Tuesday, September 8, 2015

Catholic clergy pension funds severely underfunded

The Reuters story was picked up here:

"A Reuters review of U.S. Catholic financial disclosures shows the pension funding shortfall in 2014 likely approached $2 billion, with much of that coming due in the next five years as thousands of priests retire. ... A review of 51 dioceses that provide detailed financial information showed a clergy pension funding gap of nearly $700 million - a figure that does not include other post-retirement benefits, or obligations to lay staff. If the remainder of the roughly 197 dioceses in the United States face similar funding issues, the total pension gap would be close to $2 billion. ...

"Pensions for priests became commonplace in the U.S. Catholic Church in the 1970s, typically funded through donations, fundraising drives, and – in some cases – contributions from clergy wages. The pensions are generally fairly meager at around $20,000 per year. A report issued by non-profit group Laity in Support of Retired Priests (LSRP) last year showed that an average priest's pension and social security benefits are projected to be lower than the cost of living."