporting Act (FCRA) Class-Action Lawsuits

The Consumer Financial Protection Bureau (CFPB), which tracks

FCRA enforcement, reported that 298 lawsuits were filed in June 2015, with 33 class-action suits. That is an increase of nearly 23% over last year, which itself was a record year. The list of companies sued is filled with household names: The Home Depot, Whole Foods, Staples, Disney, Panera, Domino’s, Uber, AMC Theaters, and the list keeps growing. These are large companies who you would think would have the legal and human resources expertise to avoid these lawsuits. Human Resources, like law and medicine, has become a highly specialized field and responsibility for FCRA compliance seems to have slipped through the cracks. With statutory liability at up to $1,000 per violation it’s not hard to see why plaintiffs’ attorneys are rushing to take advantage.

Fortunately for employers, complying with the FCRA is not overly burdensome or complex. Reviewing two key areas will help employers avoid problems:

1. Make sure your Disclosure and Authorization forms meet the FCRA requirements

2. If you intend to take adverse action based on information returned in a background check make sure you follow the process set forth in the FCRA

These obligations are set out in detail online in a guide produced by the FTC called, “Using Consumer Reports: What Employers Need to Know.”

Ban the Box / Fair ChanceA movement that seeks to protect past offenders from early disqualification in the hiring process continues to gain momentum with states, counties and municipalities passing laws at an increasing rate. The “box” at issue is the check box on employment applications asking whether the candidate has ever been convicted of a crime. Proponents of the legislation argue that requiring applicants to disclose criminal history on the initial application too often results in those candidates not having a “fair chance” to secure an interview to explain their background.

These laws move the criminal history inquiry further into the hiring process—usually to the interview or in some cases upon a conditional offer of employment. None of the current laws prohibit an employer entirely from making the inquiry nor prevent an employer from running background checks. The biggest challenge

employers face with this movement is the patchwork nature of the laws across the country. Because the biggest growth has been at the county and city level it has become difficult for multilocation employers to keep up leaving many to take a conservative approach and remove the box from all applications. To find out whether there is a law in your area visit the National Employment Law Project’s website at www.nelp.org and search for “ban the box.” They have a complete guide of all the state and local laws.

Cyber SecurityRarely does a week pass without some news story breaking about a data breach. Most often hackers are going after credit card or payment data, but a recent wave of attacks such as those against the Office of Personnel Management (OPM) and the Internal Revenue Service (IRS) indicate that identity data is also at risk.

Background screening companies deal with personal information at their core. Knowing that your employee and applicant data is going to be protected is important. When selecting a background screening provider, if you look for those that have been accredited by the National Association of Professional Background Screeners (NAPBS) you can be assured that these providers have met a robust standard of data security. Another tool you should consider, produced by Qualys SSL Labs, will give you an easy to read letter grade (A, B, C, F) that indicates how well a site has addressed the latest vulnerabilities. Visit www.ssllabs.com/ssltest and paste the URL of the site you want to check. Note: you will need to use the login page of the vendor you are wanting to test—which may be different from the URL of their main website.

New developments and trends are constantly emerging in the area of background screening. We reach out to key resources within the industry to keep you informed. Look for future updates.

Contributed by Matt Graham, Esq., FCRA Advanced Certified and Vice President of Operations, Trak-1. Many of you will know Matt Graham from his earlier work on Virtus®. Matt has been serving the faith-based community in this risk management perspective for more than 20 years! Thank you, Matt.You can connect with Trak-1 online – Facebook: fb.com/trak1screening LinkedIn: linkedin.com/company/trak-1 Twitter: @trak1screening

Current Trends In Background Screening

Matt Graham

http://www.ssllabs.com/ssltest

http://fb.com/trak1screening

http://linkedin.com/company/trak-1

http://@trak1screening

Viewpoint


Consultative Q & A: “Ask Phil”1Ethics in the Workplace –

Question: As a Religious organization, you are under intense public scrutiny and often your workforce is there for the mission as much as for the paycheck. How can you maintain a benefits program that meets the ethical standards and directives your organization subscribes to?

Answer: At Arthur J. Gallagher & Co. our mission is a lot like yours: to serve, advise and make a difference. With Gallagher you get like-minded commitment from an engaged partner who understands and can help you manage your diverse employee benefits needs while maintaining focus on your mission.

2Eligibility Audits – Question: Many Religious organizations employ variable hour employees and are, to varying degrees,

decentralized in nature resulting in a lack of knowledge of those covered under the plan. What steps are you taking to be sure you are not covering ineligible employees or dependents and spending money that could otherwise go toward your mission?

Answer: By auditing the employee and dependent eligibility status of those covered under your health plan you can save a significant amount of money. Gallagher can bring you the tools necessary to maintain a comprehensive and compliant benefits program without spending unnecessary money that could be better used to support your mission.

3 Reconfigurations – Question: Many Religious organizations have aging populations, reducing workforces, and escalating

costs. What opportunities have you explored to consolidate or pool with similarly situated organizations to benefit from the laws of large numbers and save money?

Answer: Arthur J. Gallagher & Co. is a pioneer in the pooling of employee benefits. We have worked with hundreds of Religious organizations in assisting them to structure their programs so that they are able to gain many of the economies that much larger organizations enjoy.

4 Compliance – Question: Each day Religious organizations are assuming more and more regulatory and compliance risk.

There is a growing myriad of local, state, and Federal regulation with significant penalties and fines. How are you protecting your organization from regulatory and compliance risk while meeting the benefits needs of your workforce?

Answer: The challenge of complying with the ever-changing landscape of healthcare reform makes it even more critical to access compliance professionals who are keeping a pulse on the constant

changes and clarifications being issued by the government. We have a staff of attorneys whose sole function is to help keep our clients up to date on regulatory compliance. Further, our vast experience with Religious and religious organizations allows us to bring further insight and clarity to these complex issues.

5 Retirement – Question: Workforces are aging due in part to a lack of “retirement readiness.” Oftentimes people continue

working because they cannot afford not to. What planning and communication steps have you engaged in to help your employees become financially healthy?

Answer: The new retirement reality is that retirement is now the employee’s responsibility to fund, understand and plan. The new reality requires employers to understand what employees’ value and align those values with corporate philosophy and resources. This can be an even bigger issue for a Religious with a nontraditional workforce. Gallagher’s Retirement Plan Consulting team understands those dynamics and can help you get measurable results.

6 Fiduciary Oversight – Question: Religious organizations are under intense public scrutiny to improve investment and

fiduciary oversight for your benefit plans and other asset pools. How effectively do you manage the investment and fiduciary decisions concerning your employee benefit plans, risks and expenses?

Answer: One of our goals in working with Religious organizations is to help them develop a sustainable resource engine to deliver superior performance relative to their mission. Critical to this goal are the services that Gallagher’s Institutional Investment & Fiduciary Services (II&FS) team can bring to the table. II&FS’ entire mission is to assist our clients in managing their assets allowing them to save on expenses and enhance earnings.

7 Communications – Question: It is well known that well communicated benefit programs are more highly valued by

employees than poorly communicated programs. What steps have you taken to educate your employees on the value of the benefit programs you provide and their relevance to your ethical standards and mission?

Answer: Creating a tie between your employees and your organizational performance magnifies employees’ understanding and allows the workforce to further support the mission of your organization. A well-defined communication strategy connects the dots for employees enhancing understanding of their value to the organization and the value the organization brings to them. Let us help you build a communications strategy that allows ideas and benefits to come to life for an employee, while ensuring that chosen initiatives create bottom-line impact.

Phil Bushnell, Managing Director,

Religious Practice | BenefitsArthur J. Gallagher & Co.


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8Wellness – Question: A successful organization needs employees who are physically, spiritually, and financially well. What

programs do you have in place that supports your employees’ physical, spiritual, and financial health?

Answer: Many organizations are effectively turning the dial on previously held beliefs regarding wellness and shifting focus to impact an employee’s total health, taking into account the individual’s financial, career, community, emotional and spiritual health as well as physical wellbeing. To do so effectively means designing a long-term wellness strategy. Our wellness professionals can help your organization create a culture of wellness leading to greater sustainability of your mission.

9 Compensation – Question: Compensation and benefits can be a real balancing act especially with regulations often being

imposed on how Religious can structure compensation. How are you measuring the impact of benefits and compensation on the needs of your workforce while still maintaining compliance?

Answer: Since the term was coined, “total rewards” has been constantly evolving as a concept. Total rewards is a sustainable compensation, benefits and retirement cost strategy that can enable

your organization to achieve your organizational vision, mission, strategic goals and objectives resulting in a healthy, engaged and productive workforce. Gallagher specializes in helping organizations strategically align the compensation, benefits and retirement cost buckets creating an integrated reward strategy.

