Boston's Catholic Archdiocese May Cut Priests' Pensions (Published 2005) (2024)

Seeking to save money, the Roman Catholic Archdiocese of Boston is proposing cuts in its pension benefits for priests.

The archdiocese says that its pension fund has had poor returns in recent years and has suffered from many of the same problems as corporate America's pension funds. Previously, however, officials have cited general financial strains stemming from the sexual abuse scandal and a resulting decline in contributions from churchgoers.

The archdiocese has begun holding meetings to inform priests of the proposed cuts. They include freezing monthly pension benefits at the current level, $1,889, rather than raising them with inflation, and asking some priests in some case to pick up more of their housing costs.

Medical benefits would also be reduced and linked to financial need for the first time. Able-bodied retired priests would be steered away from assisted-living quarters, which are expensive, and encouraged to stay in their parish rectories after retiring. Those who collect Social Security or have other assets, say, from a family inheritance, would have to dip into those funds to pay for assisted living and nursing home care that the archdiocese now provides.

An overview of the pension changes prepared by the archdiocese's consultant, Towers Perrin, was provided to The New York Times by a priest who would be affected by the changes.

Companies that offer pensions are barred by federal law from reducing benefits that employees have earned. But churches and other religious employers, like hospitals or schools, do not have to comply with the law and are generally free to handle their pension funds as they choose.