By TCR Staff
The meeting was called to order by the President of the General Board, Bishop James L. Davis. The opening prayer was said by Dr. Alexis Gatson (13th Episcopal District). The Scripture, Colossians 4:2-6, was read by Dr. Roberta Hill (President, Fellowship of Christian Educators).
Bishop Davis indicated that, while there were no actions for the General Board to approve at this time, he deemed it necessary to provide the Board with information so that all members could understand the situation regarding the Department of Retirement Services, the lawsuit settlement, and the disbursement process.
Bishop Marvin C. Zanders II, Chair of the Commission on the Department of Retirement Services, echoed the positive developments emerging from the Department and presented the Executive Director of Retirement Services, Dr. Brian Blackwell.
Dr. Blackwell stated that the Department had identified the Funds Custodian (Principal), Investment Advisor (Disciplina), and Third-Party Administrator (Benefits Plus) so that the funds available from the Newport Settlement could be disbursed. The following actions have taken place:
- 19 termination distributions
- 39 death distributions
- 61 hardship distributions
- 306 retirement distributions
- Total: 425 disbursements for a total of $8,173,854.83
The Legacy fund had funds placed on hold while they were transferred, but disbursements have now resumed. The Settlement and Legacy Funds operate in accordance with the plan document. Distributions can only be made on retirement, termination, death or hardship. The Plan document does not allow for in-service rollovers. Dr. Blackwell indicated two pressing challenges:
- The Radish website allows people to view the balance and the forms needed for disbursements. There is an issue with the 2FA (Two Factor Authentication) service, and the Department is evaluating whether a different tool is needed.
- The Third-Party Administrator did not have the staff to handle the level of volume of calls. They have hired another person to address this issue.
The AMEC Building in Memphis at 280 Hernando Street has been sold, and the Department of Retirement Services will vacate the building as of November 2025. Dr. Blackwell is currently working remotely with plans to relocate the office to Nashville in the near future. The Department is in the process of digitizing the files, and they are stored in a secure location. Due to the elimination of rent and parking income from the Memphis building, the Department has only one employee. Dr. Blackwell indicated that email is the preferred means of communication, though his personal cell phone is available.
New statements will be mailed out by March 2026, after which the quarterly statement system will resume. Statements will only reflect what the church physically has access to and not the June 2021 balance. The Department of Retirement Services report to the General Board will provide information on both the Legacy Fund and the Settlement Fund so people can understand how the funds are invested.
Attorney Douglass Selby, the General Counsel of the AME Church, informed the General Board that, since the last meeting, Symetra has engaged in bilateral discussions with the class action plaintiffs and has reached a preliminary settlement. It is assumed that the net recovery should be close to the June 2021 balance (approximately $110.8 million). This process should proceed similarly to the AMEC settlement process with Newport.
The AME Church continues to be in its own litigation with the other parties that have not settled namely Symetra, Day and Night Solar, Financial Freedom LLC, and the Estate of Jerome Harris. The AME Church’s attorney Bruce McMullen indicated that there is potential for more movement towards a settlement with these other entities. The church’s goal is to be as close as the June 2021 holdings before the malfeasance was discovered.
Beginning the open discussion, Bishop Davis stated the need to share correct information with AMEC constituents. Dr. Blackwell indicated that a video and a webinar will be forthcoming with the Department of Retirement Services to educate people about accessing their funds and the current system. Several questions were asked about the settlement amount and the status of the office.
Closing prayer was given by Rev. Gregory Thomas (11th Episcopal District).
The General Board will next meet in June in Orlando, Florida.
