Archdiocese seeks to boost retirement fund

The Archdiocese of Boston is making a second attempt at shoring up its accounts for retired and disabled priests, which are underfunded by an estimated $110 million. Archdiocesan Chancellor James P. McDonough (right) last week briefed about 400 priests about a proposal -- which still must be approved by Cardinal Sean P. O'Malley -- to appoint a new board of trustees, with a majority made up of laypeople, to govern the funds. McDonough also pledged to set into motion a review of how the funds have been managed for the last quarter-century, in an effort to put to rest questions about whether parishioner contributions on Easter and Christmas were used for the intended purpose. He said the archdiocese expects to raise about half of the unfunded liability through the ongoing Christmas and Easter collections, and the other half from fundraising and by adding a third annual collection for the retirement funds. From my story in today's Globe:

"In the Archdiocese of Boston, confidence in the clergy benefits funds was shaken three years ago, after a presentation given by church officials to priests suggested that during a 17-year period ending in 2002 no money was deposited into the retirement account, even though during those years tens of millions of dollars were collected in donations from parishioners for that purpose. Church officials have since repeatedly said that the funds were simply put into another clergy benefit account and used for the intended purpose, but the officials have struggled to put suspicions about the handling of the money to rest."

The archdiocesan vicar general, Rev. Richard M. Erikson, e-mailed priests about the proposed changes yesterday. An excerpt:

"The revitalization of the Clergy Funds is one of the most challenging issues we face as a Presbyterate and it is essential that it be addressed thoroughly, with a solid plan in place for the future and with your unwavering support. Cardinal Seán has asked myself, the Chancellor, and several others to work on restoring the Clergy Funds so that all of our priests will be well cared for now and in the future. The Cardinal's commitment to you, his brother priests, is steadfast and he is committed to caring for your retirement, medical and financial needs. As you know, the Clergy Funds are the vehicle for administering the programs that provide for the retirement, medical and financial needs of the priests of the Archdiocese. Current estimates point to a Clergy Funds need of $50 million. If not addressed, the Funds will run out of money in 2011. The reasons for the deficit include, among others: Christmas and Easter collections have remained relatively flat for the past several years; investment returns have fallen below actuarial projections; and there have been dramatic increases in health care and nursing home costs."

(Globe photo by Bill Brett.)