10 Mission – Question: People turn to you when they’re in need. Who do you turn to when facing challenges that impact your

mission such as Increasing operating costs, inconsistent revenue streams, and a workforce with diverse benefit needs?

Answer: Turn to Arthur J. Gallagher & Co. because we can help with holistic solutions that address employee benefits, compensation, retirement, human resource and risk management. We’ll identify ways to save money and streamline your organization so more of your budget goes to your core mission.

For more than 35 years Phil Bushnell has been serving the Diocesan sector with consultative services in the broader spectrum of health & welfare benefits and wellness. Initially Gallagher asked him to leave the corporate offices in Chicago, where he grew up with his family, to open a St. Louis office.

Challenges to the Church Plan StatusOn December 31, 2014, the U.S. District Court for Northern

Illinois denied defendants motion to dismiss, holding that the pension plan sponsored by Advocate Healthcare is not a “church plan” and therefore is subject to the provisions of ERISA. This represents the latest court action that is challenging the church plan status of plan sponsors affiliated with religious organizations. At last count there were nine such actions proceeding through the courts all of which began in 2013 and 2014.

The essential claim on the part of the plan participants is that the plan should not be exempt from ERISA and thus required to meet the funding standards, coverage requirements, reporting requirements and for defined benefit plans coverage under the Pension Benefit Guaranty Corporation. The significance of these court actions is that plan sponsors may lose their church plan status and thus face significant financial and compliance issues.

The major advantage derived by a plan that qualifies to be a church plan is that it allows the plan sponsor a choice whether the plan sponsor wishes to comply with the participation, vesting and funding requirements imposed by Title II of ERISA. As well as being exempt from certain provisions of the Code, church plans are exempt from Titles I and IV of ERISA.

Predominately plaintiffs have argued that the plans are not church plans on the grounds that the plan sponsor is not a church and therefore the plan was not established by a church and subsequently not maintained by a church. The courts have been siding with plaintiffs, in general, and have concluded that Congress

intended for a very tight exemption under ERISA and state that a church plan must be from the beginning established by a church or a convention or association of churches. The courts have also dismissed IRS guidance to the contrary stating that it’s the court’s jurisdiction to interpret issues of statutory construction.

While the outcome of these cases is unknown what is known is that the financial implications to these decisions are significant. Alone the unfunded liabilities associated with the aforementioned plans is in the billions of dollars. Furthermore if plaintiffs are successful in their challenges can they also look to challenging church plan exemption for other organizations that are associated with the church? Finally the additional compliance with ERISA can have significant administrative consequences, especially in light of the recent Supreme Court decision, Obergefell v. Hodges, for all types of retirement programs and not just defined benefit pension plans of recent focus.

There are many affiliated organizations that share in the mission of the Church and may have their retirement programs structured as non-electing church plan. Although these court cases have to date been focused on large organizations it is only too prudent to review the various affiliated plan structures and the organizations relationship to the Dioceses to determine the scope of any future challenges.

Bob Sloan

Viewpoint


Abuse and Reporting in Athletics: Clear Conscience v. Minimum CompliancePope Francis in a June 2014 statement

said, “If there is no sports club, something is missing. Yet, a sports club needs to be well executed, in a way that is consistent with the Christian community. If it isn’t consistent, better not to even have one! Sports in a community can be an optimal missionary tool, where the Church comes close to each person and helps him or her to excel and to encounter Jesus Christ.”

Diocesan-sponsored Catholic sports programs are an integral and valued part of our Church’s educational and recreational offering for young people. Sports hold tremendous potential to develop accomplished athletes as well as build the character of young people empowering them to become productive citizens of our world as well as disciples of our Church. Our sports programs should provide a safe and accessible structure for interscholastic competition along with an environment that protects as well as promotes the academic, moral, physical, and spiritual qualities that are the hallmark of sports played among Catholic-sponsored teams. Competition, which should foster excellence in interscholastic athletics can, unfortunately, breed mistrust, incivility and abuse.

Because competition can become corrosive of the very qualities that interscholastic sports are meant to foster, Catholic athletic programs need a robust organizational structure and a strong culture based on mutual trust, cooperation and a deep sense of justice. Catholic sponsored sport leagues depend upon the commitment of each of their member schools, teams, and coaches to conduct their own sports programs based on values of justice and benevolence. Yet individual schools can do only so much on their own. By working together as members of one body, the Body of Christ, Catholic diocesan administrators must put into place structural practices creating safe and developmental Catholic sponsored sports programs that benefit those whom they serve (athletes, coaches, sport parents, the full athletic community). Professional development education for sport administrators and coaches from a moral, character perspective is integral to this process.

Recent sports program scandals have led to the adoption of strict monitoring, reporting, and disciplinary standards at every level. Legislative and regulatory bodies have busily passed codes and bylaws imposing strict compliance standards accompanied by severe individual and institutional consequences. This

environment has also led to innovative theories of liability from trial lawyers based on already existing laws read to be applied and carry obligations heretofore unappreciated, misunderstood, or which simply did not exist.

As an example, Federal Child Abuse Prevention and Treatment Act (CAPTA) (42 U.S.C.A. § 5106g), defines child abuse and neglect as, at minimum: any recent act or failure to act on the part of a parent or caretaker which results in death, serious physical or emotional harm, sexual abuse or exploitation or an act or failure to act which presents an imminent risk of serious harm. Headline stories of abuse can serve to clarify how CAPTA is to be understood and applied.

The fallout from the Penn State abuse scandal included charges brought against Senior Vice President Gary Schultz, President Graham Spanier, and Athletic Director Tim Curley for endangering the welfare of children, obstruction of justice, and criminal conspiracy. Former FBI Director Louis Free and his law firm were commissioned by the Penn State Board of Trustees to investigate the scandal. They concluded that the university leaders, in an attempt to avoid the consequences of bad publicity, repeatedly concealed facts that, if reported, would have helped protect child victims. The criminal trial for the school’s leaders is currently pending and the NCAA imposed penalties include a ban from bowl games for four years, loss of 40 scholarships, $60 million fine, and vacated 111 wins over a 13-year period.

A jury awarded the family of a University of Central Florida football player who died in March 2008, after an off-season workout, $10 million in a wrongful death lawsuit. Further, the NCAA cited UCF for lack of institutional control for wide-ranging violations in football and basketball. Head football coach, George

Tim Buckley

Kristin Sheehan


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O’Leary, was not named in the suit; however, his program was hit with a one-year bowl ban that was later appealed. Former AD, Keith Tribble, resigned during the NCAA investigation in November 2011.

At a 2011 football practice in Maryland, Derek Sheely, during a drill where the players run at each other, complained of a headache and was visibly bleeding. The head coach told Sheely to stop complaining and a few minutes later Sheely collapsed and died due to severe brain trauma. Sheely’s family filed a wrongful death complaint against Frostburg University, as well as the NCAA and the team trainer. The case is scheduled for trial in September 2015.

High school football player, Max Gilpin, died of heat stroke after a rough practice on a hot day. Gilpin’s parents filed charges against head coach, Jason Stinson, for reckless homicide and wanton-endangerment in connection with the death of their 15-year-old son. This is believed to be the first case in which a coach has faced criminal charges for working his players too hard. As a result, Stinson was fired as head football coach after the incident. Stinson was acquitted of both charges and Jefferson County Public Schools settled with Gilpin’s parents for $1.75 million.

CAPTA does not only protect against wrongful death, but also protects against child physical and sexual abuse or neglect. As a highly publicized example of non-lethal physical abuse and neglect, Rutgers head basketball coach, Mike Rice, was suspended, fined and ordered to anger management counseling after a former basketball program employee gave school officials a video showing the head coach hitting and kicking players and using gay slurs as he yelled at them during practice. After ESPN reported on the video, Rice was fired, an assistant coach resigned, athletic director Tim Pernetti resigned, and university counsel John Wolf resigned. AD Pernetti and Counsel Wolf ’s conversations were viewed as a cover up to protect Rutgers from legal action rather than protecting student athletes. A month prior, Pernetti had been named a finalist for athletic director of the year.

Kennesaw State University women’s basketball coach Nitra Perry was accused of verbal and physical harassment toward her players, according to a video published by KSU Owl Radio, the university’s student-run streaming radio station. In response, the AD launched a comprehensive review of the athletic department and Perry’s actions. As a result, the university appointed a program manager to monitor the coaches, created a procedure to handle student complaints, and enrolled Perry in a mentorship program. Continued on next page

Our sports programs should provide a safe and accessible structure for interscholastic competition along with an environment that protects as well as promotes the academic, moral, physical, and spiritual qualities that are the hallmark of sports played among Catholic-sponsored teams.

