Archdiocese of Milwaukee pension plans underfunded

The Archdiocese of Milwaukee said Friday that its employees' pension plans are underfunded, confirming one of the fears expressed by Catholic Church employees since the archdiocese filed for Chapter 11 bankruptcy protection on Jan. 4.

The revelation came at a meeting Friday of the archdiocese and creditors - including clergy sex abuse victims and pension representatives - with Assistant U.S. Trustee David Asbach.

Archdiocese spokesman Jerry Topczewski said he could not estimate the extent of the shortfall, but that it affects only archdiocese employees and retirees - not those of schools, parishes or other participating employers. He attributed the shortfall to poor investment performance.

"It's not because we haven't made payments. They're made on time and based on actuarial projections," said Topczewski, one of nearly 5,800 people covered in a pension plan for lay employees throughout the diocese.

"You could call all kinds of pension funds around town and find a lot are underfunded," he said. "All investment stocks took a hit in 2008, and we're still trying to recover from that."

The archdiocese filed for Chapter 11 bankruptcy protection earlier this month, saying it is the best way to equitably compensate victims of clergy sex abuse and maintain the essential ministries of the church.

Attorney Daryl Diesing said at the meeting Friday that the archdiocese participates in four retiree plans: three pension funds for lay workers, priests and union workers; and a retired priest's health plan.

Topczewski said the plans are held in trusts and as such are not assets available to fund a settlement - although that could be challenged by attorneys for the creditors.

Victims' attorneys did not return telephone calls and e-mails seeking comment.

MilJournalSentinel