Why do we need the Resident Support Fund

Why do we need the Resident Support Fund?
Residents of The Pines come from all walks of life with varying assets and income levels. The financial requirements to enter The Pines are based on many factors including average life expectancy and the anticipated time a resident will reside in the Health Center.

Someone in their early 80's who owns their own home, or has a moderate amount of savings, with a modest annual fixed income, meets the minimum financial requirements for a smaller unit at The Pines.

The Resident Support Fund was established to help residents of modest means who meet The Pines' minimum financial requirements but may outlive their resources.

How are finances depleted?
There are many unforeseen causes that can legitimately deplete a residents' resources. Unexpected medical expenses can take a toll, as well as residing in the Health Center longer than expected. Other circumstances might include a financial reversal of the resident.

Who qualifies for assistance?
Residents qualify when their net assets are diminished to $10,000 and their income is inadequate to cover monthly fees and basic living expenses.

The Pines' Board of Directors established several criteria to verify financial need of those seeking assistance. To assure the legitimacy of requests, a confidential financial reconciliation from time of entry is required and copies of past tax returns are requested.

How are the needs projected?
Needs are projected by using actuarial research based on continuing care retirement communities.

The Pines must anticipate and plan for the needs of residents who met the financial requirements when they entered, but who live significantly beyond their average life expectancy or spend more time than anticipated in the Health Center, thus depleting their resources.

Who manages the Resident Support Fund?
The fund’s investments are managed by the Presbyterian Church (USA) Foundation, established in 1799. The Foundation had assets of more than $977 million, as of December 31, 2002.

The Resident Support Fund is operated as a quasi-endowment fund. Distributions are based on 5% of a rolling three-year average of the fund’s market value. This formula is commonly used to help ensure that the amount made available for distribution can keep pace with inflation while limiting the impact of market volatility. The fund’s principal will not be spent for financial assistance except in the most unusual circumstances.

How Much Support Is Needed?
Currently, four residents are receiving assistance from the Resident Support Fund. The Pines projects that within the next eight years, eight to twelve residents will require financial aid.

The annual financial assistance needed per resident is projected to range from $23,000 to $59,000, depending upon the individual’s situation. To generate the anticipated needed annual assistance, the Resident Support Fund must reach $9.3 million by the year 2011.

As of September 30, 2003, the market value of the Resident Support Fund was just more than $1.7 million.

How can I help?
There are many ways to ensure that the Resident Support Fund is available to assist your friends and neighbors at The Pines::

· A gift of cash, stock, life insurance, or other property. · A gift through your will or trust. · A charitable gift annuity or other life income arrangement that pays you income now at an attractive rate, and a remainder to the Resident Support Fund after your lifetime. · A gift of a remainder interest in your IRA or retirement plan. A deferred gift through your will, retirement plan, trust, or annuity, also makes you eligible for membership in The Jetton Society – The Pines deferred giving society.