National Issues Committee follows lead of ACSWP By Paula R. Kincaid The Layman Online Tuesday, June 29, 2004 2004 General Assembly Richmond, Virginia June 26-July 3, 2004 General Assembly news index RICHMOND, Va. – The General Assembly Committee on National Issues approved amendments proposed by the Advisory Committee on Social Witness Policy on the first two overtures it considered Monday morning. On the overture (item 10-09) on preparing a policy statement on usury in the United States from the Presbytery of Utah, the committee approved creating a "resolution" on the issue instead of the "policy statement to more clearly define the sin of usury for the 21st century." According to the ACSWP rationale, a policy statement would require a more lengthy and costly process. The committee also approved a second ACSWP amendment to the overture to: "Develop ethical criteria consistent with the Reformed tradition for evaluating usury laws and other legislation to address various forms of lending such as payday loans, sub-prime loans, predatory lending, and cash-back tax preparation arrangements." Overture advocate David Henry said those who are working for economic fairness are seeking to have a "Biblical word and theological guidance" as pay-day loans become more prevalent. "We are asking for the General Assembly to do a study on usury," he said. "We know Biblically we are enjoined not to charge interest, but in the modern world we understand a reasonable amount of interest is OK. … There comes a point when reasonable interest has been exceeded and some pay day loans may be described as usury, or even predatory." According to committee staff, the financial implication of approving the overture is $5,980. The committee's vote in favor of the ACSWP's amendments was 57-7-0. Also approved as amended by the ACSWP was an overture on setting compensation standards from the Presbytery of New Hope. The overture advocate wasn't present and therefore didn't get a chance to address the committee. The committee voted 63-0-0 to approve the following recommendation: "The 216th General Assembly (2004) of the Presbyterian Church (USA) commends the Committee on Mission Responsibility Through Investment (MRTI) for raising the issue of corporate compensation standards through proxy voting recommendations, and instructs MRTI to develop a comprehensive plan for increased advocacy on compensation standard, including dialogues with corporation, filing of shareholder resolutions, and public education. The MRTI should proceed to increase advocacy as it can within its mandate, and report its actions, and any recommendations, to the 217th General Assembly (2006)." The original overture asked the assembly to: "1. Set as an ideal relationship between the total compensation for the highest paid employee (CEO) and the average of the salaries of the non-supervisory employees as no more than 200 to 1. "2. Instruct its investment committee to initiate stockholder resolutions on the floor of all corporations in which the Presbyterian Church (USA) holds shares, a motion to establish such a limit of not more than 200 to 1 between the highest paid employee's (CEO) pay and the average of the non-supervisory employees' salaries. A limit of not more than 200 to 1 would include the total compensation (stock options, retirement benefit, cars, tickets, country club memberships, etc.) of the highest paid employee (CEO) and the average salary of the non-supervisory employees total package."

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