St. Cloud Diocese Pension Concerns Information Hub

After the November 20th St. Cloud Diocesan Pension Plan zoom meeting, many current and retired employees from Catholic schools, parishes, and the Diocese of St Cloud expressed significant concerns regarding their lack of voice in the pension plan decision-making process. There was a prevailing sentiment of distrust towards the diocese to make the best decisions without input from those most impacted: 'The Workers.'

On December 4th, fifty workers gathered at the Saint Cloud Library to listen to each other and develop a strategy to advocate for our expectations from the diocese regarding these employee pension concerns. A letter to the bishop was posted on December 8th outlining the group’s expectations.

We want better representation on the Diocesan Pension Committee. It is crucial that all stakeholders, especially teachers and the schools, are represented. Both current employees and retired employees need adequate representation on the committee.

We also seek improved communication and more involvement from the bishop. We request that the bishop write or record a message regarding the ongoing pension plan issues to be shared at all masses. Additionally, we want the bishop to organize listening sessions with current and retired employees affected by these pension problems. It is essential that all current and retired employees impacted by the Christian Brothers pension receive regular updates from the diocese. Furthermore, we urge the bishop to initiate a diocesan capital campaign to address any losses that current and retired employees may incur due to reductions in their pensions.

We demand transparency from the Diocesan Pension Committee. We wish to see the minutes from past and future diocesan pension committee meetings. Moreover, we want clarity on the specific financial implications for current and retired employees related to each of the four options presented during the zoom meeting.

Understanding the Christian Brothers Pension Situation (For Staff and Retirees)

The pension plan managed by Christian Brothers Services is underfunded, meaning it does not have enough money to cover all promised benefits if nothing changes. Here’s what you need to know:

1. Diocese Spin-Off Decision

The Diocese of St Cloud has decided to spin off the pension plan, creating its own independent plan separate from Christian Brothers Services. This spin-off means the diocese takes on the responsibility for funding pensions for current and future participants. The current challenge is that the diocese does not have sufficient funds to fully invest in the new plan, which means it faces ongoing financial pressure to meet its obligations.

2. How the Spin-Off May Affect Employees and Retirees

Current retirees: Monthly pension checks are expected to continue for now, but the diocese’s limited resources may put long-term stability at risk.

Active employees: Future pension accruals will continue under the new diocesan plan, but the plan’s ability to maintain promised benefits depends on future funding. There is uncertainty; while a spin-off gives the diocese more control, the lack of upfront funding creates real risk, and benefit reductions or changes could be necessary in the future.

3. How Pension Plans Typically Handle Shortfalls

Employer contributions increase first: Organizations try to raise contributions over the years to reduce the funding gap. Future benefits may be adjusted: Plans can freeze accruals, reduce cost-of-living adjustments, or limit growth for active employees. New hires may be moved to other plans: Many employers shift new employees to 401(k)-style plans to limit future liabilities. Investment strategies may change: Plans may pursue higher returns, which can help but also increases risk.

4. Church Pension Rules

Church pension plans, like those managed by Christian Brothers, do not have federal insurance or regulatory protection. Employees have limited legal recourse if benefits are reduced or if the plan fails. The employer (diocese or school) is primarily responsible for maintaining funding.

5. What This Means for You

No immediate cuts are planned, but the long-term outlook remains uncertain. Current retirees are expected to continue receiving checks, but future benefits may be at risk if the diocese cannot fully fund the plan. Active employees’ pensions will accrue in the new plan, but stability relies on the diocese’s ability to make contributions over time. While the spin-off allows the diocese to control funding and investment decisions, the lack of upfront money creates ongoing financial challenges and uncertainty.

Bottom Line: The Christian Brothers pension plan is underfunded, and while the diocesan spin-off is a proactive step, the lack of immediate funds means benefits for current and future participants are not fully guaranteed. Employees and retirees should be aware of ongoing risks and follow updates closely.