Religious denominations have long provided retired clergy and staff with secure pension payments””more secure, in some cases, than corporate retirement plans.
But some recent bumps have drawn attention to the vulnerabilities of so-called “church plans,” which are exempt from federal regulations aimed at safeguarding retirement funds for private-sector retirees.
As cash-strapped states and private companies revamp, freeze or end their pension programs altogether, participants in church plans are now realizing how church plans can be riskier than they appear, observers say.
“As a group, employees in so-called church plans are far more at risk than other private sector employees,” said Karen Ferguson, director of the Pension Rights Center, a Washington-based watchdog group.