Retirement Fund for Religious Newletter > Archives
A Quarterly Publication of the National
Religious Retirement Office
Spring 1999
Vol. 11, No. 2
Another record breaking year for the Retirement Fund for Religious National Collection
Director's Message
Once again, the generosity of God's people has enabled the Retirement Fund for Religious (RFR) national collection to reach new heights. Breaking last year's record of $29,111,328, this year's collection raised $30.5 million for the RFR. Ninety-one dioceses reported increases in their gifts over last year. On June 21st, our office will distribute over $27 million in Basic Grants to 498 religious institutes, and an additional $3 million will later be awarded in Supplemental Grants. With the 1999 grants, the NRRO will have distributed a total of $280,359,529 to religious institutes to support the needs of retired religious. Most significantly, Arthur Andersen's most recent financial assessment of the situation for retired religious reveals the first decrease in the unfunded retirement liability for religious orders since the collection was launched in 1988.
Of course, the tremendous success of the RFR would not be possible without the hard-work and commitment of diocesan coordinators and vicars for religious throughout the country. Their efforts to put a "face" to the crisis for retired religious have been a vital component of our progress. I also want to thank our archbishops and bishops who support the collection in their archdioceses and dioceses, and the countless pastors who each year welcome members of religious institutes to their parishes to promote the appeal.
As always, we in the national office will continue to serve faithfully all our religious institutes committed to securing the future for their elderly religious. In an effort to improve efficiency, our office recently underwent a major database conversion. I would like to thank associate director Br. John Patzwall, FSC, for his dedication in overseeing this vital and very challenging project. I am also grateful to our consultants, Brother Donald Dimitroff, FSC, and Mike Keder and to NRRO staff members, Sr. Janice Bader, CPPS, Sr. Andrée Fries, CPPS, and Monica Glover for their work to complete this undertaking.
Best wishes to each of you for a summer filled with reflection, recreation and renewal!
Sister Mary Leahy, SP
Brother John T. Patzwall, FSC
The normally active pace of office activities intensifies as the new year begins since that is the time we mail out the annual survey and eligibility form to religious institutes. We added sixteen new institutes to the eligibility list this year as part of our goal to make our services available to all institutes that need retirement financing assistance. Thus, this year surveys were mailed to 899 institutes of men and women religious with 712 responding. I am assuming and praying that those who did not respond can be counted amongst those who are adequately funded for retirement purposes. Any statistics reported, however, will be based only on the actual respondents.
NRRO Staff Members: (from left to right)
Brother John Patzwall, FSC, Sister Janice Bader, CPPS,
Sister Mary Leahy, SP, Mrs. Monica Glover, Sister Andreé Fries, CPPS
Once the materials are received back in the office, they are entered into our database. This year we migrated our data from the old Rbase program to Access, and that is a story in itself for another time. Let me just add, however, that I am personally grateful to our own NRRO staff members, Sisters Janice Bader, CPPS, and Andrée Fries, CPPS, and to Brother Donald Dimitroff, FSC, and Mike Keder, our computer consultants, for their invaluable assistance in all the systems activities related to this year's survey and Basic Grant awards. Monica Glover, Staff Assistant, helped with the data entry work as well.
Grants
Of the institutes that responded, 178 declined a Basic Grant this year, thus becoming contributors to the Retirement Fund for Religious by making more funds available for institutes with greater needs.
The remaining 534 institutes applied for a Basic Grant. Grants are awarded on the basis of relative need which is calculated by our formula based on the national weighted average cost of care and the adjusted assets the institutes have available for their retirement needs. The average cost of care in 1998 was $21,219, representing an increase of about six percent over the $20,105 reported in the prior year.
Application of the formula to the database indicated that 31 of the institutes requesting a grant were already adequately funded for grant purposes only. They will not receive a grant this year. Five additional institutes received grants directly from the dioceses which exceeded their calculated NRRO grant. That left 498 institutes as recipients of 1999 Basic Grants which totaled $27,225,000. The grants, which will be distributed on June 21st, vary in size according to need. The smallest grant is about $1,000, and the largest, to the institute with the greatest need, is over $880,000. These grants will all be detailed in our forthcoming Annual Report.
