Archdiocese Sells Properties to Meet Unfunded Obligations

October 10, 2014 ( - The Archdiocese of Philadelphia sold three archdiocesan properties, in part to meet pension obligations.

The properties are collectively worth an estimated $56.2 million, according to Catholic News Service. Proceeds from the latest transactions along with the $53 million initial payment from long-term leasing of 13 archdiocesan cemeteries completed last May and the sale of the archdiocesan nursing homes, projected to net $95 million after closing costs, will address three underfunded obligations of the archdiocese—the Priests Pension Plan, the Trust and Loan Fund, and the Self-Insurance Fund.

The Priests Pension Plan is currently underfunded by an estimated $76.3 million. The Trust and Loan Fund, which like a bank accepts deposits from parishes and makes loans to them for projects, was underfunded by $79.8 million as of June 30, 2013. The Self-Insurance Fund remains underfunded at $18.9 million.

The news report also noted the Archdiocese’s Lay Employees Retirement Plan is underfunded by $142 million. That plan was frozen last July as the archdiocese began to offer its employees a 403(b) defined contribution retirement plan. At the end of fiscal year 2013, the plan had $522 million of assets against actuarially determined liabilities of approximately $664 million—a funding rate of about 79%.

More details of the Archdiocese efforts to address underfunded obligations are here.