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  Diocese's Lay Workers Fear for Their Pensions

By Maureen Milford
The News Journal
April 12, 2010

http://www.delawareonline.com/article/20100412/NEWS/4120334

After decades of working as a teacher at a Catholic school in Wilmington, she now finds herself lining up in bankruptcy court with her hand out -- along with the florist, caterer, dry cleaner and hardware store owner.

"I guess that makes her a victim of the church, too," said her husband, who did not want to speak for attribution.

The teacher is among the roughly 2,000 current and former lay employees, including teachers, cafeteria workers, housekeepers and maintenance workers, who have become increasingly alarmed about the fate of their pensions since their employer, the Catholic Diocese of Wilmington, filed for bankruptcy. On a Facebook group for diocesan pensioners, one woman wrote: "Have worked within the diocese for 39 years.......my pension better be available to me."

The lay employees are fearful that the official committee representing the unsecured creditors has interests that are in conflict with the workers'. Currently, the committee consists of seven people who are all survivors of sexual abuse.

Now, to protect themselves, a group of lay employees has written to the Office of the U.S. Trustee requesting an official committee of lay employees so that they can have a seat at the table in the Chapter 11 reorganization. The trustee is responsible for appointing creditors' committees.

The lawyer for the lay employees declined to comment, but some lay employees said privately they don't believe the committee represents them because it is made up exclusively of people whose are focused on receiving settlements as sexual-abuse victims. They are worried that money that would have gone to their pensions before the bankruptcy filing will now be thrown into the pot that is distributed to all creditors. Employees are concerned they'll wind up with pennies on the dollar in their pension checks after decades of work at modest wages.

They want their own lawyer to identify the money that belongs to the pension fund and to have the money declared separate and distinct from the diocese's assets. The employees declined to give their names because they said they fear being fired or losing their pensions.

 
 

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