NEW YORK
Newsday
Updated: March 11, 2014
By BART JONES bart.jones@newsday.com
The Diocese of Rockville Centre, one of the largest employers on Long Island, is eliminating its defined benefit pension plan in favor of a 401(k)-style retirement plan for workers with less than 30 years service, church officials said.
The move, which will subject workers’ plans to fluctuations on Wall Street, affects thousands of teachers, parish workers, Catholic Charities employees and others who work in the diocese. The new 403(b) plan — the equivalent of a 401(k) for nonprofits — takes effect Jan. 1, 2015, said diocesan spokesman Sean Dolan.
“It’s something most companies have already done,” Dolan said. “We think we have done everything we can to try to be more compassionate . . . than many companies.”
He said employees who have worked for 30 years or more for the diocese will be able to fully continue with their defined benefit pension plan, in which the diocese pays them a fixed monthly sum from retirement until death.
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