Continued on next page

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legitimize the old-fashioned mentality requiring young athletes to keep pushing through pain and abuse to become a “superior” athlete. Catholic administrators have not only a legal, but also a moral obligation to change this dangerous mentality in our sports programs.

What are you doing in the area of risk management with athletics in your diocesan sports programs?

In the Marquette Sports Law Review “Managing Risk in Interscholastic Athletic Programs: 14 Legal Duties of Care,” the 14th duty of care is listed as the “duty to select, train and supervise coaches”. The article states this is the most important preventative risk management duty for any school and it is the one that is most neglected.

Play Like a Champion Today of the University of Notre Dame’s Alliance for Catholic Education is responding to the increasing challenges in today’s sports culture that threaten to harm young athletes. It does this primarily by providing educational workshops for sport leaders (administrators, coaches, parents and athletes) to help foster a sports culture that reflects our catholic identity. Included in Play Like a Champion’s educational offering on coaching for character is a sport specific safe environment training module to train coaches to understand destructive, inappropriate and abusive coaching practices as well as instruction on how to report those who are employing these dangerous techniques.

Play Like a Champion’s coach clinic begins by teaching coaches that they are ministers of our church. Coaches and ministers share many services in common. Like ministers, coaches provide mentoring and support as well as serve as role-models for the people with whom they work. Both should instill the values of respect, cooperation, fairness, selflessness, courage, justice, compassion and even faith. Most coaches are not ordained clergy; however, through baptism, all lay people are called to ministry in the church as a part of the common priesthood of the faithful (Lumen Gentium, 10). According to the Second Vatican Council, “the laity are called in a special way to make the church present and operative in those places and circumstances where only through them” the church’s mission can be felt (Lumen Gentium 33). Play Like a Champion’s research shows that prior to the coach clinic, only 69% of coaches agreed that as coaches they were “ministers of our church” while following the clinic, 94% of coaches embraced this idea, a full 25% increase from this educational clinic. Our clinics also instruct coaches and sport parents on the importance of embracing and teaching virtue through sport. In particular, we relate the cardinal virtue of temperance, the virtue that restrains addiction to good things, to the way we must think about winning. Winning is a good thing, but putting too great an emphasis on winning can lead to the “win at all costs” culture that can and has diminished the developmental potential of sports in recent years.

Coaches often feel pressure to engage in practices that endanger the welfare of young athletes. Do all your coaches appreciate that they

Abuse and Reporting in Athletics: Clear Conscience v. Minimum Compliance (cont.) During a football scrimmage on September 1, 2007, Flushing High School senior, Blake Hunt, shattered the C5 vertebra in his neck when a running back’s knee snapped his head backward. The collision left Hunt paralyzed from the waist down, and after receiving treatment at various New York hospitals; Hunt filed a complaint alleging that his injury stemmed from improper and inadequate supervision, training and officiating, and a lack of qualified medical personnel at the scrimmage. In particular, Hunt, who weighed 140 pounds, argued that he was too small to be competing against larger players and was already suffering from a leg injury when he was struck in the head by a player he was attempting to tackle. In addition, Hunt argued that he had not been trained properly and wasn’t ready to participate in scrimmages or games when he was injured. This catastrophic football injury led to an $8 million settlement.

Another level of concern is negligence for not reporting abuse. Ed Gilliland, Indiana LaPorte High School Athletic Director, was charged with failure to report child abuse or neglect relating to male volleyball coach’s inappropriate behavior with female player. The court ruled that Gilliland did not need to have specific knowledge of a sexual relationship between coach and player to trigger duty to report child abuse or neglect; and testimony that the AD had general knowledge of abuse was enough to show probable cause sufficient for the charges against him. The head coach, Robert Ashcraft, is now serving a 21-year prison sentence for engaging in a more than one-year sexual relationship with a girl beginning when she was 15.

Abusive coaching practices similar to the headlines above have often been romanticized by television and movies. Major motion pictures such as Remember the Titans, Miracle, Coach Carter, Rudy, and even the Bad News Bears contain scenes where abusive coaching tactics are used to “inspire” players. Unfortunately, these “inspirational” methods typically involve child abuse or neglect for which the coach, athletic director, and school could be held legally accountable. While the memorable endings have endured throughout the years, many of these movies have continued to


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State-by-State Overview of Mandatory Reporters, Immunity, and Penalties

• Professionals mandated to report suspected child abuse or neglect are specifically listed in 48 States, the District of Columbia, American Samoa, Guam, The Northern Mariana Islands, Puerto Rico, and the Virgin Islands.

» New Jersey and Wyoming do not list specific groups.

» Such groups may include: Social workers, teachers and other school personnel, physicians and other health-care workers, mental health professionals, child care providers, medical examiners or coroners, and law enforcement officers

» Additional groups are specifically stated in 12 states that include coaches, camp/youth camp or residential camp personnel or owners, or recreational/sport program or facility personnel or administrators.

�California, Connecticut, District of Columbia, Hawaii, Iowa, Illinois, Maine, Massachusetts, Nevada, Ohio, Vermont and Washington

�Texas law requires anyone with knowledge of suspected child abuse or neglect to report it to the appropriate authorities.

�Georgia requires a list of persons to report abuse, the list included those who provide “training, supervision, coaching”

�Colorado lists “coach, assistant coach or athletic program personnel” as a mandatory reporter.

�Virginia lists “athletic coach, director or other person 18 years of age or older” as mandatory reporters.

• 36 states provide some form of immunity from liability for persons who in good faith report suspected instances of child abuse or neglect under the reporting laws

• The term “good faith” refers to the assumption that the reporter, to the best of his or her knowledge, had reason to believe that the child in question was being subjected to abuse or neglect.

• 47 states specify penalties on mandatory reporters who knowingly or willfully fail to make a report when they suspect that a child is being abused or neglected.

• 39 states specify that any failure to report is classified as a misdemeanor.

are serving children and not adults. Do all your coaches understand how to develop the character of their players? Do all your coaches recognize the mission of catholic athletics as developing the body, mind and soul of athletes? Do all your coaches protect athletes from harm? Do all your coaches understand their responsibility to report colleagues who are engaging in abusive coaching practices? Play Like a Champion Today works in collaboration with dioceses to educate coaches and sport administrators to protect athletes, not simply due to a legal obligation, but because we are morally obligated to be “Coach Ministers” who represent Christ and the Church in a leadership role with athletes and teams.

Play Like a Champion works together with a diocese to extend proactive, preventative educational professional development clinics for sport leaders. Prevention, rather than reaction is the key to a responsible Catholic-sponsored sports program. Educating coaches through Play Like a Champion Today clinics will empower sport leaders to create a safe sport environment for all athletes in our Catholic leagues as well as lower the risk and liability for the sponsoring diocese.

In secondary schools, athletics accounts for the majority of litigation against schools. In two-thirds (2/3) of these cases of litigation, the court finds in favor of the school largely due to the school’s government immunity., Private schools do not have the protection of “government immunity.” However, if the private school/diocese has put in place a program to directly educate about positive coaching and preventing abuse/negligence issues with coaches and sport teams, this can negate the diocese’ negligence as they educated coaches expressly against negative, harmful practices surrounding athletics.

Since 2006, Play Like A Champion Today has educated 40,000 coaches and 35,000 parents in 150 sport organizations in 37 states helping sports to be safer for more than a million athletes. Play Like a Champion would like to work with your catholic sports programs so that together we can build catholic sports that are safe, fun and wholly developmental for all involved. Pope Francis, in a November 2013 address to the European Olympic Committee said, “The bond between the Church and the world of sports is a beautiful reality, for the Ecclesial community sees in sports a powerful instrument for the integral growth of the human person.” Let us partner together through educating administrators, coaches and sport parents to create a catholic sports environment and structure that enables sport to be the missionary tool for physical, moral and spiritual growth that Pope Francis envisions.

Timothy J. Buckley III, Esq. & Kristin Sheehan, M.A., Buckley Christopher & Haff and Play Like a Champion Today: Tim Buckley is an attorney based in Atlanta who serves on the Advisory Board of Directors for the University of Notre Dame’s Play Like a Champion Today Character Through Sports Educational program. Kristin Sheehan serves as the Program Director for Play Like a Champion Today. For more information, go to playlikeachampion.nd.edu

http://playlikeachampion.nd.edu

Play Like a Champion Today Coach and Sport Parent Education Program

© Play Like a Champion Today, Alliance for Catholic Education, University of Notre Dame

Play Like a Champion Today provides leadership in a worldwide effort to renew the culture of sport for youth. It does this primarily by educating ethically responsible sport leaders--coaches,

students, parents, and athletic administrators--who in turn will reach millions of young people.

