Priest Retirement FAQs

1. How will the gifts be used?
Gifts will be placed in the existing Priest Pension Plan. This fund covers retired priest pension and their health insurance.

2. How is the Priest Pension Plan structured?
The Priest Pension Plan is approved by the Internal Revenue Service (IRS) and is administered following IRS guidelines.

3. Do retired priests have to pay for their own room and board?
Yes. Upon retirement, priests are responsible for their own out of pocket living expenses including room and board. They will receive their archdiocesan pension and social security benefits. Hopefully, they have also been investing in savings/retirement plans since they were ordained. But it is important to remember, that as a priest’s social security benefit is based on his average annual income, it will be smaller than for laypersons who will often have higher incomes.

4. The last archdiocesan campaign (A Time to Remember), which finished donor solicitations in 1998, successfully raised money to fund priest retirement. How have the proceeds from that campaign been used?
The A Time to Remember campaign netted nearly $30 million after all expenses. It has been used for:

• retired priest’s pension benefits
• priest health insurance support
• construction of a priest retirement home

It is important to note that between 1998 and July 1, 2021, $62.8 million from the Priest Pension Plan has been distributed for its intended purposes listed above. As of July 1, 2021, there remained a balance of just over $16.6 million in the Priest Pension Plan.

5. If the A Time to Remember campaign was successful, why are we being asked to support priest retirement (the Priest Pension Plan) again?
A recently completed actuarial study indicated the Priest Pension Plan needs an additional $15 million to be fully funded. The factors listed as reasons for the current shortfall include:

• no new infusion of funds since A The Time to Remember campaign concluded
• increased costs for medical care
• increased pension benefits
• increased life expectancy

Adding funds from the ArchdioceseOne appeal, along with the reinstated parish assessment plan for priest retirement, will provide a steady funding source.
 
6. Were proceeds from A Time to Remember or any existing priest retirement funds prior to 1998 used to settle claims or related expenses resulting from the priest abuse scandal?
No. All of the settlements and related expenses were funded by the Dubuque Archdiocesan Protection Plan, the property and liability insurance program for the archdiocese.

 

* Page updated September 23, 2021.