St. Joseph’s Pension Fund Bankruptcy Could Be Just One of Many in RI
Tuesday, September 05, 2017
Church pension plans controlled by the Diocese of Providence, like the bankrupt pension fund of St. Joseph Health services, may be in distress too - but no one knows and the Diocese of Providence will not respond to repeated requests for comments.
These unregulated secret funds, that many Rhode Islanders are counting on for the retirement are, as one top federal regulator told GoLocal, "the wild, wild, west.”
Church Plans Under Scrutiny
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTSo called "church plans" are not regulated by any state or federal regulatory agencies. They are not required to file reports.
According to GoLocal’s investigation into the St. Joseph pension fund bankruptcy, the impending collapse could have been identified years earlier when Rhode Island Attorney General Peter Kilmartin had the chance to flag the pension fund's deficit during the 2014 review of the sale of St. Joseph to CharterCARE.
READ THE LIST OF FEDERALLY INSURED PLANS BELOW - DID YOUR PENSION MAKE THE LIST
His office failed to - or choose not to - identify the massive deficit.
Tax documents filed by the hospital pre-merger, and by the orphaned pension fund post-merger, show that the retirement fund faced a growing deficit — which rose to over $126 million in 2014.
In August, St. Joseph's pension filed for bankruptcy and nearly 3,000 in the pension fund are facing a 40 percent cut to their pension payments.
The Pension Rights Center warns, “Unlike other private pension plans, church plans are not required to maintain set funding levels nor are they required to pay the benefits they have promised their employees. This can leave employees and retirees at risk of losing their pensions because the plan could run out of money.”
Diocesan Lay Employees’ Retirement Plan
According to a 2009 article in the Diocese of Providence’s newspaper, Rhode Island Catholic, the Lay Employees’ Retirement Plan was in distress and the benefits payouts were being cut back.
The then-administrative secretary to the Lay Employees’ fund, J. Timothy Kocab, administrative secretary of the Lay Employees’ Retirement Board said, “The plan’s assets…have declined significantly in value during the past several months.”
In addition, Kocab is quoted as saying, "These are necessary steps in order for us to refocus our resources on strengthening the funding position of the Lay Employees’ Retirement Plan.”
Kocab told Diocesan employees in a letter, "Your employer remains committed to helping you build financial security for your retirement years.”
The Diocese fiscal office refused to answer questions about the St. Joseph pension fund bankruptcy, the Lay Employees’ Retirement Fund, or any other church funds associated with the Diocese of Providence.
According to the Diocese’s website, the fiscal office was “established in 1973 to assist the Roman Catholic Bishop of Providence and related Diocesan Corporations in their administration of the temporal resources of the Church, the Fiscal Office operates in a multi-corporate environment and is responsible for the day to day activity of some 30 separate internal corporations.”
Lack of Public Disclosure
How many church fund retirement plans exist in Rhode Island is unknown. The office material states, "[The Diocese] is responsible for the direct coordination, administration, enrollment and billing processes for more than 3,600 Lay Employees and 270 Active/Retired Priests for the following Diocesan sponsored benefit programs."
Phone calls, emails, and social media information requests were not responded to by five different Diocese employees including Bishop Thomas Tobin. The refusal to answer questions stands in stark contrast to years of responsiveness to media calls by the Diocese to GoLocal.
“Church plans are not required to inform workers and retirees or the federal government about their financial health. They also are not obligated to tell employees about their benefits or legal rights under the plans,” reports the Pension Center.
Most pensions of private-sector workers and retirees are protected by the Pension Benefit Guaranty Corporation (PBGC).
When pension plans fail, the PBGC guarantees that “subject to certain limits, those who are already retired will continue to receive their pension payments and current employees will receive the benefits that they had earned as of the plan’s termination date.”
Church pension plans are not protected by PBGC.
Related Slideshow: List of RI Active Single-Employer Pensions Plans Insured by Federal PBGC Insurance
Related Articles
- After Week of Silence, Kilmartin Issues Statement on St. Joseph Pension Bankruptcy
- VIDEO: Governor Raimondo Calls for Investigation into St. Joseph Pension Fund Bankruptcy
- Riley: St. Joseph Pension Collapse Was Negligence or Malfeasance by Kilmartin
- 10 Things to Know About One of Biggest Pension Failures in RI - St. Joseph Bankruptcy
- EXCLUSIVE: Major RI Pension System Files for Bankruptcy
- READ: St. Joseph Pension Fund Bankruptcy Documents
- Moore: State Should Rescue St. Joseph’s Pensioners
- Mattiello Blasts Kilmartin on St. Joseph Pension Fund Bankruptcy
- Siedle: St. Joseph’s Pension Fund Bankruptcy Shows RI Needs AG Who Knows Pensions
- Who Was Responsible for Protecting the St. Joseph Pension Fund?
- United Nurses and Allied Professionals Statement on Bankruptcy of St. Joseph’s Retirement Fund
- NEW: Raimondo Gives Comment St. Joseph’s Pension Fund Bankruptcy, Kilmartin Refuses
- Receiver: St. Joseph Pension Bankruptcy Will Impact As Many as 2,800, 40% Cuts to Benefits
- St. Joseph Bankruptcy: Diocese Failed to Make Contributions to Employees Pension Fund for Years
- Bishop Tobin Issues Statement on Supreme Court Same-Sex Marriage Deliberations
- NEW: Bishop Tobin Issues Statement on Marriage Equality Hearings
- NEW: Bishop Tobin Reacts to the Election of Pope Francis
- NEW: Bishop Tobin Calls for Defeat of Civil Unions
- EXCLUSIVE: Bishop Tobin—Church OK with Some Benefits for Gay Couples
- RI State Report: Grants For Vets + Bishop Tobin Switches Parties
- RI’s Thomas Tobin: Is He America’s Conservative Bishop?
- Bishop Tobin: Catholic Church Had “No Choice” in Firing Gay Music Director
- Controversial Comments by Bishop Tobin Over the Years
- NEW: Bishop Tobin Questions If Elorza is an Atheist
- NEW: Bishop Tobin Criticizes Nelson Mandela’s Abortion Stance
- ABC6’s “In The Arena” Features Paolino and Bishop Tobin