Crafted by leaders in the fields of sports psychology, coaching education, Catholic theology, and moral development, Play Like a Champion Today is:

• Centered around the principles of justice, tolerance, respect, and solidarity• Designed using the best athlete-centered practices supported by research into

character development and faith formation through sports• Presented with the support, tradition, and resources of academic and athletic

excellence that mark the University of Notre Dame

Play Like a Champion Today deals with tough sport issues and supports schools in promoting:

• Athletics as Character-Building to Athletes and Families

• Building Teams as Moral Communities

• Champion-Centered Best Coaching Practices

• Sportsmanship

• Responsible Decision Making

Over the course of the clinic, participants will learn about:

• The Importance of Sound Leadership

• The GROW Approach to Athlete Motivation

• Child and Adolescent Development

• The Spirituality of Sport

Coach Clinicand

Commissioning Mass

forCatholic Metro League

of Atlanta Coaches

Sunday September 27, 2015

Mass: 10:30Clinic: 12 - 3 pm

held at Cathedral of Christ the King2699 Peachtree Rd, Atlanta, 30305

Registration begins at 11:45.Clinic will be in the Hyland

Center Assembly Room.

RSVP or Questions:Contact Ken Turner

[email protected]

[email protected]

Sports as Ministry Educational Program

Working with Coaches and Sport Leaders to Shape a Positive Sports Culture for All Young People since 2006.

NAPA Think Tank 2015

Napa Think Tank 2015Peter A. Persuitti, Reporting

Partnerships are powerful ways to mobilize thinking and garner resources for change. Since 2012 we have done just that.

Website: www.temporaladministration.org

White Papers: 2014 Tackling Human Resource Challenges of the Church

2013 Religious Freedom – At Risk?

2012 Risking It All For Christ

L-R: Mike Patterson, Mike Burnett, Mark Chopko, Bishop Thomas, Kathleen McChesney, Tony Abella, Sr. Back Row: Charles Leitch, Steve Henne, Father Dominic Legge, OP, Peter Persuitti

www.temporaladministration.org

Since 2012 our partnership has convened experts around emerging issues that present both challenge and opportunity

for the Church in America. We proactively seek to discern holistic, integrated solutions, advance insight and accountability while restoring trust… “risking it all for Christ.” We truly believe that it takes a collaborative effort of perspectives, experiences and talent to bring out the best of our stewardship efforts. Such best practices should not be guarded or sold but shared proudly to a community of believers.

We appreciate experts who have joined us on this journey and especially those contributing to this year’s Think Tank where we feel called to ask the question—what have we learned from this horrific experience of sexual malfeasance & how can we combat the emerging silent killer with seemingly no boundaries—cyber risk?

Look for our White Paper online soon!

Viewpoint


Are You Prepared? 3 Questions to Ask Yourself When Preparing for Church EmergenciesIn light of recent events in Las Cruces

and other church facilities across the nation, it is more important than ever to ensure your church is prepared for an emergency. In less than a two week period, law enforcement has responded to 3 bomb threats made towards New Mexico churches in the city of Las Cruces, 2 of which exploded while parishioners were present. These and other unfortunate events lead us to the question, “Are you prepared?”

Preparing for and implementing increased security measures for your place of worship does not have to challenge the open and welcoming atmosphere that you have created for your congregation. Because effective preparation is a key component when responding during a crisis ask yourself these three questions when discussing safety and security protocols for your church:

1. Do we have actionable emergency response plans?Actionable emergency response plans include directional evacuations providing visitors the closest exit point, much like you see in classrooms and hotel rooms. Emergency plans are not a one size fits all and need to have a variety of plans for various scenarios, including active shooter, earthquake, lockdown, fire, etc. Ensure your emergency response teams have access to these plans, train with them, including identifying their roles and tasks, and work with first responders to help create a joint response. Emergency plans need to be periodically amended and kept up-to-date to sustain their use as a valuable resource when or if a crisis does arise.

2. What is our relationship with local first responders?Having a positive, working relationship with local first responders adds to the cohesion when responding to emergency situations at your place of worship. Include in your preparations by inviting them to participate in drills and giving them access to floor plans, emergency response plans and critical infrastructure information.

Clearly define ways that you will communicate information to first responders in the event of an emergency. Preplan what channels of communication you will utilize and test and train with them often.

3. Where are our emergency response plans?Having emergency response plans is one thing but storing them and using them effectively is another. Many places of worship store their emergency response plans in a 3-ring binder, but when a crisis breaks out, the last thing they are worried about is finding that binder and flipping through pages to follow the steps laid out in their plans. Instead of relying on paper, store your plans electronically in a secure system like Rapid Responder® where multiple people have access to them from a variety of areas. By storing plans electronically, they are secure and accessible to only credentialed users keeping them out of the hands of those who will use your emergency response information against you.

It is hard to imagine adverse situations happening at a peaceful place such as a church, but unfortunately, it does. Places of worship must plan and prepare effectively in order to have the best possible outcome in emergency situations. By asking yourself these three questions, you are taking the proactive approach to empower your place of worship to respond successfully during a crisis.

Prepared Response, Inc. works with churches to improve their coordination with first responders and takes emergency plans to the 21st century by going from a 3-ring binder to an E-ring binder. By loading actionable emergency response plans and information about critical infrastructure onto a secure cloud based platform, information can be shared real time by staff and first responders in the event of an emergency.

For more information and a demonstration of a proven church security solution, Rapid Responder, contact church security specialist, Jeff Hicks, National Account Executive with Prepared Response, Inc. at [email protected] or 206.315.9851. Prepared Response is a ministry partner of Arthur J. Gallagher & Co. and its Religious Practice (www.ajg.com)

“PRI has proven to be a great partner of our Religious Practice, serving as a solution-oriented and resourceful specialist in an area where our churches truly need help, insight and proactive plans.” — Peter A. Persuitti Arthur J. Gallagher & Co.

Jeff Hicks

mailto:Jhicks%40preparedresponse.com%20?subject=


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Grant Programs—Revisiting Archdiocese of Portland in Oregon’s Investment in Stewardship

In 2013 the Archdiocese of Portland in Oregon shared its remarkable story of stewardship at a BPIC Members Annual

Meeting—a successful SAFETY FIRST Grant Program offering matching grants to parish project requests that would make for a more safe environment. At the time, the statistics were very compelling. Reporting on the timeframe of 2010–2013, the Archdiocese shared the following:• 70-80 grants awarded each program year • Each grant matches funds up to $10,000• Significant safety improvements made • Attentiveness to safety enhanced• Positive feedback for program

Imagine that you as a diocese were matching up to $10,000 for each eligible parish or school safety program initiated. That would be a significant amount reinvested in your organization’s infrastructure and preparedness. Over the years, the Archdiocese of Portland in Oregon’s SAFETY FIRST Grant Program has the following listing of most common projects:• Security Upgrades:

» Installation of video cameras, electronic access control systems and alarm detection systems.

» Upgrades and/or replacement of fire detection and alarm systems.

» Security fencing, gates and other site security upgrades.

» Upgrade and/or replacement of door hardware including locks, panic hardware, exit signage, and other emergency upgrades.

• Site Repairs: » Sidewalks, parking lots, playground surfacing materials, steps and stairways.

• Lighting: » Installation of additional exterior lighting, upgrades to existing lighting to improve visibility and security.

• ADA & Access Improvements: » Elevators, wheelchair lifts, ramps, safety railing, restrooms and facility access improvements, or upgrades.

» Purchase and installation of automatic door openers.

• Health and Safety: » Purchase of AED units, AED cabinets and training for staff.

» First-aid kits.

• Miscellaneous: » Walk-off mats, two-way radios, or other communication

Over time, we have had several dioceses asking us about this program and it occurred to me that we should share the story again and ask Rhonda Kwei, Risk Manager for the Archdiocese of Portland in Oregon, to update us on the impact—so here’s an update on the statistics for 2015:• 104 parishes, schools and other applicants awarded grants for

182 projects—an increase of almost 67% since the SAFETY FIRST Grant Program began in 2010.

• 50% match up to $10,000 continues to enable participation for all interested locations.

• Many more participants seek small grants of even a few hundred dollars.

