Catholic Lay Employees' Retirement Benefits
Reduced
April 20, 2009 (PLANSPONSOR.com) - J. Timothy Kocab,
administrative secretary of the Lay Employees' Retirement
Board, has detailed plan benefit reductions "in order for us
to refocus our resources on strengthening the funding
position."
The Rhode Island Catholic reports that starting
July 1 additional retirement benefits earned in the
future will be calculated based on a new reduced formula
that will lower annual accrued benefits. In addition, the
number of years required for an employee to be vested in
the plan will increase from five to 10.
Employees who have completed five or more years of
eligible service with a participating employer as of June
30 will be grandfathered and fully vested under the
current plan provisions. The news report said Kocab noted
that once vested, employees have the right to receive
their earned benefit starting at the normal retirement
age of 65 and with five years of eligible service.
Employees may also receive their vested benefit at a
reduced rate starting as early as age 55.
"The employee retirement plan is part of a larger
program that includes your personal tax deferred savings
under the 403 (b) plan, as well as social security,"
Kocab told diocesan employees in a letter, according to
the Rhode Island Catholic. "Your employer remains
committed to helping you build financial security for
your retirement years."
Rebecca Moore
editors@plansponsor.com