PROVIDENCE — Following many months of consultations regarding the Lay Employee Retirement Plan (“pension plan”), the Diocesan Administration Corporation is announcing a voluntary, limited time offer for eligible participants to receive a lump sum payment of their benefit at a reduced rate. This decision comes one year after the diocese froze the underfunded employee pension plan and after numerous participants expressed a strong desire for a possible pension buyout option during pension plan meetings that were held across the diocese. This change to the pension plan comes as a result of years of dedicated efforts by the Lay Employees’ Pension Board and members of the subcommittee of the Diocesan Finance Council and will now be implemented with their approval.
Key points:
• Any acceptance of a lump sum payment would be completely voluntary and at the option of the eligible employee or plan participant.
• The payout offer would be made to eligible active employees 55 years of age and older with a vested benefit; vested terminated employees; and current retirees.
• The payout offer is available at a reduced rate, for a defined and limited time period only. The current plan will continue for those who may qualify, but have chosen not to take the offer as well as for those who do not qualify for this program.
Participants who are eligible for this offer will be notified individually concerning their voluntary option in the coming days and weeks. Those eligible for this offer will have the opportunity for further information and to ask questions during informational meetings held around the diocese in February.
The underfunded Defined Benefit Plan was frozen on December 31, 2018 and allows for no new participants nor future accrual of benefit. A new 403 (b) Defined Contribution Plan with an annual employer contribution for all eligible employees was established on January 1, 2019.