• Positive feedback and excitement about the program continues.• Many parishes and schools have begun to formally budget for

SAFETY FIRST grant improvements.• Participants gain continuing education about the importance of

risk transfer and good contracting.• Most important: Attentiveness to safety concerns is at an all

time high!

We encourage you to consider such a program for your diocese or archdiocese and feel free to reach out to Rhonda Kwei at the Archdiocese of Portland in Oregon!

Rhonda Kwei, Risk Manager, Archdiocese of Portland in Oregon Email: [email protected] | Phone: 503.233.8351 Reporting – Peter A. Persuitti, Arthur J. Gallagher & Co.

mailto:rkwei%40archdpdx.org?subject=

Designed specifically for Dioceses

Potential Mounting Risk Exposures

Your diocese deals with the tedious task of insurance renewal every year. How can you gather that data effectively and confidentially?

In order to remain informed and involved in your diocesan risk management activities, you would like to be able to better understand, manage and analyze the various risk exposures. With more organizations having to work with fewer resources and lower budgets, gathering and maintaining this information for insurance placements or re-newals shouldn’t have to be such an overwhelming and time-consuming process. We’ve identified an option for you — RiskPartner RMIS. Just ask Tom Schadle, CFO of the Diocese of Tulsa:

“Information management is so vital to our enterprise operations and decision making; the RMIS platform has allowed us an efficient organizing and access point and thus to secure valuable insights real time on all our parishes, schools and agencies.”

The RiskPartner RMIS software solution allows you and your team to:

• View the aggregate insurance data within your diocese.

• Track detailed insurance and loss data within your diocese — and address any necessary loss control issues in advance of a renewal.

• Keep all key members within your diocese (senior management, operations, IT, human resources and accounting) informed throughout the year.

• Have 24-hours-a-day and 7-days-a-week access to your detailed and collective group’s data.

Let RiskPartner improve your process and provide you with the critical information you require throughout the year.

Marcus HenthornRiskPartner, Director of Sales

P: 630.694.5152 C: 515.441.2555 [email protected]

www.gallagherpost.com

Peter Persuitti Managing Director, Religious Practice

P: 888.285.5106 [email protected]

© 2015 Arthur J. Gallagher & Co. All rights reserved. 15BSD27224A

Exposure Data

Policy Data

Claims Data

Loss Control

Incident Management

RMIS — Risk Management Information System

RMIS—

Claims Administration & AdvocacyBenefits & Retirement Consulting

Insurance Brokerage

Billing & Allocations Actuarial Services

Underwriting

Risk Management and Loss Control

Investment Advisory and Fiduciary Services

Nonprofit Compensation

International Mission and Travel

International Mission

Alternative Risk Transfer (ART)Alternative Risk Transfer (ART)

RELIGIOUS PRACTICE | FOUNDED 1927 | www.ajg.com/dfmc

Partnering with Dioceses Around the World!

“... we took the one less traveled by, and that has made all the difference.”

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Viewpoint


Gallagher Receives the Ethisphere Award— Now Four Years in a Row!Q&A with our Chief Ethics Officer, Tom Tropp

Q. What is this organization, Ethisphere? Tell us more.

A. Ethisphere was founded and nurtured by Alex Brigham, a well-respected voice in the ethics and compliance field. Alex has had a long history of incubating organizations that help advance the industry of business ethics through aiding in public education and developing of publicly available best practices standards, benchmarks and frameworks that companies can openly and freely use to learn, compare and improve themselves. Examples include Corpedia (now a part of the NYSE Governance Services organization) founded by Alex in 1998, and the nonprofit Open Compliance & Ethics Group (www.oceg.org), now an independent organization.

Ethisphere began in 2007 as an online industry e-newsletter published by corporate compliance and ethics training and consulting firm, Corpedia. It evolved into a quarterly print Ethisphere Magazine publication with a large circulation of corporate, academic, legal and governmental subscribers.

In the context of doing research both independently and with outside parties, the analytical operations of Ethisphere, the Ethisphere Institute, were born. Ethisphere eventually became a separate, privately incorporated institute and today exists as a private, independent organization.

The foundation of Ethisphere is built on three primary areas of research:

1. Explore, examine, and circulate best practices, through Ethisphere’s proprietary research and rating system, the corporate Ethics Quotient, which covers relevant aspects of corporate governance, risk, sustainability regulatory, anti-corruption, compliance and social responsibility. Ethisphere derives “Ethics Quotients” for individual corporations (“EQ Score”) and publishes the top scoring companies by industry annually, honoring them with the “World’s Most Ethical Companies®” designation.

2. Analyze and publish best practices in anti-corruption and antibribery to combat global corruption—specifically in supply chain management and the use of agents and representatives in global commerce. To this end, Ethisphere launched that Anti-Corruption Resource Center in 2011 and then re-launched in partnership with PwC and others in early 2014.

3. Research best practices for doing business effectively and “ethically” around the world on a country-by-country basis.

Q. What are the criteria for this award recognition?

A. Ethisphere recognizes organizations that continue to raise the bar on ethical leadership and corporate behavior. It reviewed hundreds of companies and named those that surpassed their industry peers to this year’s World’s Most Ethical Companies list. Its proprietary methodology for the WME ranking includes reviewing codes of ethics, litigation and regulatory infraction histories; evaluating the investment in innovation and sustainable business practices; and looking at activities designed to improve corporate citizenship.

Q. How many organizations are recipients of this award annually?

A. The 2015 list recognizes 132 companies spanning 21 countries and five continents.

Q. Who are some familiar companies that are recipients of this award?

A. Here are a few recipients that you might recognize:• 3M Company• Adobe Systems

Incorporated• Aflac Incorporated• Allstate Insurance

Company• Aramark• Colgate-Palmolive

Company• Deere & Company• Dell Inc.• Dun & Bradstreet

• Ford Motor Company• Gap Inc.• GE• Google Inc.• Hasbro, Inc.• Johnson Controls, Inc.• Kellogg Company• Levi Strauss & Co.• Marriott International, Inc.• Mattel, Inc.• Microsoft• PepsiCo, Inc.

Tom Tropp


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• Starbucks Coffee Company• The Hershey Company• Thrivant Financial• TIAA-CREFF• U.S. Bank• United Parcel Service.

• Visa Inc.• Waste Management, Inc.• Weyerhaeuser Company• Wyndham Worldwide

Corporation• Xerox Corporation

Q. Are there categories of recipients by industry? A. Yes, below is the list of industries:

• Aerospace & Defense• Apparel• Automotive• Banks: National• Banks: Regional• Banks: Super Regional• Business Services• Chemicals• Computer Hardware• Computer Services• Computer Software• Construction & Building

Materials• Consulting Services• Consumer Products• Diversified Machinery• Electronics Wholesale• Energy & Utilities: Natural

Gas• Energy & Utilities: Electric

• Energy & Utilities: Water• Engineering & Design• Environmental Services• Financial Services• Food & Beverage• Food Service• Forestry, Paper &

Packaging• Government Services• Health & Beauty• Healthcare Products• Healthcare Services• Hospitals• Industrial Manufacturing• Information Technology

Services• Insurance: Accident &

Health• Insurance: Brokerage• Insurance: Health

• Insurance: Life• Insurance: Property &

Casualty• Lodging, Leisure &

Recreation• Machine Tools &

Accessories• Media & Publishing• Metals• Oil & Gas• Payment Card Services• Philanthropy• Real Estate• Retail• Safety Equipment

• Scientific & Technical Services

• Semiconductor Equipment & Materials

• Sourcing Services• Specialty Eateries• Staffing & Outsourcing

Services• Telecommunications

Equipment• Telecommunications

Services• Toys & Games• Transportation & Logistics• Utilities

Q. What is the Industry for Arthur J. Gallagher & Co.A. Insurance: Brokerage

Q. Are there any other brokers that receive this award?

A. Not in 2015

Tom’s agency was an acquisition partner for Arthur J. Gallagher & Co. His son Dan is the P&C Area President of our Dallas offices. Tom also completed a Masters of Divinity degree from the University of Chicago. We believe Tom has visited each of our over 400 offices around the world, some more than twice! Many of us @ Gallagher consider Tom our “Chief Culture Officer” and Steward of the Gallagher Way!

Thinking About Your Volunteers

Risk Placement Services, Inc.Knowledge. Relationships.Trust and Confidence.

How can a diocese best protect its volunteers yet not risk a loss fund obligation or the need for the RPS Itasca Volunteer Coverage?

Our unique accident medical coverage program for diocese can help protect the insureds’ from paying out claims in its

retention by covering injuries suffered by volunteers.

