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  #111  
Old 02-25-2015, 08:24 AM
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Mary Pat Campbell
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CATHOLIC CHURCH

http://ncronline.org/news/faith-pari...ial-management

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The Catholic priesthood is aging at an alarming rate, and thousands of U.S. diocesan priests are expected to retire within the next few years. With most diocesan priest pension plans significantly underfunded, questions over where the money comes from to support them may point to a major crisis in the making.
Table 1.jpgFewer than 26,265 diocesan priests remain in the U.S. today and of them, only 68 percent -- about 17,900 -- are still in active ministry (Table 1). Only about one-third as many new priests are being ordained each year to make up for the ones who are retiring, dying or leaving active ministry. Dioceses now have one retired priest for every two active priests, and half of all priests in active ministry are over the age of 60.

Half of all priests currently in active ministry also expect to retire by 2019, and most of them expect to receive the pension payments they've been promised. Church leaders have known for decades about the looming priest shortage and its implications for sustaining Catholic parishes as eucharistic communities. Another, more hidden crisis lurks in diocesan pension reserves that are underfunded, many of them seriously.

Thousands of priests retiring in the next few years could discover that the pension and post-retirement money they expect from their dioceses is not available. I reviewed the results of the USI Consulting Group's 2012 Diocesan Retirement Survey of priests and lay employees, focusing on priests. USI Consulting Group, founded in 1981 and headquartered in Glastonbury, Conn., provides retirement and employee benefit plan services throughout the United States.

......
Neither the Department of Labor, nor ERISA, nor the Pension Protection Act offers any pension protection to priests. Dioceses are not required to disclose any pension funding information to enrollees, and the Pension Benefit Guaranty Corporation will not step in to supply benefits if dioceses do not or cannot. Therefore, I was especially interested in reviewing the funding status of priests' defined benefit pensions. The USI Consulting Group survey provided this information in the aggregate for all survey respondents.

Table 3 shows that 36.8 percent of diocesan defined contribution plans were in the green zone, while 63.2 percent are in yellow (endangered) or red (critical) zones. If these plans were subject to the Department of Labor requirements, most of them would have to adopt either a funding improvement plan or rehabilitation plan.

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  #112  
Old 02-25-2015, 08:45 AM
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Well at least there is no worry over green zone since they are soundly funded >=80%
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  #113  
Old 02-25-2015, 09:11 AM
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maybe they are counting on the biblical actuarial axiom that "to die is gain"
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  #114  
Old 02-25-2015, 10:23 AM
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Usually one of the collections per year is specifically to help fund retired priests, nuns, monks, etc. I think that's supposed to be in addition to contributions already made, but I am not sure. I should find out.

In the mean time, I'm trying to send an email to the prof here:
http://www.wmich.edu/email/node/1325...ion=node/13250

But I'd rather his actual email address if I could get at it.
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Old 02-25-2015, 10:37 AM
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Kimberly Clark announced a $2.5 billion annuity buyout with MassMutual and Prudential.
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  #116  
Old 02-25-2015, 10:43 AM
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Kimberly Clark announced a $2.5 billion annuity buyout with MassMutual and Prudential.
Here's one piece on it:
http://www.ai-cio.com/channel/Pru_Sp...ompetitor.html

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Kimberly-Clark—the company behind Kleenex, Huggies, and Tampax—has reached a deal to offload $2.5 billion in pension liabilities across two insurers: Prudential and MassMutual.

The transaction, expected to begin June 1, would rank among the five largest US pension-risk transfers (PRT) by total liability size. GM’s mammoth $26 billion deal from 2012 has held fast in the top spot, followed by 2013’s $7.5 billion annuity purchase by Verizon and Motorola’s $3 billion transfer last year.

New Jersey-based Prudential acted as the sole annuity provider in all of these mega-buyouts—a streak set to end with Kimberly-Clark. Prudential, the sector’s most dominant actor, has agreed to cover half of the roughly $2.5 billion liability and administrate benefits. MassMutual has signed on to shoulder the remaining $1.25 billion.

“The fact that this transaction involves two insurers is interesting,” Sean Brennan, Mercer’s top US PRT expert, told CIO. “This is the first one of the jumbo deals to do that.”

That is kind of interesting.

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State Street Global Advisers, which represented participants’ interests as an independent fiduciary, settled on the MassMutual-Prudential pairing as “the safest available structure” to replace the pension.

Furthermore, according to Mercer’s Brennan, the entrance of another player into the formerly monopolized space bodes well for the industry overall. Plan sponsors offloading less than $1 billion in liabilities have plenty of options for bulk annuity providers, he noted. “Above $1 billion—Prudential has been successful in that account. But we do see insurers getting into the US market, or revisiting it: Legal & General, for example, has been building capabilities.”
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  #117  
Old 03-02-2015, 07:33 PM
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CATHOLIC DIOCESES IN U.S.

http://www.plansponsor.com/Majority_..._Pensions.aspx

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More than 57% of Catholic dioceses are planning to freeze or terminate their pension plans, according to a survey from USI Consulting Group.

More than three-fourths (76.1%) of respondents have an open and ongoing pension plan for lay employees, while 6.5% have already implemented a soft freeze of their plans and 17.4% have implemented a hard freeze.

Nearly three in ten (28.9%) of Catholic dioceses report their pension plans for lay employees are 80% funded or less. Fifty-three percent said their plans are 81% to 100% funded, and the rest are more than 100% funded.

.....
The USI Diocesan Retirement Survey results are based on responses from 87 archdioceses/dioceses from 39 states. Results are here.

I really should see if they need volunteers for finance councils.
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  #118  
Old 03-02-2015, 07:34 PM
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And the link they provided did not work.

I can't find the survey on their site at all.
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  #119  
Old 03-12-2015, 04:33 PM
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GIRL SCOUTS

http://www.aspendailynews.com/section/columnist/165912

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Then there was the pension scandal. Among Girl Scouts, no less. Part came from some ill-advised staffers added to soften the blow of the council mergers, part came from some ill-advised pre-recession investments, and part from the ill-advised choice of a “defined benefits” plan rather than a “defined contributions” arrangement. The pension plan was suddenly $400 million underwater by 2013, according to the Chronicle of Philanthropy. Sure, some came from falling interest rates that can mess up any estimate of future liabilities. And the Scouts would move to request a Congressional fix by changing a bit of statutory wording. But the distress could force local councils to pony up funds otherwise available to them for local programs, such as a current learning focus on science and technology.

......
The organization has launched a new five-year fundraising campaign. The deep hole in its 53 percent-funded pension plan could be eased by some deft re-wording of a 1974 federal law — if Congress can agree on anything. Perhaps the organization’s plan to stress student loan foregiveness will ease the road ahead for future Girl Scout leaders. Maybe the re-design of the cookie boxes will drum up a new benefactor. Perhaps dissident local councils will stay away from court in bids to stop the sale of campgrounds, or secede from pension contributions set to rise 62 percent over the three-year period through 2016.
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  #120  
Old 03-16-2015, 06:29 PM
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I`m going to add this here. Not because it`s exactly earth shattering but because it made it to an obscure blog.

http://bayourenaissanceman.blogspot....on-crisis.html

And I love the claim (in one of the links) about his friend that thought Obama was great because Obama himself had saved his pension plan from insolvency.
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