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Philadelphia Archdiocese To Freeze Employee Pension Plan

(file photo)

(file photo)

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PHILADELPHIA (AP) — The Archdiocese of Philadelphia is freezing the pension plan for its lay employees, citing a need to cut costs.

Church officials announced Tuesday the decision regarding a pension plan that was set up nearly 50 years ago.

The diocese says the plan covers about 8,500 active employees, 4,400 former employees who are vested and 4,700 retirees.

Active employees will be moved into a defined contribution plan but won’t lose benefits they’ve already earned. Pensions for retirees won’t change.

A study this summer found the pension plan had a shortfall of about $150 million.

The plan will be frozen at the end of June.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)