Any volunteer that suffers an injury while serving on behalf of the diocese is covered. With prompt claim’s handling —and the carriers picking up the medical bills—the diocese is protected from using its loss fund to pay out of pocket expenses as well as avoiding the risk of a potential lawsuit. In addition, we can include an indemnity benefit in the event the volunteer must miss time at his or her job.

The coverage is very economical and a great way for a diocese to provide peace of mind for those individuals donating their time.

Our program pays out an accidental death or dismemberment limit of up to $1,000,000 and accident medical and dental of up to $100,000. We can quote with 3 different carriers and can turn around numbers very quickly.

If you have any questions, please reach to Ashly Farmer or Ben Berthold of RPS Itasca—always thinking of ways to serve the Church!

Viewpoint


Dedicated Religious Practice—Capabilities Serving the Diocesan SectorThis year we celebrate 50 years with the Archdiocese of Chicago.

We will recognize the Archdiocese with the J.P. Gallagher Audax Award at the DFMC Gallagher Gala Dinner in Atlanta, September 2015 (www.ajg.com/dfmc) • Today, Gallagher works with more than 90 dioceses in the U.S.,

UK and New Zealand.• Gallagher is instrumental in starting both national and regional

captives and programs that over time have reclaimed hundreds of millions of dollars for the Church and bring valued solutions: » Reta Trust

» The National Catholic Risk Retention Group

» Christian Brothers Risk Pooling Trust

» The Ordinary Mutual

» Western Catholic Insurance Company

» Bishops’ Plan Insurance Company

» Michigan Catholic Conference Captive

» Christian Brothers’ Benefits’ Market Exchange

• Our Benefits Team specializes in diocesan benefit programs and lends ACA Consulting Services as it relates to the Catholic Church and her obligations.

• Gallagher is a thought leader in hosting “Convocation,” a biannual gathering of diocesan leaders with 30 workshops and funding through a collaborative effort involved 45+ partner vendors (www.ajg.com/convocation).

• Gallagher has a dedicated moral claims (misconduct) division with its third-party administration for property & casualty claims (Gallagher Bassett Services).

• Gallagher helps lead the annual Napa Think Tank (www.temporaladministration.org), where experts gather to deal with pressing issues of the Church—2014 event covered HR Challenges and Contracts for Teachers.

• Gallagher presents at many conferences and with the most recent NACPA conference led three sessions: » Critical Care for Employee Benefits: COBRA, FMLA and Title VII

» Executive Compensation: Oversight, Competitiveness and Innovation

» Total Rewards: Creative approaches to reducing organizational and benefit related costs in your organization

• Since 2007 Gallagher has led the development of a national networking for diocesan risk managers through webinars and in person meetings, helping to foster this emerging position in the diocese.

• Gallagher’s Diocesan Retirement Practice hosted a clergy retirement planning workshop at the invitation of the Bishop of the Diocese of Worcester and Fr. Ron Falco, Director, Office of Ongoing Priestly Formation, June 2015

• Gallagher Post is dedicated to diocesan news and resources— www.gallagherpost.com.

• Specialized international travel (coverage, claims) for schools, clergy and parishes (www.travelwithgallagher.com)

Insurance Brokerage | Benefits & Retirement Consulting | Claims Administration & Advocacy | ERM | Investment Advisory & Fiduciary Services | Unemployment Insurance | Alternative Risk Financing & Underwriting | Program Administration | Risk Management | International Mission & Travel | Nonprofit Compensation Consulting

Is your community or organization meeting its investment objectives? Are you � nancially able to care for those who faithfully serve?

How does your organization’s core mission � t into a Socially Responsible Investment (SRI) and Environmental Social Governance (ESG) portfolio?

You should not have to choose between � duciary responsibility and moral or social beliefs. At Arthur J. Gallagher & Co., we listen intently to understand your purpose and mission – so that it can be perpetuated in the work that we do so your mission may be achieved.

For nearly 40 years, the Institutional Investment & Fiduciary Services team of Arthur J. Gallagher & Co. has worked with faith-based organizations to establish realistic investment goals and objectives.

Expert in Institutional Investment Consulting for Faith-based OrganizationsEach partner or vendor you work with should have a unique role within the portfolio. We do not sell investment products nor structure our services to generate additional compensation or commissions. Our expertise is institutional investment consulting, so you can focus on upholding your mission.

Complete Customization of ServicesYour investment needs and objectives are unique, which means a cookie cutter, o� -the-shelf solution will not work. Our work is fully customized, and we take pride in being proactive. We review each client’s investment portfolio in the context of the overall organization. � e operational aspects of the community or organization, including projected spending needs, debt obligations, assets, property and demographics, need to be considered when developing an investment strategy.

Commitment to Your MissionYour portfolio requires careful alignment of your mission, goals and investment objectives. As your advisor, we embrace your high standards; as such, we conduct an in‐depth qualitative review of each investment manager’s SRI/ESG investment strategy and their commitment.

Establishing social responsibility guidelines upfront is important, but it is even more critical to monitor managers’ compliance with those guidelines. We work with you to enhance and articulate your social investing criteria and develop a list of prohibited securities. And, we will conduct reviews of actual client holdings against the prohibited security list to provide a further level of scrutiny.

© 2015 Gallagher Fiduciary Advisors, LLC

Gallagher Fiduciary Advisors, LLC

Charlotte, NC 704.971.2560Cleveland, OH 216.654.9394Newark, NJ 973.424.6400

www.ajg.com/institutionalinvestment

New York, NY 212.918.9643 Pittsburgh, PA 412.232.1000Washington, DC 202.898.2270

Investment advisory, named and independent fiduciary services are offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Adviser. Gallagher Fiduciary Advisors, LLC is a single-member, limited-liability company, with Gallagher Benefit Services, Inc. as its single member. Neither Arthur J. Gallagher & Co., Gallagher Fiduciary Advisors, LLC nor their affiliates provide accounting, legal or tax advice.

Guiding You � rough Planning and Execution of a Sound Investment Program

Our Institutional Investment & Fiduciary Services include:

Investment policy statement

Asset allocation

Investment structure

Manager due diligence and selection

Private markets due diligence and selection

Investment manager monitoring and performance reporting

Investment related administration

Fiduciary decision making

Socially responsible investments

Spending policy analysis

Gallagher’s experience and services span a wide range of clients:

Corporate

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Taft-Hartley

Institutional Investment& Fiduciary Services

Dioceses are increasing their Casualty limits, one case from $40 Million to $50 Million in limits with assistance of an Arthur J. Gallagher & Co. Production team and PSI\RPS Itasca.

Archdiocese of Chicago

50 Years of Partnership With Arthur J. Gallagher & Co.

MMXV

A Networking Group for Diocesan Risk Managers started in 2007

Is your community or organization meeting its investment objectives? Are you � nancially able to care for those who faithfully serve?

How does your organization’s core mission � t into a Socially Responsible Investment (SRI) and Environmental Social Governance (ESG) portfolio?

You should not have to choose between � duciary responsibility and moral or social beliefs. At Arthur J. Gallagher & Co., we listen intently to understand your purpose and mission – so that it can be perpetuated in the work that we do so your mission may be achieved.

For nearly 40 years, the Institutional Investment & Fiduciary Services team of Arthur J. Gallagher & Co. has worked with faith-based organizations to establish realistic investment goals and objectives.

Expert in Institutional Investment Consulting for Faith-based OrganizationsEach partner or vendor you work with should have a unique role within the portfolio. We do not sell investment products nor structure our services to generate additional compensation or commissions. Our expertise is institutional investment consulting, so you can focus on upholding your mission.

Complete Customization of ServicesYour investment needs and objectives are unique, which means a cookie cutter, o� -the-shelf solution will not work. Our work is fully customized, and we take pride in being proactive. We review each client’s investment portfolio in the context of the overall organization. � e operational aspects of the community or organization, including projected spending needs, debt obligations, assets, property and demographics, need to be considered when developing an investment strategy.

Commitment to Your MissionYour portfolio requires careful alignment of your mission, goals and investment objectives. As your advisor, we embrace your high standards; as such, we conduct an in‐depth qualitative review of each investment manager’s SRI/ESG investment strategy and their commitment.

Establishing social responsibility guidelines upfront is important, but it is even more critical to monitor managers’ compliance with those guidelines. We work with you to enhance and articulate your social investing criteria and develop a list of prohibited securities. And, we will conduct reviews of actual client holdings against the prohibited security list to provide a further level of scrutiny.

