What The Diocese Is Doing About Underfunded Pensions

Pension plans for employees and former employees for the St. Cloud Catholic Diocese were informed last summer that their plans were under funded by Christian Brothers of Illinois.  St. Cloud Diocese Bishop Patrick Neary and St. Cloud Diocese Director of Planning, Brenda Kresky joined me on WJON to learn more about how this happened.

Pension Plan

Neary says the St. Cloud Diocese has been apart of this pension plan since the early 1990s.  He says the Diocese had been receiving an annual report from Christian Brothers but were blindsided, like everyone else, that the plan was severely underfunded.  Bishop Neary says 188 mostly Catholic entities were apart of this pension plan. He says the plan is set up similar to how social security is set up where the people currently working fund the retirement plans of those that aren't.  Neary says, like social security, there are fewer people paying into the system with more people drawing money out of it.

Spinning Off From Christian Brothers

Bishop Neary says this a serious issue and realized their best option was to spin off from Christian Brothers.  He says they got USI consultants involved and formed a task force to help with this transition.  Neary says the goal is to do right by the 1,400 current and former employees who were apart of this pension plan.  He indicates he's received many communications from the people affected by this shortfall.  Bishop Neary, along with 9 other Bishops affected, demanded a meeting with Christians Brothers and that took place on February 4, 2026.

New Plan

A couple of weeks ago the St. Cloud Diocese released their plan.  Bishop Neary says USI consultants will manage the accounts with U.S. Bank as the holder of the plans.  He says they will spin off from Christian Brothers and receive the bulk amount of money they've invested.  Bishop Neary says the deficit is approximately $34 Million.  He says USI consultants are available to answer any questions for anyone holding a pension plan.  The individuals holding these pension plans have the new plan information.

Doing Right by Plan Holders

Bishop Neary says retired individuals with pensions are receiving money from their pensions and will going forward.  He is confident that they will do right by the pension holders with this new plan.  Bishop Neary expects to receive the assets from Christian Brothers this June.

If you'd like to listen to my conversation with Bishop Neary and Brenda Kresky, click below.