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Newsmakers

RI Treasurer Calls for Church Pension Transparency

Seth Magaziner says religious funds should have to abide by ERISA rules.

By Michael Katz

In response to the collapse of the St. Joseph Health Services of Rhode Island pension fund, state Treasurer Seth Magaziner is calling for new transparency requirements for pension plans managed by religious organizations.

Magaziner said he will seek legislation in the 2019 state general assembly session that would require pension plans managed by religious organizations in Rhode Island to send regular updates on the financial health of the pensions to their plan participants.

Magaziner made the announcement flanked by retired members of the St. Joseph pension plan, which went into state receivership last year, leaving current and retired workers to face a loss of benefits. Approximately 2,700 current and former workers of St. Joseph’s and Our Lady of Fatima hospitals belonged to the plan. 

“What the employees and retirees of these hospitals are going through is unacceptable,” said Magaziner. “All workers and retirees deserve to know the truth about their health of their retirement savings.”

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The federal Employer Retirement Income Security Act (ERISA) requires most private pension plans to send members a letter each year outlining the health of their plan. However, church pension plans are exempt from ERISA, which has drawn criticism over a lack of transparency.

“Church plans should be transparent with their members just like other pension plans,” said Magaziner.

Last month, class-action lawsuits were filed against the Roman Catholic bishop of Providence and hospital operator Prospect CharterCare, accusing them of conspiring to mislead state regulators and commit fraud. The suits said that over the last 10 years Bishop Thomas Tobin and the operators of Our Lady of Fatima Hospital vastly underfunded the hospital’s pension plan, and then conspired to conceal that fact to regulators and participants.

“Many people knew that this pension fund was unsustainable without continued financial support,” said Chris Callaci, legal counsel for United Nurses and Allied Professionals (UNAP), “and they said nothing to the 2,700 members of the plan.”

The Roman Catholic Diocese of Providence, which founded the plan, disputed the charges.

“The Diocese of Providence strongly disagrees with the allegations asserted against it in this very long and complex lawsuit,” it said, according to the Providence Journal. “The Diocese will respond appropriately to these claims and we are confident that our position will prevail.”

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Home > News > Newsmakers > Russia’s Lower House Approves Pension Age Hike
Newsmakers

Russia’s Lower House Approves Pension Age Hike

Putin’s silence leads to heavy criticism, harking back to his earlier pledge to not raise the eligibility level.

By Chris Butera

Russian protests fell on deaf ears Thursday as the Kremlin approved changes to its pension system.

Next year, the new retirement age will be raised to 65 for men (from 60) and 63 for women (from 55), and given the country’s low life expectancy (65 for men and 76 for women), many will never see retirement—let alone the benefits. Regardless, the Russian government said an age hike was inevitable as payouts under the old benefits rules are too costly for its finances.

The increase will not affect current beneficiaries. It will take effect gradually over 15 years.

The bill passed in the State Duma, Russia’s lower house, in its first reading, with 327 lawmakers voting in favor and 102 against. After public comment, the measure will return for a second reading and another vote by the Duma.

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Labor Minister Maxim Topilin, a supporter of the bill, told parliament the old pension laws were “stuck in the 1930s,” as today’s economy and life expectancy are very different from that period. Topilin told Russian news organization Tass that Russia will allocate 3 trillion rubles ($47.2 billion) to the pension program over six years.

 Prime Minister Vladimir Putin has not yet given a public statement on the reform. Lawmakers were told not to criticize the president during the discussion, Russian news outlet Vedomosti reported.

The age hike is the first in almost 90 years, creating a mass of Putin-bashing from citizens and political parties alike. Some of these groups include the Communists, Liberal Democratic Party, and A Just Russia, an anomaly as the three parties usually comply with the Kremlin while in disagreement with each other. More than 80% of Russians oppose the reform, and more than 2.8 million people have signed a petition to pull it, the French news agency AFP reports.

The pension protests have also caused Putin’s approval rating to plummet to an all-time low. Critics cite his pledge in 2005, during his second presidential term, that there would be no benefits age increases “while I am president.”  The VTsIOM state pollster says Putin’s approval ratings dropped 14 percentage points in roughly two weeks, from 78% to 64%.

Communist lawyer Oleg Smolin told the media that Putin needs to take a stance on the crucial law.

“This is one of the most important laws in the last 14 years. It cannot be debated without such an important person in our political life,” he said.

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