Benefits June 28, 2011
Catholic Diocese Reaches Agreement on Lay Employee Pension
June 28, 2011 (PLANSPONSOR.com) – An agreement by the Catholic Diocese of Wilmington (Delaware) to aggressively address deficits in its pension plan for lay employees clears the way for its bankruptcy case to proceed.
Reported by Rebecca Moore
A news report on Delawareonline says that under the agreement, the diocese will add $10 million to the $10 million Lay Employee Pension Trust by the end of this year. At least $10 million more would be added in 2016-17, with at least another $2 million added each year until full funding is reached in 2060.
The agreement includes further protections, establishing a Lay Pension Plan Advisory Committee to monitor the pension fund and requiring the diocese to set aside a fully secured $15 million note, payable if the pension fund falls short again, according to the news report.
In a prepared statement, Bishop W. Francis Malooly said: “The additional funding and other steps we have agreed to take will secure the lay pension plan, ensuring the retirement benefits our employees have earned.”