© 2015 Gallagher Fiduciary Advisors, LLC

Gallagher Fiduciary Advisors, LLC

Charlotte, NC 704.971.2560Cleveland, OH 216.654.9394Newark, NJ 973.424.6400

www.ajg.com/institutionalinvestment

New York, NY 212.918.9643 Pittsburgh, PA 412.232.1000Washington, DC 202.898.2270

Investment advisory, named and independent fiduciary services are offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Adviser. Gallagher Fiduciary Advisors, LLC is a single-member, limited-liability company, with Gallagher Benefit Services, Inc. as its single member. Neither Arthur J. Gallagher & Co., Gallagher Fiduciary Advisors, LLC nor their affiliates provide accounting, legal or tax advice.

Guiding You � rough Planning and Execution of a Sound Investment Program

Our Institutional Investment & Fiduciary Services include:

Investment policy statement

Asset allocation

Investment structure

Manager due diligence and selection

Private markets due diligence and selection

Investment manager monitoring and performance reporting

Investment related administration

Fiduciary decision making

Socially responsible investments

Spending policy analysis

Gallagher’s experience and services span a wide range of clients:

Corporate

Endowment and foundation

Family trust

Healthcare

Higher education

Not-for-profit

Public

Religious

Taft-Hartley

Institutional Investment& Fiduciary Services

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PSI/RPS worked with Church Mutual Insurance Company (CMIC) to give a $2,500 appraisal reimbursement to each diocese that CMIC insures for Property coverage.

Four Practical Ways Churches Can Reduce Their Cyber RiskBy Steve Robinson

In recent years, discussions about data breaches with my church and nonprofit clients have moved from “what-if ’s” to, “This

just happened to one of my clients.” Cyber Liability insurance is no longer a coverage that is nice to have; it’s saving organizations money, time and reputations.

But, cyber insurance is only part of the risk transfer equation—we are often asked for basic tips a church can take to help prevent a cyber loss from happening in the first place. A few points to consider:

#1: Have someone own it.

Data breach studies have consistently shown that organizations that identify a staff member as having ownership responsibility for information security are less likely to suffer a data breach. If they do, the financial impact is smaller. We understand that for churches of varying sizes, this individual could range anywhere from a worship/media pastor who is assigned this task because he or she is computer-savvy (“Hey, give it to Jud—he likes computers!”), to a full-time IT specialist.

The important thing is that someone is responsible and held accountable for ensuring other items in this article are given proper attention. Make sure that person is equipped with the knowledge he or she needs to protect your data.

#2: Take inventory of the data you collect.

If your church’s giving records are older than the headstones in the yard, you might want to rethink that practice. Collecting only the data that is absolutely necessary—and keeping it for the minimal amount of time—will significantly reduce the volume of information that could potentially be breached.

If you are storing credit card numbers, stop doing this; transfer some of that risk to a third party who has the resources to properly secure this data.

On your website, only collect data that is absolutely necessary, and make sure you have permission to collect it.

You know that recycling box on the floor next to the receptionist’s desk? If that person is dropping sensitive information (confidential prayer requests and so on) in that box, make sure the practice stops immediately. Use locked boxes for document destruction, recycling, etc.

#3: Remember: the best firewalls are useless if the front door of the church is left unlocked.

Secure servers, laptops and any other equipment that provides a pathway to your data with locks, access limitations and unique passwords. You know that router you just bought? It came with a factory-installed password.

Remember Jud? Make sure he changes that password when he installs it for your church. The bad guys know that the Juds of the world can be lazy, and this is the first place they look when trying to get in.

H E L P I N G L E A D E R S B E C O M E B E T T E R S T E W A R D S .

Presented by: Arthur J. Gallagher & Co.

STRATEGIESSAFETY

This article first appeared in the July/August 2015 issue of Church Executive and is reprinted here with permission.

Steve Robinson


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When it comes to laptops and portable storage devices, the name of the game is encryption. Employing full disk encryption on laptops provides safe harbor under most state data breach notification laws. It is an extra step, but one that might save your church significantly if a laptop gets left in an airport on the way back from a youth conference.

When it comes to computer use, make sure your staff is well-versed in the common sense practices of locking access to their computers when they step away for lunch. While trust is prevalent among ministry partners, we need to be aware of the fact that others who might not share our same ideals can enter our office space. Janitorial services, contractors, mail delivery personnel, document destruction companies—you get the picture. When employees or volunteers leave your church, be sure to immediately disconnect any privileged access they have.

#4: Beware of the click.

My team is working an active data breach claim as we speak, because one administrative person clicked on a link in his email that opened a door for a virus that quickly gave username and access rights to 90 users on the network. Within three weeks, the bill on IT forensics and legal assistance—just to figure out what happened—has tallied into the six figures. Seek resources on the appropriate use of email, and communicate this to your staff.

Social media: great outreach tool / great threat to information security

Churches are increasingly using social media in creative ways to connect with their members. That’s the good news.

However, churches need to make sure that social media policies are implemented that don’t allow connections between social media websites and sensitive server data. Additionally, setting

clear expectations on the dos and don’ts of using social media can help avoid costly claims involving invasion of privacy, intellectual property infringement and personal injury.

The majority of data breach claims we receive could have been prevented with the most basic levels of due diligence on the front end. Not every claim is a sophisticated hack. Don’t get overwhelmed by the technology of it, and understand your church’s best defense can sometimes be good, old-fashioned common sense.

Steve Robinson is Area President, Technology & Cyber at Risk Placement Services, Inc. www.rpsins.com, a division of Arthur J. Gallagher & Co. and its Religious Practice, in Cambridge, MD.

Pastoral ministry in a missionary key seeks to abandon the complacent attitude that says: “We have always done it this way.” I invite everyone to be bold and creative in this task of rethinking the goals, structures, style and methods of evangelization in their respective communities.

Evangelii Gaudium Pope Francis, Apostolic Exhortation 2014, Page 18

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Creating a New Catholic Financial EcosystemAs God’s people, one of the tenets of our faith is that we live in

a world of abundance. And yet too often as a Church we revert to a scarcity mentality when considering financing and fundraising.

Jesus preached the parable of the talents to teach that we should all steward our gifts, but as the largest landowner in the world the Catholic Church has much of its wealth literally buried in the ground. We believe the story of the five loaves and two fish, yet we worry that “your” fundraising efforts will cut into “mine,” that we all can’t get our fill, let alone have twelve baskets leftover.

Creating a new Catholic financial ecosystem is about unlocking our wealth and using our resources within the Catholic Church to be better stewards and to multiply our gifts. It is about balance sheet philanthropy: focusing on the 95% of wealth in assets, not the 5% in income.

When financing a project, why do we only use secular institutions to borrow money? Why do we often use municipal authorities to issue bonds on our behalf when they may limit our use of proceeds while attacking our Catholic values? Why don’t we empower our supporters to help directly fund our projects? Especially during the greatest transfer of wealth in history, why do we focus on scarce income rather than abundant assets?

There is an alternative. A Diocese is like a civil municipality. It has geographic boundaries and “taxing” authority. It can serve

as a bond issuer on behalf of all diocesan entities. A parish or school can issue “donor friendly” bonds through the diocese that its own supporters can buy. Would we rather pay interest to the bank or our own supporters? Would we rather have no chance of debt forgiveness from the bank or give our supporters a chance to directly fund our projects and give them a creative, tax-advantaged opportunity to retire our debt?

Creating a new Catholic financial ecosystem is about keeping “currency” in the Church. It is about leveraging wealth by circulating it within our Church rather than “spending” it outside. It is about the five loaves and two fish.

Do we believe that story?

To find out more, please visit us at the DFMC, go to our websites or give us a call:

Michael J. Schierl, Immaculata Law Firm, [email protected]

Chris Ritten, Julius Capital, [email protected]

“Turnkey funding solutions for Catholic organizations”

School Visitor Training ModulePaul is a great partner of Arthur J. Gallagher & Co. and a renowned speaker and expert on

crisis management. His story is a great one, learning from his father so much about this area of physical security risk and today engaging two of his sons in his business at RETA Security, Inc. It seems that with most national stories of violent shootings, Paul is consulted and interviewed on air. We are lucky to call him a partner of our Religious Practice at Gallagher!

Don’t forget the great online training module he developed with GB on “Visitor Management” (especially for schools!).

Paul TimmPaul Timm, PSP (Physical Security Professional) | RETA Security, Inc.

www.retasecurity.com | www.twitter.com/schoolsecurity | www.facebook.com/safeschools1

mailto:critten%40juliuscapital.com?subject=

mailto:critten%40juliuscapital.com?subject=

Great Memories!