Since 1989, $228,044,587 has been awarded to women's religious institutes in the form of Basic Grants and $30,353,679 to men's institutes. Another $21,961,263 has been awarded through NRRO's other grant programs. Additionally, $3,000,000 in Supplemental Grants will be awarded in December. A remarkable 98.8% of the contributions to the Retirement Fund for Religious have been given directly to religious institutes for their retirement needs in the form of grants. The promotion of the National Collection and the office operations have been funded by the balance and the earnings from temporary investments.
Survey Results
There is always some interest in the confidential data which we collect so we try to share some of it in a more generic form.
Seven hundred and six of the responding institutes returned data this year; the six others simply reported that they were declining a grant. The number of religious in the database reflects the census reported to us by the institutes using a December 31st deadline.
The number of religious women in the database this year is 73,578. Of that number, 36,881 or 50% are age seventy or above, and 97.11% of those in that age group are receiving Social Security benefits.
The number of religious men is 17,564 with 32% (5,673 priests and brothers) age seventy or above; 82.73% of those are receiving Social Security benefits.
The average annual Social Security benefit for a religious was $3,329.41 in 1998. The benefit is based on payments into the system. Since the average cost of care for religious is $21,219, that means on average religious institutes have to fund $17,889.59 per member over seventy from their own resources. The average US beneficiary, on the other hand, was receiving $9,360 per year in Social Security, according to the February 1999 statistics reported to us by United States Catholic Conference's Department of Social Development. The eligibility form asks the institutes to report their median age. The average median age reported by the women's institutes was 67.87; the men reported an average median age of 61.73.
A final item, one around which there is much interest as we try to gauge the effects of everyone's efforts to address retirement needs, is the amount of unfunded past service retirement fund liabilities. This is the amount of money that should be in the retirement funds but is not there at the moment. Based on the 1997 Survey, our consultants, Arthur Andersen, were able to report for the first time a decline in this amount from $7.9 billion in 1995 to $7.0 billion in 1997. Our own analysis of this year's data indicates a further decline to $6.8 billion. This is based on each institute's designated retirement assets. The picture is even brighter when all available assets that might be used for retirement are included. The good news is that progress is being made. The challenge is to continue to address this situation until it becomes manageable. We and numerous religious institutes will be collaborating to do just that, gratified that we will have the continuing support of the bishops and our faithful and generous contributors.
The Retirement Fund for Religious has collected $286,625,375 to support the needs of retired religious since the appeal was launched in 1988.
Sister Andreé Fries, CPPS
Perhaps you have seen the commercial with the little squirrel using post-it notes to keep track of where he has hidden the many nuts he has so carefully collected. The squirrel has done a great job of gathering and storing the nuts for winter, but how will he know when to start using them? If he begins too early, he will be hungry before spring. If he begins too late, he may be needlessly hungry now.
We here at NRRO often hear a similar question, "When should we begin using our retirement fund?" That is a really good and not so simple question. Like the squirrel, there is no quick and easy way to make that decision. It needs to be based on experience, common sense and good planning.
A religious institute has resources of many types, most importantly its members, associates, friends and benefactors. An institute also has a stream of income, sometimes from myriad sources, and may also have property resources. Some usual sources of income are the earnings from members, which may be decreasing as the members age, the contributions of benefactors, which may be increasing, and the return on the investment of the retirement and other designated funds, the amount of which is anyone's guess in this volatile market. Other factors that must be assessed in planning for future needs are space and property utilization given the changing demographics of the institute and the future of its ministries.
So, when should an institute begin to use the retirement fund? The answer lies in a well thought out Financial forecast which integrates all of the streams of income and expenses, as well as the potential financial impact of other resources such as buildings and land. This Financial forecast is built piece by piece on many assumptions. It is important for leadership and membership to be involved in articulating these assumptions about the future. The decision about when to begin using the retirement fund can be made only in the context of its relationship to all the other financial needs and activities of the institute over time.
One of the pieces of a good financial forecast is an actuarial projection of membership. In 1994, NRRO commissioned the William M. Mercer, Inc., Actuaries, to develop actuarial tables specifically for men and women religious. These projections are proving highly accurate and useful in estimating financial needs. NRRO also offers assistance to institutes in projecting their future financial status and viability. Through the Special Assistance and Supplemental Identified Need Grant programs, NRRO funds consultations and financial forecasting to assist in making this important decision. Please contact us for information on these grants.
