Milwaukee archdiocese pension funds fall short $41.8 million

Three pension funds operated by the Archdiocese of Milwaukee for priests, lay employees and unionized cemetery workers have unfunded liabilities totaling $41.8 million, according to documents filed as part of the archdiocese's bankruptcy proceedings.

The gap between current assets and future payouts for the priest and lay workers' pensions - at 9.6% and 16.9%, respectively - fall within reasonable ranges given the economic conditions of the last few years, according to pension experts.

But the size of the lay workers' pension liability (at $37.4 million) and the funding level of the cemetery workers' pension (55% - with $1.3 million in assets and a $1 million unfunded liability) raise concerns about the health and future of those benefits, pension experts say.

"Anything funded below 80%, you'd have to look at, but a large gap is cause for concern, said Eric Loi, staff attorney for the Pension Rights Center, a consumer advocacy group in Washington, D.C.

Archdiocese spokeswoman Julie Wolf blamed the shortfalls on poor investment returns and said in a statement that there is "no current cause for concern for employees."

"All benefits have been timely paid, and it is clear that the plans will continue to pay all benefits payable in the immediate future," she said.

The pension liabilities are laid out in claims filed last week against the assets of the archdiocese. They are among 160 claims totaling $123.4 million filed to date by creditors in the church's Chapter 11 bankruptcy. In this case, it is the archdiocese itself and the pension trustees making the claims to protect the pensions.

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