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Critical Care For Employee Benefits: COBRA, FMLA and Title VII

Workshop #103, Monday, April 20, 11:00 am – 12:15 pm

This session will address key issues under COBRA and FMLA when administering employee health benefits and the potential impact on religious employers from the EEOC’s recent guidance on pregnancy discrimination.

Highlights

Some of the key highlights for attendees include:

♦ Gaining an understanding of critical issues under COBRA,FMLA, and Title VII impacting religious employer-sponsoredhealth benefits.

♦ Increasing your ability to identify potential errors in COBRA,FMLA, and Title VII administration for employer-sponsoredhealth plans.

♦ Gaining an understanding of the potential impact of errors inCOBRA, FMLA, and Title VII administration for employer-sponsored health benefits.

Avoiding errors in COBRA, FMLA, and Title VII administration with respect to employer-sponsored health benefits is critical to controlling plan costs, maintaining employee morale, and decreasing administrative burdens. Court costs and penalties associated with failures are often unnecessary expenses, and thus working to minimize the potential to incur such costs should be part of your organization’s overall risk management strategy. This session will help employers to identify key concerns that will help them avoid particular errors in the future.

For more information on this particular session, you may contact:

Petula Workman Division Vice President, Compliance Counsel

[email protected] | 713.358.5856

Gallagher Religious Practice

NACPA 2015


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Executive Compensation: Oversight, Competitiveness and Innovation

Workshop #104, Monday, April 20, 11:00 am – 12:15 pm

This session will provide insights for Church Personnel Administrators as they support their Leadership Team and Governance Board in adhering to increasingly complex federal and state regulatory requirements regarding the design, management, and oversight of executive compensation arrangements.

Attendees will learn how the Catholic Charities of New York helped its agencies better understand the regulatory environment, learn about best practices for executive compensation arrangements, and implement governance practices to ensure that administrative costs did not detract from programs serving the needs of the community.

Highlights

Some of the key points that attendees will learn in the session include:

♦ The increased need for transparency in executivecompensation arrangements, and how tax-exemptorganizations are managing through the federal and stateregulatory environment as well as the scrutiny of localstakeholders within the community.

♦ IRS requirements for Governance Boards as they design,manage, and report executive compensation practices in anincreasingly transparent environment.

♦ The various approaches used in executive compensationarrangements, where the mix of cash, benefits, deferredcompensation and perquisites represent the total rewards fornonprofit executives.

♦ What they need to know about the competitive marketenvironment for selecting, rewarding and retaining executivetalent within the nonprofit sector.

♦ How the agencies within Catholic Charities of New York areincreasingly relying upon their federation to receive support,information, and guidance that is not easily accessible by anagency itself.


Joseph A. Wert National Practice Leader Human Resources & Compensation Consulting Practice

[email protected] | 973.650.0309


NACPA 2015

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Total Rewards: Creative approaches to reducing organizational and benefit related costs in your organization

Workshop #304, Tuesday, April 21, 10:45 am – Noon

In this workshop participants will gain an understanding of the importance of integrating their retirement and medical plans into a comprehensive approach toward a Total Rewards Strategy. As the Church and religious organizations continue to focus on the importance of human capital, the goals of recruiting and retaining quality and effective staff, education and leadership talent will rise.

Highlights

Highlights of our discussion include:

♦ Discuss the various segments of your workforce and theneeds and priorities of each group toward the goal ofconstructing a meaningful retirement and healthcare program.

♦ Review the impact of an aging workforce on your organizationand the various risks it poses to implementing a total rewardsapproach to your retirement plan.

♦ Determining the effectiveness and utility of the retirement andhealthcare programs across your employee population.

♦ The importance of building an effective workforce plan so thatit contributes to the financial success of the organization.

Now, more than ever, the importance of managing your retirement and healthcare plans will impact the organization as well as your employees.


Michael S. Levin, AIF Area Senior Vice President Registered Representative Retirement Consulting Services

[email protected] | 860-251-6303


NACPA 2015

Dana CrowlSenior Vice President — Program Manager Gallagher Charitable International Insurance 1301 Gervais St., Suite 400 | Columbia, SC 29201 C 864.907.2185 | O 864.239.2426 | F 864.751.5900

www.TravelwithGallagher.com [email protected]

© 2015 Arthur J. Gallagher & Co. All rights reserved. 16BSD26194A

Gallagher Charitable

INTERNATIONAL TRAVEL INSURANCE

Benefit Limit CommentsAccidental Death & Dismemberment

$100,000 Reduced to $10,000 for those under age 12 or age 70 and over

Medical Expenses $100 deductible

$10,000 Primary coverage; $2,500 of this limit is available to pay US providers; no pre-existing condition exclusion

Disability Income Benefit (no benefit if under age 12 or 70 and over)

$1,000 / month $500 / month $250 / month

First 100 Months — Accident Months 101-200 — Accident 50 Months — Sickness (after 3 month waiting period)

Assistance Service Included Available 24/7/365 for assistance with worldwide medical emergencies; provided by Specialty Assist™

Emergency Medical Evacuation $100,000 Coordinated by Specialty Assist™; will bring insured back to USA; no pre-existing condition exclusions

Crisis Management Service Included Available 24/7/365 for assistance with worldwide non-medical emergencies; provided by red24

Security Evacuation $100,000 Coordinated by red24; for evacuation due to natural disasters, civil unrest, crime, kidnap/hostage situations

Family Coordination & Repatriation of Mortal Remains

$25,000 Combined limit for both benefits and includes a sublimit of $2,500 for extra expenses incurred during an approved evacuation

Personal Property $100 deductible

$2,500 “Door to door”, replacement cost coverage; includes checked baggage; higher limits available upon request

General Liability $1,000,000 Worldwide jurisdiction; includes coverage for injury to a volunteer; covers volunteer and sending organization

RATE $3.30 PER PERSON PER DAY

World Youth Day 2016 provides a once in a lifetime opportunity! Make sure you are prepared: mentally, spiritually, physically… and medically.

Gallagher Charitable International Insurance Services (GCIIS) in partnership with underwriters at Lloyd’s of London has developed international products specifically designed for those travelling outside their home country. This plan is designed to protect you and your financial investment. We are pleased to offer participants of WYD 2016 the international coverages needed for worry free travel. Email or call us for more information.

World Youth Day – Krakow 2016

• Trip Cancellation/Interruption

• Financial Default of a Travel Supplier

• Terrorist Incident

• Organized labor strike, natural disaster or bad weather

• Hijacked or medically quarantined

• Summoned to serve on a jury or served with a court order

• Travel Delay (due to Travel Supplier, Lost Travel Documents, Medical Quarantine, Natural Disaster, Emergency Illness)

• Baggage Delay

MAXIMUM BENEFIT PER PARTICIPANT

• Trip Cancellation/Interruption: $10,000

• Travel Delay: $500 ($100 per day)

• Baggage Delay: $100

RATE: $5.20 PER DAY

TRIP CANCELLATION BENEFITS

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Stone Mountain Golf Club

Nestled at the foot of Stone Mountain and just minutes from downtown Atlanta, Stone Mountain Golf Club

offers two championship courses that provide the perfect challenge for any skill level.

These two courses—Stonemont and Lakemont—wind through a forest of Georgia pines and around Stone Mountain Lake. They offer breathtaking views and wonderful, natural rock formations that will make your round of golf truly a memorable one.

Gallagher Golf Outing @ DFMC

Stonemont Course

Built in 1969 by famed golf course architect, Robert Trent Jones, Sr., Stonemont is a shot maker’s golf course that will test every club in your bag. Stonemont’s classic layout has hosted many prestigious events in Georgia such as the Public Links Championship.

Kevin Barry Gallagher White Plains, NY

Chair, Gallagher DFMC Golf Outing

Bill Rasmussen Gallagher Atlanta, GA


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Photos from previous golf outings

TransportationMotorcoaches will be available at 5:45 p.m. at the Hyatt Regency Atlanta

(host DFMC hotel) and depart promptly at 6:00 p.m.

Reception VenueRefreshments and passed hors d’oeuvres in The Hub Patio

Seated VenueDinner in The Hub, featuring the presentation

of the 2015 J.P. Gallagher Audax Award

Dessert, Fellowship & ExhibitsTaste It!

Gallagher Gala DinnerDFMC 2015

Atlanta, Georgia

Tuesday, September 29, 2015 Reception at 6:15 p.m. | Dinner at 7:15 p.m.

at www.ajg.com/dfmc

We are pleased to have artist, Maria White, once again providing us with a personalized sketch of the World of Coca-Cola Atlanta.

Website: www.gifts4u.com

https://www.worldofcoca-cola.com/