The diocese is adopting a 403(b) plan effective January 1. According to news reports, employees who have worked for 30 years or more will be able to continue with the defined benefit pension plan, but pension plan accruals will stop for those with less than 30 years of service.
Under the 403(b) plan, the diocese will contribute an amount equal to 3% of an employee’s salary and match up to 1% of employee salary deferrals into the plan.
“It’s something most companies have already done,” said spokesman Sean Dolan, according to Newsday. “We think we have done everything we can to try to be more compassionate…than many companies.”Rockville Centre joins a long list of dioceses across the country that have moved from pension plans to defined contribution retirement plans for employees, including Philadelphia, Boston, St. Paul/Minneapolis and Chicago (see “Philadelphia Archdiocese Moving to 403(b)”).
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