Concerns Rise Over Cuts to Pension Plans in St. Cloud Diocese

ST. Cloud — Retirees and current employees in the Diocese of St. Cloud are expressing concern regarding significant reductions to their pension plans.

Jeffrey Custer, a retired teacher who is part of a group seeking further information, mentioned that a letter was distributed to pension plan participants last fall, following a webinar.

Custer noted that approximately 1,400 retirees and active employees will be impacted by these changes.

Many Catholic school teachers, youth pastors, and others who have dedicated years to the diocese rely on this pension. An average cut of 42% isn’t right. We believe the diocese has the capacity to raise the necessary funds to address this situation.

They have been informed that the Christian Brothers pension plan faces a $35 million shortfall.

The troubling aspect is that, because it’s a church organization, it doesn’t qualify for the federal pension insurance. So there’s a deficit here that isn’t covered. It seems the Christian Brothers made some poor investment choices.

Custer initially learned about the issue through a letter in November, but he suspects that the diocese was aware of the situation long before that.

The diocese has insisted they were unaware of these issues. However, Christian Brothers, which managed the program for about ten years, purportedly stated that the pension program has been in serious trouble.

The group has put forth four requests to the diocese, which include distributing a letter and video during Mass, representation on the pension task force, consultation sessions for pension participants, and initiating a capital campaign to fulfill the pension pledge.

Custer mentioned that he has had private discussions with Bishop Neary twice, but he feels that little progress has been made since he first raised concerns in November.

The St. Cloud Parish office has responded to WJON’s news, directing attention to a web page with updated information on the pension situation. Recently, it was revealed that the pension plan will be frozen effective December 31, 2025. This means that new hires won’t be able to join the pension plan, and current employees will cease additional contributions.

Additionally, funds are anticipated to be transferred from Christian Brothers to a new designated account sometime in summer 2026.