The Gospel tells the story of the man who stored all of his goods in a barn and didn't live to enjoy it. For us, called to the mission of Jesus, we need be prudent in caring for our members' future but generous in our ministry to all God's people. A good Financial forecast is a tool to assist leadership in this delicate balance of allocating appropriate resources for the care of members and for ongoing mission.
Please send changes in congregational leadership, as well as addresses, phone or e-mail to NRRO c/o Monica Glover so that we can keep our records and mailing lists up to date. Thank You...
The National Religious Retirement Office congratulates Sister Laura Reicks, RSM, on her recent appointment as the Executive Director of the National Association for Treasurers of Religious Institutes (NATRI). From 1992 to July 1998, Sister Laura served as Assistant Director of NRRO, overseeing the distribution of NRRO grants and helping numerous religious institutes engage in long-range planning for their unfunded retirement needs. She has also served her own community, the Cedar Rapids, Iowa, Regional Community of the Sisters of Mercy, as Treasurer and a Councilor.
We at NRRO are delighted to have Sister Laura back in the area and look forward to collaborating with her. We send our very best wishes as she embarks on this new phase of her ministry.
If you would like to make a bequest or restricted gift to the National Religious Retirement Office, the following information should be used:
To the United States Catholic Conference Incorporated, for the exclusive purpose of assisting Roman Catholic religious orders in the United States to provide for the retirement needs of their elderly members.
Veteran readers of this newsletter and most major superiors are aware that the Retirement Fund for Religious has been extended by the National Conference of Catholic Bishops until the year 2007. We are very mindful of that fact here in the office and, consequently, have one eye on the future. There is no question that the Retirement Fund for Religious has made a difference. Moreover, numerous religious institutes have devoted much time, talent, resources and energy to addressing their retirement needs. They have done so with considerable success.
One result of all this hard work is our desire to prepare a report on Best Practices, examples of institutes successfully meeting their retirement challenges. In the next several years, this compendium of knowledge and experience will be available to assist those not yet adequately funded. We will be researching our database for these success stories, some of which are already known to us. However, we invite religious institutes that believe they can be of service as a model for others still engaged in retirement funding efforts to volunteer their stories for the benefit of others. Major superiors and treasurers are encouraged to contact Sister Janice Bader, CPPS, our Database Manager and chief research analyst (202/541-3216), with details of their successful efforts in providing for the care of their members without losing sight of their mission and ministry.
Beth Kennedy
The Guide to Funding in Aging offers religious institutes an important tool for uncovering potential sources of support for their retirement needs and planning. Published by the Foundation Center, the Guide to Funding in Aging lists more than 1050 foundations, corporations and charitable organizations with an interest in aging. This helpful resource is an excellent place to begin research for grantmakers who may have an interest in funding your project or program.
Since foundations often prefer to support organizations within their own state or geographic region, The Guide to Funding in Aging is organized alphabetically by state. Each entry provides the grantmaker's name, address, phone number and contact person as well as a summary of relevant financial data. Additionally, facts are detailed on the foundation's stated program priorities and interests, application procedures, deadlines and restrictions.
In choosing potential funders, it is important to try to select those with whom your organization shares common interests and objectives. For example, an excellent possibility for a religious institute in Washington State might be the Norcliff Foundation. Under their "purpose and activities," they specifically state that their foundation places emphasis on "....Roman Catholic Church support and religious associations...," and later "....programs for the disabled, the homeless, child welfare, and the aged,....." (The Guide to Funding in Aging, pgs. 250-251.)
In addition to specific data on grantmakers, The Guide to Funding in Aging provides several other sources of useful information for organizations seeking funds for projects related to aging. An extensive bibliography offers resources for learning more about both aging and the fund-raising process. Also included is a list of voluntary and state organizations with an interest in aging.
