Church Pensions in Danger After Sex-Abuse Lawsuits Bankrupt Many Catholic Diocese

Many current and former church employees could lose retirement money because of a little-known loophole in federal pension protections, says National Public Radio.

For example, when the Catholic Diocese of Wilmington, Del., had to file for bankruptcy as a result of sex-abuse lawsuits, the diocese’s lay employees and retirees learned that their pension plan was underfunded and isn’t protected like corporate pension plans.

According to bankruptcy filings, the diocese had set aside less than 15 percent of the amount it needed to meet pension obligations, and now some of the pension funds are caught up in the bankruptcy.

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