St. Cloud Diocese Spins Off Pension Fund After $35 Million Shortfall Alarms 1,400 Workers
Updated
Updated · KARE11.com · May 13
St. Cloud Diocese Spins Off Pension Fund After $35 Million Shortfall Alarms 1,400 Workers
2 articles · Updated · KARE11.com · May 13
Nearly 1,400 St. Cloud Catholic Diocese employees were told last October their pension was $35 million underfunded, and the diocese has now chosen to spin the plan off from Christian Brothers Services.
That move follows a broader funding crisis at Christian Brothers, where 180 employers and 40,000 workers learned of an $800 million gap between pension assets and liabilities.
About 300 current and retired St. Cloud workers have formed an advocacy group, saying they still lack transparency, listening sessions and a seat in decisions as they fear benefit cuts.
Christian Brothers said the plan never fully recovered from the 2008 recession, had more retirees than active contributors, and absorbed nearly $150 million in losses tied to Allianz Global Investors.
Church pension plans are exempt from the federal PBGC backstop, leaving St. Cloud and other church-linked employers to cover the shortfall themselves or face possible legal action from retirees.
Facing a $35 million pension hole, will 1,400 church workers lose nearly half their retirement savings?
Their church pension isn't federally insured. Can a lawsuit recover the millions they've lost?