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Priests’ RetirementReport SummaryRoman Catholic Diocese of WorcesterMarch 31, 2020
A Bishop’s Canonical Obligation toRetired Priests Canon 538 §3:o A parish priest who has completed his seventy fifth year of age isrequested to offer his resignation from office to the diocesan Bishop who,after considering all the circumstances of person and place, is to decidewhether to accept or defer it. Having taken account of the norms laiddown by the Episcopal Conference, the diocesan Bishop must makeprovision for the appropriate maintenance and residence of the priestwho has resigned. Norms for Priests and Their Third Age:o Each Diocese should guarantee that priests be given adequate supportthrough a long-range, financially independent, and professionallymanaged pension fund. In addition, the priest should bear in mindresponsible stewardship of his own resources. Participation in the socialsecurity system as well as IRA’s (sic) or other forms of savings is consideredan essential element of this stewardship.2
FOCUS To review:o the suitability and sustainability of benefitso the means for the funding of those benefits Subcommitteeso Benefitso Revenue3
Committee Members Monsignor Thomas SullivanMonsignor Michael RoseMonsignor Francis ScollenFather Daniel MulcahyFather Edward NiccollsFather Dennis O’BrienSister Mary Ann Bartell, CSEMr. Richard FournierMr. Paul SchaselMr. Frederick RandallFather Richard Reidy4
Current Profile(March 31, 2020) Retirees in Good Standing51 Retirement Age75 Active Priests Active Priests over 751216 Number of Active Priests whowill turn 75 by 202942 Average Age of Active Priests55.9(As of September 1, 2019) Average Age of Retirees79.75
Current Retirement BenefitsStipendHealth Insurance (Priests contribute 840/year) 2,233/month 6,000/yearUNUM Long-Term Care Basic Policy*:-LTC (after 60 days) 3,000/month-Assisted Living 1,800/month-Home Care 1,500/month-Lifetime BenefitIndependent LivingPersonal Home 72,000 360/month-Rectories 0-600/month-Colony Home 1,000/month-Southgate 1,500/monthAssisted Living** 6-7,000/monthNursing Home (first 60 days) 12,000/monthRetreats/Assemblies*A priest can opt to pay greater coverage.** Monthly stipend reduced to 100/month6
Annual Cost of Current Benefits: FY19 Year EndStipendsHealth Insurance (Diocesan Share)UNUM Policy (Diocesan Share) 1,420,085325,049101,668Independent Living-Personal Homes-RectoriesSouthgate/Colony[counted with stipend total]8,600196,732573,8332,577Assisted Living & Nursing HomeRetreats/AssembliesActuarial Evaluation Cost (USI)14,500Total 2,643,04411 Thistotal is 250,000 less than what is reported for priest retirement expenses on the FY2019 Diocesan Annual Report,apparently due to accounting requirements involved with the transfer of restricted funds.7
Operating Revenue for Priests’ RetirementIncomePartners in CharityFY2015FY2016FY2017FY2018FY2019 550,000 550,000 550,000 550,000 550,000-280,000191,520225,000145,000 185,020Priest Ret. al Care Assess.2335,958335,348328,320326,317322,208UNUM LTC erest Income24,79316,675110,88650,35458,615- 60---Total Income: 1,356,822 1,977,122 1,895,542 2,076,011 1,602,328 620,30045.7%( 81,580)-4.1% 180,4699.5%( 473,683)-22.8%Celebrate PriesthoodContributions: IndividualContributions: BequestsOther IncomeYear-on-Year Change Year-on-Year Change %n/an/a1 3,350per active priest, paid by parish or Dioceseper active priest, paid by parish or Diocese3Various amounts paid by priests based on age, benefit election, etc .2 2,7508
Restricted Funds and Target DistributionRestricted FundsForward in Faith: PriestRetirementMsgr. Griffin Fund:InvestmentMsgr. Griffin Fund: DEFBalance as of8/31/19Ann.Dist.RateAnnualDistributionAmount 5,193,7334.0% 207,7499,483,6924.0%379,348141,0244.0%5,641Priest Retirement Fund323,0314.0%12,921Retired Priest ResidenceFundCurrent:595,7904.0%23,832 15,737,270 629,4919
Priests’ RetirementFY19 SummaryExpensesOperating RevenueOperating Deficit- Restricted Funds (transfer 4% TargetDistribution)- Excess Costs over Operating Revenueand 4% Target Distribution 2, 643, 0441, 602, 3281, 040, 716629, 491411, 225 With 42 additional retirements over the next 10years we must balance expenses and revenuesfor the sake of sustainability.10
