Red Cross’ operating margins in 2020 and 2021 exceeded expectations. 

On November 4, ARCRA hosted a webinar featuring Brian Rhoa, Red Cross CFO, who discussed the financial health of the Red Cross (especially impacts from the pandemic) and the health of the retirement plan (the Plan).  Over 80 retirees participated in the hour-long session which included an active Q&A period at the end.

For fiscal years ending June 30, 2020, and June 30, 2021, the pandemic impacted many businesses negatively and Red Cross was no exception.  Usual work schedules were interrupted, and services had to be provided differently.  Fortunately, due to significant Federal and state money being available to individuals and businesses, the Red Cross was able to continue to provide needed services in different ways with Federal and state assistance.  Brian explained that grants were provided at the local level to help manage disaster shelters and implement recommended COVID protocols while serving clients.  In addition, Federal grants helped to support convalescent plasma production to assist COVID patients.  Red Cross also implemented a big fund-raising push that garnered additional donations for the organization.  Ultimately, Red Cross’ operating margins in 2020 and 2021 exceeded expectations.  This is important since the Red Cross is the Plan sponsor and is responsible for ensuring adequate funding of the Plan. 

Regarding Plan finances, the Annual Funding Notice was mailed to all participants the week prior to the webinar and reported a Funding Percentage as of July 1, 2020, of 101.15%.  Using Department of Labor regulations this means the plan is fully funded which is a tremendous accomplishment.  Brian explained that implementation of certain investment strategies helped Plan assets recover quickly from the pandemic economic downturn and grow significantly during the recovery.  Red Cross will continue to monitor market conditions to try to ensure funding levels at or near 100% in the future, knowing that fluctuations in interest rates and investment markets can still impact asset values and pension liability calculations.

Hopefully, participants came away feeling secure about Plan finances and receipt of future benefits.  We are grateful to Brian for his presentation and answering the many questions from participants.

NOTE: A full analysis of the Annual Funding Notice from David Therkelsen and Jack Campbell will be posted in December on the ARCRA website under Pension Primer.

Here is the link to watch the recording of the webinar, type this link on your computer. https://drive.google.com/file/d/1lD6xSSqWxBAlPcwZOGO8pvSLxUwvU60t/view?usp=sharing

If you want to listen to the program like a Podcast, type this link on your computer. https://drive.google.com/file/d/1ctko5IsYAWdc8On3pNaITrIdqXG1juot/view?usp=sharing