Diocese of La Crosse terminating pension plan for lay workers, update D.Lax press release

Termination could affect more than 1,000 former and current lay employees
Hundreds of current and former employees of the Diocese of La Crosse have learned the pension benefits they were counting on won’t be there for their retirement.

Bishop William Patrick Callahan informed members of its Lay Employees’ Retirement Plan in a letter that the diocese is terminating their pension plan, which has been underfunded for years.

After much analysis, discussions and prayers, it has been determined that it is necessary to terminate the Diocese of La Crosse Lay Employees’ Retirement Plan at this time,” Callahan wrote in the letter dated Feb. 27 and received by many employees over the weekend.

The plan covered Catholic school teachers, custodians, secretaries, rectory workers and other lay employees throughout the diocese, which serves 19 west-central Wisconsin counties covering an area extending from around Bloomer to the north, Prairie du Chien to the south, Wausau to the east and the Minnesota border to the west.

“It is alarming,” Regis Catholic Schools President Mark Gobler said Tuesday, estimating that more than 1,000 people could be affected by the change.

The pension plan members won’t learn the full impact of the plan termination until late May, when the diocese promised to deliver more information, Gobler said.
continue at Leader Telegram

Wow...

Also: Chippewa Herald: Diocese of La Crosse to eliminate pension for lay workers

Update: an explanation
This is a problem of defined BENEFIT pensions. This is why everyone business included has moved to defined contribution plans over defined benefit plans. This is smart and if I were in the plan I would take it. Market is high and a good time to exit. People can now invest as they choose. The benefit will be less but it will be there. Ask railroaders...oh wait the federal government bailed them out. Won't they bail out the church? We'll need a better union.
Update: wow, even made the LA Times

Update: La Crosse Diocese press release

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