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mahatmakanejeeves

(56,888 posts)
3. Church plans have different rules
Thu Feb 13, 2020, 05:06 PM
Feb 2020

I was wondering why the Pension Benefit Guaranty Corporation wasn't involved.

From the article:

Federal retirement law typically puts a backstop in place to prevent this sort of doomsday financial scenario for retirees and near-retirees.

However, St. Clare’s was affiliated with the Roman Catholic Church. Its pension, and those of other nonprofits throughout the U.S. with ties to religious entities, are beholden to different rules that could ultimately leave people empty-handed or with reduced benefits.

“We have seen estimates that it affects about 1 million people,” said Dara Smith, a senior attorney for the AARP Foundation representing many of the former St. Clare’s workers.

For families like the Adachs, who are near retirement with little time to make up for lost pension income, or retirees living on fixed incomes and unable to go back to work, the effect could be financially crippling.
"Loophole" is intentional. Started in Reagan years, laws weakened pension protection for workers. Midnight Writer Feb 2020 #1
Just one DENVERPOPS Feb 2020 #4
Some relatives of mine bucolic_frolic Feb 2020 #5
My Dad's corporation was bought by a French Co. that actually increased his pension plan. Midnight Writer Feb 2020 #7
Yes, Wellstone ruled Feb 2020 #8
Absolutely outrageous.. Firestorm49 Feb 2020 #2
Church plans have different rules mahatmakanejeeves Feb 2020 #3
Doesn't the Catholic Church (Rome) Dan Feb 2020 #12
Sorry, all their extra money goes towards lawsuit payouts Merlot Feb 2020 #17
A PBS program that I saw Collimator Feb 2020 #18
Figures... Rider3 Feb 2020 #6
I wonder,,,, Cryptoad Feb 2020 #9
I seriously wonder what the Pope has to say about this. n/t MarcA Feb 2020 #15
This looks like the tip of the iceberg, because this issue affects all religious institutions. pnwmom Feb 2020 #10
So it was a church plan when it was avoiding payments to the PBGC ... VMA131Marine Feb 2020 #11
But but ...the stock market is so high eom LittleGirl Feb 2020 #13
NYSE near 30,000 and NASDAQ near 10,000 King_Klonopin Feb 2020 #19
Somebody is getting rich LittleGirl Feb 2020 #20
Don't forget to tithe from what little you have left. keithbvadu2 Feb 2020 #14
Pensions were a nice perk long ago Politicub Feb 2020 #16
After a review by forum hosts....LOCKING Omaha Steve Feb 2020 #21
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