Of course, The Guide to Funding in Aging is just one of numerous resources available through the Foundation Center. The Guide and many other helpful reference books, including The Guide to Funding in Religion, may be purchased through the Foundation Center or reviewed for free at a Foundation Center Library or at one of their many cooperating collections. For more information on these or any of the Foundation's Center other resources and programs, contact the Foundation Center at 79 Fifth Avenue, New York, New York, 10003-3076, phone (212)620-4230. Or visit their website: http://www.fdncenter.org.
Web site: www.nccbuscc.org
National Director,
Sister Mary A. Leahy, SP
mleahy@nccbuscc.org
Associate Director
Brother John Patzwall, FSC
jpatzwall@nccbuscc.org
Project Director for Retirement Services
Sister Andreé Fries, CPPS
afries@nccbuscc.org
Database Manager
Sister Janice Bader, CPPS
jbader@nccbuscc.org
Staff Assistant
Monica Glover
mglover@nccbuscc.org
Newsletter Editor
Beth Kennedy
After more than a year of consultations with religious institutes across the country, the Collaborative Viability Project (CVP) has adapted its viability process to meet more closely the needs of individual applicants.
Established in 1996 by the Leadership Conference of Women Religious (LCWR), the National Association for Treasurers of Religious Institutes (NATRI) and NRRO, the CVP was formed as a means of helping religious institutes both assess their individual viability and plan for the future. As part of these efforts, the CVP developed A Critical Juncture, a self-assessment tool divided into two sections. Part One is a paper bound book with articles on topics such as Church law, finances, leadership and mission. Part-Two contains a self-assessment survey intended to help religious institutes discover their strengths and weaknesses in seven key areas: leadership, mission, new membership, planning, relationships, resources and risk taking. The CVP also provides consultations for participating institutes to help them interpret the results of their surveys and, based on these findings, determine what actions are necessary for continued viability.
The CVP has now taken this process a step further by finding ways that the self-assessment instrument can be adjusted to meet the requirements of individual religious institutes. Modifications of the self-evaluation instrument have included eliminating or rewording sections, selecting a few key questions in each section, or dividing the sections for committees or task forces. Organizers stress the importance of each community adapting the CVP materials to fit their needs.
Copies of A Critical Juncture, which are now also available in Spanish, can be ordered through the CVP office. Part One sells for $6.50 per 54- page book and Part Two costs $3.50. For more information, call or write the CVP office at 8824 Cameron Street, Silver Spring, MD, 20910, phone (301)587-7776, fax (301)589-2897.
The National Religious Retirement Office uses less than four percent of the national collection to promote and administer the Retirement Fund for Religious.
NRRO received the following request for assistance from Sister Maureen Haggerty, CSJ. A graduate student at Carlow College in Pittsburgh, PA, Sister Maureen is seeking a Master of Science degree in Professional Leadership, Non-Profit Corporations. She is hoping to formulate her research into an internship for her thesis work. We thought the best information might come from our readers.
As a Sister, a Baby Boomer, and a graduate student, I am seeking an answer to the question, "What are the effects of an unfunded retirement liability on Baby Boomers in religious institutes?" An extensive investigation using the Web, library databases, and telephone calls to national offices and organizations for religious has not surfaced literature or research on the subject. If you know of information or persons who have done such research, please contact me.
Sister Maureen Haggerty, CSJ
1020 State Street
Baden, PA 15005
e-mail: csjdevmh@sgi.net
Many Thanks!
| USCC/NCCB Spring Assembly, Tucson, AZ |
June 17-22, 1999 |
| Jubilee, Justice 2000, Los Angeles, CA |
July 15-17, 1999 |
| CMSM Assembly, Danvers, MA |
August 4-7, 1999 |
| LCWR Conference, Columbus, OH |
August 20-24, 1999 |
| National Communicators Network of Women Religious Meeting, New Jersey |
September 3-5, 1999 |
| National Catholic Stewardship Council, St. Paul, MI |
September 19-22, 1999 |
| CMSWR Assembly, Waltham, MA |
September 24-26, 1999 |
| Diocesan Fiscal Managers Conference, Phoenix, AZ |
September 26-29, 1999 |
| USCC/NCCB General Meeting, Washington, DC |
November 15-18, 1999 |
| NATRI Meeting, Philadelphia, PA |
November 17-20, 1999 |
| Retirement Fund for Religious National Collection Date |
December 11-12, 1999 |