BY BRIAN J. LOWNEY, Acting Editor
PROVIDENCE — The current downturn in the global economy has forced diocesan officials to examine the short and long term solvency of the Priests’ Pension Fund.
A joint committee was formed consisting of members of the Ad Hoc committee, the Queen of Clergy Benefits Advisory Committee, appointed members from the Council of Priests and the diocesan Senior Priests Advisor. The new committee is charged with making recommendations regarding pension funding and benefit amounts for priests that will be further discussed with the eventual goal of making a proposal to Bishop Thomas J. Tobin.
Msgr. Raymond Bastia, diocesan Vicar for Planning and Financial Services, recalled he became concerned about two years ago when he noticed the unfunded value of the retirement fund starting to slip. The current economic downturn has caused a further erosion of the fund, which he expects to be depleted by the year 2016 if no changes are made to strengthen the present program.
“We are not acting out of panic,” Msgr. Bastia emphasized. “I believe we are acting out of prudence. We are attempting to address issues that we can control. The goal of this is to save the plan.”
Msgr. Bastia added that there are five sources of funding for the Priests’ Retirement Fund. In Fiscal Year 2008, the fund received $80,000 from the General Fund; $300,000 from the Catholic Charity Fund; $323,000 from the annual Retirement Collection; $435,000 from active priests assessments; and $104,000 from gifts and donations for a total of $1,242,000.
According to an actuarial analysis prepared for the Queen of Clergy Benefits Advisory Board, the total annual funding requirement keeps rising every year as the number of priests who retire also increases. While there are currently 97 priests in the diocese retired from full-time active ministry, that number is expected to rise significantly during the next 15 years; 59 percent of the diocese’s 173 active priests are age 55 or older.
Msgr. Bastia emphasized that Bishop Tobin informed diocesan priests in a recent letter that he has no plans to change the current retirement age for priests who have the option to submit a letter to the bishop seeking permission to retire at age 70.
The monsignor noted that parishes are currently assessed $15,700 per priest serving in active ministry there to fund the Priests’ Retirement Plan and to cover the cost of health insurance.
All retired priests in the diocese currently receive a pension of $23,952. The Priests’ Pension Plan is presently paying out about one million dollars than it is generating.
“The bishop is concerned about the well-being of priests,” Msgr. Bastia noted, adding that Bishop Tobin hopes to receive a recommendation that is equitable for the majority of priests serving in the diocese.
Msgr. George L. Frappier, retired Vicar for Social Ministry, and a member of the ad hoc committee which coordinates the Priests’ Retirement Collection, urged the faithful to continue to remember the needs of the diocese’s retired clergy.
“The second collection for the Priests’ Retirement Fund held on the fourth weekend of February is vital for the continued health of the fund,” he emphasized, adding that contributions made by the faithful is a “major funding factor.”
Msgr. Frappier added that diocesan officials hope that the annual collection will continue to grow since “there is more money coming out of the fund than is contributed.”
He noted that the faithful can acknowledge the important contributions made by diocesan priests by making bequests to the Priests’ Retirement Fund.
A number of diocesan priests declined to comment until they have reviewed the recommendations proposed by the joint committee.