Recommendations: General1.Actuarial Calculations:a.Before implementing any recommendations, have USI calculate:i.ii.2.Ordained Ministry outside of Diocesan Jurisdiction and Leaves ofAbsence:a.b.3.Gratefully continue to support the ministry of Sister Mary Ann and, in the future,continue such support and service.Retirement Planning:a.5.If retirement benefits have accrued for such ministry, e.g. Military or Hospitalchaplaincies or teaching positions, Diocesan benefits are reduced.Clarity about possible reduction in retirement benefits is necessary beforepermission for extended personal leaves of absence.Ministry to Retired Priests:a.4.the cost of each recommendationthe number of priests who will be over the age of 75 for each of the next 30 yearsMake available appropriate professionals to our priests at the beginning of theirpriesthood and appropriate intervals.Retirement Committee:a.A permanent committee should monitor and make recommendations onappropriate stipends and benefits .11
Recommendations: Benefits6. Housing Allowancesa. Eliminate housing allowances. Raise monthly stipend to 2,600 permonth.7. Southgatea. Retain as residence for frail priests not yet in need of assisted living.b. Except for current residents, eliminate the 1,500/month stipends forSouthgate residents.c. If frail priests cannot afford Southgate from their 2,600 monthly stipend,social security check, applicable UNUM benefits and personal assets, theDiocese, after a review of need, will provide support.8. Other Independent Housing Options:a. Familyb. Personal homes or apartments including Southgate (without assistancefor frail priests in financial need) or rectory.c. Diocese should explore Colony Home and Goddard House as options forIndependent Living.12
Recommendations: Benefits (Cont’d)9. Assisted Living:a. Priests retain monthly stipend and pay for assisted living out of that stipend,social security check, applicable UNUM benefits, personal assets andgovernment assistance. If such is insufficient, the Diocese, after a review ofneed, will provide support or alternate residence.10. Nursing Homea. The Diocese will assist with placement. Payment from priest monthly stipend,social security check, applicable UNUM benefits, personal assets andgovernmental assistance. The Diocese will temporarily advance one monthscost if necessary to secure suitable placement when personal assets areinaccessible.11. Grandfatheringa. Priests currently living at Southgate, Notre Dame, in Independent or AssistedLiving shall not be affected by these recommendations.12. Recovery Housing:a. The Diocese should provide a place for priests recovering from complexsurgeries or medical issues until they are able to return to their Parishassignment or retirement dwelling.13
Recommendations: Revenue13. Priest Retirement Savings:a.Institute funding vehicle for younger priests, e.g. age 35, to which thepriests and possibly their Parish/Department would make monthlycontributions.14. Second collection:a. An annual second collection to support priest retirement ought to betaken throughout the diocese.15.Assessments:a. Over time, significantly increase parish and department assessments forpriest retirement, possibly with wealthier parishes sharing a greater portion.Alternatively, an increase in the cathedraticum to fund priest retirementmight be more equitable to poor parishes.16.Bequests and Gifts:a. Continue to promote bequests and gifts among priests and laity.17. Legacy of Hope:a. Emphasize the critical importance of Legacy of Hope.14
Additional Retirement Funds and Income ifLegacy of Hope is SuccessfulRestricted FundsBalance as ofAnnualAnnual8/31/19 Distribution DistributionRateAmountCurrent Total: 15,737,270Legacy of Hope 12,000,000Projected 27,737, 270 629,4914.0% 480,000 1,109,49115
Disparity of Benefits Due to Varying MonthlyHousing Allowances for Independent LivingSalary/mAdditionalDiocesanPayments/mBenefits forPriests:TotalBenefits:St.St. George,SouthgateMary's, Bl. Sacrament,St. AnneUxbridge 2,233 2,233 2,233HolyFamilyColonyPrivateResidence 2,233 1,727 2,233 1,500 200 0 600.00 1,000 360SS CheckSS CheckSS CheckSSCheckSS CheckSS CheckMealsMealsMealsHouseKeeping 3,733.00HouseKeeping 2,233.00 2,833.00HouseKeeping 2,727.00 2,433.00 2,593.0016
Health Insurance (Diocesan Share) 325,049 UNUM Policy (Diocesan Share) 101,668 Independent Living-Personal Homes [counted with stipend total]-Rectories 8,600-Southgate/Colony 196,732 Assisted Living & Nursing Home 573,833 Retreats/Assemblies 2,577 Actuarial Evaluation Cost (USI) 14,500 Total 2,643,044 1
